➡ The text discusses the potential of Bitcoin companies to leverage their assets and increase their value. It explains how these companies can create financial products from Bitcoin, offering different benefits to different types of investors. This process, known as ‘intelligent leverage’, can potentially multiply the company’s value by two to five times. The text also mentions an upcoming live event where more details will be shared.

➡ This text discusses the potential of companies like MicroStrategy to leverage Bitcoin for high returns. It explains that these companies can offer higher yields than traditional investment options like bonds or ETFs, attracting a large market. The text also highlights the discrepancy between the company’s high revenue and its low market valuation, suggesting a potential market mismatch. Finally, it predicts significant growth for Bitcoin and these companies in the long term, emphasizing the importance of viewing them as long-term assets.

I’m going to show you exactly how to get two times your Bitcoin exposure without getting liquidated. But honestly, that’s just the starting point. Now for years, the only way to get this kind of leverage would wipe you out overnight. But the smartest investors have quietly created a new way. It’s a strategy using something I call intelligent leverage. It’s creating an entirely new asset class on top of Bitcoin. Now I’ve been building companies for decades. I’m a partner at a venture fund investing in these specific companies. And in this video, I’m going to give you the playbook that we use.

I’m going to reveal a shocking chart that shows you how this new market is on a path to become even bigger than Bitcoin itself. You have to see this. So let’s go. All right. So when we’re talking about Bitcoin and we’re talking about leverage on top of Bitcoin, I typically don’t recommend it. I’ve seen way too many traders get completely liquidated by trying to get even more explosive returns on Bitcoin. What we’re talking about is something a little bit different, but kind of the same. I’m talking about amplified Bitcoin. How do we amplify the returns of Bitcoin without putting leverage, without getting liquidated? We’re going to break that down.

Okay. So first of all, we want to look at Bitcoin through a few different lenses. Now we can buy Bitcoin, the commodity, we can buy it through an equity, we can buy it through an ETF and different types of things like that. But today we’re going to be looking at specifically buying it through an equity and a company like MicroStrategy, formerly MicroStrategy, now I talk about them quite often, but I don’t think anybody, probably nobody watching this video, except for my hardcore viewers, really know what’s actually under the hood and actually going on.

I see all these mainstream media takes that completely miss what’s going on. So let me break it down for you. Okay. So if we take a look at some of the biggest asset categories that we have to performance over the last five years, from August of 2020 to August of 2025, what we can see is that bonds are down 4%, of course, the 60-40 portfolio split is dead, real estate’s done about 6% during that time, gold 10%, S&P 500 about 14%. Excuse me, my voice is a little bit off, been a little bit under the weather, Magnificent 7 is in about 27%, the MAG 7, not the S&P 500, right? It’s greatly almost doubled the performance there.

But then the MAG 7 has done 27% and Bitcoin has about doubled that 58% over that time. This is annually, 58% per year. And even better than that, and Bitcoin is micro strategy, it’s done about 100% per year, 3000% cumulative, Bitcoin, 885% cumulative versus 332 S&P 500 or MAG 7. All right, so you can see how these different assets over five years have done different. And so Bitcoin, although it’s completely crushed every other asset, micro strategy has actually doubled it, or 2x, leverage or what we’re calling amplified. Now, I’m not just cherry picking data, let’s look at the last year.

All right, so over the same timeframe, so August of last year to August of this year, we can see about the same bonds, 0%, real estate, 6%, S&P 500, 17%, the MAG 7 about double that, we can see gold a little bit better. Bitcoin has about doubled that 74% in the last 12 months. And again, micro strategy, almost doubling the performance of Bitcoin, 2x, not leveraged, but amplified Bitcoin. Now, a lot of people want to know why buy micro strategy and not just buy an ETF. Well, when you buy an ETF, you have exposure to Bitcoin.

One Bitcoin is one Bitcoin. And as I showed you, one Bitcoin is outperforming every other asset. Congratulations, it’s a good job saying buying physical Bitcoin. Well, of course, it’s digital. But if we buy a Bitcoin treasury company like strategy, or like a meta planet or any of the other ones out there, they’re adding leverage, intelligent leverage, I’m going to break this down for you in a second, they’re adding leverage, which allows them to get that leverage exposure, which allows us to receive the benefits of the amplified Bitcoin, but without having the risk.

Now, how do they do this? How is it intelligent? And how is it not a Ponzi scheme? Don’t worry, we’re going to pull back the curtains. And I’m going to show you exactly what’s going on. Because you should never buy something unless you understand what it is. What is it? What are they doing? Why do I expect to go higher? Over what timeframe? What are the risks? How long am I going to hold it? All of these things. And if you don’t understand what I’m about to show you, you’ll never make a good decision based off this, you’ll be underexposed, overexposed, etc.

Okay, so the first thing is we have to understand what these companies are doing, these Bitcoin treasury companies like strategy, like meta planet, etc. What they’re doing is they’re using arbitrage. They’re leveraging one market against another market. It’s like buying on Alibaba, or Teemu or whatever, and then selling on Amazon, right? You leverage the China market, which is super cheap, and you sell in the US market, which is more expensive. And what really is going on here is we have a digital transformation, and we’re digitizing money. That’s what Bitcoin is doing.

Now we know that digital transformation, digitizing money, the dematerialization of money will always move faster than physical, productive, physical. So this would be like brick and mortar businesses. This is the S&P 500. And we know that businesses will always do better than debt and credit. So these are three different markets, debt and credit, physical, productive, and then digital, three different markets that we can arbitrage against each other because they’re moving at different speeds. And really what we’re arbitraging, here’s the big thing, the unlimited treasury market, the unlimited fiat currency that will always continually be printed and expanded against a scarce asset like Bitcoin.

That’s ultimately what the arbitrage is. But let me show you what I’m talking about. So if we look at micro strategy, now what they’re trying to do is increase the amount of Bitcoin exposure you have for one share of stock. So if we take a look at this, this is a 199,000 satoshis, which are a fragment of a Bitcoin, per share of stock. Now, if they use no leverage, then what you’ll see is the baseline and the leverage never changes. So one Bitcoin is one Bitcoin is one Bitcoin is one Bitcoin, a Bitcoin factor of one.

This would be similar to buying an ETF. I keep the same amount of Bitcoin exposure over a 10 year period. However, if we can start adding some intelligent leverage, don’t worry, I’m going to show you what the intelligent leverage is. This is using a baseline or a 10% leverage number. What we can see is that over time, this green is the amount of Bitcoin exposure I have. And over time, we can see that it goes higher, higher and higher. So I went from 199,000 satoshi per share of stock to in this example, 267,000 satoshis per share of stock.

So the amount of Bitcoin I’m exposed to per share of stock went up over time. This would be at a 30% Bitcoin annual run rate and a 10% leverage rate. That’s a Bitcoin factor of 1.3. All right, let’s increase the leverage a little bit more so we can see why is it going up faster? Why is it amplified Bitcoin? Okay, so what we can see here, this is 20% leverage. Again, we start with the same 199,000 satoshis. And over time, over 10 years at 20% leverage, we end up with 376,000. Not quite double, but almost this is a 1.9 Bitcoin factor, amplified Bitcoin.

All right, let’s keep going. One more example just to drive this point home. So you can see the difference of buying Bitcoin, buying a Bitcoin ETF, or buying a Bitcoin Treasury Company like strategy or meta planet or some of the other ones. Okay, so now this is assuming a 30% leverage. Don’t worry, we’re going to get to these leverage ratios and where this comes from and what this all means. But now let’s assume a 30% leverage ratio. So micro strategy is doing this, think of it like I’m buying a dividend paying stock, but rather than paying me the dividend, the dividend is being paid in Bitcoin.

But instead of them paying to me, they’re reinvesting it for me. Think about it like that, compounding the returns. So at a 30% baseline or leverage, we can see we start with again, the 199,000 satoshis. And over 10 years, we end up with 555,000. So more than double the amount of Bitcoin. Two times, two times the performance. Are you starting to see the numbers here? This is a 2.8 times Bitcoin factor. Now, imagine going up to 20 years and 30 years and etc. And you can start to understand the outperformance that’s here.

Okay, so now you can easily see how they can increase the amount of Bitcoin you have per share. But what you want to know is what does that mean for the price? Should it do 2x, 3x, 5x what Bitcoin does? I want to show you that real quick. But before I do, I just want to let you know next week, I’m going to break down a report that I have that shows you how to rate each one of these types of Bitcoin companies, how you can rank them, how you can find the best ones.

I’m going to talk about the ones that I’m looking at. I’m going to do this all live next week. We’ll hang out and answer all your questions live. Make sure you understand what this is because this is a big deal. Don’t miss it. I’ll put a link down below. It’s free if you want to hang out. We’ll put a QR code here on the screen, but let’s keep going. Let’s learn about the leverage and the ratios. They’re giving us the leverage. They’re reinvesting that, the compounding force, but we don’t have to do that.

We don’t have to take the risk. We don’t have to do the work. Okay, so what is this intelligent leverage and where do we come up with the multiple? How much should it be two times or should it be three times or should it be five times? Where should the number be? That Bitcoin factor. By the way, all of these charts, as you can see, they probably have the strategy name right here. These all came from strategies Q2 meeting. They did a live stream and so they presented all these slides. I grabbed them from them.

If you want to know more about these, you might want to watch their meetings, although they could be a little bit boring, so I’ll just bring you the highlights. All right, so this takes a look at the Bitcoin factor. Remember the return, the ratio, and this assumes that there’s an 8% dividend rate and 10-year duration, so we’re looking over a 10-year period. On this column, this is looking at the Bitcoin annual return rate, the ARR. We have to guess, do we think Bitcoin will return 10%, 20%, 50%? It’s been averaging about a 50% to 60% per year.

What will it continue? Well, let’s just say 30%. We’ll call it 30% and then what leverage, how much leverage will they apply? We’ll get more to the leverage in a second. How much leverage will they apply? Well, if we could assume a 30% run rate, annual run rate over the next 10 years, again, we’re at about double that now. If we could assume that over the next 10 years and they got a 30% leverage, that would give them a 2.8 times factor, right? So this is like the multiple that they’d be running at.

Now, what if Bitcoin does better? Like I said, it’s doing 50% now. And what if they got to 40%? Then it could be nine times what Bitcoin does. You see how powerful this leverage is? What if it was 13 times Bitcoin? So it depends on what the return rate of Bitcoin will be. And I’m going to show you more about some projections of what that return rate will be in a minute, or what the leverage ratio will be. You see some examples there. A couple of other ways they broke it down. We can take a look at this.

What this is showing us is again, the same, the annual run rate, we have to guess, is it going to be 30% again? And this is what their dividend rate is. So when they’re taking on this money, this debt, they’re creating products, financial products, and they’re basically thin slicing it out, and they’re owing people money, a coupon rate. I’m going to break it down in a second. So do they pay 8%, 6%, 12%? So again, if we assume that they’re paying, let’s say, a blended rate of 7%, maybe 6%, maybe 5%, that would give them a four times factor.

All right, this is the amplified leverage, the intelligent leverage that we’re talking about. One more sheet just to drive it home, and then we’ll get more into how they’re actually doing this. Okay, this is again, assuming a 30% annual run rate over a 10 year period. Now we have the leverage here. So let’s say we get up to like a 40% leverage, and this is the dividend rate they have to pay. So they’re only paying 5% at a 40%. And here we are at a five times. So you can see that depending on how we look at this, depending on what we think the leverage ratio will be, or what annual return rate will be, it’s somewhere between maybe a three to five times seems about the average, the amount of amplification, the factor rate that micro strategy and Bitcoin treasury companies are able to produce.

Okay, so what is this? What is the product? What is the product that they’re providing that gives them this intelligent leverage that’s amplified Bitcoin? Well, let’s think about this. What they’re doing is they’re taking Bitcoin. It’s a commodity. It’s a very volatile commodity that goes up and down. However, it’s very explosive to the upside. But it’s a commodity. So not everyone can buy a commodity, pension funds, insurance funds, governments, they can’t buy the commodities, right? And so a lot of people also maybe can’t handle the volatility, right? So I can’t buy it through my 401k or through my pension plan.

Also, I’m 78 years old, I’m on fixed income, I can’t hold for the four or five years of volatility either. So what they’re doing is they’re taking Bitcoin and they’re thin slicing it. So let’s say that we take Bitcoin like this, and we can thin slice it and chop it up. And we’ll say, hey, what if we give you 80% of the upside of the Bitcoin price, but we give you no downside to the price. And on top of it, we’ll pay you, let’s say 8% to hold that. Or what if they say here, we’re going to give you 12% return guaranteed forever in perpetuity.

So we’ll take part of Bitcoin, and we’ll start slicing it up and give it to you in products. And we’ll wait for that. Here’s what this looks like, again, this is from micro strategy, or I should say strategies. I use the names interchangeably, sometimes I forget, but mostly just so everybody else knows what I’m talking about, because the name change has been recent. But strategy enables a wide variety of securities based on Bitcoin, which is a commodity, right? So this is now everybody can not get access to so we take Bitcoin here, this raw asset, and then we create different things, a higher volatility leverage place.

So this is the stock micro strategy, MSTR, right? This is what these would be options on it. Here’s the stock down here, right? And then what we can do is we can create these products down here, where we’ve thin sliced it. And we pay like here, we pay 8% for people to hold this one, we pay 9% for people to hold this one, we pay 12% or 10% for them to hold these products. If we take Bitcoin, we thin slice it, we create securities around it, and we offer it to different people for different reasons.

Again, if I’m 78 years old, and I need income to pay my monthly bills, I can’t just buy Bitcoin and hodl. I can’t handle the volatility, I need income. And that’s exactly what these products are. So what happens is over time, these Bitcoin Treasury companies like strategy or pioneering are building out a yield curve. So we have over here long term, this would be like a US Treasury bond. So instead of buying US Treasury bonds, which is like, you know, maybe the government will pay me, maybe they won’t, most likely they probably will, but with devalued dollars, but I’m only getting 4% or 5%.

How about we pay you 10% and we give you upside potential on Bitcoin, but with no downside. That sounds pretty good. All the way over here, we have junk bonds. And then even better than junk bonds over here, we have like loans. And this is where stretch, one of the other products, STRC is here, and they’re just going to pay you, you know, 10% in perpetuity. And it’s fixed, so you don’t lose money. It’s sort of like a money market account. And so they’re starting to create products up and down these and each one of them allows them to get this intelligent leverage, this amplified Bitcoin that they’re going for.

This is how they’re able to deliver that. Now, the next question that you should probably be asking yourself is, okay, so if that’s the product, then how big is the market and what’s the profit margin? So, for example, if you were going to buy Apple stock, which maybe a lot of you own Apple stock, you should be thinking, well, how big do I think Apple can grow? How big is their market? How many more iPhones and iPads will they sell in the future? What is their profit margin on those iPads? And so we’re trying to buy Apple based off of a discount today of where we think its future valuation will be based off of how much it can expand its market and how much it makes.

So if we think about this, how big are these markets? How many people might want to make 10% guaranteed? How much, how many people want that? That might be a valuable product. Well, let’s take a look at that. So what we can see, if we look at the comparison products, so if I was going to pitch you on Uber 15 years ago, I’d show you, well, look how big taxis are or limos are. So here’s how big these markets are. So first of all, ETF market comparison. We can see that in preferred equity, which these products are sort of like a perfect equity, we can see that there’s hundreds of millions of dollars that are sitting there right now, but they’re making very low yields, 6% to 7%.

We can see there’s high yield bonds. So the bond market is obviously very big. A lot of people buy those as part of the 60-40 portfolio. They’re averaging about a 6% to 7% yield and there is billions, $5 billion sitting there. It’s a pretty big market. We have loans. So here’s a couple of big loan funds. They’re paying 7% to 8% yield. We got another roughly billion dollars sitting there. So we’re talking five, 6 billion, pretty big market, right? Okay. Well, we haven’t even scratched the surface. Here’s really where the big fish are.

And you can see that we’re just barely getting started here. So take a look at this. This is a universe of comparable assets. So these are assets that people are really buying to get safe return, safe yield. So U.S. Treasury bonds, as we said, there’s 28.3 trillion with a capital T, 28.3 trillion paying 4%, 4%. 28 trillion. How much of that 28 trillion would like to get? 8% or 10%. We have agency mortgage-backed securities, 9.2 trillion paying 5%. Investment-grade bonds, 5 trillion, 5%. Junk bonds, 2.6 trillion, 7%. And on and on and on.

So we’re talking now trillions. We’re talking 30, 40, 50 trillion that are earning about half of what these are paying down here. So that’s the market. Now, how much is the profit margin? If I sell an iPhone, how much money do I make? Well, for micro strategy, chopping up Bitcoin, offering these types of returns, and then buying Bitcoin and waiting, they make the difference. They make the arbitrage. They arbitrage the difference of the credit market, so we started there, to the digitization of money market. So they’re making about a 50% profit margin.

So there’s an enormous market, the biggest market in the world, and the profit margin is outstanding. So that’s the intelligent leverage. That’s why they’re able to offer this amplified Bitcoin, a leverage play without you getting liquidated. Okay, so where does all this go? If micro strategy or companies like strategy, other Bitcoin treasury companies like MetaPlanet, etc., if they’re able to do intelligent leverage and do it intelligently and not get blown up, and provide that leverage, and they can do two, five, eight times what Bitcoin’s returns are, then what’s Bitcoin’s returns going to be? Well, let’s take a look at that.

So I talk about this quite often. Now, first of all, real quickly, now that you understand this business model a little bit, maybe it makes sense when you take a look at this, if we look at the S&P 500, the main market of the world, and we look at the 2025 estimated net income, we can see that strategy is right here, number 13 with $24 billion, number 13. But when we take a look at it over here in market cap, we see it’s way down here on 96. So why is a company with this high of revenue, number 13, the market is only realizing the value that puts it all the way down on number 96.

And even more, companies are really based off of their PE ratio. And what we can see on a PE ratio is strategy is way down here, number 495. So why is a company that’s 13th in income, down to 495 in PE ratio? And I guess I’d ask you a different question. Does that look like a potential market mismatch? Does it look like potentially the market doesn’t really understand the genius of what’s going on here? These are the opportunities that as investors we’re looking for. Okay, so where are we going? Here’s another slide from the presentation.

What this is is a chart of the institutional research that does research on Bitcoin and what they have to say. And so this is for an end of the year 2025 price projection of Bitcoin. It’s not my projection. It’s all these different analysts. Barclays puts it at 116. Bernstein puts it at 200. We have Wainwright puts it at 225. Maxim 235. TD Cohen 137. So what we have is an average of $168,000. So that’s whatever, 50, 60% gain from here. So if Bitcoin could do a 50 or 60% gain, then could these companies do two to three times that? Could it be 100, 150, 200%.

But let’s look at it even a little bit farther. Bitcoin is a long-term asset. You should not be looking at it monthly or quarterly. As a matter of fact, as I often say, if you’re looking at your portfolio on a quarterly basis, you’re probably never going to make it. Not when you want big time returns. Now, you might recognize this chart. I’ve used it many times in other videos. And this projects out where I believe the long-term value as Bitcoin will be based off of a bunch of factors, including what the government, the CBO projects, what deficit debt spending, et cetera, will be by 2054 for the next 30 years.

And based off of this by 2030, I’ve mapped out Bitcoin being worth 21 trillion dollars or about $1 million per Bitcoin. That’s about an eight or nine times return from here. Round numbers, call it a 10 time. So if MicroStrategy and other companies like that could do two times or three times or four times, as I’ve just shown you why, instead of a 10 times return like Bitcoin, that could be a 30 or 40 times return for companies like this. That’s what we’re calling intelligent leverage. Now, if we go out a little bit further, here’s another projection that puts Bitcoin at 2040.

Again, based off of the deficit spending, all continue to expand. All of these assets will continue to expand. And I believe Bitcoin will reach about a $289 trillion market cap or about $14 million per Bitcoin. And again, these companies could two, three, or five X that. So you can start to see very quickly why these companies are trading for such higher valuations. But again, don’t get caught up in, but what about this quarter? What about this month? Zoom out a little bit and understand these are long term assets and it’s taking time to build this thing out.

Now, if you want to know more about Bitcoin treasury companies, I have a full report that shows you how you can look at all of these and rate your own and find the very best deals in the industry. I think there’s about 150 of them at this point and I’m going to break it all down for you live next week. We’ll do a live Q and A. I’ll break the whole report down and we’ll hang out. We’ll answer all your questions. I’m going to put a link down below if you want to come join me for free.

And if you want to know more about the math of how we got to these numbers, you might want to go watch this video right here and I’ll see you over there. [tr:trw].

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.