“If you’re in an inflationary environment, once you’ve adopted a Bitcoin strategy, you have a use of proceeds for capital. If you didn’t have a use of proceeds for capital then selling equity is dilutive. But if you have a use of proceeds for the capital that actually has a higher theoretical return than the growth rate of your business then selling equity is accretive. Like, Microstrategy sold equity — you saw just this week I announced we sold $82 million dollars of equity and we bought $82 million dollars of Bitcoin. Now, for 20 years we didn’t really sell much equity, and the reason why is we didn’t really need the capital so we’d just be diluting our EPS and diluting our cash flows. But if your small business is gonna grow at 10% a year and you think Bitcoin is going to grow at 40% a year, then if you sell equity at a fair price and you convert it to Bitcoin then in fact you’re actually strengthening your balance sheet and you’re increasing the growth rate of your business, right? You just quadrupled it. In theory, if you basically sold equity equal to your entire company and put it in Bitcoin, you just did a merger with a company growing at Bitcoin rate — 160% a year — with your small business growing 5% a year. Microstrategy did that: we took a $500 million company with $500 million in capital growing at 0% a year and we turned it into a $500 million dollar company growing 5%-10% a year with $6 billion dollars of capital growing 160% a year. So that’s the Bitcoin strategy.”
— #[0] to Saifedean Ammous