Speaker 1: Right now, a three hundred trillion credit rotation is forming,
Speaker 1: and nobody sees it coming. Most investors and even Wall
Speaker 1: Street think these bitcoin treasury companies they're just a bubble,
Speaker 1: another creative play on bitcoin, or maybe just a way
Speaker 1: to quickly generate cash. But they're completely missing the real story,
Speaker 1: and it's way bigger than anyone realizes. Because these companies
Speaker 1: they're not just gambling. They're building highly targeted financial products,
Speaker 1: each acting like a straw siphoning trillions out of a
Speaker 1: broken credit market and right into bitcoin. I'm Mark Moss,
Speaker 1: partner at a leading bitcoin venture fund, officer of a
Speaker 1: publicly traded bitcoin treasury company, and today I'll reveal exactly
Speaker 1: how the shift is unfolding, why banks are dangerously offsides,
Speaker 1: and how you can position yourself to benefit. So let's go,
Speaker 1: all right, So here's what nobody talks about. Fifty two
Speaker 1: percent of US corporate pension funds are legally required to
Speaker 1: hold fixed income, not because they want to, but because
Speaker 1: they have to. Now, since two thousand and nine, pension
Speaker 1: funds have shifted fourteen percentage points away from stocks and
Speaker 1: into bonds, the number of plans holding more than half
Speaker 1: their assets and fixed income has tripled. Now this is
Speaker 1: an investment strategy. It's regulatory handcuffs. The municipal bond market
Speaker 1: alone four trillion dollars. Insurance companies are mandated by law
Speaker 1: to file every unrated municipal bond with regulators for credit assessment.
Speaker 1: Now they can't just buy whatever makes sense. Property and
Speaker 1: casualty insurers they hold two hundred and sixty three billion
Speaker 1: in muni bonds. Life insurers hold two hundred and eighteen billion.
Speaker 1: Why tax advantages, regulatory requirements. But here's the real kicker.
Speaker 1: Total global debt just hit a record three hundred and
Speaker 1: eighteen trillion. That's government and corporate bonds combined. The entire
Speaker 1: bitcoin market it's only two trillion. We're talking about one
Speaker 1: hundred and fifty nine times more money trapped in traditional
Speaker 1: debt then exists in all of bitcoin. And here's what's
Speaker 1: killing these investors, the m too money supply that I
Speaker 1: talk about all the time. It's grown from four point
Speaker 1: seven trillion in two thousand to over twenty two trillion today.
Speaker 1: That's a four hundred and sixty seven percent increase. Now
Speaker 1: do the math. That's roughly a ten percent monetary debasement
Speaker 1: every single year. Meanwhile, you're safe unibonds they're paying you
Speaker 1: what three five percent before taxes. So you've got millions
Speaker 1: of retirees whose pension funds are legally forced to lose
Speaker 1: purchasing power every single year, and the lower their funding
Speaker 1: status gets, the more bonds they're required to hold. It's
Speaker 1: a death spiral with a regulatory mandate. Pension funds. Of
Speaker 1: course they won out. Insurance companies, they want out. UNI
Speaker 1: bonds investors, they won out, but the mandates keep them
Speaker 1: locked in place until now. Because what if there was
Speaker 1: a way to meet these exacts, say, mandates, while actually
Speaker 1: making money. But here's the deeper problem traditional credit markets.
Speaker 1: They're not just underperforming, they're fundamentally broken. Remember back in
Speaker 1: two thousand and eight, the great financial crash, right, credit
Speaker 1: rating agencies downgraded four thousand, four hundred and eighty five
Speaker 1: collateralized debt obligations in the first quarter alone. Now, these
Speaker 1: were supposed to be safe. They're supposed to be safe
Speaker 1: investments that had been packaged and repackaged until nobody could
Speaker 1: even articulate what the risk was. Fifty percent of triple
Speaker 1: A rated CDO tranches got downgraded to junk status. By
Speaker 1: twenty ten, the rating agencies they had no idea what
Speaker 1: they were even doing. What they're rating that same bundled complexity.
Speaker 1: It's everywhere now. Commercial lending is sixteen point four trillion
Speaker 1: and growing. Sovereign debt twelve point three trillion in new
Speaker 1: borrowing just this year. Add unibonds, corporate debt, mortgage backscat curities,
Speaker 1: all of it packaged, all of it bundled and sliced
Speaker 1: themto trunches that make the original assets impossible to even value. Now,
Speaker 1: when one loan defaults, you can't tell which other investments
Speaker 1: are going to get hit. And here's what's crushing everyone.
Speaker 1: Interest costs as a share of economic output just hit
Speaker 1: the highest level in twenty years. Between twenty twenty one
Speaker 1: and twenty twenty four, debt servicing costs went from the
Speaker 1: lowest to the highest in two decades. But investors, they
Speaker 1: keep bidding up bond prices anyway, Why again, because they're
Speaker 1: mandated to buy this stuff. Pension funds, insurance companies, muti
Speaker 1: bond funds, they have no choice. So you've got desperate
Speaker 1: buyers bidding up prices of increasingly risky assets. Classic healed compression.
Speaker 1: Everyone's racing to the bottom, accepting lower and lower returns
Speaker 1: for higher and higher risk. Total outstanding government and corporate
Speaker 1: bonds globally over one hundred trillion. That's larger than global GDP.
Speaker 1: But nobody can actually tell you what's in these things anymore.
Speaker 1: Commercial mortgage backed securities, collateralized loan obligations, unibond insurance, all
Speaker 1: wrapped around unibon insurance. Now this is two thousand and
Speaker 1: eight all over again, except bigger. The CDO market peaked
Speaker 1: at two trillion before it imploded. Today's credit market fifty
Speaker 1: times larger. The system is drowning in complexity, trillions of
Speaker 1: dollars trapped in instruments that nobody fully understands, pain yields
Speaker 1: that don't compensate for the actual risk. But what if
Speaker 1: there was a completely different approach. What if instead of
Speaker 1: bundled complexity, you add radical simplicity. Now here's what Wall
Speaker 1: Street doesn't want you to know. Of course, their margins
Speaker 1: a terrible blackrock. The world's largest asset manager charges zero
Speaker 1: point forty five to zero point five to two percent
Speaker 1: annually on their bond funds. That's less than half a
Speaker 1: percent per year. To manage money, Muni bond underwriting about
Speaker 1: zero point three seven percent per deal. Corporate bond underwriting
Speaker 1: even thinner. Now, these spreads have been in a fifteen
Speaker 1: year death spiral. Competition is driving these margins towards zero.
Speaker 1: It's gotten so bad that City and Ubs just exited
Speaker 1: the muni bond business entirely the margins they couldn't support
Speaker 1: their operations. As one industry insider put it, you get
Speaker 1: to a point where spreads are so low that the
Speaker 1: margin on a deal for an underwriter becomes thin. But
Speaker 1: there's a floor. They're desperately trying to stay profitable by
Speaker 1: getting more efficient, better technology, lower costs, automated processes, but
Speaker 1: they're still just fighting over breadcrumbs. When your margins are
Speaker 1: this thin, you can't innovate. Every dollar spent on research
Speaker 1: and development comes straight out of profit. So they're stuck.
Speaker 1: They're trapped in a commodity business with no way out. Now,
Speaker 1: the smartest firms they tried to escape and do private credit,
Speaker 1: higher fees, less competition, But even there, margins are getting
Speaker 1: compressed as more players crowd in. So let's recap here
Speaker 1: real quickly. First Wall Street's best case scenario three to
Speaker 1: four percent total margins on a good day, Annual management
Speaker 1: fees under half a percent, underwriting fees about one percent. Okay,
Speaker 1: that's the problem. Now imagine an alternative. What if instead
Speaker 1: of managing other people's money for tiny fees, you can
Speaker 1: create instruments that let you keep fifty percent of the upside.
Speaker 1: What if instead of fighting over basis points, you could
Speaker 1: capture the appreciation of the hardest money ever created. Well,
Speaker 1: that's exactly what Michael Saylor has figured out, and it's
Speaker 1: about to make traditional financial margins look like a rounding error.
Speaker 1: Now here's the breakthrough that changes everything. What if you
Speaker 1: could create financial instruments that pay junk bond yields but
Speaker 1: qualify as investment grade under existing regulations. Investment grade means
Speaker 1: rated BBB or higher by the major agencies's threshold that
Speaker 1: pension funds and insurance companies and munibond investors are required
Speaker 1: to meet. And Sailor figured out how to hack this system.
Speaker 1: Instead of backing bonds with unpredictable cash flows, back them
Speaker 1: with bitcoin, take strategies, STRF strife preferred shares. They pay
Speaker 1: ten percent annually. That's more than jump bonds. And here's
Speaker 1: the key. They're backed by bitcoin holdings worth ten times
Speaker 1: the face value. Now, traditional corporate bonds they're backed by
Speaker 1: business cash flows that could disappear overnight. Muni bonds they're
Speaker 1: backed by tax revenues that fluctuate with the economy. But
Speaker 1: bitcoin backed instruments they're backed by the hardest money ever created.
Speaker 1: Strategy even created new metrics to prove this, like BTC
Speaker 1: risk that's the likelihood of under collaborization at maturity, or
Speaker 1: BTC credit spread that's the yield required to offset the
Speaker 1: bitcoin risk. Now, look, this isn't theoretical. This is regulatory
Speaker 1: arbitrage at its finest. These instruments fit perfectly into the
Speaker 1: existing investment grade boxes that mandate investors are required to fill.
Speaker 1: Pension fund managers have a legal duty to maximize financial benefits.
Speaker 1: Insurance companies must invest in sufficiently rated securities. Communi bond
Speaker 1: funds need investment grade paper. Now strategies strike STRK it
Speaker 1: pays out eight percent with convertibility, Strife pays ten percent
Speaker 1: cash only, and STRD stride pays ten percent as the
Speaker 1: highest yielding option. Now compare that to traditional investment grade
Speaker 1: bonds paying three to five percent. Now, this is the
Speaker 1: same regulatory approval, same fudiciary compliance, but it's double the yield.
Speaker 1: It's backed by an asset that's been appreciating at sixty
Speaker 1: percent annually for over a decade. Now, again, this isn't
Speaker 1: just a better mousetrap. It's a completely different category of
Speaker 1: financial engineering. And here's why Wall Street can't compete with
Speaker 1: the math behind it. Bitcoin's compound annual growth rate over
Speaker 1: any four year rowin window the minimum has been twenty
Speaker 1: four percent, the average about sixty five percent. Now, since inception,
Speaker 1: Bitcoin has delivered a one hundred and forty percent compound
Speaker 1: annual return. Even being conservative, let's just use sixty percent annually.
Speaker 1: Going forward strategies, preferred shares pay ten percent coupons. Bitcoin
Speaker 1: appreciates sixty percent annually. That leaves fifty percent retained profit margins.
Speaker 1: Now compare that to Wall Street's three percent. Now, look,
Speaker 1: this isn't theoretical. Recently, a real estate investor in Toronto
Speaker 1: deployed this strategy. Borrowed one hundred thousand dollars against a
Speaker 1: rental property. Cash flow bought Bitcoin generated an additional eight
Speaker 1: hundred and fifty nine thousand dollars in just ten years.
Speaker 1: No additional out of pocket capital. Now strategy takes this
Speaker 1: concept and scales it. It issues convertible bonds at zero
Speaker 1: percent interest, issues preferred shares at eight to ten percent
Speaker 1: by bitcoin with the proceeds. Now, as one analyst put it,
Speaker 1: strategy strategically uses equity, issues convertible bonds, and in light
Speaker 1: volatility arbitrage to build a hybrid capital stack. It mimics
Speaker 1: central banks mechanics by creating funding sources through equity and
Speaker 1: debt issuance. Now, traditional finance fights over basis points bitcoin
Speaker 1: treasury companies they capture fifty times higher margins. Now the
Speaker 1: math is so compelling that Trump Media, Game Stop and
Speaker 1: dozens of other companies are now announcing bitcoin treasury strategies.
Speaker 1: Corporate treasury adoption has entered a news phase. Companies whose
Speaker 1: primary objective is bitcoin accumulation are purpose built from the
Speaker 1: ground up. And this is how capital always works. Money
Speaker 1: flows to the highest risk adjester returns. When one strategy
Speaker 1: delivers fifteen times better margins than the alternative, capital moves.
Speaker 1: And here's the beautiful part. Every successful bitcoin treasury company
Speaker 1: proves the model works, making it easier for the next
Speaker 1: company to get funding, get regulatory approval, get institutional backing,
Speaker 1: and Wall Street's been optimizing around three percent margins for
Speaker 1: decades bitcoin treasuries. They just showed them what fifty percent
Speaker 1: margins look like. Now, look, this is in competition, like
Speaker 1: it's annihilation, and Sailor just built a blueprint that everyone
Speaker 1: else is copying. Now, while Wall Street's been sitting around
Speaker 1: debating whether bitcoin treasuries are sustainable, Michael Saylor as Strategy
Speaker 1: have been quietly building the most sophisticated capital conversion machine
Speaker 1: in financial history. And I'm not talking about the theory anymore.
Speaker 1: I'm talking about a track record that makes Goldman Sachs
Speaker 1: look irrelevant. And the market has taken notice. Strategy stock
Speaker 1: has served two hundred and fifty eight percent from its
Speaker 1: fifty two week low of one hundred and two dollars.
Speaker 1: That's not speculation rewarding. That's systematic execution being recognized by
Speaker 1: institutional capital. Now, look at these numbers. Strategy now holds
Speaker 1: five hundred and ninety two thousand bitcoin. That's over sixty
Speaker 1: two billion worth, representing two point eight percent of the
Speaker 1: entire bitcoin supply. But here's what's truly insane. They've added
Speaker 1: to their bitcoin position every single quarter since August of
Speaker 1: twenty twenty. Think about that, through the twenty twenty one peak,
Speaker 1: through the twenty twenty two crash, through the twenty twenty
Speaker 1: three banking crisis, the twenty twenty four ETF launch, that
Speaker 1: never stopped any of them. Twenty twenty five, they just
Speaker 1: continued to turn it up. Ten billion dollars raised in
Speaker 1: just four months, six point six billion through their ATM
Speaker 1: equity program, two billion in convertible notes at zero percent coupon,
Speaker 1: one point four billion through their new preferred instruments. I mean,
Speaker 1: this is industrial scale bitcoin acquisition. But here's where it
Speaker 1: gets really interesting. Remember those precision straws I talked about.
Speaker 1: Sailor didn't just build one, he built the entire assembly line.
Speaker 1: Strike for income investors eight percent perpetual coupon convertible at
Speaker 1: one thousand dollars per share, launched in February, already trading
Speaker 1: twenty two percent above IPO price. Strife for institutions ten
Speaker 1: percent perpetual preferred with no dilution to shareholders. This is
Speaker 1: permanent capital with no refinancing risk, no covenant, no collateral requirements.
Speaker 1: And now Stride their newest instrument targeting specific institutional mandates.
Speaker 1: See what's happening here. Each instrument is a different precision
Speaker 1: tool targeting different pools of trapped capital. Pension funds that
Speaker 1: need study income, Strike insurance companies that need yield without
Speaker 1: equity risk strife, municipal treasuries with specific mandates stride. It's
Speaker 1: like having four different drill bits for four different types
Speaker 1: of rock. And they're just getting started. Strategy just announced
Speaker 1: their forty two to forty two plan, forty two billion
Speaker 1: in equity, forty two billion in fixed income by the
Speaker 1: end of twenty twenty seven. Now, to put this into perspective,
Speaker 1: they completed their previous twenty one billion plans so fast
Speaker 1: they just had to double it. Now. Wall Street loved
Speaker 1: to dismiss this as just another crypto play, but look
Speaker 1: at this correlation data. Ninety eight percent correlation between Strategy
Speaker 1: stock price and their bitcoin value per share. Now remember
Speaker 1: those Wall Street margins talked about, like black Rock makes
Speaker 1: three to four percent on placement fees, strategies making fifty
Speaker 1: percent profit margins because they're not just managing money, they're
Speaker 1: converting it into the world's hardest asset. And here's the kicker.
Speaker 1: One hundred percent of their bitcoin remains unencumbered. That's pristine
Speaker 1: collateral that can backstop every future instrument they create. And
Speaker 1: this isn't just happening in the US. Over eighty public
Speaker 1: companies have now adopted bitcoin treasury strategies. Metaplanet in Japan
Speaker 1: just announced their five point four billion, five five five
Speaker 1: million plan. The playbook sailor Debugged is being replicated globally.
Speaker 1: The institutional validation it's already here. These aren't retail day
Speaker 1: traders buying strike. These are pension funds, insurance companies, and
Speaker 1: sovereign wealth funds that need yield without violating their mandates.
Speaker 1: As one analyst put it, strategy didn't just prove the concept,
Speaker 1: They built the assembly line for capital conversion. The siphon's
Speaker 1: working and the flow rate is accelerating. Now, let's look
Speaker 1: at Metaplanet in Japan, which proves this model works across
Speaker 1: different markets and regular environments. Japan had negative interest rates
Speaker 1: until March twenty twenty four. Their ten year government bonds
Speaker 1: currently yields just one point four to two percent. Japanese
Speaker 1: institutions have five point four trillion trapped in low yielding instruments,
Speaker 1: which creates the same mandate problem that we have in
Speaker 1: the US Metaplanet adapted Strategies playbook for Japanese regulations. They
Speaker 1: now hold eleven thousand, one hundred eleven bitcoin worth one
Speaker 1: point one two billion dollars, making them the seventh largest
Speaker 1: corporate bitcoin holder globally. Now, their approach uses different instruments
Speaker 1: tailored in Japanese markets. They've issued five point three billion
Speaker 1: in moving strike warrants, the largest program in Japanese history.
Speaker 1: They also issued zero coupon bonds specifically for bitcoin purchases
Speaker 1: and generate eighty eight percent of their revenue from bitcoin
Speaker 1: option strategies. And the results well their stocks up twenty
Speaker 1: two hundred percent year over year and about three hundred
Speaker 1: percent bitcoin yield, meaning they're increasing bitwo coin per share
Speaker 1: faster than they diluted Metaplanets target of two hundred and
Speaker 1: ten thousand bitcoin by twenty twenty seven, there's roughly one
Speaker 1: percent of the total supply. The same concept as strategy,
Speaker 1: different regulatory framework. Now. This demonstrates that the model scales
Speaker 1: across different markets. American companies are accessing US credit markets
Speaker 1: while Japanese companies are accessing Japanese bond markets. Both are
Speaker 1: converting trapped capital into bitcoin using instruments that meet local
Speaker 1: regulatory requirements, which brings us to the supply implications when
Speaker 1: this scales globally. Now here's the math that's hiding right
Speaker 1: in plane sight. Okay, so bitcoin has a hard cap
Speaker 1: of twenty one million coins, nineteen point seven have already
Speaker 1: been mined. That's about ninety four percent of the total supply.
Speaker 1: But the effect of supply is much smaller. Between three
Speaker 1: and four million bitcoin are permanently lost, forgotten passwords, destroyed
Speaker 1: hard drives, whatever, Right, the true circulating supply is closer
Speaker 1: to about sixteen to seventeen million bitcoin. The new supply
Speaker 1: shrinking really fast. Only about one hundred and sixty four thousand,
Speaker 1: two hundred and fifty bitcoin will be mined just this year.
Speaker 1: The having schedule means that this number keeps getting smaller. Now,
Speaker 1: if we look at the corporate demand, public companies alone
Speaker 1: hold over seven hundred and twenty five thousand bitcoin. That's
Speaker 1: more than four years of new supply. Private companies hold
Speaker 1: an estimated three hundred thousand more. Now, corporate purchases in
Speaker 1: twenty twenty five have already exceeded the entire annual mining output.
Speaker 1: Now this is just beginning. The regulatory barriers are just
Speaker 1: starting to fall. The strategy playbook is replicating globally. Meta
Speaker 1: Planet in Japan. New companies announced weekly across Asia, the
Speaker 1: Middle East, North America. I mean run the numbers forward.
Speaker 1: If just one percent of the three hundred trillion global
Speaker 1: credit market rotates into bitcoin backed instruments, that's three trillion
Speaker 1: chasing twenty one million coins. We're seeing the early stages
Speaker 1: of the rotation right now. Credit rating agencies are starting
Speaker 1: to recognize bitcoin back debt as instrument grade. Institutional mandates
Speaker 1: are beginning to approve these instruments. And this isn't going
Speaker 1: to happen gradually. Supply shocks in fixed cap assets happen suddenly.
Speaker 1: Each successful corporate issuance proved the model, Each regulatory approval
Speaker 1: opens new pools of capital. Now, consider this strategy alone
Speaker 1: targets eighty four billion in bitcoin purchases by twenty twenty seven.
Speaker 1: Metaplanet targets two hundred and ten thousand bitcoin. Now that's
Speaker 1: before we count the dozens of other companies building similar programs,
Speaker 1: which brings us to the investment implications. Right now, there's
Speaker 1: three ways to position for this rotation. Each target different
Speaker 1: risk balances and return expectations. All right. First, there's the
Speaker 1: pure play equity exposure right strategy Metaplanet. They offer maximum
Speaker 1: leverage bitcoin treasury execution strategy shows a ninety eight percent
Speaker 1: correlation between its stock price and its bitcoin value per share.
Speaker 1: The market now values it primarily as its bitcoin holdings,
Speaker 1: not as the software business. Metaplanet trades at the eighty
Speaker 1: first percentile of fair value, but has room to run.
Speaker 1: It's achieved three hundred and ninety one percent gains year
Speaker 1: to date with a three hundred and six percent bitcoin yield.
Speaker 1: Second yield plays through bitcoin back preferreds. These instruments offer
Speaker 1: eight to ten percent annualized yields with bitcoin collateralization. Third
Speaker 1: is the core bitcoin holdings. The ultimate asymmetric bet remains
Speaker 1: native bitcoin. First, these companies are wrappers around bitcoin exposure.
Speaker 1: They're not substitutes for it. The three hundred trillion credit
Speaker 1: rotation isn't a prediction. It's a process that's already underway.
Speaker 1: The precision straws. They're already working the supply shock. It's
Speaker 1: accelerating the investment window. It's narrowing. The question isn't whether
Speaker 1: this happens. The question is whether you're positioned before everyone
Speaker 1: else figures it out now. If you want to know
Speaker 1: more about the number one thing most miss when valuing
Speaker 1: bitcoin treasury companies, then you should watch this video right here. Otherwise,
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