What People Get Wrong About MicroStrategy’s Bitcoin Plan | Dylan LeClair

In this episode, Dylan LeClair joins the show to discuss MicroStrategy’s Bitcoin strategy, the insane performance of its convertible notes, and its $42 billion capital plan. We also discuss how to value MicroStrategy, the company’s liquidation risk, how other companies can replicate its strategy, and much more. Enjoy! — Follow Dylan LeClair: https://x.com/DylanLeClair_ Follow Felix: https://x.com/fejau_inc Follow On The Margin:   / onthemarginpod   Follow Blockworks:   / blockworks_   — Polkadot is the foundation for an open and resilient web. Governed by its users, Polkadot empowers the largest DAO of 1.3M DOT holders to shape the network’s future. Home to 500+ apps and chains backed by $6B in shared security, Polkadot is revolutionizing DeFi, GameFi, AI, RWAs, and more. With upgrades like Async Backing, Agile Coretime, Elastic Scaling, and JAM on the horizon, now’s the time to join. Start your journey today at polkadot.com/get-started Ledger, the global leader in digital asset security, proudly sponsors On The Margin. As Bitcoin adoption grows, Ledger celebrates 10 years of securing over 20% of the world’s crypto. Buy a LEDGER™ device now for true self-custody and peace of mind in securing your Bitcoin. Devices are also available in Bitcoin orange. For every device ordered in BTC Orange, we’ll donate $5 to brink.dev. Buy now at Ledger.com. MANTRA is a purpose-built RWA Layer 1 blockchain capable of adherence and enforcement of real world regulatory requirements. As a permissionless chain, MANTRA empowers developers and institutions to seamlessly participate in the evolving RWA tokenization space by offering advanced tech modules, compliance mechanisms, and cross-chain interoperability. Key Features: Built using Cosmos SDK, IBC compatible, with CosmWasm supported Secured via a sovereign PoS validator set Scalable up to 10k TPS Built-in Modules, SDKs and APIs to create, trade and manage regulatory compliant RWAs Improved User Experience to onboard non-native users and institutions to Web3 — Timestamps: 00:00 Introduction 03:19 MicroStrategy's Bitcoin Strategy 09:41 Who Is Buying MicroStrategy? 14:24 How To Value MicroStrategy 16:02 FASB Regulation Change 19:05 MicroStrategy's Dilution & NAV Premium 21:49 MicroStrategy's Convertible Notes 24:14 MicroStrategy's $42 Billion Capital Plan 27:14 Why Is This Strategy Accretive to Shareholders? 30:48 Advertisements 32:45 Impact Of The Capital Plan 36:11 MicroStrategy Risks 44:07 Replicating MicroStrategy's Strategy 49:09 Crypto Market Outlook — Disclaimer: Nothing discussed on On The Margin should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.