The Hurdle Rate Podcast Episode 7 - Fully Torqued Bitcoin
May 3, 2025
Delve into the ambitious capital strategies launched by MSTR and their implications for Bitcoin investments. Discover how 'torque' can enhance shareholder value and the critical need for transparency in Bitcoin ventures. Explore the innovative world of Bitcoin-linked fixed income and the opportunities for investors. Learn how companies are leveraging strong over-collateralization to reshape market perceptions. Finally, see how Bitcoin purchases are impacting balance sheets and becoming increasingly relevant to institutional investors.
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MicroStrategy's Bold Capital Expansion
- MicroStrategy's $84 billion capital plan doubles previous targets with balanced equity and fixed income issuance.
- The firm's strategic use of ATMs and STRK enhances capital raise efficiency and market confidence.
Bitcoin Torque Explains Leverage
- Bitcoin-backed securities provide differing leverage depending on Bitcoin's volatility and product features.
- This leverage concept, coined "torque," enables accelerated growth in shareholder value via dynamic financial instruments.
Educate Yourself to Navigate Strategy
- Investors should embrace Strategy's educational approach to grasp new Bitcoin treasury instruments.
- Learn and explain these tools to others to better navigate the evolving Bitcoin corporate finance landscape.