The Hurdle Rate Podcast Episode 10 - Have Bitcoin, Get Money
May 20, 2025
The podcast dives into MSTR's significant Bitcoin acquisition and its implications for investor sentiment. Jamie Dimon's thoughts on Bitcoin spark a discussion on the clash between banking and decentralized finance. Recent US debt downgrades highlight Bitcoin's potential as a refuge during economic uncertainty. The unpredictable nature of Bitcoin prices is explored alongside the impact of major corporations on market dynamics. Lastly, the conversation touches on the role of class action lawsuits in asset management and how they shape decision-making in finance.
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MicroStrategy's Capital Strategy
- MicroStrategy strategically uses convertible preferred stock and common stock ATM to leverage their Bitcoin holdings.
- Understanding the total transaction impact is key, as it offsets dilution with capital premium raised.
Strategic Leverage Management
- MicroStrategy is building capital raising capacity to act swiftly when Bitcoin surges.
- They balance using ATM and convertible bonds to optimize capital and leverage over time.
Advise Bitcoin Treasury Boards
- Build Bitcoin treasury boards with active, knowledgeable members aligned to the strategy.
- Engage retail investors through strategic board composition and transparent messaging for success.