We Study Billionaires - The Investors Podcast

Join us as Jeff Walton unpacks MicroStrategy's innovative financial strategies, including leveraging Bitcoin volatility, issuing convertible bonds, and building a balance sheet of permanent capital. We dive into valuations, ETF dynamics, accretive dilution, and what it means to be the "bank of the future." IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 01:49 - What "capturing the spread" means in MicroStrategy's strategy. 02:32 - The difference between issuing convertible notes and common stock. 06:26 - An explanation of accretive dilution and its role in corporate strategy. 09:44 - How MicroStrategy's Bitcoin holdings position it as a "bank of the future." 20:52 - Insights into constructing a leveraged balance sheet with permanent capital. 23:04 - Why MicroStrategy issued two consecutive convertible bonds. 28:49 - How Michael Saylor's "Bitcoin nuclear reactor" concept reshapes volatility. 39:47 - The impact of entering the NASDAQ and index weighting on stock performance. 48:33 - Metrics to consider when starti