The Pomp Podcast Wall Street Gives Brutal Credit Rating To Strategy Over Bitcoin
82 snips
Oct 29, 2025 
Jeff Park, Partner and Chief Investment Officer at ProCap BTC, dives into the implications of MicroStrategy's new credit rating for Bitcoin adoption. He explains why this rating is a significant milestone for corporate treasury strategies. The conversation explores the pending Solana staking ETF and its landmark regulatory meaning. Jeff also delves into the curious prediction markets that humorously speculate Donald Trump as Satoshi, emphasizing the importance of distinguishing between real data and misinformation.
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Rating Agencies Misapply Old Frameworks
- S&P's B- rating for MicroStrategy reveals insurers treat Bitcoin like illiquid goodwill, creating a negative risk-adjusted capital result.
- That mismatch shows rating frameworks don't fit Bitcoin's liquidity-volatility corner case and hinder corporate adoption.
B- Normalizes Price But Distorts Long-Term Risk
- The B- score matters because it normalizes MicroStrategy within credit universes and signals a ~10–12% spread expectation to markets.
- But the implied time-contingent default odds conflict with Bitcoin's long-term improving profile, exposing framework incompatibility.
Use The Rating To Access B- Allocations
- Use MicroStrategy's rating to let high-yield managers substitute it into B- cohorts and diversify their portfolios accordingly.
- Expect preferreds to be rated next, creating arbitrage opportunities in the preferred market.
