Let me tell you why Michael Saylor’s ‘infinite money glitch’ is the most dangerous loophole in crypto right now — and why it’s fueling Bitcoin’s rise.
Here’s the breakdown (pay attention):
Non-Recourse Debt: Saylor’s company, MicroStrategy, borrows money using debt that converts to stock if their share price rises 30%. No collateral? No problem. If the stock pumps, lenders get equity. If it crashes? They eat the loss.
The Bitcoin Play: MicroStrategy uses borrowed cash to buy Bitcoin. When $BTC rises, their stock price follows (because investors see them as a “proxy” for Bitcoin).
The Cycle: Stock goes up → debt converts to shares → MicroStrategy borrows again against the new stock value → buys more Bitcoin → repeats.
This isn’t theory. They’ve done this multiple times. Each cycle lets them print “free” money to stack more BTC, which inflates their stock, which lets them borrow more… ad infinitum.
Why This Works (For Now):
Stock-BTC Feedback Loop: Bitcoin’s volatility rewards leverage. Every BTC pump = MicroStrategy’s stock becomes a hotter asset.
Lender Complicity: Wall Street banks enable this because they profit from fees and betting on BTC’s long-term rise.
Regulatory Gray Zone: No one’s stopping it… yet.
The Risks Nobody Wants to Admit:
If Bitcoin stagnates or dips, the house of cards collapses. Lenders drown in worthless stock.
This only works in a bull market. When the music stops, retail gets stuck holding the bag.
My Take: This isn’t “creating money” — it’s exploiting leverage and market momentum. It’s brilliant, reckless, and exactly why Bitcoin’s price is detached from reality right now.
But Here’s the Truth: This loophole will close. Regulators, lenders, or a market crash will end the party. Until then, Saylor’s playing 4D chess with Wall Street’s money.
What do you think? Sustainable strategy or ticking time bomb?
