1
00:00:00,240 --> 00:00:03,880
Speaker 1: Right now, a three hundred trillion credit rotation is forming,

2
00:00:03,920 --> 00:00:07,680
Speaker 1: and nobody sees it coming. Most investors and even Wall

3
00:00:07,680 --> 00:00:10,959
Speaker 1: Street think these bitcoin treasury companies they're just a bubble,

4
00:00:11,280 --> 00:00:14,160
Speaker 1: another creative play on bitcoin, or maybe just a way

5
00:00:14,200 --> 00:00:18,560
Speaker 1: to quickly generate cash. But they're completely missing the real story,

6
00:00:18,600 --> 00:00:21,720
Speaker 1: and it's way bigger than anyone realizes. Because these companies

7
00:00:21,880 --> 00:00:25,639
Speaker 1: they're not just gambling. They're building highly targeted financial products,

8
00:00:25,680 --> 00:00:29,479
Speaker 1: each acting like a straw siphoning trillions out of a

9
00:00:29,560 --> 00:00:32,880
Speaker 1: broken credit market and right into bitcoin. I'm Mark Moss,

10
00:00:32,880 --> 00:00:35,239
Speaker 1: partner at a leading bitcoin venture fund, officer of a

11
00:00:35,280 --> 00:00:39,560
Speaker 1: publicly traded bitcoin treasury company, and today I'll reveal exactly

12
00:00:39,560 --> 00:00:42,920
Speaker 1: how the shift is unfolding, why banks are dangerously offsides,

13
00:00:43,120 --> 00:00:46,120
Speaker 1: and how you can position yourself to benefit. So let's go,

14
00:00:47,600 --> 00:00:51,640
Speaker 1: all right, So here's what nobody talks about. Fifty two

15
00:00:51,720 --> 00:00:56,320
Speaker 1: percent of US corporate pension funds are legally required to

16
00:00:56,360 --> 00:00:59,120
Speaker 1: hold fixed income, not because they want to, but because

17
00:00:59,160 --> 00:01:02,440
Speaker 1: they have to. Now, since two thousand and nine, pension

18
00:01:02,480 --> 00:01:07,280
Speaker 1: funds have shifted fourteen percentage points away from stocks and

19
00:01:07,319 --> 00:01:10,679
Speaker 1: into bonds, the number of plans holding more than half

20
00:01:10,680 --> 00:01:13,760
Speaker 1: their assets and fixed income has tripled. Now this is

21
00:01:13,800 --> 00:01:18,600
Speaker 1: an investment strategy. It's regulatory handcuffs. The municipal bond market

22
00:01:18,640 --> 00:01:22,800
Speaker 1: alone four trillion dollars. Insurance companies are mandated by law

23
00:01:23,080 --> 00:01:27,200
Speaker 1: to file every unrated municipal bond with regulators for credit assessment.

24
00:01:27,520 --> 00:01:30,800
Speaker 1: Now they can't just buy whatever makes sense. Property and

25
00:01:30,800 --> 00:01:34,120
Speaker 1: casualty insurers they hold two hundred and sixty three billion

26
00:01:34,319 --> 00:01:37,959
Speaker 1: in muni bonds. Life insurers hold two hundred and eighteen billion.

27
00:01:38,360 --> 00:01:43,000
Speaker 1: Why tax advantages, regulatory requirements. But here's the real kicker.

28
00:01:43,480 --> 00:01:47,160
Speaker 1: Total global debt just hit a record three hundred and

29
00:01:47,319 --> 00:01:52,880
Speaker 1: eighteen trillion. That's government and corporate bonds combined. The entire

30
00:01:52,920 --> 00:01:56,840
Speaker 1: bitcoin market it's only two trillion. We're talking about one

31
00:01:56,920 --> 00:02:01,120
Speaker 1: hundred and fifty nine times more money trapped in traditional

32
00:02:01,200 --> 00:02:04,280
Speaker 1: debt then exists in all of bitcoin. And here's what's

33
00:02:04,400 --> 00:02:07,600
Speaker 1: killing these investors, the m too money supply that I

34
00:02:07,600 --> 00:02:10,400
Speaker 1: talk about all the time. It's grown from four point

35
00:02:10,520 --> 00:02:14,440
Speaker 1: seven trillion in two thousand to over twenty two trillion today.

36
00:02:14,680 --> 00:02:18,640
Speaker 1: That's a four hundred and sixty seven percent increase. Now

37
00:02:19,040 --> 00:02:23,360
Speaker 1: do the math. That's roughly a ten percent monetary debasement

38
00:02:23,600 --> 00:02:28,000
Speaker 1: every single year. Meanwhile, you're safe unibonds they're paying you

39
00:02:28,040 --> 00:02:33,079
Speaker 1: what three five percent before taxes. So you've got millions

40
00:02:33,080 --> 00:02:37,000
Speaker 1: of retirees whose pension funds are legally forced to lose

41
00:02:37,040 --> 00:02:40,440
Speaker 1: purchasing power every single year, and the lower their funding

42
00:02:40,440 --> 00:02:43,720
Speaker 1: status gets, the more bonds they're required to hold. It's

43
00:02:43,760 --> 00:02:47,680
Speaker 1: a death spiral with a regulatory mandate. Pension funds. Of

44
00:02:47,680 --> 00:02:50,600
Speaker 1: course they won out. Insurance companies, they want out. UNI

45
00:02:50,680 --> 00:02:54,560
Speaker 1: bonds investors, they won out, but the mandates keep them

46
00:02:54,600 --> 00:02:58,600
Speaker 1: locked in place until now. Because what if there was

47
00:02:58,639 --> 00:03:01,880
Speaker 1: a way to meet these exacts, say, mandates, while actually

48
00:03:02,080 --> 00:03:06,280
Speaker 1: making money. But here's the deeper problem traditional credit markets.

49
00:03:06,400 --> 00:03:10,600
Speaker 1: They're not just underperforming, they're fundamentally broken. Remember back in

50
00:03:10,639 --> 00:03:13,400
Speaker 1: two thousand and eight, the great financial crash, right, credit

51
00:03:13,440 --> 00:03:17,480
Speaker 1: rating agencies downgraded four thousand, four hundred and eighty five

52
00:03:17,800 --> 00:03:21,520
Speaker 1: collateralized debt obligations in the first quarter alone. Now, these

53
00:03:21,520 --> 00:03:24,680
Speaker 1: were supposed to be safe. They're supposed to be safe

54
00:03:24,680 --> 00:03:28,680
Speaker 1: investments that had been packaged and repackaged until nobody could

55
00:03:28,760 --> 00:03:33,680
Speaker 1: even articulate what the risk was. Fifty percent of triple

56
00:03:33,720 --> 00:03:37,880
Speaker 1: A rated CDO tranches got downgraded to junk status. By

57
00:03:37,960 --> 00:03:42,320
Speaker 1: twenty ten, the rating agencies they had no idea what

58
00:03:42,320 --> 00:03:46,400
Speaker 1: they were even doing. What they're rating that same bundled complexity.

59
00:03:46,920 --> 00:03:51,320
Speaker 1: It's everywhere now. Commercial lending is sixteen point four trillion

60
00:03:51,480 --> 00:03:55,320
Speaker 1: and growing. Sovereign debt twelve point three trillion in new

61
00:03:55,440 --> 00:04:00,480
Speaker 1: borrowing just this year. Add unibonds, corporate debt, mortgage backscat curities,

62
00:04:00,720 --> 00:04:03,600
Speaker 1: all of it packaged, all of it bundled and sliced

63
00:04:03,640 --> 00:04:09,000
Speaker 1: themto trunches that make the original assets impossible to even value. Now,

64
00:04:09,040 --> 00:04:12,240
Speaker 1: when one loan defaults, you can't tell which other investments

65
00:04:12,240 --> 00:04:15,120
Speaker 1: are going to get hit. And here's what's crushing everyone.

66
00:04:15,720 --> 00:04:19,160
Speaker 1: Interest costs as a share of economic output just hit

67
00:04:19,200 --> 00:04:22,480
Speaker 1: the highest level in twenty years. Between twenty twenty one

68
00:04:22,480 --> 00:04:25,640
Speaker 1: and twenty twenty four, debt servicing costs went from the

69
00:04:25,680 --> 00:04:30,120
Speaker 1: lowest to the highest in two decades. But investors, they

70
00:04:30,240 --> 00:04:35,839
Speaker 1: keep bidding up bond prices anyway, Why again, because they're

71
00:04:35,960 --> 00:04:40,080
Speaker 1: mandated to buy this stuff. Pension funds, insurance companies, muti

72
00:04:40,120 --> 00:04:43,600
Speaker 1: bond funds, they have no choice. So you've got desperate

73
00:04:43,640 --> 00:04:48,760
Speaker 1: buyers bidding up prices of increasingly risky assets. Classic healed compression.

74
00:04:49,200 --> 00:04:53,200
Speaker 1: Everyone's racing to the bottom, accepting lower and lower returns

75
00:04:53,320 --> 00:04:57,640
Speaker 1: for higher and higher risk. Total outstanding government and corporate

76
00:04:57,680 --> 00:05:02,760
Speaker 1: bonds globally over one hundred trillion. That's larger than global GDP.

77
00:05:03,760 --> 00:05:07,000
Speaker 1: But nobody can actually tell you what's in these things anymore.

78
00:05:07,240 --> 00:05:12,920
Speaker 1: Commercial mortgage backed securities, collateralized loan obligations, unibond insurance, all

79
00:05:12,960 --> 00:05:17,200
Speaker 1: wrapped around unibon insurance. Now this is two thousand and

80
00:05:17,200 --> 00:05:21,039
Speaker 1: eight all over again, except bigger. The CDO market peaked

81
00:05:21,200 --> 00:05:25,040
Speaker 1: at two trillion before it imploded. Today's credit market fifty

82
00:05:25,160 --> 00:05:29,960
Speaker 1: times larger. The system is drowning in complexity, trillions of

83
00:05:30,000 --> 00:05:34,520
Speaker 1: dollars trapped in instruments that nobody fully understands, pain yields

84
00:05:34,760 --> 00:05:38,560
Speaker 1: that don't compensate for the actual risk. But what if

85
00:05:38,560 --> 00:05:41,839
Speaker 1: there was a completely different approach. What if instead of

86
00:05:41,920 --> 00:05:46,600
Speaker 1: bundled complexity, you add radical simplicity. Now here's what Wall

87
00:05:46,600 --> 00:05:50,239
Speaker 1: Street doesn't want you to know. Of course, their margins

88
00:05:50,279 --> 00:05:55,400
Speaker 1: a terrible blackrock. The world's largest asset manager charges zero

89
00:05:55,400 --> 00:05:58,160
Speaker 1: point forty five to zero point five to two percent

90
00:05:58,360 --> 00:06:01,640
Speaker 1: annually on their bond funds. That's less than half a

91
00:06:01,760 --> 00:06:06,120
Speaker 1: percent per year. To manage money, Muni bond underwriting about

92
00:06:06,240 --> 00:06:09,839
Speaker 1: zero point three seven percent per deal. Corporate bond underwriting

93
00:06:10,120 --> 00:06:13,520
Speaker 1: even thinner. Now, these spreads have been in a fifteen

94
00:06:13,640 --> 00:06:17,880
Speaker 1: year death spiral. Competition is driving these margins towards zero.

95
00:06:18,160 --> 00:06:21,640
Speaker 1: It's gotten so bad that City and Ubs just exited

96
00:06:21,640 --> 00:06:25,279
Speaker 1: the muni bond business entirely the margins they couldn't support

97
00:06:25,279 --> 00:06:28,120
Speaker 1: their operations. As one industry insider put it, you get

98
00:06:28,160 --> 00:06:30,919
Speaker 1: to a point where spreads are so low that the

99
00:06:30,960 --> 00:06:33,680
Speaker 1: margin on a deal for an underwriter becomes thin. But

100
00:06:33,720 --> 00:06:36,960
Speaker 1: there's a floor. They're desperately trying to stay profitable by

101
00:06:36,960 --> 00:06:41,520
Speaker 1: getting more efficient, better technology, lower costs, automated processes, but

102
00:06:41,560 --> 00:06:45,320
Speaker 1: they're still just fighting over breadcrumbs. When your margins are

103
00:06:45,360 --> 00:06:48,320
Speaker 1: this thin, you can't innovate. Every dollar spent on research

104
00:06:48,360 --> 00:06:51,920
Speaker 1: and development comes straight out of profit. So they're stuck.

105
00:06:52,279 --> 00:06:55,360
Speaker 1: They're trapped in a commodity business with no way out. Now,

106
00:06:55,360 --> 00:06:58,240
Speaker 1: the smartest firms they tried to escape and do private credit,

107
00:06:58,600 --> 00:07:01,679
Speaker 1: higher fees, less competition, But even there, margins are getting

108
00:07:01,680 --> 00:07:05,200
Speaker 1: compressed as more players crowd in. So let's recap here

109
00:07:05,240 --> 00:07:10,120
Speaker 1: real quickly. First Wall Street's best case scenario three to

110
00:07:10,160 --> 00:07:13,280
Speaker 1: four percent total margins on a good day, Annual management

111
00:07:13,280 --> 00:07:19,080
Speaker 1: fees under half a percent, underwriting fees about one percent. Okay,

112
00:07:19,480 --> 00:07:23,040
Speaker 1: that's the problem. Now imagine an alternative. What if instead

113
00:07:23,040 --> 00:07:25,840
Speaker 1: of managing other people's money for tiny fees, you can

114
00:07:25,880 --> 00:07:29,920
Speaker 1: create instruments that let you keep fifty percent of the upside.

115
00:07:30,280 --> 00:07:32,760
Speaker 1: What if instead of fighting over basis points, you could

116
00:07:32,760 --> 00:07:36,760
Speaker 1: capture the appreciation of the hardest money ever created. Well,

117
00:07:36,760 --> 00:07:39,400
Speaker 1: that's exactly what Michael Saylor has figured out, and it's

118
00:07:39,400 --> 00:07:43,760
Speaker 1: about to make traditional financial margins look like a rounding error.

119
00:07:44,000 --> 00:07:47,240
Speaker 1: Now here's the breakthrough that changes everything. What if you

120
00:07:47,280 --> 00:07:50,560
Speaker 1: could create financial instruments that pay junk bond yields but

121
00:07:50,760 --> 00:07:56,119
Speaker 1: qualify as investment grade under existing regulations. Investment grade means

122
00:07:56,240 --> 00:08:00,760
Speaker 1: rated BBB or higher by the major agencies's threshold that

123
00:08:00,840 --> 00:08:05,280
Speaker 1: pension funds and insurance companies and munibond investors are required

124
00:08:05,280 --> 00:08:08,440
Speaker 1: to meet. And Sailor figured out how to hack this system.

125
00:08:08,600 --> 00:08:12,520
Speaker 1: Instead of backing bonds with unpredictable cash flows, back them

126
00:08:12,520 --> 00:08:18,200
Speaker 1: with bitcoin, take strategies, STRF strife preferred shares. They pay

127
00:08:18,520 --> 00:08:21,760
Speaker 1: ten percent annually. That's more than jump bonds. And here's

128
00:08:21,760 --> 00:08:25,560
Speaker 1: the key. They're backed by bitcoin holdings worth ten times

129
00:08:25,640 --> 00:08:29,440
Speaker 1: the face value. Now, traditional corporate bonds they're backed by

130
00:08:29,680 --> 00:08:34,480
Speaker 1: business cash flows that could disappear overnight. Muni bonds they're

131
00:08:34,520 --> 00:08:37,600
Speaker 1: backed by tax revenues that fluctuate with the economy. But

132
00:08:37,800 --> 00:08:41,920
Speaker 1: bitcoin backed instruments they're backed by the hardest money ever created.

133
00:08:42,240 --> 00:08:46,240
Speaker 1: Strategy even created new metrics to prove this, like BTC

134
00:08:46,520 --> 00:08:50,439
Speaker 1: risk that's the likelihood of under collaborization at maturity, or

135
00:08:50,720 --> 00:08:54,120
Speaker 1: BTC credit spread that's the yield required to offset the

136
00:08:54,120 --> 00:08:58,120
Speaker 1: bitcoin risk. Now, look, this isn't theoretical. This is regulatory

137
00:08:58,200 --> 00:09:02,120
Speaker 1: arbitrage at its finest. These instruments fit perfectly into the

138
00:09:02,200 --> 00:09:06,840
Speaker 1: existing investment grade boxes that mandate investors are required to fill.

139
00:09:07,520 --> 00:09:11,720
Speaker 1: Pension fund managers have a legal duty to maximize financial benefits.

140
00:09:12,080 --> 00:09:16,920
Speaker 1: Insurance companies must invest in sufficiently rated securities. Communi bond

141
00:09:16,920 --> 00:09:22,440
Speaker 1: funds need investment grade paper. Now strategies strike STRK it

142
00:09:22,520 --> 00:09:26,640
Speaker 1: pays out eight percent with convertibility, Strife pays ten percent

143
00:09:26,880 --> 00:09:31,240
Speaker 1: cash only, and STRD stride pays ten percent as the

144
00:09:31,320 --> 00:09:35,120
Speaker 1: highest yielding option. Now compare that to traditional investment grade

145
00:09:35,160 --> 00:09:38,600
Speaker 1: bonds paying three to five percent. Now, this is the

146
00:09:38,600 --> 00:09:42,760
Speaker 1: same regulatory approval, same fudiciary compliance, but it's double the yield.

147
00:09:43,080 --> 00:09:45,920
Speaker 1: It's backed by an asset that's been appreciating at sixty

148
00:09:46,080 --> 00:09:49,640
Speaker 1: percent annually for over a decade. Now, again, this isn't

149
00:09:49,840 --> 00:09:53,040
Speaker 1: just a better mousetrap. It's a completely different category of

150
00:09:53,040 --> 00:09:56,560
Speaker 1: financial engineering. And here's why Wall Street can't compete with

151
00:09:56,600 --> 00:09:59,480
Speaker 1: the math behind it. Bitcoin's compound annual growth rate over

152
00:09:59,559 --> 00:10:02,880
Speaker 1: any four year rowin window the minimum has been twenty

153
00:10:02,880 --> 00:10:07,120
Speaker 1: four percent, the average about sixty five percent. Now, since inception,

154
00:10:07,160 --> 00:10:10,720
Speaker 1: Bitcoin has delivered a one hundred and forty percent compound

155
00:10:10,840 --> 00:10:15,040
Speaker 1: annual return. Even being conservative, let's just use sixty percent annually.

156
00:10:15,080 --> 00:10:19,880
Speaker 1: Going forward strategies, preferred shares pay ten percent coupons. Bitcoin

157
00:10:19,880 --> 00:10:24,760
Speaker 1: appreciates sixty percent annually. That leaves fifty percent retained profit margins.

158
00:10:24,840 --> 00:10:28,000
Speaker 1: Now compare that to Wall Street's three percent. Now, look,

159
00:10:28,040 --> 00:10:31,520
Speaker 1: this isn't theoretical. Recently, a real estate investor in Toronto

160
00:10:31,520 --> 00:10:34,520
Speaker 1: deployed this strategy. Borrowed one hundred thousand dollars against a

161
00:10:34,559 --> 00:10:38,240
Speaker 1: rental property. Cash flow bought Bitcoin generated an additional eight

162
00:10:38,320 --> 00:10:42,040
Speaker 1: hundred and fifty nine thousand dollars in just ten years.

163
00:10:42,200 --> 00:10:44,839
Speaker 1: No additional out of pocket capital. Now strategy takes this

164
00:10:44,920 --> 00:10:48,640
Speaker 1: concept and scales it. It issues convertible bonds at zero

165
00:10:48,720 --> 00:10:52,040
Speaker 1: percent interest, issues preferred shares at eight to ten percent

166
00:10:52,440 --> 00:10:55,840
Speaker 1: by bitcoin with the proceeds. Now, as one analyst put it,

167
00:10:56,040 --> 00:11:00,199
Speaker 1: strategy strategically uses equity, issues convertible bonds, and in light

168
00:11:00,280 --> 00:11:04,520
Speaker 1: volatility arbitrage to build a hybrid capital stack. It mimics

169
00:11:04,600 --> 00:11:08,160
Speaker 1: central banks mechanics by creating funding sources through equity and

170
00:11:08,240 --> 00:11:12,600
Speaker 1: debt issuance. Now, traditional finance fights over basis points bitcoin

171
00:11:12,600 --> 00:11:16,679
Speaker 1: treasury companies they capture fifty times higher margins. Now the

172
00:11:16,679 --> 00:11:20,600
Speaker 1: math is so compelling that Trump Media, Game Stop and

173
00:11:20,679 --> 00:11:24,040
Speaker 1: dozens of other companies are now announcing bitcoin treasury strategies.

174
00:11:24,440 --> 00:11:28,120
Speaker 1: Corporate treasury adoption has entered a news phase. Companies whose

175
00:11:28,160 --> 00:11:32,000
Speaker 1: primary objective is bitcoin accumulation are purpose built from the

176
00:11:32,040 --> 00:11:36,000
Speaker 1: ground up. And this is how capital always works. Money

177
00:11:36,000 --> 00:11:39,880
Speaker 1: flows to the highest risk adjester returns. When one strategy

178
00:11:39,880 --> 00:11:44,400
Speaker 1: delivers fifteen times better margins than the alternative, capital moves.

179
00:11:44,760 --> 00:11:48,280
Speaker 1: And here's the beautiful part. Every successful bitcoin treasury company

180
00:11:48,559 --> 00:11:51,280
Speaker 1: proves the model works, making it easier for the next

181
00:11:51,280 --> 00:11:55,240
Speaker 1: company to get funding, get regulatory approval, get institutional backing,

182
00:11:55,720 --> 00:11:59,240
Speaker 1: and Wall Street's been optimizing around three percent margins for

183
00:11:59,280 --> 00:12:03,160
Speaker 1: decades bitcoin treasuries. They just showed them what fifty percent

184
00:12:03,240 --> 00:12:06,640
Speaker 1: margins look like. Now, look, this is in competition, like

185
00:12:06,800 --> 00:12:10,439
Speaker 1: it's annihilation, and Sailor just built a blueprint that everyone

186
00:12:10,480 --> 00:12:14,400
Speaker 1: else is copying. Now, while Wall Street's been sitting around

187
00:12:14,440 --> 00:12:18,880
Speaker 1: debating whether bitcoin treasuries are sustainable, Michael Saylor as Strategy

188
00:12:18,960 --> 00:12:22,960
Speaker 1: have been quietly building the most sophisticated capital conversion machine

189
00:12:22,960 --> 00:12:26,000
Speaker 1: in financial history. And I'm not talking about the theory anymore.

190
00:12:26,160 --> 00:12:28,880
Speaker 1: I'm talking about a track record that makes Goldman Sachs

191
00:12:29,160 --> 00:12:32,760
Speaker 1: look irrelevant. And the market has taken notice. Strategy stock

192
00:12:32,760 --> 00:12:35,040
Speaker 1: has served two hundred and fifty eight percent from its

193
00:12:35,080 --> 00:12:37,040
Speaker 1: fifty two week low of one hundred and two dollars.

194
00:12:37,200 --> 00:12:42,079
Speaker 1: That's not speculation rewarding. That's systematic execution being recognized by

195
00:12:42,120 --> 00:12:46,360
Speaker 1: institutional capital. Now, look at these numbers. Strategy now holds

196
00:12:46,559 --> 00:12:50,559
Speaker 1: five hundred and ninety two thousand bitcoin. That's over sixty

197
00:12:50,559 --> 00:12:53,800
Speaker 1: two billion worth, representing two point eight percent of the

198
00:12:54,000 --> 00:12:58,240
Speaker 1: entire bitcoin supply. But here's what's truly insane. They've added

199
00:12:58,240 --> 00:13:01,360
Speaker 1: to their bitcoin position every single quarter since August of

200
00:13:01,400 --> 00:13:04,480
Speaker 1: twenty twenty. Think about that, through the twenty twenty one peak,

201
00:13:04,600 --> 00:13:07,199
Speaker 1: through the twenty twenty two crash, through the twenty twenty

202
00:13:07,200 --> 00:13:11,000
Speaker 1: three banking crisis, the twenty twenty four ETF launch, that

203
00:13:11,800 --> 00:13:14,640
Speaker 1: never stopped any of them. Twenty twenty five, they just

204
00:13:14,720 --> 00:13:18,440
Speaker 1: continued to turn it up. Ten billion dollars raised in

205
00:13:18,559 --> 00:13:21,520
Speaker 1: just four months, six point six billion through their ATM

206
00:13:21,559 --> 00:13:24,960
Speaker 1: equity program, two billion in convertible notes at zero percent coupon,

207
00:13:25,240 --> 00:13:28,360
Speaker 1: one point four billion through their new preferred instruments. I mean,

208
00:13:28,440 --> 00:13:32,240
Speaker 1: this is industrial scale bitcoin acquisition. But here's where it

209
00:13:32,240 --> 00:13:36,480
Speaker 1: gets really interesting. Remember those precision straws I talked about.

210
00:13:36,880 --> 00:13:40,520
Speaker 1: Sailor didn't just build one, he built the entire assembly line.

211
00:13:40,760 --> 00:13:44,839
Speaker 1: Strike for income investors eight percent perpetual coupon convertible at

212
00:13:44,880 --> 00:13:48,920
Speaker 1: one thousand dollars per share, launched in February, already trading

213
00:13:48,960 --> 00:13:52,920
Speaker 1: twenty two percent above IPO price. Strife for institutions ten

214
00:13:52,920 --> 00:13:56,560
Speaker 1: percent perpetual preferred with no dilution to shareholders. This is

215
00:13:56,600 --> 00:14:01,480
Speaker 1: permanent capital with no refinancing risk, no covenant, no collateral requirements.

216
00:14:01,679 --> 00:14:06,120
Speaker 1: And now Stride their newest instrument targeting specific institutional mandates.

217
00:14:06,760 --> 00:14:10,320
Speaker 1: See what's happening here. Each instrument is a different precision

218
00:14:10,360 --> 00:14:14,960
Speaker 1: tool targeting different pools of trapped capital. Pension funds that

219
00:14:15,040 --> 00:14:19,000
Speaker 1: need study income, Strike insurance companies that need yield without

220
00:14:19,000 --> 00:14:24,520
Speaker 1: equity risk strife, municipal treasuries with specific mandates stride. It's

221
00:14:24,560 --> 00:14:27,880
Speaker 1: like having four different drill bits for four different types

222
00:14:27,920 --> 00:14:31,200
Speaker 1: of rock. And they're just getting started. Strategy just announced

223
00:14:31,240 --> 00:14:34,240
Speaker 1: their forty two to forty two plan, forty two billion

224
00:14:34,280 --> 00:14:37,240
Speaker 1: in equity, forty two billion in fixed income by the

225
00:14:37,400 --> 00:14:40,440
Speaker 1: end of twenty twenty seven. Now, to put this into perspective,

226
00:14:40,600 --> 00:14:43,760
Speaker 1: they completed their previous twenty one billion plans so fast

227
00:14:44,040 --> 00:14:47,120
Speaker 1: they just had to double it. Now. Wall Street loved

228
00:14:47,120 --> 00:14:50,520
Speaker 1: to dismiss this as just another crypto play, but look

229
00:14:50,560 --> 00:14:54,520
Speaker 1: at this correlation data. Ninety eight percent correlation between Strategy

230
00:14:54,640 --> 00:14:58,760
Speaker 1: stock price and their bitcoin value per share. Now remember

231
00:14:58,800 --> 00:15:01,920
Speaker 1: those Wall Street margins talked about, like black Rock makes

232
00:15:02,080 --> 00:15:05,720
Speaker 1: three to four percent on placement fees, strategies making fifty

233
00:15:05,760 --> 00:15:09,320
Speaker 1: percent profit margins because they're not just managing money, they're

234
00:15:09,320 --> 00:15:12,960
Speaker 1: converting it into the world's hardest asset. And here's the kicker.

235
00:15:13,440 --> 00:15:17,520
Speaker 1: One hundred percent of their bitcoin remains unencumbered. That's pristine

236
00:15:17,560 --> 00:15:21,720
Speaker 1: collateral that can backstop every future instrument they create. And

237
00:15:21,800 --> 00:15:23,920
Speaker 1: this isn't just happening in the US. Over eighty public

238
00:15:23,960 --> 00:15:27,520
Speaker 1: companies have now adopted bitcoin treasury strategies. Metaplanet in Japan

239
00:15:27,880 --> 00:15:30,920
Speaker 1: just announced their five point four billion, five five five

240
00:15:30,920 --> 00:15:34,440
Speaker 1: million plan. The playbook sailor Debugged is being replicated globally.

241
00:15:34,560 --> 00:15:37,960
Speaker 1: The institutional validation it's already here. These aren't retail day

242
00:15:37,960 --> 00:15:41,600
Speaker 1: traders buying strike. These are pension funds, insurance companies, and

243
00:15:41,680 --> 00:15:45,240
Speaker 1: sovereign wealth funds that need yield without violating their mandates.

244
00:15:45,400 --> 00:15:48,840
Speaker 1: As one analyst put it, strategy didn't just prove the concept,

245
00:15:49,080 --> 00:15:52,480
Speaker 1: They built the assembly line for capital conversion. The siphon's

246
00:15:52,520 --> 00:15:55,560
Speaker 1: working and the flow rate is accelerating. Now, let's look

247
00:15:55,600 --> 00:15:58,640
Speaker 1: at Metaplanet in Japan, which proves this model works across

248
00:15:58,720 --> 00:16:03,080
Speaker 1: different markets and regular environments. Japan had negative interest rates

249
00:16:03,160 --> 00:16:06,640
Speaker 1: until March twenty twenty four. Their ten year government bonds

250
00:16:06,680 --> 00:16:10,440
Speaker 1: currently yields just one point four to two percent. Japanese

251
00:16:10,440 --> 00:16:15,360
Speaker 1: institutions have five point four trillion trapped in low yielding instruments,

252
00:16:15,360 --> 00:16:17,760
Speaker 1: which creates the same mandate problem that we have in

253
00:16:17,760 --> 00:16:22,480
Speaker 1: the US Metaplanet adapted Strategies playbook for Japanese regulations. They

254
00:16:22,520 --> 00:16:26,080
Speaker 1: now hold eleven thousand, one hundred eleven bitcoin worth one

255
00:16:26,160 --> 00:16:30,080
Speaker 1: point one two billion dollars, making them the seventh largest

256
00:16:30,080 --> 00:16:34,280
Speaker 1: corporate bitcoin holder globally. Now, their approach uses different instruments

257
00:16:34,480 --> 00:16:37,680
Speaker 1: tailored in Japanese markets. They've issued five point three billion

258
00:16:37,680 --> 00:16:41,280
Speaker 1: in moving strike warrants, the largest program in Japanese history.

259
00:16:41,600 --> 00:16:45,560
Speaker 1: They also issued zero coupon bonds specifically for bitcoin purchases

260
00:16:45,600 --> 00:16:49,160
Speaker 1: and generate eighty eight percent of their revenue from bitcoin

261
00:16:49,240 --> 00:16:53,440
Speaker 1: option strategies. And the results well their stocks up twenty

262
00:16:53,480 --> 00:16:57,720
Speaker 1: two hundred percent year over year and about three hundred

263
00:16:57,760 --> 00:17:00,720
Speaker 1: percent bitcoin yield, meaning they're increasing bitwo coin per share

264
00:17:00,840 --> 00:17:04,560
Speaker 1: faster than they diluted Metaplanets target of two hundred and

265
00:17:04,560 --> 00:17:08,400
Speaker 1: ten thousand bitcoin by twenty twenty seven, there's roughly one

266
00:17:08,440 --> 00:17:11,800
Speaker 1: percent of the total supply. The same concept as strategy,

267
00:17:12,040 --> 00:17:15,600
Speaker 1: different regulatory framework. Now. This demonstrates that the model scales

268
00:17:15,680 --> 00:17:19,920
Speaker 1: across different markets. American companies are accessing US credit markets

269
00:17:20,040 --> 00:17:23,840
Speaker 1: while Japanese companies are accessing Japanese bond markets. Both are

270
00:17:23,840 --> 00:17:28,359
Speaker 1: converting trapped capital into bitcoin using instruments that meet local

271
00:17:28,520 --> 00:17:32,800
Speaker 1: regulatory requirements, which brings us to the supply implications when

272
00:17:32,800 --> 00:17:35,840
Speaker 1: this scales globally. Now here's the math that's hiding right

273
00:17:35,920 --> 00:17:38,840
Speaker 1: in plane sight. Okay, so bitcoin has a hard cap

274
00:17:38,880 --> 00:17:42,960
Speaker 1: of twenty one million coins, nineteen point seven have already

275
00:17:42,960 --> 00:17:45,280
Speaker 1: been mined. That's about ninety four percent of the total supply.

276
00:17:45,760 --> 00:17:48,560
Speaker 1: But the effect of supply is much smaller. Between three

277
00:17:48,640 --> 00:17:52,320
Speaker 1: and four million bitcoin are permanently lost, forgotten passwords, destroyed

278
00:17:52,320 --> 00:17:56,640
Speaker 1: hard drives, whatever, Right, the true circulating supply is closer

279
00:17:56,640 --> 00:18:00,760
Speaker 1: to about sixteen to seventeen million bitcoin. The new supply

280
00:18:00,880 --> 00:18:03,840
Speaker 1: shrinking really fast. Only about one hundred and sixty four thousand,

281
00:18:04,119 --> 00:18:06,880
Speaker 1: two hundred and fifty bitcoin will be mined just this year.

282
00:18:07,359 --> 00:18:11,040
Speaker 1: The having schedule means that this number keeps getting smaller. Now,

283
00:18:11,080 --> 00:18:14,000
Speaker 1: if we look at the corporate demand, public companies alone

284
00:18:14,080 --> 00:18:16,920
Speaker 1: hold over seven hundred and twenty five thousand bitcoin. That's

285
00:18:16,960 --> 00:18:20,280
Speaker 1: more than four years of new supply. Private companies hold

286
00:18:20,320 --> 00:18:24,240
Speaker 1: an estimated three hundred thousand more. Now, corporate purchases in

287
00:18:24,320 --> 00:18:29,280
Speaker 1: twenty twenty five have already exceeded the entire annual mining output.

288
00:18:29,560 --> 00:18:33,080
Speaker 1: Now this is just beginning. The regulatory barriers are just

289
00:18:33,080 --> 00:18:36,560
Speaker 1: starting to fall. The strategy playbook is replicating globally. Meta

290
00:18:36,600 --> 00:18:40,000
Speaker 1: Planet in Japan. New companies announced weekly across Asia, the

291
00:18:40,000 --> 00:18:43,280
Speaker 1: Middle East, North America. I mean run the numbers forward.

292
00:18:43,520 --> 00:18:47,439
Speaker 1: If just one percent of the three hundred trillion global

293
00:18:47,440 --> 00:18:52,120
Speaker 1: credit market rotates into bitcoin backed instruments, that's three trillion

294
00:18:52,400 --> 00:18:55,719
Speaker 1: chasing twenty one million coins. We're seeing the early stages

295
00:18:55,760 --> 00:18:58,960
Speaker 1: of the rotation right now. Credit rating agencies are starting

296
00:18:58,960 --> 00:19:03,120
Speaker 1: to recognize bitcoin back debt as instrument grade. Institutional mandates

297
00:19:03,160 --> 00:19:06,000
Speaker 1: are beginning to approve these instruments. And this isn't going

298
00:19:06,080 --> 00:19:11,360
Speaker 1: to happen gradually. Supply shocks in fixed cap assets happen suddenly.

299
00:19:11,840 --> 00:19:16,000
Speaker 1: Each successful corporate issuance proved the model, Each regulatory approval

300
00:19:16,200 --> 00:19:20,080
Speaker 1: opens new pools of capital. Now, consider this strategy alone

301
00:19:20,359 --> 00:19:24,320
Speaker 1: targets eighty four billion in bitcoin purchases by twenty twenty seven.

302
00:19:24,800 --> 00:19:28,200
Speaker 1: Metaplanet targets two hundred and ten thousand bitcoin. Now that's

303
00:19:28,240 --> 00:19:31,560
Speaker 1: before we count the dozens of other companies building similar programs,

304
00:19:31,800 --> 00:19:35,760
Speaker 1: which brings us to the investment implications. Right now, there's

305
00:19:35,760 --> 00:19:39,200
Speaker 1: three ways to position for this rotation. Each target different

306
00:19:39,320 --> 00:19:42,480
Speaker 1: risk balances and return expectations. All right. First, there's the

307
00:19:42,520 --> 00:19:46,720
Speaker 1: pure play equity exposure right strategy Metaplanet. They offer maximum

308
00:19:46,760 --> 00:19:50,520
Speaker 1: leverage bitcoin treasury execution strategy shows a ninety eight percent

309
00:19:50,560 --> 00:19:54,040
Speaker 1: correlation between its stock price and its bitcoin value per share.

310
00:19:54,400 --> 00:19:58,080
Speaker 1: The market now values it primarily as its bitcoin holdings,

311
00:19:58,200 --> 00:20:00,879
Speaker 1: not as the software business. Metaplanet trades at the eighty

312
00:20:00,920 --> 00:20:03,960
Speaker 1: first percentile of fair value, but has room to run.

313
00:20:04,160 --> 00:20:06,879
Speaker 1: It's achieved three hundred and ninety one percent gains year

314
00:20:06,920 --> 00:20:09,919
Speaker 1: to date with a three hundred and six percent bitcoin yield.

315
00:20:10,400 --> 00:20:14,840
Speaker 1: Second yield plays through bitcoin back preferreds. These instruments offer

316
00:20:14,880 --> 00:20:18,639
Speaker 1: eight to ten percent annualized yields with bitcoin collateralization. Third

317
00:20:18,760 --> 00:20:22,400
Speaker 1: is the core bitcoin holdings. The ultimate asymmetric bet remains

318
00:20:22,600 --> 00:20:27,159
Speaker 1: native bitcoin. First, these companies are wrappers around bitcoin exposure.

319
00:20:27,440 --> 00:20:31,159
Speaker 1: They're not substitutes for it. The three hundred trillion credit

320
00:20:31,280 --> 00:20:35,280
Speaker 1: rotation isn't a prediction. It's a process that's already underway.

321
00:20:35,480 --> 00:20:39,160
Speaker 1: The precision straws. They're already working the supply shock. It's

322
00:20:39,160 --> 00:20:43,480
Speaker 1: accelerating the investment window. It's narrowing. The question isn't whether

323
00:20:43,520 --> 00:20:47,320
Speaker 1: this happens. The question is whether you're positioned before everyone

324
00:20:47,320 --> 00:20:49,240
Speaker 1: else figures it out now. If you want to know

325
00:20:49,320 --> 00:20:52,560
Speaker 1: more about the number one thing most miss when valuing

326
00:20:52,560 --> 00:20:56,520
Speaker 1: bitcoin treasury companies, then you should watch this video right here. Otherwise,

327
00:20:56,720 --> 00:20:58,720
Speaker 1: leave me a comment thumbs up if you like the video,

328
00:20:59,000 --> 00:21:01,159
Speaker 1: thumbs down if you don't. That's okay, and that's what

329
00:21:01,200 --> 00:21:03,600
Speaker 1: I got to your success. How about