Michael Saylor Eyes 45% Volatility Gap Between Bitcoin And Traditional Markets, Reveals New Strategy To Attract 'Large Pool Of Investors'

Strategy, formerly MicroStrategy MSTR, is aiming to fill a significant void in the investment landscape between traditional market indices and Bitcoin BTC/USD, executive chairman Michael Saylor revealed during the company’s fourth-quarter earnings call on Wednesday.

What Happened: The Bitcoin treasury firm, holding 471,107 Bitcoin valued at $46.1 billion, has pinpointed what Saylor describes as a “large pool of investors” positioned between traditional assets like the SPDR S&P 500 ETF SPY and Invesco QQQ Trust QQQ, which have volatility levels of 15-20, and Bitcoin’s 50-60 volatility—creating a roughly 45% gap.

“Between 15 vol and 60-vol, that’s a big, big area,” Saylor said, outlining the company’s strategy to create investment products targeting different volatility preferences. This includes the newly launched Strike preferred shares, offering an 8% dividend yield with Bitcoin exposure.

The initiative comes as Strategy reported fourth-quarter revenue of $120.7 million, missing analyst estimates of $123.25 million. However, the company significantly accelerated its Bitcoin acquisition, purchasing 218,887 Bitcoin for $20.5 billion in the fourth quarter alone.

Why It Matters: Strategy’s common stock targets even higher volatility than Bitcoin itself, aiming for 80-90 vol, while maintaining what Saylor describes as “intelligent leverage” through a combination of equity issuance and convertible bonds.

“We engineer the business in order to stay volatile,” Saylor said, contrasting Strategy’s approach with traditional corporate treasury operations that typically minimize volatility.

The company has raised over $22 billion in 2024 to fuel this strategy, including $15 billion through equity issuances and $3 billion via convertible debt in the fourth quarter. Strategy has set an ambitious target of $10 billion in “BTC $ Gain” for 2025, indicating confidence in its multi-tiered volatility approach.

Price Action: MicroStrategy stock closed at $336.70 on Wednesday, down $11.61 or 3.33% for the day. In after-hours trading, the stock declined further to $332.00, losing an additional 1.40%. Despite the daily drop, the stock has surged 576.10% over the past year, according to data from Benzinga Pro.

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