MicroStrategy’s stock experienced extreme volatility on Thursday, with a dramatic single-day trading range of nearly $139. The day began with an early surge to $535.74, but the momentum abruptly reversed just 13 minutes into the trading session when Citron Research disclosed its short position despite maintaining a bullish stance on Bitcoin.

This announcement triggered an immediate selloff, leading to a steep morning decline followed by sustained downward pressure throughout the trading day. The stock attempted to stabilize several times, as shown by brief plateaus in the chart, but ultimately continued its descent, closing at $396.86 – marking a 25.9% drop from the day’s high.

Well, earlier today, a short time before the market opened, Michael Saylor, the co-founder and executive chairman of MicroStrategy Inc. CNBC’s “Squawk Box” to discuss his company’s Bitcoin strategy and to address skepticism from short-sellers.

Saylor described MicroStrategy as a “Bitcoin treasury company,” emphasizing that it operates using a unique financial model powered by Bitcoin volatility. He explained that the company holds approximately $35 billion in Bitcoin, with its value fluctuating significantly. The business generates profit by capitalizing on these fluctuations.

According to Saylor:

• MicroStrategy generates returns by “selling volatility and recycling it back into Bitcoin.”
• The company also strips volatility and risk from fixed-income securities, transferring those elements to common stock, which is designed to deliver “2x Bitcoin performance.”

Saylor explained how MicroStrategy leverages financial instruments to amplify returns. He highlighted two recent transactions:

1. At-The-Market Offering (ATM): The company executed a $4.6 billion ATM offering at a 70% Bitcoin spread, resulting in $3 billion in Bitcoin gains over five days. Saylor projected this would translate into $1,225 per share over 10 years.
2. Convertible Bond Offering: MicroStrategy raised $3 billion at an 80% Bitcoin spread, producing $2.4 billion in Bitcoin gains. This was estimated to generate $125 per share over a decade.

He argued that these financial maneuvers allow the company to turn fixed-income raises into substantial shareholder returns, assuming Bitcoin prices increase as expected.

Saylor responded to critiques of MicroStrategy’s heavily leveraged Bitcoin position. Critics argue that a significant drop in Bitcoin’s value could create financial instability. Saylor countered:

• The primary risk is Bitcoin experiencing an “extinction-level event” and going to zero, which he deemed highly unlikely.
• He emphasized that all MicroStrategy shareholders are Bitcoin maximalists or Bitcoin believers who accept the inherent risks of holding the cryptocurrency.

He also pointed out that Bitcoin has historically increased by 60% annually, and his expectation is for 29% annual growth over the next two decades.

Saylor underscored the profitability of MicroStrategy’s Bitcoin-centric model:

• Over two weeks, the company generated $5.4 billion in Bitcoin gains, averaging $500 million per day.
• He characterized MicroStrategy as potentially “the most profitable company in the United States,” given its rapid growth and unique position in the Bitcoin market.

Saylor concluded by reaffirming MicroStrategy’s appeal to Bitcoin enthusiasts. “If you don’t like Bitcoin, you won’t want any part of this. But if you believe in Bitcoin, this is a monster for you,” he said, reiterating the company’s commitment to its Bitcoin-first strategy.

At the time of writing (2:38 p.m. UTC), Bitcoin is trading at around $97,886, up 0.9% in the past 24-hour period, and MSTR is trading at $406.06, up 1.96% on the day.