Crypto Cowboy: How To Ride The Bitcoin Bull To Riches

In this episode, Jonathan Fodera and Keith discuss Michael Saylor's innovative strategy for incorporating Bitcoin into corporate reserves. They explore the significant increase in value that Saylor's company has experienced since adopting this strategy, and how business owners can implement similar tactics to build wealth. The conversation covers the importance of understanding corporate reserves, the practical steps for individuals to invest in Bitcoin, leveraging Bitcoin for growth, and the associated risks. They also touch on the future of Bitcoin and its potential for mass adoption.

• Michael Saylor's strategy has led to a 1500% increase in value.
• Investing in hard assets is crucial for wealth building.
• Using Bitcoin as collateral can be a smart financial move.
• Holding Bitcoin for four years historically results in profit.
• A long-term strategy is essential for Bitcoin investment.
• Avoid keeping significant amounts of money on exchanges.
• Mass adoption of Bitcoin is on the rise.
• Bitcoin can stabilize and increase the value of a company.
• Understanding corporate reserves is key for business owners.
• Sharing knowledge and strategies helps impact more people.

🎙️🚨 PODCAST GIVEAWAY 🚨🎙️

Apple Podcast: https://podcasts.apple.com/us/podcast/the-integrated-entrepreneur/id1721945867

Spotify: https://open.spotify.com/show/44djZ5wR9cyqTAKJs8DyEX

Subscribe to the podcast and email poof of subscription to jviccora@integratedbusinessfinancing.com.

🎁🏆  PRIZES  🏆🎁

🥇 Capital Tools Program ($1,999.00).

🥈 Business Strategy Session ($1,000.00).

🥉 Merch (Tees, Hats etc.).

🏅 Join us on the show.

Podcast Info: https://feeds.buzzsprout.com/2285267.rss

Apple Podcast: https://podcasts.apple.com/us/podcast/the-integrated-entrepreneur/id1721945867

Spotify: https://open.spotify.com/show/44djZ5wR9cyqTAKJs8DyEX

Also Check out:

Built 2 Exit Assessment: https://jonathanfodera.builttoexit.biz/.

Join Jonathan in the Capital Tools Program: https://www.thecapitaltoolsprogram.com/home

Jonathan's Facebook: https://www.facebook.com/John.fodera.3

Jonathan's LinkedIn: https://www.linkedin.com/in/jonathan-fodera-391a98a1/

Jonathan’s Instagram: https://www.instagram.com/jonathan.fodera

Integrated Business Financing Website: https://www.integratedbusinessfinancing.com

Transcript

Jonathan Fodera (00:00)
Hey everybody and welcome to this episode of the integrated entrepreneur. I'm here with my co-host Keith and today we are going to talk about Michael Saylor's strategy for buying Bitcoin and creating a corporate reserve. All right, so Michael Saylor is the CEO of micro systems. It was the first fortune 500 company to adapt a corporate treasury in Bitcoin. All right.

Keithgause@icloud.com (00:06)
What

Jonathan Fodera (00:29)
and it has grown leaps and bounds the net worth of him and his company. ⁓ You could see it in the charts, like me and Keith were just joking around to say, hey, let's see how effective this was, right? And I pulled up a five-year chart, okay? And the five-year chart, at one point, his stock was trading at 25 bucks, and now it is trading at 416.

Right, he's had a 15, over a 1500 % increase in the value of his company since he adapted this strategy. All right, and I'll tell you the premise, I'll tell you how to do it, and I'll tell you how he does it versus how you can do it. All right, this is one of the best shows we'll ever do.

if you are a business owner looking to increase the value of your company. The other thing is all of these same strategies, even if you don't own a company, you can implement these into your daily life to really build wealth. All right, so let's get into it. Basically, what he has done is he raises either debt or equity, and he's done both, okay? He sold shares to gain cash, and then he converts the cash

into Bitcoin, and then he puts it in a hard wallet and doesn't touch it. That's his first way of going about and doing this. The second way he does it is he issues bonds on the market. And he then goes and takes all the cash that he was purchasing was selling the bonds for. And he goes and buys Bitcoin. Now, obviously, the average small business owner would not be able to do that strategy.

Right, but there are things that you can adapt today to be able to do this and I'm gonna walk you through the entire process. But before we go anywhere, Keith, what do you think about that? Being a financial advisor, this is a little bit outside the box, I get that. We're recovering financial advisor.

Keithgause@icloud.com (02:37)
Sure, yeah, something that the V.S.

once removed financial advisor, Mr. SEC Fed trying to get me locked up. You know, here's the thing, I think that... ⁓

Jonathan Fodera (02:43)
Yeah.

Yep, sorry.

Keithgause@icloud.com (02:53)
You're going to have your people who are naive, right, to the technology side of it, who will put them out of this altogether. You'll have your people who are naive to investing and will put them out altogether. It's no different than your strategy of having a corporate reserve account or a fund of money in a high yield savings account, right? Which is ⁓ what 90 % of people would feel comfortable doing being that this quote unquote needs to have.

no risk, right? In their minds, these dollars are the three to six months of savings. First of all, we're talking about something much different than that structure of a corporate reserve account. So there's two pieces to this. When you say corporate reserve, I want people to go in two locations here. want them to go to, you have to have that three to six months of cash that you don't touch. Keep that. That's your strategy corporate reserve. This corporate reserve account is a corporate reserve account for future funding of

expansion, future funding of growth that is maybe a year, two, three, four years down the road. And it's really no different than putting it into the stock market. Okay. You're going to have your pitches, your pitfalls, pullbacks, whatever, and your expansion. So the idea behind this is fantastic. None of it will work if you don't act like an ostrich and put your head in the sand and not pay attention to it.

And that is the key to this piece that makes it either work or make sure you have a heart attack.

Jonathan Fodera (04:25)
Correct. So I'll get into this. So let's talk about the strategy behind it. So everything you said was spot on. Our dollar has lost over 25 % of its purchasing power since COVID, just since COVID. So that means if you are holding $100,000 of cash since COVID, that now it roughly has the same equivalent of about $75,000.

not gaining, getting interest or having your excess cash appreciate is a strategic pitfall. Okay. It is a blind spot that most people don't see. Okay. It's why I've been saying invest in hard assets forever. Okay. On mindset Monday, on financial fitness Friday, on this show. And basically what this does is it puts you in the highest appreciating asset or one of the top appreciating assets of all time.

And yeah, there's a couple of things you have to understand. One, you're doing this to protect your purchasing power and actually increase it. Two, Bitcoin works on four year cycles. OK. And so what Keith said about just do executing the strategy and putting your head in the sand is spot on unless you want to time out or try to time the top of it, sell everything and then start rebuying as it's coming down, which you can if you study the charts and you study.

the cycle is enough, you absolutely can do that. But the way the strategy should work is this. One, you open an account on Gemini. I will post the link on this show where you can get some money. I think it's like 75 bucks referral, and I will get some money. They are one of the few that will actually let you hold a corporate account. Then what you have to do is you have to get a hard wallet, whatever hard wallet you like. And then what I would advise is set it up

you since you can't sell stocks, since you can't issue debt, all right, to raise your money, think about what your cash flow looks like and figure out how much a week you can afford to put into this without hurting your reserves, all right, without hurting your operations. And whatever that number is, that's what you stick with. If it's 250 bucks a week, if it's 500, if it's a thousand, there are some people I know that have put 5,000 in a week, all right.

That's step one. And then once you get to about $5,000 on the exchange, I would then transfer it into the hard wallet and keep that hard wallet locked up where no one knows except you and your significant other. All right? And you don't really touch it ever. You just let it accumulate. And the only thing I would really do this with is Bitcoin. ⁓ There's an argument for XRP, less of an argument for Ethereum. I would just stick with Bitcoin to do it.

And you just let it sit there. And then if you ever need money, you have two options. Okay, the first option is you sell it. You take the taxable gains, the taxable income, you paid your taxes on it, and you use it to deploy it for growth or an emergency. The second thing, the wiser decision is there are plenty, ⁓ not plenty, I don't wanna say plenty, you'd have to know where to look. There are a lot of different places where you can go.

and use your Bitcoin as collateral and take out a very low interest sub 10 % loan against it. And then you just pay off pay it off in interest only increments. The reason I recommend that is because Bitcoin is the asset you want all the Bitcoin you can accumulate. All right. What I would suggest is when you borrow against it, you can then use the that interest only as a write off.

Right, so if you're paying $2,000 a month on a $100,000 loan, every time you make a payment, that's a write off for the company. And you haven't sold your asset, you just borrowed against it, which is a much smarter decision. All right, so that is how I would deploy or execute this strategy. I would tell you we're probably towards the tail end of the high cycle, meaning I think

We probably have another six to 18 months max and 18 months is the stretch. think 18 months is a little aggressive. But I would say sometime in that window where we're going to see this really peak and you're going to see it because everyone's going to be talking about it. Right. I think you'll see 150, 200. It's at 106 today, the time of us going over this. And so at that point you can sell and then set your buys.

I would never ever ever discount or or not have a weekly buy. I don't care what price it's coming in at. All right. There is a funny and interesting statistic about Bitcoin. If you bought it and held it for four years at any point in history, you were profitable. All right. So Keith's advice of just sticking your head in the sand. That's the best advice we can give you is don't touch.

Keithgause@icloud.com (09:34)
Yeah, you bring up a real good point, right? Power of leverage. Okay, and that's basically what you're saying is on the leverage of Bitcoin's value, we're not going to get rid of the asset. But then let's discuss what people need to do with that money. So, you know, it's the smartest route of an asset purchase and then the leverage use. This is kind of equivalent to infinite banking, right? The taboo, everyone, 90 % of the world hates it, 10 % of the world that understands it loves it.

But it works. I'm going to borrow money based on an asset that has value, then I'm going to deploy those dollars to another asset. most people that like the infinite banking and like this kind of leverage strategy go and buy real estate, right? Which is something that you and I talk about frequently. And you buy a cash producing asset that has profit on a monthly basis. So needs to cashflow positive to then pay back that interest loan. So at the end of that payment, you have two assets continuing to develop.

Jonathan Fodera (10:04)
Hmm.

Mm-hmm.

Hmm?

Keithgause@icloud.com (10:33)
profit. And that's the ticket, right? And I think if you just break it down and don't get caught up in the big words, the light and the noise, it's just, it's no different than you getting a vehicle loan from the bank to buy a vehicle. You're leveraging their money. And if you really boil it down, the bank is using your money to give you to charge you on. And they're also buying Bitcoin and leveraging that and insurance and leveraging that to give you cash.

Jonathan Fodera (10:34)
Absolutely.

Correct.

Yeah.

Yeah, that's true. A whole bunch of fuckery. If they only knew, right? The average person has no idea how the banking system works. I can tell you that almost every product they have is an asset, right? So you think SBA loans and mortgages, the bank holds that. They don't hold that. They sell that paper on the secondary market for a profit and they bake in their profit.

Keithgause@icloud.com (11:02)
It's a bunch of fuckers.

Correct.

Jonathan Fodera (11:28)
That's how most of these SBA banks work, is they sell it off in tranches and they classify it and they usually take a, they skim, they take a haircut on, they give up some of the profit they would have made for quick money today and they get the paper off their books.

Keithgause@icloud.com (11:43)
So something that

most of our listeners can relate to that I think will drive that home for them. Mortgage owners. You know this because when you buy your house 90 days later, you get a new mortgage payment. Hey, send your future payments here. It's exactly what Jonathan's talking about. Wells Fargo gives you your initial mortgage and then sells your mortgage on the secondary market to exponentially shorten their profitability margin, right, and timeline, and they rinse and repeat.

Jonathan Fodera (11:59)
Mm-hmm.

Keithgause@icloud.com (12:13)
And so they are a volume operator, whereas they're selling it on the secondary market to the long-term note holder who's okay giving up the dopamine rush today for long-term longevity and that income, right? And a little bit more risk. So that puts it into perspective to what I think most people can relate to having experienced that. This is the same freaking thing, just on a bigger scale.

Jonathan Fodera (12:36)
Mm hmm.

Yep. A couple a couple caveats to the strategy guys, right? Since you can't sell stock to gain get money, and you can't issue your own debt or bonds to get money. And you have to do it off of your cash flow. One, make sure you're not putting in more than you can afford. All right, because it is risky, it is volatile. I'm telling you based on my experience, and others that have done this strategy, it

It has worked for us pretty well. ⁓ The other thing that I would tell you is on any time you see drops, like if you're really committed to the strategy, okay, depending on where you are in the cycle, obviously you don't want to do this at the top of the cycle, all right, except the weekly buys, but any time that you see a drop of let's say, it used to be five to 10%, but you don't, I haven't seen those swings as much as I used to.

But anytime you see a significant drop, three to 5 % or more, I would tell you to put whatever excess deployable cash you have into it. It's a funny running joke between Keith and I, but if I get a random text from Keith, and it's usually at like the weirdest fucking hour, it's either early or late, it's always on the weekend, and he's like, hey dude, you see what this did? What are you doing? I'm like, you know what I'm doing. And I gotta tell you something, because he does that, and because he knows the strategy,

I have gotten some incredible buys when I probably didn't deserve them. I wasn't even paying attention and Keith's like, hey, are you buying more here?

Keithgause@icloud.com (14:11)
Yeah,

I think after like the second time that I said, hey, what are you doing here? And you were like, yo, fuck off. You know what I'm doing? I just started saying, buy or sell. And I would just send it to you.

Jonathan Fodera (14:19)
Yeah.

Yep.

And it's almost always buy, right? ⁓ Always, always. But it is also a long-term strategy. Now, what are some risks? ⁓ One, the biggest risk is not having the proper custody, all right? What I mean by custody is where the Bitcoin is held. That's why I told you to get a hard wallet, write down the phrases, make sure there's somewhere where only you can access them. All right, that's very important.

Keithgause@icloud.com (14:28)
It's always black, you can tell.

Jonathan Fodera (14:52)
You don't give those out to anybody. Also, I try not to talk about this because it is like a taboo subject. But I did want to fill you guys in on this strategy. I've studied it. I know a lot of people that have used it. And it has worked very, very, very well. The next thing I want to tell you is there is a risk of leaving significant amounts of money on exchanges, because there's a lot of these exchanges that have gone under.

Like there was one probably three or four years ago called Voyager. Yeah, I know. I know. I'm still hurting from that. And Voyager, what they did was they lent out their money to another, I don't want to say exchange, but another ⁓ fintech firm. And they did not write a loan that made any type of sense. And basically, they didn't do their due diligence into the company. And that company that they loaned,

Keithgause@icloud.com (15:27)
Ugh. Fucker.

Jonathan Fodera (15:51)
the Bitcoin to lost it all. And they had to declare bankruptcy. And a lot of people that had a lot of money on that exchange, including myself, OK, got pennies on the dollar for it because of just bad financial decisions. All right. So do not keep any of the money on exchanges. Anything that we are saying, I advise you to do your own research. All right. Don't just do it just because you heard it up here.

Keithgause@icloud.com (16:12)
Mmm.

Jonathan Fodera (16:20)
All right, actually look at the charts. This is not investment advice, but look at the charts. ⁓ Look into the Gemini, right? And we'll have the show here. And I'll tell you that when you actually do a little bit research and look up how far Michael Saylor has come and how far he's pushed it and that he's teaching other Fortune 500 CEOs, the future looks very bright. And here's what I'll tell you. We are at the.

Keithgause@icloud.com (16:22)
This is not investment advice.

Jonathan Fodera (16:51)
⁓ I think we're at a stage where we're seeing more and more mass adoption. All right, we're talking about states holding reserves. We're talking about our own federal government and governments of other countries holding reserves like El Salvador. Okay. And once countries start buying and once retirement funds and some of these other big

⁓ Investment type of firms are going to get into this because they're more comfortable with it It's going to make it where most people are just gonna have some level of fractional ownership where Having one Bitcoin would be like having a million dollars. All right, that's just where the future is going Are there risks to it? Absolutely. It's so risky. It's so volatile however Just looking at it from an educated guess seeing where everything is lining up

I think it is something that everyone should look into. And it's something that it can really help the stability of your company, and it can increase its value. So I would tell you, just take a look. If you guys have questions, reach out. And I do want to acknowledge something, guys. We always ask you guys to share the show. ⁓ the show, I monitor it every week.

Keithgause@icloud.com (18:01)
Yeah, for sure.

Jonathan Fodera (18:14)
And it has been growing and growing and growing. And that's thanks to you guys, you guys that listen, you guys that care. You guys are getting information out of it. So I can't thank you guys enough. Keith and I cannot thank you guys enough. Please keep doing it because that's what gets the word out. And that's how we get to help and impact more people. So I appreciate you guys. And we will see you on the next.