Jeff Walton's questions to Microstrategy Inc (MSTR) leadership • Q2 2025
Question
Jeff Walton of Strive inquired how the team thinks about future leverage ratios and volatility, particularly as the capital structure shifts from convertible bonds to perpetual preferred equity.
Answer
Executive Chairman Michael Saylor explained that while a 20-30% leverage ratio was appropriate with bonds, a shift to preferred equity could reasonably allow for higher leverage (30-50%) over time. He noted that the 'Stretch' product, if successful, could theoretically allow for massive scaling of this leverage, with the exact amount depending on market conditions and Bitcoin's volatility.