Michael Saylor boasts Strategy’s ‘indestructible balance sheet’

Strategy is doubling down on Bitcoin through a new $1 billion preferred stock IPO.

Executive Chairman Michael Saylor explained on CNBC’s Squawk Box how Strategy is leveraging high-yield instruments to convert dollar capital into Bitcoin (BTC) exposure.

“We are offering fixed U.S. dollar yield and we’re swapping it into BTC yield, which is what our equity investors want,” said Saylor. “The big breakthrough is that and the preferred market the capital never comes due. There’s no refinance risk. We’re basically offering a perpetual US dollar yield forever. And so by matching a very long duration instrument on the liability side with the long duration asset, we’re creating, in essence, an indestructible balance sheet.”

Outperformance of Strike and Stride highlights investor appeal

Saylor highlighted the strong performance of the company’s previous preferred stock offerings. The first, Strike, saw gains of 29% compared to a broader market decline of 6% in similar instruments. The third issuance, Stride, offered a 10% fixed yield and also outperformed, rising 22% while other preferreds fell by 4.5%.

He called this approach a “very scalable, extremely low-risk way to generate leverage” and said it benefits both sides of the market.