Want the cheat code to protect and grow your wealth? Check out Rebel Capitalist Pro https://rcp.georgegammon.com/pro.
Transcript
Hello fellow robo capitals. Hope you're well. So if you haven't seen Bitcoin is really really down today and Micro Strategy is tanking down I saw at one point like 11 or 12% just today. So this begs the question, are they on the brink? Are they about to go bust? Um I don't really think so. But doesn't mean they're not in trouble. Let's dive into the details right now in this video. And first and foremost, let's actually go to their website because of course this is really emotionally charged for a lot of the Bitcoiners. A lot of the Bitcoiners don't like Micro Strategy because of the financial engineering at tip to them. But a lot of them, you know, this is it's just uh it's part of the cult, right? they can't differentiate between just um you know rational type of thinking analysis just basic math and you know kind of the the battle cry it's all about the battle cry all about the narrative but uh let's try to just look at this rationally here now to be clear I've been short micro strategy for probably three or four months I've I did the Jim Chenos where I was long Bitcoin and short Micro Strategy. So, I just want, you know, full disclosure here and I have not covered that position. I still have that position on. Okay, let's go over to the strategies website because again, I know it's financial or it's uh emotionally charged. So, all the Bitcoiners will be like, "Oh, you you didn't get the MNAV right. You didn't get the MNA." Okay, okay, okay. Settle down there, Beas. Let's go over to the strategy website and we can see down at 158 bucks right now. Uh down 18 bucks today. So that's roughly 10.5%. I think must have seen a bounce here. Uh the market cap just today is down 7.91%. Um like I said, Bitcoin down quite substantially. And I know that a lot of the people argue, a lot of the bulls, well, you just have to deal with this volatility. Uh, yeah, I get it. But at a certain point, I don't think the shareholders will want to deal with the volatility if the volatility is the share price going straight down, which it has. I mean, we can go over to a chart here and uh just go to the year to date and we're down, you know, 47%. It went up here. That was good. But especially over the last, call it uh 3 months, 6 months. I mean, my goodness gracious. Let's go to the monthly chart. I mean, it's literally straight down. It had a couple little bumps here. So, at a certain point, I mean, I I get it. You have to suffer through the volatility and it's all about the mission and, you know, we've got we're long-term investors is what I always hear. But, um, I get the whole long-term investor argument, but again, at a certain point for most investors, even if it's just paper losses, they're going to pull the rip cord. I mean, they're going to tap out. They they can't uh take this for for too much longer, I would assume. But that doesn't really get to the heart of the question because we're thinking through, you know, are they going to go bust? And my short answer there would be no. They're they're not anytime soon. and they might in the next 2 years or 3 years. Now, they could have negative equity. That would be interesting. I don't know how that would play out. Let me show you what I'm referring to. So, they've got 8.2 billion in debt. They hold 650,000 Bitcoin. Now, just rough math, Bitcoin would have to get down to like $12,000 in order for them to have more debt than equity. And I'm not an accountant. Um, I I'm not an expert in GAAP accounting, which is generally accepted accounting principles. Um, so probably a lot of you watching this video know more about the accounting side of it than I do. So I my point there is I don't know how GAP recognizes dividend payments as far as liabilities. I I don't know if that's like an accounts payable or something like that. So because it obviously the 8.2 2 billion isn't their only liability. Uh because they have the dividend payments to the preferreds and they also have I think small interest payments on some of the debt. Let's look at that. Uh you know, I mean, here's the people holding the bag right now. It's obviously the equity holders that bought um you know over the past year or so, but it's also the the people that did these convertible notes and basically lent them money thinking that, you know, the share price would just go to the moon. Look at this. The strike price for this round was $67 [laughter] $672. $672. So what this is, they lend them money and then Sailor basically says, "Okay, thank you for lending me money. I'm going to go buy Bitcoin at a maturity date, which here is December 2029." So you see they've got a lot of runway here. They've got a lot of runway, which is why I say, you know, they're not going to go bust unless Bitcoin goes below 12,000 or something like that. they're not going to go bust um in the next year or two. But uh looking at this, it just tells you, you know, the the people holding the bag. And this also would be an input to your analysis for the share price. Why? Because this reflects Sailor's ability to do this moving forward. So, if every single one of the guys who gave him money is basically underwater compared to a 10-year Treasury and they've got the credit risk of Michael Sailor and Strategy, then this is not this was not a good bet. So far, not a good bet. You only have one that isn't uh where the conversion price is under where Micro Strategy is currently trading. So, what this the reason someone would do this is they'd say, "Okay, we're going to lend you a billion dollars and then at a strike price of 672, uh, you know, we can go ahead and we the the debt issuers, we can go ahead and we've got a choice here. We can say, okay, yes, I would prefer to have my shares. I I take the debt. I want to turn it into equity at a strike of 672 bucks. So why would you do this? Well, if Micro Strategy is trading at a thousand, then you get the shares at 672 and then you pocket the spread, right? That that would be the argument. That would be the rationale for someone wanting to do this. But you can see right now the only one that's in the green, if you want to look at it like that, is the uh debt that was issued at a strike of 149. Everyone else would be better off just taking the debt. And of course, Sailor's argument was, "Oh, this is never going to I'm never going to have to pay this back because the share price of Micro Strategy is going to be so high when this matures that everyone is just going to take the preferred. They're they're going to take the equity uh not the pervert. They're going to take the equity and therefore um you know I'm never going to have to come out of pocket for this debt that I owe. That was the argument. Obviously it's looking right now that that might not be a good argument. And the point here is we've got an average strike at 425. These guys are really holding the bag. So if strategy micro uh Sailor Michael Sailor, excuse me, goes out to the market and wants to do this again, uh maybe, but it it's highly unlikely and the strike price would have to be, you know, a heck of a lot lower. So now let's go over to back or back to Micro Strategy here. So the returns horrible. Now, to give him credit, I mean, since he started doing this, the share price is way way higher. That's for sure. Um, but I I don't know that a lot of people bought here. I think the vast majority of the people that own Micro Strategy shares probably, there's a guess, probably have bought over the last, let's say, two or three years. So, let's see here. The Bitcoin price, we've got that. the Bitcoin nav. Uh the MNAV, I know that's really important for a lot of the Bitcoiners or a lot of the people that are bullish on this. Uh we're and this is a kind of a moving target here because it depends if you include certain components of the balance sheet and but according to Micro Strategy, it's at 1.11. So, they're still trading slightly above NAV, which I don't really know is a good thing because that just tells you that there's more downside to the price of strategy stock relative to the underlying asset, which is Bitcoin. But you look at uh when these debt payments are due, they're way out into the future. And um in order for them to have negative equity, you know, Bitcoin going down to 12,000 probably not a high probability. And but what would be really interesting is to know how the market would see the liability of the dividend payments. So you might say, "Oh, George, this is a nothing burger because they can just sell Bitcoin." Yeah, absolutely they can. Absolutely they can. But think about what that would do to the price of Bitcoin if Micro Strategy starts selling. You know, that that would probably then you could get Bitcoin maybe [laughter] down to to $12,000. It's just he he's what Sailor is doing is he's kind of painting himself into a corner where any of his options is going to increase the amount of dividend that he has to pay. So, as an example, you know, right now, let's say it's paying uh 10%. Well, he's painting himself into the corner if this continues that he's going to have to pay 15%, let's just say. And the more he he the more uh preferred he the more equity he issues in the form of common or preferred, the worse the deal is for strategy. It's very ironic, isn't it? because it's the argument that Bitcoiners and sound money guys and gals really have for the United States that they're going to issue all these treasuries and at a certain point the market's going to puke them up and we're going to have the bond vigilantes and what's going to happen is the more debt or the bigger the deficits go, the more debt the United States issues, the more the interest rates will go up because the market's just completely rejecting this stuff. So, it gets to a point where they can't issue any more debt. So then the Fed has to come in and do yield curve control. And why I say that's ironic is because Micro Sailor is basically painting himself into a corner where he's in the exact same position where anything he does makes the deal worse moving forward. And so I I don't know how he does this today. He set up a again ironic here. He set up a USD reserve. So, I know a lot of the kind of the Micro Strategy cult members won't believe me, but uh we'll go ahead and Google it here. So, we've got Strategy USD Reserve. Can you believe that? Setting up a a fiat fiat reserve. So, here we go. On their website, Strategy announces establishment of a $1.44 44 billion USD reserve. So the Bitcoin reserve company is setting up a USD reserve. Now why is he doing this? So the argument here is to cover the dividend payments for the next year. And he see he's painting himself into a corner where he he kind of has to do this because the market's getting really worried. And right now his best form of raising money is issuing these uh preferred share, whatever you want to call them. I I think he's got he's got these acronyms or the the uh tickers for them, excuse me. But basically uh the only or his best form of raising money right now to do all the other things that he needs to do and to cover his liabilities is to issue this form of equity um a perpetual dividend or whatever it's called. And the people are getting a little shaky. Like they're like, "Yeah, I don't know. Do I really want to give you more money?" Because I don't know that that dividend payment is money good. And if you have to pay the dividend, then you might have to sell Bitcoin, which drops the price. So, I'm going to hold off. I'm going to hold off on giving you any money. So, what he's doing right here is he's recognizing that the market is starting to call his bluff. that the bond vigilantes, if you will, if you will, are turning into strategy vigilantes. And he's got to do something to calm them down. He's got to do something to give them confidence and to reestablish confidence. And that's exactly what this is. So he says, "Look, we're setting up a $1.4 billion USD reserve. So all you guys, you're you're definitely going to get your 10% dividend payments or whatever he promised them, and you don't have to worry about it." So, let's just go ahead and issue more of these things because I have to issue more because my underlying business doesn't make money. So, I mean, this is he has to do this. It's smart. I got to give him credit. Um, but it's a sign of extreme weakness. Extreme weakness. So, now what I want to do is uh we we'll go back here kind of tie things up in a neat little bow. Do I think strategy is going bust in the next two years? No. No, absolutely not. Do I think they could have negative equity? Maybe. Probably not. Um they're they're still in a a fine position. But I think the bigger question is how does this impact the price of Bitcoin? Because they could very quickly have painted themselves into a corner where they can't raise more money to buy more Bitcoin. So, Bitcoin no longer has that constant micro strategy mic sailor bid which has, you know, kept the price elevated. And this is why you might see Bitcoin uh or you why we might have seen Bitcoin drop to the degree to which it has because you're seeing that Michael Sailor bid gradually come out of the price. That's where I think in the short term you've uh That's the the more important question, the more pertinent question, the more relevant question is what does this do to the price of Bitcoin if Michael Sailor isn't able to raise money to go out there and buy by bye bye bye. And then what does that do to the share price? Uh, you know, we'll have to wait and see, but they're not going to go bust in the next probably two years at least. Very, very low probability. But I think what's really fascinating about this is Michael Sailor is demonstrating why the dollar network is so powerful and why we can get all these calls for the dollar crashing and you know foreigners dumping treasuries and foreigners dumping the dollar and they hate Trump and whatever it is and yet we're still trading right around 100 on the DXY. It's it's and when we hear of the Indian central bank, what are they doing right now? They're having to prop up their currency relative to the dollar. What is the what is the Japanese central bank doing? The exact same thing. What is the South Korean central bank doing? You never hear a central bank um having to, you know, prop up the dollar. the Fed. You never hear the Fed saying, "Oh my gosh, we've got to intervene in the FX market to prop up the dollar, but yet you always hear of all these central banks having to intervene in the FX market to prop up their own currency against the dollar." So, you've got to think through, you know, again, we're trying to be as objective and as agnostic as possible. Um, we got Why is that? Like, why is it? Not because foreigners are dumping or they hate us or they like us or the petro dollar or anything like it's it's the way the monetary system is structured. For better or worse, it just it it is what it is. And for better or worse, the dollar has the most powerful network in human history. Because that's again at the end of the day what the dollar is. It's not really an extension of the government or the Fed or any of these things. It's really a network of global bank balance sheets. And that that's really at the heart of of the dollar. So what Sailor is having to do with this USD reserve is he's having to set this up because he's promised his liabilities are denominated in dollars. Well, his liabilities are denominated in dollars because that's what people want, right? And it's just like the Indian central bank or one of these uh fill in the blank, right? They have to have dollar reserves. Why? Because people don't want their crappy currency. People want dollars. Why? Because it's got the greatest network and it's mo it's it's the most liquid. Most people accept it. And when I'm talking about people, I'm not just talking about central banks. I'm talking about corporations, you know, mega corporations, multinationals, the people at the business. When you go to Turkey, as an example, the guy in the corner store that's selling coffee, you look in the cash register and what does he have? Dollars. You go down to Argentina and you try to drive across Argentina using nothing but gold, silver, and Bitcoin. What do people want? Dollars. And why is that? Because it's got the greatest network effect that we've ever seen in human history. For better or worse, it is what it is. So, as intelligent investors, what we have to do is we can't get emotional about it. We we just have to be agnostic and we say, "Okay, these are the this is the hand that we're dealt. How do we play this hand?" And what is happening right now with Micro Strategy is the exact same thing that's happening with a lot of these foreign central banks that they have they have dollar reserves and they have to have these dollar reserves because when rubber meets the road nobody wants their the Indian rupee uh people just want those dollars and that's the exact same thing that's happening uh with Micro Strategy right now. All right, guys. Enjoy the rest of your afternoon. As always, make sure you're staying up for Freedom, Liberty, Free Market Capitalism. If you want more direct access to myself or my good friends Chris Macintosh, Brent Johnson, many others to learn about these contrarian type trades that quite frankly have done extremely well this year. I'm going to give myself a little pat on the back because uh my portfolio is way way way way way up this year. It's done very very well and I talk about every single change to the portfolio that I make my personal portfolio uh in Rebel Capitalist Pro with the members and it's got research from Lynn Alden uh Chris Mintosh model portfolios and then just the most incredible investor community on the planet earth if I do say so myself. So, if you want to check it out, we'll just go ahead and put a link in the description below.
Is Strategy About To Go Bust?
Summary
Want the cheat code to protect and grow your wealth? Check out Rebel Capitalist Pro https://rcp.georgegammon.com/pro.Transcript
Hello fellow robo capitals. Hope you're well. So if you haven't seen Bitcoin is really really down today and Micro Strategy is tanking down I saw at one point like 11 or 12% just today. So this begs the question, are they on the brink? Are they about to go bust? Um I don't really think so. But doesn't mean they're not in trouble. Let's dive into the details right now in this video. And first and foremost, let's actually go to their website because of course this is really emotionally charged for a lot of the Bitcoiners. A lot of the Bitcoiners don't like Micro Strategy because of the financial engineering at tip to them. But a lot of them, you know, this is it's just uh it's part of the cult, right? they can't differentiate between just um you know rational type of thinking analysis just basic math and you know kind of the the battle cry it's all about the battle cry all about the narrative but uh let's try to just look at this rationally here now to be clear I've been short micro strategy for probably three or four months I've I did the Jim Chenos where I was long Bitcoin and short Micro Strategy. So, I just want, you know, full disclosure here and I have not covered that position. I still have that position on. Okay, let's go over to the strategies website because again, I know it's financial or it's uh emotionally charged. So, all the Bitcoiners will be like, "Oh, you you didn't get the MNAV right. You didn't get the MNA." Okay, okay, okay. Settle down there, Beas. Let's go over to the strategy website and we can see down at 158 bucks right now. Uh down 18 bucks today. So that's roughly 10.5%. I think must have seen a bounce here. Uh the market cap just today is down 7.91%. Um like I said, Bitcoin down quite substantially. And I know that a lot of the people argue, a lot of the bulls, well, you just have to deal with this volatility. Uh, yeah, I get it. But at a certain point, I don't think the shareholders will want to deal with the volatility if the volatility is the share price going straight down, which it has. I mean, we can go over to a chart here and uh just go to the year to date and we're down, you know, 47%. It went up here. That was good. But especially over the last, call it uh 3 months, 6 months. I mean, my goodness gracious. Let's go to the monthly chart. I mean, it's literally straight down. It had a couple little bumps here. So, at a certain point, I mean, I I get it. You have to suffer through the volatility and it's all about the mission and, you know, we've got we're long-term investors is what I always hear. But, um, I get the whole long-term investor argument, but again, at a certain point for most investors, even if it's just paper losses, they're going to pull the rip cord. I mean, they're going to tap out. They they can't uh take this for for too much longer, I would assume. But that doesn't really get to the heart of the question because we're thinking through, you know, are they going to go bust? And my short answer there would be no. They're they're not anytime soon. and they might in the next 2 years or 3 years. Now, they could have negative equity. That would be interesting. I don't know how that would play out. Let me show you what I'm referring to. So, they've got 8.2 billion in debt. They hold 650,000 Bitcoin. Now, just rough math, Bitcoin would have to get down to like $12,000 in order for them to have more debt than equity. And I'm not an accountant. Um, I I'm not an expert in GAAP accounting, which is generally accepted accounting principles. Um, so probably a lot of you watching this video know more about the accounting side of it than I do. So I my point there is I don't know how GAP recognizes dividend payments as far as liabilities. I I don't know if that's like an accounts payable or something like that. So because it obviously the 8.2 2 billion isn't their only liability. Uh because they have the dividend payments to the preferreds and they also have I think small interest payments on some of the debt. Let's look at that. Uh you know, I mean, here's the people holding the bag right now. It's obviously the equity holders that bought um you know over the past year or so, but it's also the the people that did these convertible notes and basically lent them money thinking that, you know, the share price would just go to the moon. Look at this. The strike price for this round was $67 [laughter] $672. $672. So what this is, they lend them money and then Sailor basically says, "Okay, thank you for lending me money. I'm going to go buy Bitcoin at a maturity date, which here is December 2029." So you see they've got a lot of runway here. They've got a lot of runway, which is why I say, you know, they're not going to go bust unless Bitcoin goes below 12,000 or something like that. they're not going to go bust um in the next year or two. But uh looking at this, it just tells you, you know, the the people holding the bag. And this also would be an input to your analysis for the share price. Why? Because this reflects Sailor's ability to do this moving forward. So, if every single one of the guys who gave him money is basically underwater compared to a 10-year Treasury and they've got the credit risk of Michael Sailor and Strategy, then this is not this was not a good bet. So far, not a good bet. You only have one that isn't uh where the conversion price is under where Micro Strategy is currently trading. So, what this the reason someone would do this is they'd say, "Okay, we're going to lend you a billion dollars and then at a strike price of 672, uh, you know, we can go ahead and we the the debt issuers, we can go ahead and we've got a choice here. We can say, okay, yes, I would prefer to have my shares. I I take the debt. I want to turn it into equity at a strike of 672 bucks. So why would you do this? Well, if Micro Strategy is trading at a thousand, then you get the shares at 672 and then you pocket the spread, right? That that would be the argument. That would be the rationale for someone wanting to do this. But you can see right now the only one that's in the green, if you want to look at it like that, is the uh debt that was issued at a strike of 149. Everyone else would be better off just taking the debt. And of course, Sailor's argument was, "Oh, this is never going to I'm never going to have to pay this back because the share price of Micro Strategy is going to be so high when this matures that everyone is just going to take the preferred. They're they're going to take the equity uh not the pervert. They're going to take the equity and therefore um you know I'm never going to have to come out of pocket for this debt that I owe. That was the argument. Obviously it's looking right now that that might not be a good argument. And the point here is we've got an average strike at 425. These guys are really holding the bag. So if strategy micro uh Sailor Michael Sailor, excuse me, goes out to the market and wants to do this again, uh maybe, but it it's highly unlikely and the strike price would have to be, you know, a heck of a lot lower. So now let's go over to back or back to Micro Strategy here. So the returns horrible. Now, to give him credit, I mean, since he started doing this, the share price is way way higher. That's for sure. Um, but I I don't know that a lot of people bought here. I think the vast majority of the people that own Micro Strategy shares probably, there's a guess, probably have bought over the last, let's say, two or three years. So, let's see here. The Bitcoin price, we've got that. the Bitcoin nav. Uh the MNAV, I know that's really important for a lot of the Bitcoiners or a lot of the people that are bullish on this. Uh we're and this is a kind of a moving target here because it depends if you include certain components of the balance sheet and but according to Micro Strategy, it's at 1.11. So, they're still trading slightly above NAV, which I don't really know is a good thing because that just tells you that there's more downside to the price of strategy stock relative to the underlying asset, which is Bitcoin. But you look at uh when these debt payments are due, they're way out into the future. And um in order for them to have negative equity, you know, Bitcoin going down to 12,000 probably not a high probability. And but what would be really interesting is to know how the market would see the liability of the dividend payments. So you might say, "Oh, George, this is a nothing burger because they can just sell Bitcoin." Yeah, absolutely they can. Absolutely they can. But think about what that would do to the price of Bitcoin if Micro Strategy starts selling. You know, that that would probably then you could get Bitcoin maybe [laughter] down to to $12,000. It's just he he's what Sailor is doing is he's kind of painting himself into a corner where any of his options is going to increase the amount of dividend that he has to pay. So, as an example, you know, right now, let's say it's paying uh 10%. Well, he's painting himself into the corner if this continues that he's going to have to pay 15%, let's just say. And the more he he the more uh preferred he the more equity he issues in the form of common or preferred, the worse the deal is for strategy. It's very ironic, isn't it? because it's the argument that Bitcoiners and sound money guys and gals really have for the United States that they're going to issue all these treasuries and at a certain point the market's going to puke them up and we're going to have the bond vigilantes and what's going to happen is the more debt or the bigger the deficits go, the more debt the United States issues, the more the interest rates will go up because the market's just completely rejecting this stuff. So, it gets to a point where they can't issue any more debt. So then the Fed has to come in and do yield curve control. And why I say that's ironic is because Micro Sailor is basically painting himself into a corner where he's in the exact same position where anything he does makes the deal worse moving forward. And so I I don't know how he does this today. He set up a again ironic here. He set up a USD reserve. So, I know a lot of the kind of the Micro Strategy cult members won't believe me, but uh we'll go ahead and Google it here. So, we've got Strategy USD Reserve. Can you believe that? Setting up a a fiat fiat reserve. So, here we go. On their website, Strategy announces establishment of a $1.44 44 billion USD reserve. So the Bitcoin reserve company is setting up a USD reserve. Now why is he doing this? So the argument here is to cover the dividend payments for the next year. And he see he's painting himself into a corner where he he kind of has to do this because the market's getting really worried. And right now his best form of raising money is issuing these uh preferred share, whatever you want to call them. I I think he's got he's got these acronyms or the the uh tickers for them, excuse me. But basically uh the only or his best form of raising money right now to do all the other things that he needs to do and to cover his liabilities is to issue this form of equity um a perpetual dividend or whatever it's called. And the people are getting a little shaky. Like they're like, "Yeah, I don't know. Do I really want to give you more money?" Because I don't know that that dividend payment is money good. And if you have to pay the dividend, then you might have to sell Bitcoin, which drops the price. So, I'm going to hold off. I'm going to hold off on giving you any money. So, what he's doing right here is he's recognizing that the market is starting to call his bluff. that the bond vigilantes, if you will, if you will, are turning into strategy vigilantes. And he's got to do something to calm them down. He's got to do something to give them confidence and to reestablish confidence. And that's exactly what this is. So he says, "Look, we're setting up a $1.4 billion USD reserve. So all you guys, you're you're definitely going to get your 10% dividend payments or whatever he promised them, and you don't have to worry about it." So, let's just go ahead and issue more of these things because I have to issue more because my underlying business doesn't make money. So, I mean, this is he has to do this. It's smart. I got to give him credit. Um, but it's a sign of extreme weakness. Extreme weakness. So, now what I want to do is uh we we'll go back here kind of tie things up in a neat little bow. Do I think strategy is going bust in the next two years? No. No, absolutely not. Do I think they could have negative equity? Maybe. Probably not. Um they're they're still in a a fine position. But I think the bigger question is how does this impact the price of Bitcoin? Because they could very quickly have painted themselves into a corner where they can't raise more money to buy more Bitcoin. So, Bitcoin no longer has that constant micro strategy mic sailor bid which has, you know, kept the price elevated. And this is why you might see Bitcoin uh or you why we might have seen Bitcoin drop to the degree to which it has because you're seeing that Michael Sailor bid gradually come out of the price. That's where I think in the short term you've uh That's the the more important question, the more pertinent question, the more relevant question is what does this do to the price of Bitcoin if Michael Sailor isn't able to raise money to go out there and buy by bye bye bye. And then what does that do to the share price? Uh, you know, we'll have to wait and see, but they're not going to go bust in the next probably two years at least. Very, very low probability. But I think what's really fascinating about this is Michael Sailor is demonstrating why the dollar network is so powerful and why we can get all these calls for the dollar crashing and you know foreigners dumping treasuries and foreigners dumping the dollar and they hate Trump and whatever it is and yet we're still trading right around 100 on the DXY. It's it's and when we hear of the Indian central bank, what are they doing right now? They're having to prop up their currency relative to the dollar. What is the what is the Japanese central bank doing? The exact same thing. What is the South Korean central bank doing? You never hear a central bank um having to, you know, prop up the dollar. the Fed. You never hear the Fed saying, "Oh my gosh, we've got to intervene in the FX market to prop up the dollar, but yet you always hear of all these central banks having to intervene in the FX market to prop up their own currency against the dollar." So, you've got to think through, you know, again, we're trying to be as objective and as agnostic as possible. Um, we got Why is that? Like, why is it? Not because foreigners are dumping or they hate us or they like us or the petro dollar or anything like it's it's the way the monetary system is structured. For better or worse, it just it it is what it is. And for better or worse, the dollar has the most powerful network in human history. Because that's again at the end of the day what the dollar is. It's not really an extension of the government or the Fed or any of these things. It's really a network of global bank balance sheets. And that that's really at the heart of of the dollar. So what Sailor is having to do with this USD reserve is he's having to set this up because he's promised his liabilities are denominated in dollars. Well, his liabilities are denominated in dollars because that's what people want, right? And it's just like the Indian central bank or one of these uh fill in the blank, right? They have to have dollar reserves. Why? Because people don't want their crappy currency. People want dollars. Why? Because it's got the greatest network and it's mo it's it's the most liquid. Most people accept it. And when I'm talking about people, I'm not just talking about central banks. I'm talking about corporations, you know, mega corporations, multinationals, the people at the business. When you go to Turkey, as an example, the guy in the corner store that's selling coffee, you look in the cash register and what does he have? Dollars. You go down to Argentina and you try to drive across Argentina using nothing but gold, silver, and Bitcoin. What do people want? Dollars. And why is that? Because it's got the greatest network effect that we've ever seen in human history. For better or worse, it is what it is. So, as intelligent investors, what we have to do is we can't get emotional about it. We we just have to be agnostic and we say, "Okay, these are the this is the hand that we're dealt. How do we play this hand?" And what is happening right now with Micro Strategy is the exact same thing that's happening with a lot of these foreign central banks that they have they have dollar reserves and they have to have these dollar reserves because when rubber meets the road nobody wants their the Indian rupee uh people just want those dollars and that's the exact same thing that's happening uh with Micro Strategy right now. All right, guys. Enjoy the rest of your afternoon. As always, make sure you're staying up for Freedom, Liberty, Free Market Capitalism. If you want more direct access to myself or my good friends Chris Macintosh, Brent Johnson, many others to learn about these contrarian type trades that quite frankly have done extremely well this year. I'm going to give myself a little pat on the back because uh my portfolio is way way way way way up this year. It's done very very well and I talk about every single change to the portfolio that I make my personal portfolio uh in Rebel Capitalist Pro with the members and it's got research from Lynn Alden uh Chris Mintosh model portfolios and then just the most incredible investor community on the planet earth if I do say so myself. So, if you want to check it out, we'll just go ahead and put a link in the description below.