delivered a masterclass on corporate finance and the power of bitcoin to supercharge corporate balance sheets. Saylor made a point to emphasize Bitcoin as thecost of capital, he noted that the “S&P is the modern surrogate for the cost of capital… If you had to pick one metric and say, what's the metric that gives you a sense of how rapidly the world currency supply is expanding in dollars? Probably the S&P 500… this is another way to see inflation.
Saylor went on to emphasize his belief that all assets, except bitcoin, are not accretive to corporate balance sheets despite their general acceptance. In particular, he highlighted the relative underperformance of the silver, gold and US government bonds: “ invested in T-bills, they're going to get 3% after tax against a 12% cost of capital per year. And so you hold $100 billion of capital, you destroy $9 billion of shareholder value a year… The story here is that the bonds don't hold value, right? They're awful capital assets. Silver doesn't work. Gold doesn't keep up with the cost of capital.
“You could see the writing on the wall when the spot ETF of Bitcoin was approved in January. By the end of May, you'll know that Ethereum is not going to be approved. And when Ethereum is not going to be approved, sometime this summer it'll be very clear to everyone that Ethereum is deemed a crypto asset security, not a commodity. After that, you're going to see that Ethereum, BNB, Solana, Ripple, Cardano – everything down the stack.
On the point of Bitcoin’s energy use, Saylor invoked the idea of a “physical linkage to the real world” in Bitcon’s consensus. He described the network as having “raw digital power standing in the way of anybody that would try to undermine the integrity of the network… The network is feeding on electricity, and that creates a decentralizing dynamic that drives all of the network to the end of the grid in the quest of stranded energy.