Tag Archives: Michael Saylor

Strategy’s STRC bitcoin timebomb

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Preface: This is the second part of a current series. Part 1 is here.

Strategy’s STRC is a high-yield, dividend-paying preferred stock that was first issued in July 2025– about a year ago. STRC was specifically created to raise capital to buy bitcoin by offering high annual income to investors. The stock is designed to maintain a stable par value of $100. Dividends are distributed to shareholders semi-monthly in cash.

Currently STRC is trading ~$75, with an effective yield that is about to go up from 11.5% to 15% on June 30– which is this Tuesday. As the STRC stock price goes down, the investor yield goes up. This fundamental capitalist feedback loop is now becoming the weakest link in the crypto house of cards.

Note this early promotional image below from Seeking Alpha of STRC. which was presented as analysis, capping the STRC dividend level at 12% over the next 16 years. As discussed above, STRC is already at 11.5%, and about to go three percentage points off their yield scale (to 15%) in less than a year. In other words, STRC is about to break through the yield projection models that were presented as legitimate crypto analysis less than a year ago.

Ever since Grayscale won their Supreme Court lawsuit against the SEC in August 2023, the nature of crypto has been flipped. Bitcoin is now publicly traded on Nasdaq, NYSE, etc, in the form of Exchange Traded Funds (ETF) that allow investors to get into bitcoin/crypto without actually buying bitcoin/crypto. The fact that bitcoin needs ETFs to attract investors who don’t really know (or care) what bitcoin is, tells you a lot about the nature of the crypto industry.

Nearly three years later, no one left in bitcoin/crypto advocates for it as decentralized finance. Bitcoin/crypto is now mostly traded in the form of stocks which are highly manipulated by the futures traders in the derivatives market. Most futures traders are shorting the market now because they no longer believe in Michael Saylor’s Strategy.

Note that STRC has no direct bitcoin backing, as it merely represents a claim on the company’s residual assets. Strategy’s only “asset” is the 846,000 useless bitcoins it holds for which it is ~$16,000/bitcoin underwater. This sinking ship, the USS Strategy, keeps trying to reshuffle deck chairs to maintain the illusion of rational business management.

How can Michael Saylor’s Strategy pay their ever-increasing dividend obligations to investors when no one wants to buy bitcoin anymore? Everything depends on the price of a useless asset (bitcoin) going up, and that’s not going to happen because the word is out.

Donald Trump, Elon Musk, etc, are widely seen as the leading crypto criminals. The Clarity crypto bill which Trump advocated for so strongly in 2024, is now dead in Congress. This crypto-sponsored legislation, along with the stablecoin bill, were designed to give a legitimate regulatory framework to crypto, in order for it to be eligible for a taxpayer bailout if the industry needs it.

The industry will definitely need a bailout to survive, the issue is the political pressure lawmakers have received over the Clarity & stablecoin bills. Traditional banking leaders have argued crypto capital requirements & consumer protections aren’t there. The fear is a crypto crash could take the entire financial system down, and they are correct.

The Fed will not be lowering interest rates anytime soon, which chokes crypto out. Bitcoin came out of the post-2008 subprime mortgage crash, as a new form of financial manipulation based on perpetual near-zero interest rates. After 2008, interest rates were kept near zero for over a decade, stimulating speculation into high risk assets such as crypto. Bitcoin mining is dependent on low energy costs and low interest rates, neither of which exist anymore.

Everyone in crypto wants to spin their narrative. No one in the industry wants to rationally look at the entire picture, gather all the facts, and come to an objective conclusion. In a macro-political sense, bitcoin is dead because Trump tariffs & his foreign wars (Venezuela. Iran, Lebanon…) have raised the cost of doing business for everyone. The crypto industry survives on cheap credit and small margins, which have been obliterated by the increased cost of living since Trump began his second presidential term.

The entire crypto market is dependent on bitcoin. Bitcoin is entirely dependent on Michael Saylor buying more bitcoin. When Strategy can’t buy any more bitcoin, and in fact has to sell bitcoin to pay its high-yield dividends to spooked investors, that’s when the big one hits. If Strategy tries to sell more STRC, the value of that stock will continue to decline, as the investor yield goes up, so that’s a downward spiral. If Strategy tries to sell bitcoin, well we saw what happened when word got out Strategy sold 32 bitcoins a month ago. Bitcoin went form $73k to $60k within a week, where it’s tenuously stayed since.

Who wants to give Michael Saylor the bailout loan he so desperately needs? He’s close to Trump, so he’s in the right circles, and that’s what’s kept him solvent up to this point, but patience is running out with big finance, and Trump has never been a partner in business that could be trusted. Trump’s own personal family fortune now rests on crypto, under his Trump Media umbrella, so he definitely has vested interest in keeping the bitcoin Ponzi scheme going. The question is now becoming, who is going to pay the bill on all the unpayable debt invested in useless crypto/bitcoin? That question has revolutionary implications which are not too far off. That is the question which bourgeois economists/politicians can’t/won’t honestly answer.

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The bitcoin squeeze

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Bitcoin mines at $78k per coin, while it is currently trading at ~$60k. Bitcoin has been mined at a loss for the last 5 months. One million bitcoins are left to be mined, requiring greater & greater computing power to produce– meaning higher mining costs in the future. But miners can’t continue to mine bitcoin as a business when it loses that much money. New supply of bitcoin is being squeezed due to thin liquidity and weak demand.

Furthermore, Strategy (MSTR) can no longer afford to make massive buys of bitcoin. After selling 32 bitcoins in late May to test the market, bitcoin quickly dropped from ~$73k to its current $60k level. What this revealed is that Michael Saylor can’t sell any bitcoin without causing a massive slide in bitcoin price. Michael Saylor has been the only large scale buyer of bitcoin for some time now. He has financed his bitcoin buying with MSTR preferred stock sales, promising healthy monthly returns to investors, which he soon won’t be able to pay.

The Block reports that if bitcoin slides to $50k, then MSTR stock will fall to $60; if bitcoin goes to $40k, then $36; if bitcoin falls to $30K, then $13. Strategy stock needs to trade at $100 and over for Michael Saylor’s dividend plan to remain solvent. Strategy is currently trading at $85 and falling, and Michael Saylor is running out of cash.

Strategy can’t sell bitcoin, because when it does the crypto market crashes. Strategy has reached its limits in selling stock as investors are losing confidence in the bitcoin market. It is a market waiting for buyers– and there aren’t any. ETF outflows on bitcoin are now ~$500M/day. Futures traders (the derivatives market) are betting on bitcoin going down.

Bitcoin faces downward pressure in retail & institutional buying (ETF outflows), derivative shorting, and Strategy being tapped out. Their debt is massive, and unpayable from any rational perspective. But rationality left the station long ago in the world of capitalist finance. In this post-2008 crash era of financial manipulation & parasitism, bitcoin rose to prominence as ‘digital gold’, the future of money, decentralized finance free from government regulation, etc. Today bitcoin personifies the Ponzi scheme hucksterism which inhabits the crypto-fascist White House.

Coindesk just reported that of the approximately 20 million bitcoins now in existence, ~11 million of them are held at a loss. Back in early 2020 when COVID hit the US, bitcoin was <$10k. After rising to $126k last October, it has more than halved in trade price since. This means the losses for each bitcoin holder who is underwater are much, much greater than any previous era, and they represent 55% of all bitcoins held.

This is unsustainable. You can’t have a supposed currency which few people use that is a net loss as an investment for over half of its supply. As discussed in the earlier linked piece, if bitcoin falls to ~$20k it’s lights out for crypto. With the latest data that’s been made public, the bitcoin ‘kill price’ is probably now closer to $30-40k– due to Strategy be so over-leveraged & cash-strapped. The important thing is that bitcoin doesn’t need to go to zero (or anywhere close) for the entire crypto market to crash.

It’s a death spiral for bitcoin, for which there is no way out. Bitcoin will soon crash, and when it does, the banks and large financial institutions that have loaned hundreds of billions of dollars to bankrupt crypto ventures will be demanding another US taxpayer bailout. Bitcoin/crypto has very little public confidence anymore. Many early Kool-Aid drinkers have been pushed out of bitcoin, and lost their money to crypto whales. Only inside traders & Ponzi scheme chieftains are benefiting in crypto.

Capitalism is an unfair, rigged game, and that is the lesson Libertarians refuse to learn. They thought bitcoin would change the world. Instead it became just another financial bubble, deeply tied to US imperialism & corporate financial swindling. Bitcoin in its 15-year-or-so history has risen from obscurity to become a global get-rich-quick phenomenon, which is now an albatross for the entire global financial system.

All eyes in crypto focus on Strategy and what Michael Saylor will do. He’s the massive whale on the hook, with over 850,000 bitcoins he bought at an average price of $76k. His ‘buy high & hold’ strategy is in ruins, with no hope for a price recovery, as all the big tech money is shifting into AI. MSTR needs a bitcoin buyer and there aren’t any.

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Crypto plummets after Strategy sells 32 bitcoins

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In the latest crypto news, this article from CoinDesk on Monday June 1, set off a rush to exit in bitcoin. It reads, “Michael Saylor’s Strategy sold 32 bitcoin for $2.5 million to fund dividend payments. The 8-K filing Monday says proceeds from the May 26-31 sale, executed at an average price of $77,135 a coin, will fund distributions on Strategy’s preferred stock.”

For context, bitcoin had “stabilized” at ~$73k for a few weeks, until this news hit. I still wonder how Michael Saylor got $77k for his bitcoin which was selling at $73k, but that’s perhaps only a trivial matter. The bigger story is that bitcoin has been falling ever since and is now hovering ~$60k with little industry hope for a recovery.

It’s incredible to know that someone who holds over 843,000 bitcoins can spook the entire crypto market to such a degree when he sells 32 bitcoins. I previously outlined the latest issues involved & billionaire nervousness with bitcoin, which centers around Michael Saylor fanatically buying bitcoin at an average price of $76k.

Strategy’s monthly stock dividends are becoming unpayable for Michael Saylor, who has hundreds of billions of dollars in debt. It’s a fact that the richest people in the world are often financially underwater, and therefore not rich at all. They just have infinite credit, which is nice.

Once Strategy sells more bitcoin (and Michael Saylor will have to) that will become an existential crisis for bitcoin/crypto. The US stock market keeps hitting records highs, but a crypto crash threatens to bankrupt everything. Hedge funds, venture capitalists, big banks, corporations, and Donald Trump & family are all invested.

It’s important to remember that every business Trump has led: casinos, the USFL, Trump University, Airlines, etc, has gone bankrupt. His latest venture is the crypto exchange Trump Media & Technology Group (TMTG), which is tobogganing towards bankruptcy, as is the US Treasury under his second term as American president.

Trump tariffs (April 2025) have played a huge role in this impending insolvency, while his war on Iran has reached a level of surrealism, as the Iranian national team has just been allowed visas (by the Trump administration) to play in the World Cup. Iran’s national soccer team will play matches in Los Angeles & Seattle later this month, and it’s hard to imagine this happening in WW2 or any other serious conflict.

Russia isn’t allowed to compete in any international competition (Olympics, World Cup, etc) since it was provoked by Western imperialism to invade Ukraine in early 2022. Allowing Iran’s soccer team visas only proves this war on Iran isn’t serious, from a US perspective. Zionist Israel is taking it far more seriously, as they absolutely would not allow Iran to compete if they were hosting the event.

Competing ideologies among ruling elites is what makes this so murky. Trump wants to end the Iran war, as it’s hurting him and his party in the mid-terms to come, but the Democrats & Netanyahu won’t allow that. Trump can’t withdraw without victory, his ego, and more importantly– imperialism– won’t allow that.

US imperialism cynically insists on the government of Iran turning over its enriched uranium, which BTW Iran is allowed to have for peaceful purposes. There is nothing illegal about Iran having enriched uranium, as nuclear power is used globally, even by countries that don’t have nuclear weapons– such as Canada.

Nuclear bullying & misinformation are favorite strategies of US imperialism & its corporate partners, especially those in arms manufacturing. There’s so much profiteering going on, and all these entities are addicted to it, so it can’t be stopped. Halting this madness would be ‘bad for the economy’, pundits advise from their ivory towers.

That’s the logic of late-stage capitalism in its death throes. Reckless speculation, heavy spending & debt loads, media propaganda, and unlimited access to credit for those too-big-to-fail. Of course there are no rules that apply to this elite class. They are above the law, and in fact they are the law. They control the police & ICE, the DOJ & the courts, the department of corrections, the corporate media, and the two-party system. It’s why the Jeffery Epstein clients are all still at large, while activists, artists, leftists, students, rank-and-file labor organizers, anti-genocide protesters, etc, are the domestic targets of capitalist imperialism.

This layered look at our modern political economy reveals a corrupt web of lies & crimes against peace & humanity. The question all serious people are asking is: What will be the catalyst for the collapse of this massive house of cards? I believe it will be bitcoin, for all the reasons I’ve analyzed for years now. Crypto has more potential to explode into catastrophe than any other industry, primarily because it’s fake to the core. We have a massive fake economy that has been built around, and taken the profits from, the productive labor of those who do the real work, and bitcoin is the crystallization of phony.

Health care workers, educators, factory & construction workers, secretaries & janitors, etc, are the working class that produces all the economic value to society. The billionaires are the parasites, who employ a semi-educated upper-middle class of minions & bureaucratic functionaries to do their bidding. These are union representatives, upper level management in corporate, university faculty, etc. This educated class is assigned with the task of containing the working class & youth by isolation and keeping them in the dark politically. Identity politics is an ideology of isolation through half-truths, and it is the flip side of right-wing white supremacy, sexism, homophobia, anti-semitism, etc.

All this can be thrown into the dustbin of history when bitcoin crashes. As a crypto skeptic from the start, I’ve always advocated that bitcoin will eventually go to zero. Crypto is simply an elaborate, computerized Ponzi scheme.

But bitcoin doesn’t need to go to zero anymore for the crypto industry to crash & die. As discussed in an earlier piece, not all bitcoin holders are created equally. Satoshi Nakamoto/Adam Back has a large stash of cheap bitcoin, which he hoarded from the start because he invented bitcoin. It’s those who have bought at $90K/bitcoin and above who are wiped out. That price level isn’t returning, ever.

The real number for bitcoin to be worthless is far above zero. This has to do with the crazy accounting in high finance these days, which I will confess I don’t completely understand– nor do I want to. I know enough already. It’s entirely based on speculation & leveraging debt, with fundamentals such as use value, profitability, stability, etc, being thrown out the window. Capitalism is no longer serious about anything it has claimed to make it great in the past.

Innovation & artistry have been stifled by billionaire capitalists who have hijacked the internet and everything else of value for their own fascist agenda. The are all partners with the NSA, FBI, CIA, ICE, etc. I predict bitcoin will be where the buck stops for the international working class, because this crash will be so fast, so sudden and “out-of the blue” that heads will be spinning– as will political pundits of all bourgeois stripes. Everything happens faster in crypto, as it’s part of the addiction for the original Kool-Aid drinkers.

The crypto kill price for bitcoin is probably closer to $20k. At this level, virtually everyone in bitcoin will be wiped out, except Adam Back/Satoshi. It’s like when you win at Monopoly. Once the winner has everyone’s money, the game is over and it’s time do something else.

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Crypto notes on the Fed chairman & Jeffery Epstein

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Kevin Warsh, Trump’s surprise nominee for new Fed chairman, is pro-crypto. Kevin Warsh has recounted seeing the original bitcoin white paper in 2011 and recognizes it as “innovative software.” Crypto critics point out that blockchain technology is an expensive waste of electricity that can’t scaled into mainstream finance because it’s too clunky & slow, but those facts are to be ignored. “Bitcoin is not a trouble, but policy signal,” according to Kevin Warsh. This is exactly what Trump demanded from his new Fed chairman.

Crypto is the publicly unstated conflict between Trump & current Federal Reserve chairman Jerome Powell. Powell was nominated by Trump in 2018, but that was before he went in on crypto. Trump called crypto “a scam” through 2021, but between his presidential terms he became enamored with bitcoin, all around the time he was partnering with Elon Musk, who coincidentally joined the Trump White House to help Trump with economic policy as head of DOGE, which is the name of Musk’s proprietary meme crypto– dogecoin.

Warren Buffet and JP Morgan CEO Jamie Dimon represent anti-crypto billionaire capitalist interests. Their influence on monetary policy is significant and it extends past the Federal Reserve, which should be understood as a giant bank that loans money to billionaire corporations, financial institutions & individuals.

Everything rests on the strength of the US dollar, which since 1971, has been a fiat currency that floats against a global basket of currencies. Globally, all oil transactions are settled in US dollars (petro-dollars), which adds weight & importance to that currency. All the fighting in the Middle East, which starts with Zionist Israel, is about maintaining American control over the most valuable commodities in the modern world– oil & natural gas.

Without these commodities, there is no transportation or electricity, meaning there is no modern economy and we’re back to horses & candles. The problem is oil & gas consumption causes global warming, which is getting worse every day and is thus unsustainable.

The drive of US imperialism to monopolize the global oil wealth by partnering with a criminal & terrorist Zionist organization in Israel to be a permanent garrison in the Middle East is doomed to historical failure & class blowback. Kidnapping the leader of Venezuela during an armed attack against that country, all to seize that nation’s oil resources, will not stand. Bleeding Stalinist-capitalist ruled Russia into a dirty war with Ukraine which the US/UK & German intelligence provoked after decades of effort is completely misguided and has no chance of succeeding, yet it continues because it’s what US billionaires demand.

The most powerful force of capitalism is the global bond market, in which the US is the dominant participant accounting for roughly 40%. The bond market represents the global debt & credit market, estimated to be $119 trillion worldwide and $46 trillion for the US market, according to the Securities Industry and Financial Markets Association (SIFMA).

Unlike bank loans, bonds may be held by retail investors, and are more frequently traded than loans. Bonds are considered a “safe haven” for big investors. If the bond market tanks, capitalism crashes and the party is over– for good. Therefore the bond market is the most-protected, most sacred institution of capitalism, an all-powerful global institution in a world of international commerce.

If you are a centi-millionaire or billionaire, then your money, assets & investments are all protected by the bond market. You can’t defy or run away from the bond market. The only social force capable of defeating the bond market is an internationally united working class & youth. A sustained & organized general strike globally chokes off all capital flow to the bond market. That’s the only way to kill the bond market, short of mutually assured destruction.

The latest Jeffery Epstein files release has revealed his links to early crypto. This should surprise no one. Crypto was invented as a tool to evade taxes & hide illicit financial transactions. Trafficking underage girls for sex with billionaires, etc, is to the point of crypto.

We now know that Jeffery Epstein was an early investor in Coinbase, which is the largest US-based crypto exchange & bitcoin custodian. All kinds of professional sports sponsorships are being used these days to legitimize crypto in the public mind, and Brian Armstrong’s Coinbase (founded 2012) is perhaps the most prominent.

What was released was surely only the tip of the iceberg as far as Jeffery Epstein’s involvement in crypto. Bitcoin was invented for people like him, and now we the people learn he claimed to have corresponded with the infamous & unknown Satoshi Nakamoto, the person who invented bitcoin. It’s not at all surprising that someone like Jeffery Epstein would seek out these people and do business (invest) with them.

Bonds are paper which represent wealth & power. The people who own this paper don’t want it to lose its value. Crypto is so unreal, yet it has been so heavily promoted as legitimate to the point where a segment of billionaires are all-in on it. When crypto crashes to the point of no return, that’s when the bond market will be forced to move into action in the interest of all the banks, hedge funds, and big investors who have loaned their money to crypto companies that are going bankrupt.

Michael Saylor’s Strategy is the most illustrative example of this in the US. Bitcoin has fallen from it’s high of ~$125K in early October to ~$74K as of this publication. All during this free fall he has been buying bitcoin. He does this to maintain the price. It has been widely reported that he has paid an average of ~$76K/bitcoin. Which means he’s underwater by $2K/bitcoin as of this writing.

On top of that, Michael Saylor has financed all the bitcoin buys with stock swaps & borrowed money, meaning his corporate ownership is diluted and he’s in deep debt which he can’t repay by selling bitcoin because it’s worth less than what he owes. Each day the interest on what he owes goes up, while his stack of bitcoin loses value. As sellers continue to leave the market, they implore Michael Saylor to “keep buying,” as he is the only one holding up bitcoin (& therefore all of crypto) under current market conditions.

Bitcoin can’t be allowed to go to zero, which it would have done dozens of times already if the “market” hadn’t prevented it from happening. That “market” is the bond market. The bond market is bigger than any presidency or military. The bond market is why presidents & militaries exist. It’s why ICE exists.

The ultimate enemy in the fight against this evil is the bond market, which crystallizes the essence of capitalist inequality. It’s largely faceless, yet viciously ruthless, and it answers & apologizes to no one. It is the bond market that must be abolished for humanity to flourish.

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