WEBVTT - The $300 Trillion Credit Rotation Nobody Sees Coming

0:00:00.240 --> 0:00:03.880
<v Speaker 1>Right now, a three hundred trillion credit rotation is forming,

0:00:03.920 --> 0:00:07.680
<v Speaker 1>and nobody sees it coming. Most investors and even Wall

0:00:07.680 --> 0:00:10.959
<v Speaker 1>Street think these bitcoin treasury companies they're just a bubble,

0:00:11.280 --> 0:00:14.160
<v Speaker 1>another creative play on bitcoin, or maybe just a way

0:00:14.200 --> 0:00:18.560
<v Speaker 1>to quickly generate cash. But they're completely missing the real story,

0:00:18.600 --> 0:00:21.720
<v Speaker 1>and it's way bigger than anyone realizes. Because these companies

0:00:21.880 --> 0:00:25.639
<v Speaker 1>they're not just gambling. They're building highly targeted financial products,

0:00:25.680 --> 0:00:29.479
<v Speaker 1>each acting like a straw siphoning trillions out of a

0:00:29.560 --> 0:00:32.880
<v Speaker 1>broken credit market and right into bitcoin. I'm Mark Moss,

0:00:32.880 --> 0:00:35.239
<v Speaker 1>partner at a leading bitcoin venture fund, officer of a

0:00:35.280 --> 0:00:39.560
<v Speaker 1>publicly traded bitcoin treasury company, and today I'll reveal exactly

0:00:39.560 --> 0:00:42.920
<v Speaker 1>how the shift is unfolding, why banks are dangerously offsides,

0:00:43.120 --> 0:00:46.120
<v Speaker 1>and how you can position yourself to benefit. So let's go,

0:00:47.600 --> 0:00:51.640
<v Speaker 1>all right, So here's what nobody talks about. Fifty two

0:00:51.720 --> 0:00:56.320
<v Speaker 1>percent of US corporate pension funds are legally required to

0:00:56.360 --> 0:00:59.120
<v Speaker 1>hold fixed income, not because they want to, but because

0:00:59.160 --> 0:01:02.440
<v Speaker 1>they have to. Now, since two thousand and nine, pension

0:01:02.480 --> 0:01:07.280
<v Speaker 1>funds have shifted fourteen percentage points away from stocks and

0:01:07.319 --> 0:01:10.679
<v Speaker 1>into bonds, the number of plans holding more than half

0:01:10.680 --> 0:01:13.760
<v Speaker 1>their assets and fixed income has tripled. Now this is

0:01:13.800 --> 0:01:18.600
<v Speaker 1>an investment strategy. It's regulatory handcuffs. The municipal bond market

0:01:18.640 --> 0:01:22.800
<v Speaker 1>alone four trillion dollars. Insurance companies are mandated by law

0:01:23.080 --> 0:01:27.200
<v Speaker 1>to file every unrated municipal bond with regulators for credit assessment.

0:01:27.520 --> 0:01:30.800
<v Speaker 1>Now they can't just buy whatever makes sense. Property and

0:01:30.800 --> 0:01:34.120
<v Speaker 1>casualty insurers they hold two hundred and sixty three billion

0:01:34.319 --> 0:01:37.959
<v Speaker 1>in muni bonds. Life insurers hold two hundred and eighteen billion.

0:01:38.360 --> 0:01:43.000
<v Speaker 1>Why tax advantages, regulatory requirements. But here's the real kicker.

0:01:43.480 --> 0:01:47.160
<v Speaker 1>Total global debt just hit a record three hundred and

0:01:47.319 --> 0:01:52.880
<v Speaker 1>eighteen trillion. That's government and corporate bonds combined. The entire

0:01:52.920 --> 0:01:56.840
<v Speaker 1>bitcoin market it's only two trillion. We're talking about one

0:01:56.920 --> 0:02:01.120
<v Speaker 1>hundred and fifty nine times more money trapped in traditional

0:02:01.200 --> 0:02:04.280
<v Speaker 1>debt then exists in all of bitcoin. And here's what's

0:02:04.400 --> 0:02:07.600
<v Speaker 1>killing these investors, the m too money supply that I

0:02:07.600 --> 0:02:10.400
<v Speaker 1>talk about all the time. It's grown from four point

0:02:10.520 --> 0:02:14.440
<v Speaker 1>seven trillion in two thousand to over twenty two trillion today.

0:02:14.680 --> 0:02:18.640
<v Speaker 1>That's a four hundred and sixty seven percent increase. Now

0:02:19.040 --> 0:02:23.360
<v Speaker 1>do the math. That's roughly a ten percent monetary debasement

0:02:23.600 --> 0:02:28.000
<v Speaker 1>every single year. Meanwhile, you're safe unibonds they're paying you

0:02:28.040 --> 0:02:33.079
<v Speaker 1>what three five percent before taxes. So you've got millions

0:02:33.080 --> 0:02:37.000
<v Speaker 1>of retirees whose pension funds are legally forced to lose

0:02:37.040 --> 0:02:40.440
<v Speaker 1>purchasing power every single year, and the lower their funding

0:02:40.440 --> 0:02:43.720
<v Speaker 1>status gets, the more bonds they're required to hold. It's

0:02:43.760 --> 0:02:47.680
<v Speaker 1>a death spiral with a regulatory mandate. Pension funds. Of

0:02:47.680 --> 0:02:50.600
<v Speaker 1>course they won out. Insurance companies, they want out. UNI

0:02:50.680 --> 0:02:54.560
<v Speaker 1>bonds investors, they won out, but the mandates keep them

0:02:54.600 --> 0:02:58.600
<v Speaker 1>locked in place until now. Because what if there was

0:02:58.639 --> 0:03:01.880
<v Speaker 1>a way to meet these exacts, say, mandates, while actually

0:03:02.080 --> 0:03:06.280
<v Speaker 1>making money. But here's the deeper problem traditional credit markets.

0:03:06.400 --> 0:03:10.600
<v Speaker 1>They're not just underperforming, they're fundamentally broken. Remember back in

0:03:10.639 --> 0:03:13.400
<v Speaker 1>two thousand and eight, the great financial crash, right, credit

0:03:13.440 --> 0:03:17.480
<v Speaker 1>rating agencies downgraded four thousand, four hundred and eighty five

0:03:17.800 --> 0:03:21.520
<v Speaker 1>collateralized debt obligations in the first quarter alone. Now, these

0:03:21.520 --> 0:03:24.680
<v Speaker 1>were supposed to be safe. They're supposed to be safe

0:03:24.680 --> 0:03:28.680
<v Speaker 1>investments that had been packaged and repackaged until nobody could

0:03:28.760 --> 0:03:33.680
<v Speaker 1>even articulate what the risk was. Fifty percent of triple

0:03:33.720 --> 0:03:37.880
<v Speaker 1>A rated CDO tranches got downgraded to junk status. By

0:03:37.960 --> 0:03:42.320
<v Speaker 1>twenty ten, the rating agencies they had no idea what

0:03:42.320 --> 0:03:46.400
<v Speaker 1>they were even doing. What they're rating that same bundled complexity.

0:03:46.920 --> 0:03:51.320
<v Speaker 1>It's everywhere now. Commercial lending is sixteen point four trillion

0:03:51.480 --> 0:03:55.320
<v Speaker 1>and growing. Sovereign debt twelve point three trillion in new

0:03:55.440 --> 0:04:00.480
<v Speaker 1>borrowing just this year. Add unibonds, corporate debt, mortgage backscat curities,

0:04:00.720 --> 0:04:03.600
<v Speaker 1>all of it packaged, all of it bundled and sliced

0:04:03.640 --> 0:04:09.000
<v Speaker 1>themto trunches that make the original assets impossible to even value. Now,

0:04:09.040 --> 0:04:12.240
<v Speaker 1>when one loan defaults, you can't tell which other investments

0:04:12.240 --> 0:04:15.120
<v Speaker 1>are going to get hit. And here's what's crushing everyone.

0:04:15.720 --> 0:04:19.160
<v Speaker 1>Interest costs as a share of economic output just hit

0:04:19.200 --> 0:04:22.480
<v Speaker 1>the highest level in twenty years. Between twenty twenty one

0:04:22.480 --> 0:04:25.640
<v Speaker 1>and twenty twenty four, debt servicing costs went from the

0:04:25.680 --> 0:04:30.120
<v Speaker 1>lowest to the highest in two decades. But investors, they

0:04:30.240 --> 0:04:35.839
<v Speaker 1>keep bidding up bond prices anyway, Why again, because they're

0:04:35.960 --> 0:04:40.080
<v Speaker 1>mandated to buy this stuff. Pension funds, insurance companies, muti

0:04:40.120 --> 0:04:43.600
<v Speaker 1>bond funds, they have no choice. So you've got desperate

0:04:43.640 --> 0:04:48.760
<v Speaker 1>buyers bidding up prices of increasingly risky assets. Classic healed compression.

0:04:49.200 --> 0:04:53.200
<v Speaker 1>Everyone's racing to the bottom, accepting lower and lower returns

0:04:53.320 --> 0:04:57.640
<v Speaker 1>for higher and higher risk. Total outstanding government and corporate

0:04:57.680 --> 0:05:02.760
<v Speaker 1>bonds globally over one hundred trillion. That's larger than global GDP.

0:05:03.760 --> 0:05:07.000
<v Speaker 1>But nobody can actually tell you what's in these things anymore.

0:05:07.240 --> 0:05:12.920
<v Speaker 1>Commercial mortgage backed securities, collateralized loan obligations, unibond insurance, all

0:05:12.960 --> 0:05:17.200
<v Speaker 1>wrapped around unibon insurance. Now this is two thousand and

0:05:17.200 --> 0:05:21.039
<v Speaker 1>eight all over again, except bigger. The CDO market peaked

0:05:21.200 --> 0:05:25.040
<v Speaker 1>at two trillion before it imploded. Today's credit market fifty

0:05:25.160 --> 0:05:29.960
<v Speaker 1>times larger. The system is drowning in complexity, trillions of

0:05:30.000 --> 0:05:34.520
<v Speaker 1>dollars trapped in instruments that nobody fully understands, pain yields

0:05:34.760 --> 0:05:38.560
<v Speaker 1>that don't compensate for the actual risk. But what if

0:05:38.560 --> 0:05:41.839
<v Speaker 1>there was a completely different approach. What if instead of

0:05:41.920 --> 0:05:46.600
<v Speaker 1>bundled complexity, you add radical simplicity. Now here's what Wall

0:05:46.600 --> 0:05:50.239
<v Speaker 1>Street doesn't want you to know. Of course, their margins

0:05:50.279 --> 0:05:55.400
<v Speaker 1>a terrible blackrock. The world's largest asset manager charges zero

0:05:55.400 --> 0:05:58.160
<v Speaker 1>point forty five to zero point five to two percent

0:05:58.360 --> 0:06:01.640
<v Speaker 1>annually on their bond funds. That's less than half a

0:06:01.760 --> 0:06:06.120
<v Speaker 1>percent per year. To manage money, Muni bond underwriting about

0:06:06.240 --> 0:06:09.839
<v Speaker 1>zero point three seven percent per deal. Corporate bond underwriting

0:06:10.120 --> 0:06:13.520
<v Speaker 1>even thinner. Now, these spreads have been in a fifteen

0:06:13.640 --> 0:06:17.880
<v Speaker 1>year death spiral. Competition is driving these margins towards zero.

0:06:18.160 --> 0:06:21.640
<v Speaker 1>It's gotten so bad that City and Ubs just exited

0:06:21.640 --> 0:06:25.279
<v Speaker 1>the muni bond business entirely the margins they couldn't support

0:06:25.279 --> 0:06:28.120
<v Speaker 1>their operations. As one industry insider put it, you get

0:06:28.160 --> 0:06:30.919
<v Speaker 1>to a point where spreads are so low that the

0:06:30.960 --> 0:06:33.680
<v Speaker 1>margin on a deal for an underwriter becomes thin. But

0:06:33.720 --> 0:06:36.960
<v Speaker 1>there's a floor. They're desperately trying to stay profitable by

0:06:36.960 --> 0:06:41.520
<v Speaker 1>getting more efficient, better technology, lower costs, automated processes, but

0:06:41.560 --> 0:06:45.320
<v Speaker 1>they're still just fighting over breadcrumbs. When your margins are

0:06:45.360 --> 0:06:48.320
<v Speaker 1>this thin, you can't innovate. Every dollar spent on research

0:06:48.360 --> 0:06:51.920
<v Speaker 1>and development comes straight out of profit. So they're stuck.

0:06:52.279 --> 0:06:55.360
<v Speaker 1>They're trapped in a commodity business with no way out. Now,

0:06:55.360 --> 0:06:58.240
<v Speaker 1>the smartest firms they tried to escape and do private credit,

0:06:58.600 --> 0:07:01.679
<v Speaker 1>higher fees, less competition, But even there, margins are getting

0:07:01.680 --> 0:07:05.200
<v Speaker 1>compressed as more players crowd in. So let's recap here

0:07:05.240 --> 0:07:10.120
<v Speaker 1>real quickly. First Wall Street's best case scenario three to

0:07:10.160 --> 0:07:13.280
<v Speaker 1>four percent total margins on a good day, Annual management

0:07:13.280 --> 0:07:19.080
<v Speaker 1>fees under half a percent, underwriting fees about one percent. Okay,

0:07:19.480 --> 0:07:23.040
<v Speaker 1>that's the problem. Now imagine an alternative. What if instead

0:07:23.040 --> 0:07:25.840
<v Speaker 1>of managing other people's money for tiny fees, you can

0:07:25.880 --> 0:07:29.920
<v Speaker 1>create instruments that let you keep fifty percent of the upside.

0:07:30.280 --> 0:07:32.760
<v Speaker 1>What if instead of fighting over basis points, you could

0:07:32.760 --> 0:07:36.760
<v Speaker 1>capture the appreciation of the hardest money ever created. Well,

0:07:36.760 --> 0:07:39.400
<v Speaker 1>that's exactly what Michael Saylor has figured out, and it's

0:07:39.400 --> 0:07:43.760
<v Speaker 1>about to make traditional financial margins look like a rounding error.

0:07:44.000 --> 0:07:47.240
<v Speaker 1>Now here's the breakthrough that changes everything. What if you

0:07:47.280 --> 0:07:50.560
<v Speaker 1>could create financial instruments that pay junk bond yields but

0:07:50.760 --> 0:07:56.119
<v Speaker 1>qualify as investment grade under existing regulations. Investment grade means

0:07:56.240 --> 0:08:00.760
<v Speaker 1>rated BBB or higher by the major agencies's threshold that

0:08:00.840 --> 0:08:05.280
<v Speaker 1>pension funds and insurance companies and munibond investors are required

0:08:05.280 --> 0:08:08.440
<v Speaker 1>to meet. And Sailor figured out how to hack this system.

0:08:08.600 --> 0:08:12.520
<v Speaker 1>Instead of backing bonds with unpredictable cash flows, back them

0:08:12.520 --> 0:08:18.200
<v Speaker 1>with bitcoin, take strategies, STRF strife preferred shares. They pay

0:08:18.520 --> 0:08:21.760
<v Speaker 1>ten percent annually. That's more than jump bonds. And here's

0:08:21.760 --> 0:08:25.560
<v Speaker 1>the key. They're backed by bitcoin holdings worth ten times

0:08:25.640 --> 0:08:29.440
<v Speaker 1>the face value. Now, traditional corporate bonds they're backed by

0:08:29.680 --> 0:08:34.480
<v Speaker 1>business cash flows that could disappear overnight. Muni bonds they're

0:08:34.520 --> 0:08:37.600
<v Speaker 1>backed by tax revenues that fluctuate with the economy. But

0:08:37.800 --> 0:08:41.920
<v Speaker 1>bitcoin backed instruments they're backed by the hardest money ever created.

0:08:42.240 --> 0:08:46.240
<v Speaker 1>Strategy even created new metrics to prove this, like BTC

0:08:46.520 --> 0:08:50.439
<v Speaker 1>risk that's the likelihood of under collaborization at maturity, or

0:08:50.720 --> 0:08:54.120
<v Speaker 1>BTC credit spread that's the yield required to offset the

0:08:54.120 --> 0:08:58.120
<v Speaker 1>bitcoin risk. Now, look, this isn't theoretical. This is regulatory

0:08:58.200 --> 0:09:02.120
<v Speaker 1>arbitrage at its finest. These instruments fit perfectly into the

0:09:02.200 --> 0:09:06.840
<v Speaker 1>existing investment grade boxes that mandate investors are required to fill.

0:09:07.520 --> 0:09:11.720
<v Speaker 1>Pension fund managers have a legal duty to maximize financial benefits.

0:09:12.080 --> 0:09:16.920
<v Speaker 1>Insurance companies must invest in sufficiently rated securities. Communi bond

0:09:16.920 --> 0:09:22.440
<v Speaker 1>funds need investment grade paper. Now strategies strike STRK it

0:09:22.520 --> 0:09:26.640
<v Speaker 1>pays out eight percent with convertibility, Strife pays ten percent

0:09:26.880 --> 0:09:31.240
<v Speaker 1>cash only, and STRD stride pays ten percent as the

0:09:31.320 --> 0:09:35.120
<v Speaker 1>highest yielding option. Now compare that to traditional investment grade

0:09:35.160 --> 0:09:38.600
<v Speaker 1>bonds paying three to five percent. Now, this is the

0:09:38.600 --> 0:09:42.760
<v Speaker 1>same regulatory approval, same fudiciary compliance, but it's double the yield.

0:09:43.080 --> 0:09:45.920
<v Speaker 1>It's backed by an asset that's been appreciating at sixty

0:09:46.080 --> 0:09:49.640
<v Speaker 1>percent annually for over a decade. Now, again, this isn't

0:09:49.840 --> 0:09:53.040
<v Speaker 1>just a better mousetrap. It's a completely different category of

0:09:53.040 --> 0:09:56.560
<v Speaker 1>financial engineering. And here's why Wall Street can't compete with

0:09:56.600 --> 0:09:59.480
<v Speaker 1>the math behind it. Bitcoin's compound annual growth rate over

0:09:59.559 --> 0:10:02.880
<v Speaker 1>any four year rowin window the minimum has been twenty

0:10:02.880 --> 0:10:07.120
<v Speaker 1>four percent, the average about sixty five percent. Now, since inception,

0:10:07.160 --> 0:10:10.720
<v Speaker 1>Bitcoin has delivered a one hundred and forty percent compound

0:10:10.840 --> 0:10:15.040
<v Speaker 1>annual return. Even being conservative, let's just use sixty percent annually.

0:10:15.080 --> 0:10:19.880
<v Speaker 1>Going forward strategies, preferred shares pay ten percent coupons. Bitcoin

0:10:19.880 --> 0:10:24.760
<v Speaker 1>appreciates sixty percent annually. That leaves fifty percent retained profit margins.

0:10:24.840 --> 0:10:28.000
<v Speaker 1>Now compare that to Wall Street's three percent. Now, look,

0:10:28.040 --> 0:10:31.520
<v Speaker 1>this isn't theoretical. Recently, a real estate investor in Toronto

0:10:31.520 --> 0:10:34.520
<v Speaker 1>deployed this strategy. Borrowed one hundred thousand dollars against a

0:10:34.559 --> 0:10:38.240
<v Speaker 1>rental property. Cash flow bought Bitcoin generated an additional eight

0:10:38.320 --> 0:10:42.040
<v Speaker 1>hundred and fifty nine thousand dollars in just ten years.

0:10:42.200 --> 0:10:44.839
<v Speaker 1>No additional out of pocket capital. Now strategy takes this

0:10:44.920 --> 0:10:48.640
<v Speaker 1>concept and scales it. It issues convertible bonds at zero

0:10:48.720 --> 0:10:52.040
<v Speaker 1>percent interest, issues preferred shares at eight to ten percent

0:10:52.440 --> 0:10:55.840
<v Speaker 1>by bitcoin with the proceeds. Now, as one analyst put it,

0:10:56.040 --> 0:11:00.199
<v Speaker 1>strategy strategically uses equity, issues convertible bonds, and in light

0:11:00.280 --> 0:11:04.520
<v Speaker 1>volatility arbitrage to build a hybrid capital stack. It mimics

0:11:04.600 --> 0:11:08.160
<v Speaker 1>central banks mechanics by creating funding sources through equity and

0:11:08.240 --> 0:11:12.600
<v Speaker 1>debt issuance. Now, traditional finance fights over basis points bitcoin

0:11:12.600 --> 0:11:16.679
<v Speaker 1>treasury companies they capture fifty times higher margins. Now the

0:11:16.679 --> 0:11:20.600
<v Speaker 1>math is so compelling that Trump Media, Game Stop and

0:11:20.679 --> 0:11:24.040
<v Speaker 1>dozens of other companies are now announcing bitcoin treasury strategies.

0:11:24.440 --> 0:11:28.120
<v Speaker 1>Corporate treasury adoption has entered a news phase. Companies whose

0:11:28.160 --> 0:11:32.000
<v Speaker 1>primary objective is bitcoin accumulation are purpose built from the

0:11:32.040 --> 0:11:36.000
<v Speaker 1>ground up. And this is how capital always works. Money

0:11:36.000 --> 0:11:39.880
<v Speaker 1>flows to the highest risk adjester returns. When one strategy

0:11:39.880 --> 0:11:44.400
<v Speaker 1>delivers fifteen times better margins than the alternative, capital moves.

0:11:44.760 --> 0:11:48.280
<v Speaker 1>And here's the beautiful part. Every successful bitcoin treasury company

0:11:48.559 --> 0:11:51.280
<v Speaker 1>proves the model works, making it easier for the next

0:11:51.280 --> 0:11:55.240
<v Speaker 1>company to get funding, get regulatory approval, get institutional backing,

0:11:55.720 --> 0:11:59.240
<v Speaker 1>and Wall Street's been optimizing around three percent margins for

0:11:59.280 --> 0:12:03.160
<v Speaker 1>decades bitcoin treasuries. They just showed them what fifty percent

0:12:03.240 --> 0:12:06.640
<v Speaker 1>margins look like. Now, look, this is in competition, like

0:12:06.800 --> 0:12:10.439
<v Speaker 1>it's annihilation, and Sailor just built a blueprint that everyone

0:12:10.480 --> 0:12:14.400
<v Speaker 1>else is copying. Now, while Wall Street's been sitting around

0:12:14.440 --> 0:12:18.880
<v Speaker 1>debating whether bitcoin treasuries are sustainable, Michael Saylor as Strategy

0:12:18.960 --> 0:12:22.960
<v Speaker 1>have been quietly building the most sophisticated capital conversion machine

0:12:22.960 --> 0:12:26.000
<v Speaker 1>in financial history. And I'm not talking about the theory anymore.

0:12:26.160 --> 0:12:28.880
<v Speaker 1>I'm talking about a track record that makes Goldman Sachs

0:12:29.160 --> 0:12:32.760
<v Speaker 1>look irrelevant. And the market has taken notice. Strategy stock

0:12:32.760 --> 0:12:35.040
<v Speaker 1>has served two hundred and fifty eight percent from its

0:12:35.080 --> 0:12:37.040
<v Speaker 1>fifty two week low of one hundred and two dollars.

0:12:37.200 --> 0:12:42.079
<v Speaker 1>That's not speculation rewarding. That's systematic execution being recognized by

0:12:42.120 --> 0:12:46.360
<v Speaker 1>institutional capital. Now, look at these numbers. Strategy now holds

0:12:46.559 --> 0:12:50.559
<v Speaker 1>five hundred and ninety two thousand bitcoin. That's over sixty

0:12:50.559 --> 0:12:53.800
<v Speaker 1>two billion worth, representing two point eight percent of the

0:12:54.000 --> 0:12:58.240
<v Speaker 1>entire bitcoin supply. But here's what's truly insane. They've added

0:12:58.240 --> 0:13:01.360
<v Speaker 1>to their bitcoin position every single quarter since August of

0:13:01.400 --> 0:13:04.480
<v Speaker 1>twenty twenty. Think about that, through the twenty twenty one peak,

0:13:04.600 --> 0:13:07.199
<v Speaker 1>through the twenty twenty two crash, through the twenty twenty

0:13:07.200 --> 0:13:11.000
<v Speaker 1>three banking crisis, the twenty twenty four ETF launch, that

0:13:11.800 --> 0:13:14.640
<v Speaker 1>never stopped any of them. Twenty twenty five, they just

0:13:14.720 --> 0:13:18.440
<v Speaker 1>continued to turn it up. Ten billion dollars raised in

0:13:18.559 --> 0:13:21.520
<v Speaker 1>just four months, six point six billion through their ATM

0:13:21.559 --> 0:13:24.960
<v Speaker 1>equity program, two billion in convertible notes at zero percent coupon,

0:13:25.240 --> 0:13:28.360
<v Speaker 1>one point four billion through their new preferred instruments. I mean,

0:13:28.440 --> 0:13:32.240
<v Speaker 1>this is industrial scale bitcoin acquisition. But here's where it

0:13:32.240 --> 0:13:36.480
<v Speaker 1>gets really interesting. Remember those precision straws I talked about.

0:13:36.880 --> 0:13:40.520
<v Speaker 1>Sailor didn't just build one, he built the entire assembly line.

0:13:40.760 --> 0:13:44.839
<v Speaker 1>Strike for income investors eight percent perpetual coupon convertible at

0:13:44.880 --> 0:13:48.920
<v Speaker 1>one thousand dollars per share, launched in February, already trading

0:13:48.960 --> 0:13:52.920
<v Speaker 1>twenty two percent above IPO price. Strife for institutions ten

0:13:52.920 --> 0:13:56.560
<v Speaker 1>percent perpetual preferred with no dilution to shareholders. This is

0:13:56.600 --> 0:14:01.480
<v Speaker 1>permanent capital with no refinancing risk, no covenant, no collateral requirements.

0:14:01.679 --> 0:14:06.120
<v Speaker 1>And now Stride their newest instrument targeting specific institutional mandates.

0:14:06.760 --> 0:14:10.320
<v Speaker 1>See what's happening here. Each instrument is a different precision

0:14:10.360 --> 0:14:14.960
<v Speaker 1>tool targeting different pools of trapped capital. Pension funds that

0:14:15.040 --> 0:14:19.000
<v Speaker 1>need study income, Strike insurance companies that need yield without

0:14:19.000 --> 0:14:24.520
<v Speaker 1>equity risk strife, municipal treasuries with specific mandates stride. It's

0:14:24.560 --> 0:14:27.880
<v Speaker 1>like having four different drill bits for four different types

0:14:27.920 --> 0:14:31.200
<v Speaker 1>of rock. And they're just getting started. Strategy just announced

0:14:31.240 --> 0:14:34.240
<v Speaker 1>their forty two to forty two plan, forty two billion

0:14:34.280 --> 0:14:37.240
<v Speaker 1>in equity, forty two billion in fixed income by the

0:14:37.400 --> 0:14:40.440
<v Speaker 1>end of twenty twenty seven. Now, to put this into perspective,

0:14:40.600 --> 0:14:43.760
<v Speaker 1>they completed their previous twenty one billion plans so fast

0:14:44.040 --> 0:14:47.120
<v Speaker 1>they just had to double it. Now. Wall Street loved

0:14:47.120 --> 0:14:50.520
<v Speaker 1>to dismiss this as just another crypto play, but look

0:14:50.560 --> 0:14:54.520
<v Speaker 1>at this correlation data. Ninety eight percent correlation between Strategy

0:14:54.640 --> 0:14:58.760
<v Speaker 1>stock price and their bitcoin value per share. Now remember

0:14:58.800 --> 0:15:01.920
<v Speaker 1>those Wall Street margins talked about, like black Rock makes

0:15:02.080 --> 0:15:05.720
<v Speaker 1>three to four percent on placement fees, strategies making fifty

0:15:05.760 --> 0:15:09.320
<v Speaker 1>percent profit margins because they're not just managing money, they're

0:15:09.320 --> 0:15:12.960
<v Speaker 1>converting it into the world's hardest asset. And here's the kicker.

0:15:13.440 --> 0:15:17.520
<v Speaker 1>One hundred percent of their bitcoin remains unencumbered. That's pristine

0:15:17.560 --> 0:15:21.720
<v Speaker 1>collateral that can backstop every future instrument they create. And

0:15:21.800 --> 0:15:23.920
<v Speaker 1>this isn't just happening in the US. Over eighty public

0:15:23.960 --> 0:15:27.520
<v Speaker 1>companies have now adopted bitcoin treasury strategies. Metaplanet in Japan

0:15:27.880 --> 0:15:30.920
<v Speaker 1>just announced their five point four billion, five five five

0:15:30.920 --> 0:15:34.440
<v Speaker 1>million plan. The playbook sailor Debugged is being replicated globally.

0:15:34.560 --> 0:15:37.960
<v Speaker 1>The institutional validation it's already here. These aren't retail day

0:15:37.960 --> 0:15:41.600
<v Speaker 1>traders buying strike. These are pension funds, insurance companies, and

0:15:41.680 --> 0:15:45.240
<v Speaker 1>sovereign wealth funds that need yield without violating their mandates.

0:15:45.400 --> 0:15:48.840
<v Speaker 1>As one analyst put it, strategy didn't just prove the concept,

0:15:49.080 --> 0:15:52.480
<v Speaker 1>They built the assembly line for capital conversion. The siphon's

0:15:52.520 --> 0:15:55.560
<v Speaker 1>working and the flow rate is accelerating. Now, let's look

0:15:55.600 --> 0:15:58.640
<v Speaker 1>at Metaplanet in Japan, which proves this model works across

0:15:58.720 --> 0:16:03.080
<v Speaker 1>different markets and regular environments. Japan had negative interest rates

0:16:03.160 --> 0:16:06.640
<v Speaker 1>until March twenty twenty four. Their ten year government bonds

0:16:06.680 --> 0:16:10.440
<v Speaker 1>currently yields just one point four to two percent. Japanese

0:16:10.440 --> 0:16:15.360
<v Speaker 1>institutions have five point four trillion trapped in low yielding instruments,

0:16:15.360 --> 0:16:17.760
<v Speaker 1>which creates the same mandate problem that we have in

0:16:17.760 --> 0:16:22.480
<v Speaker 1>the US Metaplanet adapted Strategies playbook for Japanese regulations. They

0:16:22.520 --> 0:16:26.080
<v Speaker 1>now hold eleven thousand, one hundred eleven bitcoin worth one

0:16:26.160 --> 0:16:30.080
<v Speaker 1>point one two billion dollars, making them the seventh largest

0:16:30.080 --> 0:16:34.280
<v Speaker 1>corporate bitcoin holder globally. Now, their approach uses different instruments

0:16:34.480 --> 0:16:37.680
<v Speaker 1>tailored in Japanese markets. They've issued five point three billion

0:16:37.680 --> 0:16:41.280
<v Speaker 1>in moving strike warrants, the largest program in Japanese history.

0:16:41.600 --> 0:16:45.560
<v Speaker 1>They also issued zero coupon bonds specifically for bitcoin purchases

0:16:45.600 --> 0:16:49.160
<v Speaker 1>and generate eighty eight percent of their revenue from bitcoin

0:16:49.240 --> 0:16:53.440
<v Speaker 1>option strategies. And the results well their stocks up twenty

0:16:53.480 --> 0:16:57.720
<v Speaker 1>two hundred percent year over year and about three hundred

0:16:57.760 --> 0:17:00.720
<v Speaker 1>percent bitcoin yield, meaning they're increasing bitwo coin per share

0:17:00.840 --> 0:17:04.560
<v Speaker 1>faster than they diluted Metaplanets target of two hundred and

0:17:04.560 --> 0:17:08.400
<v Speaker 1>ten thousand bitcoin by twenty twenty seven, there's roughly one

0:17:08.440 --> 0:17:11.800
<v Speaker 1>percent of the total supply. The same concept as strategy,

0:17:12.040 --> 0:17:15.600
<v Speaker 1>different regulatory framework. Now. This demonstrates that the model scales

0:17:15.680 --> 0:17:19.920
<v Speaker 1>across different markets. American companies are accessing US credit markets

0:17:20.040 --> 0:17:23.840
<v Speaker 1>while Japanese companies are accessing Japanese bond markets. Both are

0:17:23.840 --> 0:17:28.359
<v Speaker 1>converting trapped capital into bitcoin using instruments that meet local

0:17:28.520 --> 0:17:32.800
<v Speaker 1>regulatory requirements, which brings us to the supply implications when

0:17:32.800 --> 0:17:35.840
<v Speaker 1>this scales globally. Now here's the math that's hiding right

0:17:35.920 --> 0:17:38.840
<v Speaker 1>in plane sight. Okay, so bitcoin has a hard cap

0:17:38.880 --> 0:17:42.960
<v Speaker 1>of twenty one million coins, nineteen point seven have already

0:17:42.960 --> 0:17:45.280
<v Speaker 1>been mined. That's about ninety four percent of the total supply.

0:17:45.760 --> 0:17:48.560
<v Speaker 1>But the effect of supply is much smaller. Between three

0:17:48.640 --> 0:17:52.320
<v Speaker 1>and four million bitcoin are permanently lost, forgotten passwords, destroyed

0:17:52.320 --> 0:17:56.640
<v Speaker 1>hard drives, whatever, Right, the true circulating supply is closer

0:17:56.640 --> 0:18:00.760
<v Speaker 1>to about sixteen to seventeen million bitcoin. The new supply

0:18:00.880 --> 0:18:03.840
<v Speaker 1>shrinking really fast. Only about one hundred and sixty four thousand,

0:18:04.119 --> 0:18:06.880
<v Speaker 1>two hundred and fifty bitcoin will be mined just this year.

0:18:07.359 --> 0:18:11.040
<v Speaker 1>The having schedule means that this number keeps getting smaller. Now,

0:18:11.080 --> 0:18:14.000
<v Speaker 1>if we look at the corporate demand, public companies alone

0:18:14.080 --> 0:18:16.920
<v Speaker 1>hold over seven hundred and twenty five thousand bitcoin. That's

0:18:16.960 --> 0:18:20.280
<v Speaker 1>more than four years of new supply. Private companies hold

0:18:20.320 --> 0:18:24.240
<v Speaker 1>an estimated three hundred thousand more. Now, corporate purchases in

0:18:24.320 --> 0:18:29.280
<v Speaker 1>twenty twenty five have already exceeded the entire annual mining output.

0:18:29.560 --> 0:18:33.080
<v Speaker 1>Now this is just beginning. The regulatory barriers are just

0:18:33.080 --> 0:18:36.560
<v Speaker 1>starting to fall. The strategy playbook is replicating globally. Meta

0:18:36.600 --> 0:18:40.000
<v Speaker 1>Planet in Japan. New companies announced weekly across Asia, the

0:18:40.000 --> 0:18:43.280
<v Speaker 1>Middle East, North America. I mean run the numbers forward.

0:18:43.520 --> 0:18:47.439
<v Speaker 1>If just one percent of the three hundred trillion global

0:18:47.440 --> 0:18:52.120
<v Speaker 1>credit market rotates into bitcoin backed instruments, that's three trillion

0:18:52.400 --> 0:18:55.719
<v Speaker 1>chasing twenty one million coins. We're seeing the early stages

0:18:55.760 --> 0:18:58.960
<v Speaker 1>of the rotation right now. Credit rating agencies are starting

0:18:58.960 --> 0:19:03.120
<v Speaker 1>to recognize bitcoin back debt as instrument grade. Institutional mandates

0:19:03.160 --> 0:19:06.000
<v Speaker 1>are beginning to approve these instruments. And this isn't going

0:19:06.080 --> 0:19:11.360
<v Speaker 1>to happen gradually. Supply shocks in fixed cap assets happen suddenly.

0:19:11.840 --> 0:19:16.000
<v Speaker 1>Each successful corporate issuance proved the model, Each regulatory approval

0:19:16.200 --> 0:19:20.080
<v Speaker 1>opens new pools of capital. Now, consider this strategy alone

0:19:20.359 --> 0:19:24.320
<v Speaker 1>targets eighty four billion in bitcoin purchases by twenty twenty seven.

0:19:24.800 --> 0:19:28.200
<v Speaker 1>Metaplanet targets two hundred and ten thousand bitcoin. Now that's

0:19:28.240 --> 0:19:31.560
<v Speaker 1>before we count the dozens of other companies building similar programs,

0:19:31.800 --> 0:19:35.760
<v Speaker 1>which brings us to the investment implications. Right now, there's

0:19:35.760 --> 0:19:39.200
<v Speaker 1>three ways to position for this rotation. Each target different

0:19:39.320 --> 0:19:42.480
<v Speaker 1>risk balances and return expectations. All right. First, there's the

0:19:42.520 --> 0:19:46.720
<v Speaker 1>pure play equity exposure right strategy Metaplanet. They offer maximum

0:19:46.760 --> 0:19:50.520
<v Speaker 1>leverage bitcoin treasury execution strategy shows a ninety eight percent

0:19:50.560 --> 0:19:54.040
<v Speaker 1>correlation between its stock price and its bitcoin value per share.

0:19:54.400 --> 0:19:58.080
<v Speaker 1>The market now values it primarily as its bitcoin holdings,

0:19:58.200 --> 0:20:00.879
<v Speaker 1>not as the software business. Metaplanet trades at the eighty

0:20:00.920 --> 0:20:03.960
<v Speaker 1>first percentile of fair value, but has room to run.

0:20:04.160 --> 0:20:06.879
<v Speaker 1>It's achieved three hundred and ninety one percent gains year

0:20:06.920 --> 0:20:09.919
<v Speaker 1>to date with a three hundred and six percent bitcoin yield.

0:20:10.400 --> 0:20:14.840
<v Speaker 1>Second yield plays through bitcoin back preferreds. These instruments offer

0:20:14.880 --> 0:20:18.639
<v Speaker 1>eight to ten percent annualized yields with bitcoin collateralization. Third

0:20:18.760 --> 0:20:22.400
<v Speaker 1>is the core bitcoin holdings. The ultimate asymmetric bet remains

0:20:22.600 --> 0:20:27.159
<v Speaker 1>native bitcoin. First, these companies are wrappers around bitcoin exposure.

0:20:27.440 --> 0:20:31.159
<v Speaker 1>They're not substitutes for it. The three hundred trillion credit

0:20:31.280 --> 0:20:35.280
<v Speaker 1>rotation isn't a prediction. It's a process that's already underway.

0:20:35.480 --> 0:20:39.160
<v Speaker 1>The precision straws. They're already working the supply shock. It's

0:20:39.160 --> 0:20:43.480
<v Speaker 1>accelerating the investment window. It's narrowing. The question isn't whether

0:20:43.520 --> 0:20:47.320
<v Speaker 1>this happens. The question is whether you're positioned before everyone

0:20:47.320 --> 0:20:49.240
<v Speaker 1>else figures it out now. If you want to know

0:20:49.320 --> 0:20:52.560
<v Speaker 1>more about the number one thing most miss when valuing

0:20:52.560 --> 0:20:56.520
<v Speaker 1>bitcoin treasury companies, then you should watch this video right here. Otherwise,

0:20:56.720 --> 0:20:58.720
<v Speaker 1>leave me a comment thumbs up if you like the video,

0:20:59.000 --> 0:21:01.159
<v Speaker 1>thumbs down if you don't. That's okay, and that's what

0:21:01.200 --> 0:21:03.600
<v Speaker 1>I got to your success. How about