Strategy Executive Chairman Michael Saylor: Bitcoin Standard Outperforms Traditional Assets Annually
Strategy Executive Chairman Michael Saylor stated that since the company adopted the Bitcoin standard in 2020, the digital equity MSTR has an annualized return of 52%, while digital capital BTC has an annualized return of 38%. Both have outperformed the stocks, gold, real estate, and bonds benchmarks listed in his chart. He wrote that the future of capital is digital.
The post labels MSTR as Digital Equity and BTC as Digital Capital. The comparison starts from 2020 when the company incorporated Bitcoin into its funding strategy, not from any specific quarter this year. The traditional assets in the chart are placed on the same annualized return axis, but specific index names and cutoff dates are not detailed in the text.
This is a framework Saylor has repeatedly used. On September 29, he wrote that Bitcoin is digital capital, MSTR is digital equity, and preferred stock STRC is digital credit. Common stock bears the growth of Bitcoin prices and digital credit business, while preferred stock seeks lower volatility and dollar returns. The company manages Bitcoin, dollars, debt, preferred stock, and common stock within the same funding structure.
In July, the company provided another set of metrics, stating that since shifting to a Bitcoin funding strategy on August 10, 2020, MSTR had an annualized return of 42%, higher than Bitcoin, large tech stocks, and the S&P 500. This time, the post revised MSTR to 52% and Bitcoin to 38%, changing the benchmarks to stocks, gold, real estate, and bonds. The two sets of numbers cannot be directly compared.
Saylor did not update the number of holdings, costs, or financing amounts in this post. The 52% and 38% are the annualized results he provided, not audited performance guidance. MSTR's return includes stock price elasticity, while BTC's return is based on the coin price itself; the two are not compounded returns of the same asset.
The buyers are equity funds treating MSTR as a Bitcoin amplifier, while the sellers are Strategy continuously exchanging stocks and preferred shares for Bitcoin. This is a performance narrative, not a new purchase announcement. Funds are redirected from traditional stocks, bonds, gold, and real estate benchmarks to MSTR and BTC. Holders of the company's common stock benefit from the leveraged narrative, while funds aiming to match preferred stock returns and those shorting the premium are under pressure.
Source: Public Information
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Saylor has been converting the software company's cash into Bitcoin since August 2020, subsequently increasing his position through the issuance of common stock, convertible bonds, and preferred shares. MSTR is defined by him as digital equity, STRC as digital credit, and Bitcoin remains as digital capital. This three-part classification was just completed in September, and on October 6, only the equity and capital annualized curves were compared.
The difference between 52% and 38% comes from the elasticity of stock prices relative to coin prices, not from additional returns from Bitcoin itself. The company can issue shares to buy Bitcoin when there is a premium, increasing the Bitcoin corresponding to each share. This mechanism amplifies equity returns when coin prices rise and reverses when the premium narrows. The July metric was still 42%, and this time it is written as 52%, indicating that annualized figures will be rewritten based on endpoint prices.
The approach is similar to how closed-end funds hold a single asset, and it is also close to the leverage of gold mining stocks relative to gold prices. The difference is that Strategy can continuously issue new shares and directly exchange new funds for Bitcoin. The industry is in a pricing phase after the expansion of Bitcoin funding companies, with common stock, preferred stock, and the coin itself beginning to compete for different risk budgets.
Essentially, it is a transfer of pricing power. Bitcoin provides an annualized return of 38%, while the company's equity offers 52%, with the excess being the premium the market is willing to pay for leverage and issuance rights. By placing stocks, gold, real estate, and bonds in the same chart, Saylor is replacing the traditional allocation benchmark with his two lines of numbers.
ABAB News · Law of Cognition
Coins are capital, stocks are the entry point for leverage.
Annualized returns will change; endpoint prices determine the narrative.
The portion that outperforms the benchmark is often the premium.