The Hurdle Rate Podcast Episode 35 - Amplified Bitcoin and Digital Credit
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Nov 10, 2025 Hosts dive deep into the booming market for digital credit IPOs, exploring strong demand and strategic launches. They discuss the structural advantages of perpetual preferred equity over convertibles, alongside behind-the-scenes negotiations for investor protections. The episode highlights substantial growth in Bitcoin holdings and the implications of accumulating this digital asset. Additionally, insights on retail participation in the IPO market and Bitcoin's long-term compounding ability drive an engaging conversation.
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Par Price Validates Market Confidence
- Stretch hitting and sustaining par shows liquidity and institutional confidence in perpetual preferreds.
- That event enabled ATM issuance and marks a structural shift for digital credit products.
Demand Isn’t Tied To Short-Term BTC Moves
- IPO upsizes and stretch strength occurred despite Bitcoin dipping under $100k multiple times.
- Demand appears insensitive to short-term Bitcoin moves, reflecting focus on credit quality.
Defend Clean Capital Structure
- Fight for structural protections like no occurrence tests and no encumbered Bitcoin during deal design.
- Preserve flexibility on leverage ratios so management can adapt to cost of capital shifts.