Episode 9: Treasury Companies 101: The MicroStrategy Playbook

Understanding Treasury Companies: The Strategy Playbook

In this episode of Old Men New Money, Douglas Borthwick introduces module three of the educational series, focusing on treasury companies that use their corporate balance sheets to accumulate crypto assets, primarily Bitcoin. Borthwick explores the pioneering case of MicroStrategy, now called Strategy, which began converting its corporate treasury into Bitcoin in August 2020. The episode details Strategy’s financial engineering tactics, their Bitcoin yield metrics, and the associated risks. It also discusses the broader market implications, highlighting how over 70 public companies have adopted similar strategies. The episode concludes by emphasizing the critical role of Bitcoin’s price trajectory in the success of these treasury companies.

00:00 Introduction to Module Three

00:14 The Rise of Treasury Companies

00:36 MicroStrategy's Bold Move

01:16 Understanding the Strategy Playbook

04:21 Financial Engineering and Bitcoin Yield

09:32 Valuation and Market Dynamics

17:42 Risks and Considerations

22:53 Conclusion and Next Steps

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