Michael Saylor's Infinite Money Glitch JUST Collapsed.

What is going on with Bitcoin? Michael

Sailor's strategy, and is it true that

Stretch is offering you a 10% yield when

you invest in Michael Sailor's preferred

product? [music] In this video, I'm

going to break all of this down and

finally answer the question, is this a

giant Ponzi scheme? And when is the best

time to actually buy Bitcoin? Per my

opinion, # don't sue me, bro. Let's get

started. First, take a look at this.

This is a massive trend line that's been

going on since October of 2024 23

actually. In fact, this trend line has

been a strong trend line that really

started in January of 2023.

But it's not charted here by the

marketeer. They just started on October

of 23. And we can see this trend line is

just now starting to be broken, which

isn't great. And it's leading a lot of

people to wonder why. What's going on?

Well, if you look at the correlation

between Bitcoin, Oracle, and Nvidia,

it's actually quite uncanny that Nvidia,

Bitcoin, and Oracle have all been moving

down at the same rate, which somewhat

suggests that there's some sort of

coordination or at least connection

between risk assets and liquidity that's

available in the market. I mean, after

all, if we look at the acquisition of

Bitcoin by Michael Sailor, we could see

that the vast majority of Michael

Sailor's Bitcoin buying is upside down.

Okay. Well, that's at least for 2025.

Obviously, their average cost per

acquisition per Bitcoin is somewhere

around 75,000. And given that we sit at

about 86,000 right now, it means we're

technically positive on Bitcoin

acquisitions about 15% over the last 5

years or so, which yeah, leave something

to be desired. But that's okay. We know

what the strategy is. It is to sell

stock to buy Bitcoin. But what's odd is

the days that we are actually positive

on our Bitcoin acquisitions are these

dates right here. So if you look very

closely, you can see the only dates were

actually positive based on the average

price paid for Bitcoin are right here.

That would be March 17th, 24th, 31st,

and April 14th. The problem is two of

these dates were some of the smallest

acquisitions of Bitcoin with just 11

million acquired on March 17th and 286

million acquired on April 14th. Whereas,

when we look at some of the other

acquisitions that are going on, we could

see, well, we've got a billion dollars

on June 16th at 104,000, $2.4 billion

worth at 117,000,

almost a billion dollars worth both at

90 and 92,000. And it begs the question,

why does it seem like Michael Sailor is

always buying at the top of the market?

It's almost like he just doesn't have

enough liquidity unless

well, frankly, Bitcoin is going up.

That's when he seems to have more

ability to break the egg of Micro

Strategy stock to buy more Bitcoin. But

that creates an odd strategy because

that means you're buying small low, but

you're buying big high. That's seems

like the opposite of what we should be

doing. But part of that is possibly

because Michael Sailor kind of sets the

market. See, here's a chart showing you

the moving average of the price of

Bitcoin and Michael Sailor's purchases.

And you can see we're probably plus or

minus about zero on this chart. And in

the last quarter of 2025, almost every

single purchase we've made has been

above what Bitcoin is actually trading

for right now. And rightfully so. Some

people are starting to get kind of

pissed about this. They're like, "Yo,

like what are you doing?" In fact, if

you look at Michael Sailor's last post,

he says, "As of 5:03 this morning, and

since he's in Florida, presumably this

was about 8 a.m. on December 15th,

that's today, Monday morning, Strategy

acquired 10,000 Bitcoin for almost a

billion dollars at a cost of 92,000 per

Bitcoin." And you can see right here

we're at 86,000. So, you know what? What

happened? And if we go jump on over to

uh the price of Bitcoin and we go out to

the 1 hour chart, it certainly seems

like Michael Sailor kind of got had.

He's buying even bel he's buying on top

of this bump right here. So it seems

like he's buying more over here at the

top of these valleys suggesting that

he's not buying in valleys, he's buying

the peaks or potentially he is the peak.

See, it's possible that because he is

the largest supporting factor as crypto

quant tells us, well, frankly, crypto

treasury buying has kind of evaporated,

which kind of leaves Michael Sailor's

strategy to do all the heavy lift

lifting. In that case, is it possible

that Michael Sailor himself buying is

creating the very cliff that he is

creating his average upon? In other

words, he puts in his buy orders, pumps

the price to 94. Yeah, he got some at

91. He got some at 94 and he's averaging

92. Basically creating these shelves.

And as soon as his buying power goes

away, what happens? The whales use the

pump as exit liquidity. This begs the

question of is Michael Sailor's Bitcoin

yield strategy sustainable? In fact,

people seem to be getting pissed, at

least in the comments. You have second

time buying over 10k Bitcoin and the

price is still below 90K. Unbelievable.

Somebody else goes, "How TF is your

average always above the current market

price?" Well, part of that is possibly

because he is the only whale buying

right now, which again, is that because

of Bitcoin or is that because of a

sell-off uh due to a lack of liquidity

as a result of private credit wos

because of scammers like first brands

screwing the private credit market? So,

all of a sudden, the private credit

market is seizing up and now the banks

are seizing up lending to private credit

and as a result other companies are

trying to hedge their exposure to data

centers and AI. Oracle CDS's are

skyrocketing. Oracle bonds are falling

off a cliff and people are kind of like,

you know what, I'll hold on to my money

right now. You know, I'll just wait. And

maybe that's why these things are all

selling off together. Or who knows,

maybe people are trying to diversify

into other things. Like you could make

the argument that some people are going

to diversify into Stretch, which is one

of Michael Sailor's preferreds. But we

have to talk about that because there's

also the potential that is not what it

appears and that it's actually a really

big trap. Now, given that there are a

lot of tweets that Michael Sailor posts

in terms of when he's buying, it's

obvious that we know that we can pretty

easily chart when they're buying with

even the daily prices. See, that's what

I've done here is I've gone from this

moving average chart to these daily

price charts. And frankly, it just

doesn't look any better. The reality is

Michael Sailor either pays market value

or uninflated market value because he's

pushing the price of Bitcoin up himself,

leading to a negative Bitcoin yield. And

this is a fact. Now, I'll explain

Bitcoin yield in just a moment, but it's

worth pulling up the chart just so you

know that what I'm saying is not out of

thin air. Michael Sailor literally tells

you their Bitcoin yield has gone

negative on his own website. Here it is.

Yeartoate Bitcoin yield or sorry uh year

annual Bitcoin yield in 2024 74%. 2025

year to date it's under 25% in quarter

to date we have actually gone negative

on the Bitcoin yield. This could be a

problem but it could also just be a

symptom of the way that Michael Sailor

buys. See, because Michael Sailor props

up his own market value, he's pretty

much always buying at either market or

above market value. Now, if somebody

were buying at, let's say, a 20%

discount, like a Warren Buffett, who was

taught under the premise of Graham and

Dodsville, if you've ever read the

books, you know about Graham and

Dodsville, and you know that you

generally want to buy at a 20% below

market value price. And that would be

all of these green diamonds here. So if

you were buying with a 20% margin of

safety, you would be buying at all these

green dots rather or diamonds rather

than these red circles. But the problem

is there really isn't a wedge or

discount that you can get for Bitcoin

because it is a commodity. Every Bitcoin

is the same and yes, there is a limited

supply, but it's hard to argue that for

some reason Bitcoin should be selling at

a discount to its current fair market

value. Now, this is different than the

principle of real estate. And I'm not

trying to show real estate. I'm just

trying to make an example for you

because people hate real estate so much.

In fact, I would argue that 98% of you

watching this video hear the word real

ESTATE AND YOU'RE LIKE, [screaming]

"WHY WOULD I DEAL WITH TENANTS AND

TOILETS? WHY WOULD I DEAL WITH MOLD AND

WATER DAMAGE? Why do I want to DEAL WITH

THIS KIND OF CRAP?" I get it. It's a way

easier to transport your money and to

hodddle your money in Bitcoin and to

acquire Bitcoin because it doesn't take

any effort. You can do it at scale. Like

Warren Buffett himself says, real estate

is hard to do at scale. I mean, look at

this. Who wants to Who wants to buy

this? Look at the mold. Look at this

mold. Look at the damaged pipes and the

damaged drywall. The baseboards are

rotten away. This is disgusting. Who

wants to live in this? Who wants to buy

this? The answer is nobody. And uh well,

generally nobody. You have to have some

crazy balls to buy stuff like this. Now,

if you do buy stuff like that, you can

usually buy within what we call the

margin of safety or a wedge deal. And

that's what we're doing with our real

estate AI to try to educate people and

show people where they can get those

deals using our AI. But that's really a

topic for a different video. We just

raised a million dollars in the last

three business days just for that

startup. You can learn more about that

at houseack.com. But what we really need

to talk about are some of the facts

related to Bitcoin and STRC. So remember

Michael Sailor is buying essentially at

his own created market value. The

problem with this is we have now created

our first ever death cross on IBIT. Now

IBIT is a brand new Bitcoin ETF. I mean

relatively within the last few years. So

of course it's going to happen at some

point and it seems to be aligning with

the riskoff momentum we're seeing in

artificial intelligence. At the same

time of this negative price momentum, we

have had the most bearish start of a

having cycle since January of 2023.

Treasuries are no longer a reliable

support of demand. And a lot of people

right now were just waiting for frankly

a bailout from Donald Trump that we're

going to get some kind of strategic

reserve. And this is where the hope of

STRC comes in. People love the idea of

STRC, a essentially stock that offers

you approximately a 10% yield as a

perpetual. Now, this gets pretty

complicated pretty quickly, but it's

important to know just mechanically how

this works on a simplified manner. The

idea is that STRC should always be

trading for $100. And if it's ever

trading for under $100, it should be

offering a higher dividend yield to try

to encourage people to bid it up to

$100. So that way 10% is what you get

when you pay $100 per share. If you're

paying less than that, you might get a

higher dividend yield. If you're paying

more than that, you'll get a lower

dividend yield. And the theory is if the

market's always going to demand a 10%

dividend, then they'll sell it when it's

above 100 and they'll buy it when it's

below 100. The problem is we just had a

really big test of this perpetual. See,

this perpetual has only been around

since July 28th. So, this is a

relatively new security. We don't really

know how this is going to perform in a

recession or a market collapse or some

kind of poopy dupy. We don't know. The

best example we actually have is what

happened recently. Recently in the last

two weeks of November, 2 and a half

weeks of no November, we ended up seeing

the price of STRC

dep essentially from $100 all the way

down to 8970.

And the only reason we really started

stabilizing, even though we got back to

94, 95, the only reason we really held

on to even that was because Michael

Sailor ended up promising a Bitcoin cash

reserve to pay the dividends. It's not

really a Bitcoin cash reserve, it's a

USD cash reserve, right? So, Michael

Sailor announced the formation of a

$1.44 44 billion USD reserve to increase

how much cash they have available to pay

dividends on pers like STRC. And this

was a tool to try to prop up the value

because STRC just went through a pretty

serious DEG shock. And frankly, that

DPEG shock happened during the same time

that the NASDAQ 100 is, I mean, I hate

to say it, but barely off all-time

highs. If you look at the NASDAQ 100

right here, uh the proxy for it, the

triple Q's, we could see we got all the

way down to about 580 on the NASDAQ. And

if I divide 580 by all-time high here,

637, that's a decline of about 9%. 9%

isn't even a correction. It's certainly

not a bare market. So, we're down 9%

from all-time highs on the Q's. And

we're already seeing this nearly 11%

DPEG on STRC and this panic requiring uh

well, a 1.4 $4 billion cash reserve to

prop up STRC. Now, why would that be? I

mean, if it's as good as a banking

product, why would you have to prop it

up? I mean, after all, Michael Sailor

keeps comparing his products to banking

products. Says, "Imagine a bank powered

by Bitcoin." And then quote tweets, his

images going, "Look, STRC or Stretch

Your Income. Earn 10% or 10.5% dividends

paid out monthly." This is obviously an

annual yield paid out on a monthly basis

and it's predicated on the idea that in

his opinion stretch is safe. But we've

heard many times before people tell you

that your investment is safe and people

believe that their investment is safe.

But the question is is your investment

actually safe? And that's where I'm not

going to opine on this. I'm going to

give you just the facts directly from

the perspectus of STRC. Now, mind you,

Micro Strategy right now is selling for

a discount. We have a $47 billion market

cap company that has $57 billion of

Bitcoin. So, the fact is a lot of people

look at Micro Strategy and say, "Wow,

we've kind of gone like full circle over

here back to 2024 pricing. maybe even as

you know well yeah 24 pricing is is

about accurate you know is there a risk

that STRC could go down as well I mean

of course we have seen it go down before

but it's since come back to about 97 but

what does the perspectus actually tell

us about STRC okay well let's get into

the actual details of it and then we'll

explain why Bitcoin's yield is

evaporating okay so the first thing that

you have to understand is the following

although STRC C is senior to our class A

common stock. Class B common stock, 8%

series A perpetual strike stock. Uh,

okay. This is basically a breakdown of

what you're senior or junior to, right?

Gives you a breakdown here. Now, I'm

going to translate this in English. In

English, my little translation down

here. Mind you, you could get this

totally for free in the Meet Kevin app.

Like, I know this is a this is going to

be a little hard to follow. I want you

to know this. If you are investing in

this, I'm not trying to sell you

anything. If you want these exact notes

here, you could get these notes

literally for free. All you do is you

download the Meet Kevin app and you can

see these notes and if you scroll to the

bottom, you'll actually see the very PDF

that I have annotated. You'll see that

right here. So, we'll talk about this

Bitcoin yield going down, but you'll

also see this link right there. Full

STRC perspectus with Kevin annotations.

Just download the Me Kevin app. You get

that for free. Okay. So let's explain

this. STRC is junior to our liabilities

of our subsidiaries and STRF.

Okay, got it. And we're senior to class

A, B, uh, STRK and STRD. These are

different instruments or securities,

right? Okay, got it. So let's try to

organize this. What we know is we are

junior to micro strategy debt and to

strife debt. Got it? So, let's see how

much that debt is as of this July 29th

filing. Okay. Well, here it is. And this

is all their documentation. This is not

me saying it. I'm translating exactly

what they're saying in simpler ways. As

of July 29th, excluding intercomp

indebtedness, we had approximately 8.24

billion in aggregate debt outstanding at

Micro Strategy. Okay. So at strike you

are behind 8.24 billion in debt. So 8.24

billion in debt has to get paid before

liquidation. Now obviously they owe more

they have more Bitcoin than that. So

maybe it's not a problem as long as

Bitcoin's valuation stays positive,

right? Because if they had to start

liquidating Bitcoin, there's always the

concern that there'd be some kind of

cascade effect to the price of Bitcoin.

So Strike doesn't get paid out in a

liquidation unless that 8.24 24 billion

is paid out. Now, they also need to see

the strife money paid out, which is

about $1.1 billion. So, in total, you

need about $9.3 billion of debt to be

paid out before a single dime of

liquidation money will ever go to a

stretch shareholder. Now, that's very

important to know because if on one hand

you're calling this a bank and then

you're saying, "Yeah, hey, you guys are

part of a bank that has a $488 million

market cap." Uh, just know you're behind

everybody in line to the tune of $9, you

know, $3 billion. You should be aware of

that. Again, here is STRC right here on

Weeble. Market cap $488.5 million. Okay?

and we are behind all of that debt. So

basically, if you're buying STRC,

you're basically guaranteeing Michael

Sailor's debt at Micro Strategy in STRC

because you're taking it in the face

first before Michael Sailor does at his

main source of income. So STRC feels

like you're getting a big yield, but in

part that's because you're agreeing to

take on the big risk first at STRC. Now,

Michael Sailor goes on to say that,

well, STRC is actually tax preferred.

You know, we have these really clutch

tax strategies to make it so that you

don't have to pay, you know, income

taxes on these yields, right? Here's how

that works. STRC is giving you a return

of your capital. He's paying you back

your investment money. When you return

capital contributions that people have

made to your company back to them, the

government doesn't tax that because

people already t paid taxes on the money

they invested with you. So, of course,

you're not paying taxes because you're

just getting your very own money back.

So that means the money that is going

into STRC that is being paid out tax

preferred because the company doesn't

make any money is just paying back the

very money that investors are putting

into the company. Now some say there's a

word for this, you know, like you're

paying out yield based on money that

people are putting into the company, not

on actual earnings of the company. and

then you're disguising it as tax

preferred because well you're just

giving people their very own money back

and calling it a banking yield

effectively. He's implying it's a

banking yield. Some people say there's a

word for that. I can't get it to the top

of my head right now. So we'll have to

circle back on that one. But anyway,

let's go back to these disclosures here

because if we look at the disclosures,

we also get this note right here. If we

liquidate, dissolve or wind up, whether

voluntarily or involuntarily, then our

assets will be available to distribute

to our equity holders. Only if all of

our thenexisting indebtedness is paid in

full first. And remember, you come after

MSTR and STRF.

So, let that sink in for a moment.

They're bluntly telling you in the

documents, thank you for guaranteeing

our debt over at MSTR and STRF.

That's how you're getting your 10% yield

is you are going behind all of those

folks. Okay, fine. Now, what else? Is it

possible that for some reason this

listing could just like disappear and

not actually be tradable? Cuz like if it

goes down, I could just sell it, right?

[snorts] Not necessarily for two

reasons. See, a liquid market for STRC

may not be maintained and its listing

may be subsequently withdrawn.

Accordingly, you may not be able to sell

your STRC at the times you wish to or at

favorable prices, if at all. In other

words, you might never be able to sell

STRC. But, but but but Kevin, but Kevin,

I shouldn't have written this on here. I

apologize. This was an opinion when I

wrote it. It's still an opinion. Okay, I

shouldn't have used this word. It's very

harsh. I should have changed it even

before making this video. But under

liquidation preference, the company

writes that the liquidation preference

is stated at $100 per share. However,

the liquidation preference is subject to

any adjustment that they want to make.

They say they're not going to adjust it

below $100, which sounds good, but any

kind of liquidation preference is

subject to their solvency. I shouldn't

use the word scam. It's really a trap.

Okay, it basically means sure, you have

a liquidation preference at $100 per

share should they have to liquidate

these shares. As long as we've paid off

all of the debt at Micro Strategy and at

STRF first, only then will we liquidate

your shares at $100 per share. And I

suppose if you have to sell it for less,

you know, we won't force you to, but you

might have to sell it for less or we'll

just delist it. Then too bad, too sad

we've disclosed that away. Now, you

know, then people say, "Okay, well, what

if STRC goes up?" Like, at least I could

make money if STRC goes up over $100,

right?

H not necessarily. Your investment in

STRC may be harmed if we redeem STRC. If

we elect to redeem STRC stock, the

redemption price per share of STRC that

we redeem may be less than the price per

share of STRC stock that you receive or

would receive upon the sale of STR stock

in the open market. Now, my translation

of this is if for some reason this like

moonshots and goes to $130, they could

just redeem it all at a lower price than

what the actual market price is trading

for and give you less money than you

thought you actually had in your

portfolio. So, basically, the way this

works is simple. If Bitcoin goes down in

a crash and you try to liquidate at

$100, there might be nobody there to buy

it for you, especially if they need to

break the piggy bank of this stock to

support the, how should I put it, debt

at other companies. Now, I'm not saying

this is big, you know, banking fraud,

but I will say some people argue that

this, you know, arguing stretch is a

high yield savings account. certainly

sounds like it's running a foul of

banking fraud because even fintexs that

offer you, you know, a 3 or 4% yield on

deposits, they're not even call able to

call themselves a bank because they're

not member of FDIC and Stretch certainly

isn't. But hey, I'm not making those

allegations. I'm just saying that's what

some people say. You know, everybody do

your own due diligence. You call it what

you want. But let's understand this for

a moment. Why has Bitcoin's uh or Micro

Strategies yield collapsed and how does

this work anyway? Okay, so how does

Bitcoin yield work? Bitcoin yield works

and it's positive when Bitcoin is going

up more than the gains that uh well more

in gains compared to how much stock

you're having to sell. So, for example,

if you sell $200,000 of stock to buy

$100,000 of Bitcoin, you're getting two

times as much Bitcoin compared to the

stock you're selling cuz the company's

selling for a premium, that's fantastic.

It basically means you're able to

acquire more Bitcoin. And then if on top

of that, Bitcoin's price skyrockets, the

return that shareholders get for that

dilution seems good. And of course, that

works in a rising market. But in a

falling market, that Bitcoin yield isn't

a wind at your back. It is actually

negative. And that's why in part, Micro

Strategy is right now selling for less

than the value of the Bitcoin they have.

They hold about 57 billion in Bitcoin.

They've got a $46.5 billion market cap.

Now, does this mean Micro Strategy is a

buy the dip? Not necessarily. because we

know that Micro Strategy is going to

keep issuing shares and diluting

shareholders to support paying dividends

on the pering

Bitcoin at frankly at or above market

value. Remember, he is doing the

anti-wedge. And again, I'm not like,

trust me, I'm not delusional enough to

think that people who watch a Bitcoin

video are going to diversify into real

estate. If you wanted to, you could read

the offering circular over at

houseack.com. But like that's I'm just

comp I'm just saying the reason I think

we can get a discount on real estate is

because it's a pain in the freaking ass.

It is I shouldn't say that. It's a bad

word. Don't use bad words. It's a pain

in the butt to negotiate deals and go to

the properties and renovate the

properties and work with the vendors. So

we kind of earn some of that return,

right? But that gives us insulation and

protection. If I buy a $500,000 house

for a 20% discount and the market value

drops 20%. I'm still break even or up in

that case depending on the improvements

that I made. That's the benefit of

buying at a discount. The opposite is

what happens here. And that's why any

falling market, whether it's because of

AI or, you know, the uh who cares data

center boom that's kind of busting right

now or whatever, unfortunately, Micro

Strategy ends up falling and then you

end up getting a negative Bitcoin yield

because you're issuing shares faster

than you are able to buy Bitcoin, hence

creating a negative yield. So, what is,

as my promised at the beginning of the

video, the best time to buy Bitcoin in

my opinion? And this is not to be a

Bitcoin bear because that's not what I'm

making this video for. I believe that

the best time to buy Bitcoin is

when Michael Sailor goes bankrupt. I

think when you don't have somebody who's

propping up the value of Bitcoin as much

as Michael Sailor is, that is the day

you will actually get not only true

price discovery for Bitcoin, but you'll

probably have so much freaking fear in

the market that Bitcoin will be dirt

cheap because Bitcoin, well, I'll put it

this way. Michael Sailor having to

liquidate and leave the market along

with potentially other treasury

companies will create so much sadness

and fear selling. That's probably when

you'll hit rock bottom. [music] Anyway,

thanks for watching. If you found this

helpful, consider subscribing to the

video and we'll see you in the next one.

>> Why not advertise these things that you

told us here? I feel like nobody else

knows about this.

>> We'll we'll try a little advertising and

see how it goes.

>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Pra there, financial analyst and

YouTuber. Meet Kevin. Always great to

get your take.