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2356: Saylor Sells Bitcoin - Wall Street Misses The Real Story
00:16:36
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- [00:00]
A
Marketing is hard, but I'll tell you a little secret. It doesn't have to be. Let me point something out. You're listening to a podcast right now, and it's great. You love the host. You seek it out and download it. You listen to it while driving, working out, cooking, even going to the bathroom. Podcasts are a pretty close companion. And this is a podcast ad. Did I get your attention? You can reach great listeners like yourself with podcast advertising from Libsyn Ads. Choose from hundreds of top podcasts offering host endorsements or run a pre produced ad like this one across thousands of shows to reach your target audience audience in their favorite podcasts with Libsyn Ads go to libsyn ads.com that's L I B S Y N ads.com today,
- [00:42]
B
sailor sold bitcoin. Oh my God. What are we gonna do? It's the end of the world. I knew he would sell. He deceived all of us. And the Internet just lost its mind. But the problem is, almost nobody understood what they're looking at. So let me share it with you, what's really going on. Sailor did sell bitcoin. It is true. And bitcoiners immediately panicked. The problem is the people panicking didn't understand what really happened. Because this wasn't just the bitcoin sale. It was a message. And almost nobody caught it. Why? Because while everyone was focused on 32 Bitcoin, they completely missed what the sale revealed about strategy, Wall street, and the future. A bitcoin. Think about the numbers. Strategy currently holds 84376 Bitcoin. That's after the company just sold 32 Bitcoin this week. 32. That represents roughly 0.38% of their entire position. Yet headlines spread across the Internet like wildfire, as if Sailor had suddenly changed his mind about bitcoin. But guess what? He didn't. In fact, weeks before this happened, Sailor addressed the exact scenario. Here's what he said verbatim. Even if we sell one bitcoin, we will buy 10x to 20x more. In other words, the sale was never the story. The story was what the sale exposed. For years, Legacy finance has struggled with a strange problem. How do you value a company holding tens of billions of dollars worth of bitcoin on its balance sheet? Because under traditional accounting frameworks, the market often treats those bitcoin holdings as if they don't truly fully exist. That's the part most people miss. Strategy isn't sitting on a few thousand bitcoin. It literally has 843,706. But who's accountant besides the Fed chair? Nipinator. More than 4% of the entire supply. Yet many analysts continue valuing the company through outdated lenses. So what happens when a tiny amount of bitcoin is sold? Suddenly the market is forced to acknowledge the asset is real. It has liquidity, it has value. It can be converted to cash. It can support a balance sheet. It can function as a corporate reserve asset. And think about how absurd this is. Bitcoin literally fell thousands of dollars because a company holding more than 843,000 bitcoin sold 32. That's like focusing on a single drop of water while ignoring the entire ocean. And while the headlines focus on the sale, almost nobody focused on what happened next. Michael Sailor already explained it. Strategy intends to remain a net buyer of bitcoin. Not this quarter, not this year. Forever. That's the message. And that's why 32 Bitcoin matters. Not because of the size, but because of what it reveals. Meanwhile, the bigger story continues unfolding. UBS just announced, which is a massive banking giant which manages roughly $5 trillion. They say the wealthy clients are now allocating up to 5% into BitCo, Bitcoin and crypto. Black Rock's Eye Bit still holds 817,000 Bitcoin strategy 843,000. And according to Ledger, between 2.3 million and 3.7 million Bitcoin have been permanently lost. Meanwhile, the market is still arguing about 32 bitcoin while institutions are positioning for hundreds of thousands. That's the disconnect. People see a tiny transaction but miss the structural trend. Because the future of bitcoin won't be decided by one sale. It'll be decided by who continues buying. And if Sailor follows through, the 32 Bitcoin sale won't be remembered as the moment strategy sold bitcoin. It'll be remembered as the moment people completely missed what was really happening. So here's the question. If strategy sells 32 bitcoin and buys back 10 to 20 times more, did anything actually change? Or did the market simply panic for no reason? Welcome Bitcoin fam, to the number one bitcoin pod. And happy first of the month. So if 32 Bitcoin wasn't the story, then what was? Because Sailor didn't spend years building the largest corporate bitcoin treasury in the world just to change his mind over 32 bitcoin. Something else was happening. Check this out. So, yeah, Sailor did sell 32 Bitcoin worth 2 1/2 million he has been on record for many years saying, never sell your bitcoin. So a lot of people are panicking, like, why in the world would he sell? But let me get down to the bottom of this. Sailor said this. Even if we sell one bitcoin, we will buy 10 to 20 times more. It should be a non issue after people understand it. And he said this weeks ago, so we all knew this was coming. He says, we'll be a net buyer every month forever. Check it out.
- [05:28]
C
I'm very famous for saying, never sell your bitcoin. And that's why the Internet went crazy when we said we might sell it. But if I was being more precise, I'd say, never be a net seller of bitcoin. It just wouldn't have been so viral or so catchy to say, never be a net seller of bitcoin. I think that in these periods, even if we were to sell one bitcoin, we'd be buying 10 to 20 more bitcoin. So you're really talking about a situation where we buy 10 bitcoin, sell 1 bitcoin, buy 9 net bitcoin, and continue to create bitcoin. It should be a non issue after people understand it. But right now it's a colorful area of commentary.
- [06:03]
B
So, yeah, so he telegraphed us a while ago, and if you've been religiously watching the podcast, we knew it was coming. And there's a bigger picture behind why he sold 32. Obviously he could have sold none and did something else strategically. So I think he's a very smart man. And there's more to the story and I want to dive into it right here. People are freaking out because Strategy sold the 32 Bitcoin, which is 0.0038% of the 843,000 Bitcoin stack. Jeff Walton just explained the real issue. Listen up. Legacy finance is still treating billions in bitcoin on the balance sheet like it's worth zero. So Sailor sells a tiny piece, converts it to cash, and forces them to admit the bitcoin asset is real. Check this out. Today's episode is brought to you by Cash app. If you've been listening to the show for any length of time, you already know we talk about bitcoin every single day. But one thing I have learned is that a lot of people still put off getting started because they just assume buying bitcoin is complicated. The reality is that getting started can be surprisingly simple. If you've been curious about bitcoin but haven't made the jump yet, Cash App makes it easy. You can set up automatic purchases with zero fees or buy larger amounts also with zero fees. Start small or go bigger. It's designed to be simple. Either way, for a limited time, new customers can get $10 added to their balance. Just use code CASH APP10 when you sign up. And don't forget this part. Send at least $5 to a friend in the first two weeks. Terms apply. Cash App is a financial services platform, not a bank. Banking services provided by Cash Apps Bank Partners Bitcoin services provided by Block Inc. Bran for additional info, see the Bitcoin disclosure at Cash App Forward Slash Legal Podcast.
- [07:52]
D
All of this has happened so far with the Global banking standards providing zero credit for Bitcoin as capital on a balance sheet. Zero. The S&P 500 gave strategy a B minus issuer rating and they valued the $60 billion of Bitcoin on their balance sheet at zero.
- [08:06]
B
Which actually seems like an opportunity because if you as an investor don't value
- [08:11]
D
that at zero, you value greater than one. Greater than one. All of a sudden there is an edge there. That's probably the last legacy hurdle that if that changes the scale of capital that's going to come into Bitcoin is absolutely astronomical.
- [08:26]
B
They just hit the nail on the head. Saylor just did the ultimate chess move by validating Bitcoin on the balance sheet. So now the banks and Wall street have to recognize that. So brilliant move in my opinion. And I always believe if Saylor makes a move, there's rhyme and reason to it. Obviously he could have sold more bitcoin, but maybe it's also like a test to see how the market reacts while also validating Bitcoin on the balance sheet so it can actually be used and not counted as zero. Also breaking news. Coinbase Chief Policy Officer says the Clarity act is very close to getting done. I know JP Morgan want to get into it. Every other big bank wants to get into the crypto sector. It only took the big bank 17 years to finally understand Bitcoin. But here's the thing. The Clarity act is a big deal. It gives the institutions and the banks access where the big pools of capital can finally start allocating into Bitcoin and turn this nascent market of 1.5 trillion today into eventually worth hundreds of trillions of dollars. That's going to be the Bitcoin network in the future and it's going to be a hell of a ride. So fasten your safety belt. Next up, trillion dollar banking giant UBS says its rich clients are now allocating up to 5% into Bitcoin. Yeah, Smart money knows the bigger picture here is the banking giants which control trillions of dollars worth of capital are allocating into bitcoin and suggesting allocations to their clients up to 5%. And we don't need everyone to adopt bitcoin to see a drastic shift in the price action. Just the right buyers, right? And just a handful of the right people who are absorbing supply and who are never going to sell. And I was going to reference Sailor, but I'm like, damn it, he just sold. But then again, it was only 32 bitcoin. Very insignificant. But at the same time, the bigger picture. Keep your eyes on the prize. What did Rocky's trainer say? I think his name was Mick. I am the Tiger Rock. But this is coming from Ledger. They reported 2.3 million. The 3.7 million Bitcoin permanently lost. This means at least 11% of the total supply gone forever. And I believe this is most likely going to be a conservative estimate. If I was to speculate, I'd say probably closer to 4 to 5 million bitcoin loss and will never move again. And that includes Satoshi's infamous 1.1 million stack. But you let me know your thoughts, but really let that sink in. At least 11% of the supply evaporated forever, which means there's a lot less than 21 million bitcoin out there. And it's only going to continue to shrink and become more scarce because they can never print more or create more. And that's a beautiful thing. Unlike fiat monopoly dollars which can be printed out of thin air, devaluing the currency, leading to inflation. All that are good tailwinds for bitcoin because the more money they print, the more valuable scarce assets like bitcoin become. Now breaking news. Cnbc just reported SpaceX $2 trillion IPO is going public in days. They disclosed holding over 18, 000 bitcoin. And also there were rumors they may merge with Tesla. And if they did, that'd be a combined balance sheet of over 30, 000 Bitscoin. All right, I'm gonna be straight up, she lost me as soon as she said building a colony on Mars. And to address your question, Chemo and Jimbo, I agree SpaceX is a joke. And no, they have not got a rocket past the firmament yet because God created the earth that way where it's impossible to penetrate. But that's a topic for another conversation. What are your thoughts, fam, on this big ipo? And obviously it's a holder of bitcoin. So they're one of the larger companies. This is going to be, I think, the largest IPO of all time. So it's kind of a big deal. Michael Saylor strategy did announce they did sell 32 Bitcoin. This is true. A whopping $2.5 million sale. But here's a saylor on CNBC.
- [12:33]
C
Well, I think the passage of the Clarity act will be a big deal. I think even in the absence of that, the release of guidance that lets you tokenize securities and sports digital assets out of the SEC innovation exemption, that would be a big deal as well.
- [12:48]
B
You bought more than was mined this year for strategy.
- [12:51]
C
Yeah, we have. Yeah. The formation of digital credit means that the credit market itself is absorbing all of the organic supply of bitcoin from now to forever with our company will probably buy all of the bitcoin gets produced by the miners between here and the year 2140. Then there's no more bitcoin.
- [13:07]
B
That is wild. He just claimed all the bitcoin supply from now into the year 2140 belongs to him. Is it going to continue to buy it all? It's pretty crazy. But the craziest part, I don't think he's bluffing. What are your thoughts? He just posted this today. Our goal is to make STRC the best credit instrument in the world. And if you're not familiar with stretch, it pays that 11 and a half percent annual dividend. And they raised over $10 billion in their first 10 months. And that's how they're able to purchase so much bitcoin. It's like an infinite money glitch. And they're tapping into a market worth hundreds of trillions of dollars with digital credit. US Senator Cynthia Lummis casually explained how you can store bitcoin in your brain during the legislation markup. She says it provides people who are being tortured in foreign countries the opportunity to walk away with their money in their head. Because bitcoin can be memorized. Check this out. This is powerful. This is when she was speaking to Congress.
- [14:03]
E
This is a pro law enforcement bill and it's also a pro consumer bill. Consumers can now transmit money between them faster and cheaper than they can now. It provides a level playing field regardless of whether you live in Rwanda or Queens, New York. It provides a woman who's trying to get out of a battered, miserable marriage the opportunity to walk away with her money in her head. It provides people who are being tortured in foreign countries the opportunity to walk away from that country with their money in their head because bitcoin can be memorized.
- [14:43]
B
And that speech was so powerful by Cynthia Lummis. I have nothing to add. Brilliantly articulated and so true and I'm so grateful that it did get passed by Congress. So shout out to Cynthia Lummis for everything you're doing for the country and for bitcoin innovation so we can move this country forward. And next up it has to pass the Senate and the House which supposed to happen this summer and if it does it gets signed by President Trump and that'll be the game changer which opens up Pandora's box to these massive pools of capital to start flowing into bitcoin. Strive. Hate cleaning, hate scrubbing, hate dishwashing. Bro, we got you millions of videos about smart cleaning hacks will make your chores feel like a breeze. Download TikTok and check it out. Asst. CEO Matt Cole just said digital credit represents the biggest story in bitcoin. Bigger than the ETFs. 1% of the $300 trillion fixed income market is 3 trillion more than Bitcoin's entire market cap today. Correct. It's literally double. Check it out.
- [15:49]
F
The TAM is really about as big as you possibly can imagine. I think the most credible estimate was about $300 trillion. You think about what that means 1% of that and I think it's the best product within this $300 trillion set. But if you only had 1% of that, that's $3 trillion. That's more than the market cap of bitcoin today.
- [16:09]
B
And I agree. I think digital credit is much bigger than the ETFs and he's obviously following the Saylor playbook tapping into digital credit. It's a massive market. Understand store value markets such as gold is very limited at 34 trillion. We do have a new retart of the day. He goes by the name of Clavicular. He just went off on bitcoin. I haven't even listened to this yet. You're going to get a genuine reaction. Calls it effing garbage and a piece of ish. I am not a fan of this kid. I predict he's going to end up in prison for a very long time because he does these really live streams. Breaking the law which is pretty much self snitching and he's already picked up many charges which is really stupid. He's a very young kid and it's sad that the youth look up to people like this. But I'm not surprised he's bashing bitcoin let's check it out.
- [17:01]
G
I bet half the people are on suicide watch. Remember go back literally a month ago when me and Sneako were collabing, sitting at the restaurant, talking about bitcoin and I'm like, bitcoin is dog shit. Bitcoin. Don't trust this garbage. It's a horrible investment. And everyone in the chat's like, bro knows nothing. Bro's a like, don't listen to this kid. He's got no idea. Like vindicated. Jesus. You guys are a bunch of clowns for buying into this and for this
- [17:29]
B
of the day, I'm going to go to the comments. Let's see what you guys have to say regarding Clavicular's speech here about bitcoin. But clearly the youth are being deceived by retards just like this. And it seems they have a vested interest in fudding bitcoin because they don't want you to own it. He called it on himself. Exactly. Clav rates, guys, says it all. I agree with you, brother sailor. Selling 32 bitcoin. Do you think this is the doomsday scenario? The Fudsters, the Peter shifts, the Dan Penas and the bears have prophesied for years? Or is this a strategic smart play? Did anything actually change? And don't forget to check out bitcoin news alerts.net for the full premium experience with video and to participate in the live stream along with the Q and A. And I look forward to seeing seeing you on tomorrow's episode Hoddle.