The Bitcoin Frontier

From Harvard to MicroStrategy—valuing MSTR and building Bitcoin24

Oct 22, 2024

Chaitanya Jain, an MBA candidate at Harvard Business School and strategist at MicroStrategy, shares his insights into Bitcoin's unique identity amidst skepticism at HBS. He discusses the development of the Bitcoin24 model, which aims to predict Bitcoin's price future. Jain delves into the evolution of MicroStrategy's Bitcoin custody strategies and the challenges companies face in adopting Bitcoin. He also highlights the importance of strong leadership in navigating Bitcoin investments and the risks and opportunities for future institutional adoption.

01:03:02

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Episode guests

Chaitanya Jain

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Quick takeaways

The challenging environment for Bitcoin discussions at Harvard reflects broader skepticism that can hinder its academic acceptance and discourse.

MicroStrategy's acquisition strategy focuses on consistent Bitcoin holdings per share, positioning it as a model for corporate acquisition in the crypto space.

Addressing personal custody and regulatory risks is essential for fostering a secure and stable Bitcoin investment environment going forward.

Deep dives

Challenges of Bitcoin Adoption at Harvard

The adoption of Bitcoin among peers at Harvard has proven to be challenging, with a noticeable lack of interest among fellow students. Despite starting with high hopes of connecting with like-minded individuals, the speaker found it difficult to find anyone in their cohort who shared a similar enthusiasm for Bitcoin. Most discussions regarding cryptocurrency on campus often leaned towards embarrassment among those who had invested during the previous bull run, leading to a reluctance to engage with the topic. The environment of a bear market, however, provided a unique opportunity to present arguments about Bitcoin's value without the distractions of rampant speculation seen in previous boom cycles.

Intro

3min

Navigating Bitcoin at Harvard

15min

Valuing Bitcoin: Beyond Cash Flows

9min

Evolving Strategies in Bitcoin Custody

7min

Challenges for Companies Adopting Bitcoin Strategies

4min

Strategic Bitcoin Acquisitions

18min

Framing Bitcoin for Newcomers

7min

In this episode, we sit down with Chaitanya Jain (CJ), an MBA candidate at Harvard Business School and strategist at MicroStrategy, who worked closely with Michael Saylor on the recent open source Bitcoin24 model. CJ shares his experience talking about bitcoin at HBS, detailing efforts to distinguish it from broader crypto discussions. We explore Michael Saylor’s perspective on whether bitcoin is money or just another asset. CJ offers insights into building the Bitcoin24 model and MicroStrategy’s evolving custody strategy, including the future of bitcoin in banking and other companies adopting MicroStrategy’s bitcoin strategy. We also cover their acquisition strategy using equity and convertible notes, the constraints they face, and how to think about valuing MicroStrategy in relation to their NAV. Last, CJ discusses MicroStrategy's potential future S&P 500 inclusion, effective bitcoin advocacy techniques, and the most significant risks to bitcoin today.

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TIMESTAMPS:

00:00:00 Introduction and background

00:03:23 Experience at HBS with bitcoin

00:06:06 Efforts to differentiate bitcoin from crypto at HBS

00:08:13 Bitcoin and crypto courses at HBS

00:10:21 Michael Saylor’s view of bitcoin: money or asset?

00:12:12 Catalysts for HBS interest in bitcoin

00:14:06 Key takeaways from interacting with Michael Saylor

00:18:25 Valuing bitcoin without cash flows

00:20:36 Building the Bitcoin24 model with MicroStrategy

00:24:24 MicroStrategy’s bitcoin custody strategy

00:26:32 Future of bitcoin in banking

00:30:55 Other companies following MicroStrategy’s bitcoin strategy

00:38:21 MicroStrategy’s bitcoin acquisition strategy: equity and convertible notes

00:46:24 Limits on equity issuances and convertible notes

00:50:24 Common misunderstandings about MicroStrategy

00:52:42 MicroStrategy’s inclusion in the S&P 500

00:58:26 Bitcoin advocacy and persuasion techniques

00:59:10 Biggest risks to bitcoin

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The Bitcoin Frontier

From Harvard to MicroStrategy—valuing MSTR and building Bitcoin24

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Challenges of Bitcoin Adoption at Harvard

Engagement with Professors and Colleagues

Bitcoin as Digital Property

The Future of Bitcoin in Corporate Strategy

Perceptions and Risks Surrounding Bitcoin

Remember Everything You Learn from Podcasts