4.8 • 689 Ratings
🗓️ 21 June 2025
⏱️ 37 minutes
🧾️ Download transcript
Bitcoin treasury strategies are all the rage, but are they actually sustainable?
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Welcome back to Bitcoin Season 2! Today, Colin and Charlie talk about the explosive growth of Bitcoin treasury companies and their financial engineering strategies. They break down Strategy's convertible debt playbook, examine why these companies trade at premiums to their Bitcoin holdings, and debate whether this trend is sustainable or an elaborate house of cards waiting to collapse.
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**Notes:**
• MicroStrategy holds 592,100 Bitcoin
• Q1 2025 revenue: $111 million
• Convertible notes have 0-1% interest rates
• Bitcoin needs to drop way low for liquidation
• Preferred shares pay 8-10% dividends
• Annual obligations: $10-20 billion
Timestamps:
00:00 Start
02:59 Strategy (formerly micro)
10:42 Types of companies
15:13 Preferred stock
24:57 Closed end fund dynamics
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0:53.7 | It's about keeping |
0:54.4 | everything secure. Everyone is getting hilariously rich off of the micro strategy Bitcoin |
0:59.9 | treasury play, and you are not. You're sitting on your hands, indecisive. But are they the dumb ones? |
1:06.9 | Are you the dumb ones? It's not super clear. Colin and I are going to dissect the Bitcoin Treasury play on this episode of Bitcoin |
1:16.7 | Season 2. |
1:21.9 | Sailor was on the Jordan Peterson podcast recently, Colin. |
1:29.3 | And Jordan Peterson, the progenitor of all good think boys, was convinced of |
1:36.0 | Sailor's brilliance. |
1:38.2 | And what, what you're basically talking about is you can sell debt and use it to buy Bitcoin and the stock price goes up. |
1:54.0 | Meanwhile, the value of the dollar behind the debt goes down. |
1:59.0 | And then they convert the debt into your stock after it's gone up. |
2:03.7 | It's a perpetual motion machine for finance. |
2:07.4 | Exactly. |
2:08.3 | That's right, Mr. Peterson. |
2:10.1 | You can literally create infinite money. |
... |
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