On Thursday, Strategy and Michael @Saylor released a massive earnings report:
🚀 $10 billion profit
🤑 $14 billion operating income
đź’° $32.60 EPS
But that’s not all that stood out… 🤔
The company also announced a radical new capital markets strategy…
It doesn’t want to take on new debt to fund its bitcoin purchasing strategy.
It can do this because of its ability to tap into the preferred equity market, which provides some key advantages
âś… Less shareholder dilution
âś… No risk of having to sell bitcoin during a market downturn
But other crypto treasury companies are unable to follow this new version of the Saylor playbook, at least for now.
In fact, many crypto treasury companies are leaning heavily into debt
ProCap - $235 million
Twenty One - $485 million
But, this Saylor pivot provides something to shoot for, says Lance Vitanza, Managing Director at TD Cowen 🎯
“It’ll be common for these companies to begin their journeys in the bond market, and hopefully some of them will grow large enough to access preferred equity markets.”
Read the story and watch the full interview with Lance Vitanza by @steven_ehrlich here:
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