Diego Fernando Alarcón

FROM: Mr. Diego Fernando Alarcón TO: Mr. Michael Saylor DATE: March 14, 2026 - Subject: Simple Analysis of MicroStrategy / Strategy Bitcoin Leverage Model. Don't worry, don't be afraid...😉 Dear Mr. Saylor, The idea you describe is basically a credit-based model backed by a volatile asset, in this case Bitcoin. ° CORE CONCEPT: If Bitcoin appreciates faster than the cost of capital, the company can leverage debt to acquire more BTC. ° Below, I detail the technical and financial mechanics: 1. HOW THE MODEL REALLY WORKS. - Step A: The company accumulates BTC on its balance sheet. - Step B: It issues financial instruments (equity, debt, or products like $STRC). - Step C: It uses the capital raised to purchase more BTC or fund dividends. ° In essence: BTC → Credit → More BTC → More Credit 2. WHERE THE REAL BACKING LIES. ° The backing is not a stable asset, but consists of: - Bitcoin holdings on the balance sheet. - The company’s market capitalization. - Market confidence. ° Implication: - The system depends on: A. BTC price. B. Continuous access to capital markets. 3. RISK FACTORS. ° The simultaneous occurrence of the following events can generate significant stress: - Sharp BTC price decline. - Loss of market confidence. - Difficulty issuing new capital. ° Impact on instruments like $STRC: - Does not necessarily imply total loss. - Yield may become unsustainable. - Instrument value could decline sharply. 4. MARKET BEHAVIOR. ° Investors in these instruments accept the risk in exchange for: - Indirect BTC exposure. - Higher yields than traditional bonds. - Market liquidity. ° Key points: - Credit issued against a volatile asset inherits its risk. - The model works while BTC remains strong or appreciates. - When cycles change, structural risk emerges quickly. 5. THE FINANCIAL LEVERAGE MACHINE. If BTC price rises significantly, the company’s value grows faster than its issued debt. ° This allows continuous leverage: - Issue more shares. - Issue more debt. - Buy more BTC. It is, indeed, a financial engine that transforms debt and market capital into more Bitcoin. ° Backing the model not only with DOLLARS, but also with U.S. TREASURIES and GOLD, would create a more stable structure and smoother growth, but endure over the long term. (The eternal impact is more valuable than immediate success.) However, this would reduce the model’s role as an aggressive BTC proxy, which is the current strategic objective. For this reason, the narrative about BTC used by Mr. Saylor is more important than creating a more stable structure for long-term durability. - Diego Fernando Alarcón - ® @elonmusk  @khalafAlHabtoor @AAAsoufan @Sajwani @HamdanMohammed @Abdulkhale_UAE @MaktoumMohammed @DMCCAuthority @ahmedbinsulayem @mayemusk @SPGlobalRatings  @FTSERussell  @Cointelegraph  @CryptoNewsHntrs  @dotkrueger  @RealJimChanos  @Strategy  @saylordocs  @MastrXYZ  @fundstrat  @JMilei  @BaronCapital  @RonBaronpvt @xapobankapp @MSCI_Inc  @elzorrotacneno

@DeFiTracer No es bueno, pero el mal ya está hecho. La idea principal del negocio no era esa y lo digo porque se de quién fueron las ideas. - Diego Fernando Alarcón -® @elonmusk @saylor

🚨 BREAKING: CEO STRATEGY MICHAEL SAYLOR SAID LIVE: "YOU BUY BITCOIN WITH CREDIT. AND THEN YOU SELL BITCOIN TO PAY THE DIVIDEND." THIS GUY HOLDS 843,738 $BTC, WORTH OVER $64.5 BILLION THIS IS NOT GOOD FOR CRYPTO...

@DeFiTracer Está todo el CLAN EPSTEIN 🤣🤣🤣🤣

🚨 BREAKING: 🇺🇸 PRESIDENT TRUMP WILL SWEAR IN KEVIN WARSH AS FED CHAIR AT 11 AM, REPLACING JEROME POWELL HE IS THE FIRST EVER PRO-BITCOIN FED CHAIR AND TRUMP EXPECTS HIM TO CUT RATES "IMMIDIATELY" THIS IS EXTREMELY BULLISH FOR MARKETS!!

@saylor PIZZA ARGENTINA 😉

Happy Bitcoin Pizza Day! 🍕

Litecoin Fires Back After Cuban Bitcoin Exit Mark Cuban (@mcuban) revealed he sold most of his Bitcoin $BTC holdings, claiming the asset has drifted away from its original vision. Litecoin (@litecoin) responded by defending Bitcoin’s core principles while criticizing financial extraction and centralized control. Bitcoin itself never lost its purpose, but certain people distorted its original ideals for personal gain, Litecoin stated.

@TheBTCTherapist Mr. Cuban @mcuban si entendió lo que muchos no quieren ver, se decepcionó de BTC porque no actúa como oro digital y se ha centralizado en manos de grandes fondos, perdiendo su espíritu descentralizado. Es cuestión de sentido común. - Diego Fernando Alarcón - ®

JUST IN: Mark Cuban says Bitcoin has “lost the plot” and he has sold most of his Bitcoin because it no longer acts as an inflation hedge. “It’s not the hedge I expected it to be and that was very disappointing.”

@saylordocs @saylor

BREAKING: Michael Saylor JUST SAID MSTR Strategy will “probably buy all the Bitcoin mined between now and 2140.” THIS IS ABSOLUTELY CRAZY!!

Probably nothing. $BTC

@Number10cat He is the richest man in the world !! And you are ? A cat— who can’t even disclose its identity

@saylor No quisiera estar en tú sitio cuando se sepa realmente cómo estás comprando BTC 😂😂😂... Muchas personas no lo comprenden porque no entienden el negocio y de donde sale. Que Dios te bendiga. - Diego Fernando Alarcón -® @elonmusk

@DallasAptGP ELON MUSK @elonmusk no necesita vender acciones porque su negocio está establecido y la base y exito de su negocio es la evolución constante que tiene ELON MUSK en su mente. No le importa lo impositivo de sus negocios, su enfoque va más allá de eso. - Diego Fernando Alarcón -®

A crazy tax idea for Elon Musk. He could become the biggest OZ investor in history. The IPO is the trigger. SpaceX goes public June 12 under the ticker SPCX and the valuation might go to $2 trillion. The largest IPO ever. Insider lockup runs 180 days. It expires around December 15. The day it ends, insiders can sell. Every share sold throws off a capital gain. For Elon, holding billions in SpaceX paper, the gain is staggering. Under the new Opportunity Zone rules that take effect January 1, 2027, any capital gain rolled into a Qualified Opportunity Fund within 180 days of the sale earns a five-year tax deferral. Sell in late December 2026. Invest in early 2027. The tax bill is not due until 2032. If the QOF investment is held for ten years, the entire appreciation comes out tax-free. No capital gains. No depreciation recapture. Zero. But Elon isn't going to suddenly start investing in apartments or hotels in low income areas. He is going to remain obsessed with investing in his core businesses. Good news. The town of Starbase, Texas sits inside an Opportunity Zone census tract. Grimes County, where Musk is building a $55 billion semiconductor fab called Terafab, has three OZ tracts of its own. Elon could sell SPCX shares after lockup. Roll the gain into his own Qualified Opportunity Fund. Use that fund to build infrastructure at Starbase or finance the Terafab site. Then lease the asset back to the public company. SpaceX pays the rent. The rent is deductible to SpaceX. The depreciation flows to Elon and offsets his other income for a decade. Then he sells the QOF interest in 2037. No tax on the appreciation. No recapture on the depreciation. The original gain that funded it all was deferred to 2032. The IPO funds the infrastructure. The infrastructure runs the company. The taxpayer pays nothing for ten years and almost nothing forever. This is the crazy idea. The mechanics are real. The zones are real. The IPO is real. I am glad to advise his tax team. 🤠

¡¡El @RealRacingclub es de PRIMERA!! ▪️Los cántabros regresan a la máxima categoría 14 años después tras vencer al Real Valladolid (4-1) en El Sardinero aprovechando el pinchazo de la UD Almería frente a la UD Las Palmas (1-2)

@BSCNews No se dan cuenta que los espero el Vicepresidente de China y NO Xi Jinping. Eso dice mucho, es decir China es la Superpotencia y los tiempos han cambiado. - Diego Fernando Alarcón -®