Dutch auction
$121-122– buy out at 140
20 days
Strategy –>
Square bought Bitcoin
2020–
Convertible bond
.
200-300’s
$650M bond
.
75 basis points …
.
Borrow money at less than 1% interest
45% compounded …
40%+
.
Volatility doesn’t really matter until due end of term
.
$1000 a share
.
$600M
Oversubscribed
.
Double your money
$1B
Coupon was zero — billion dollars of money for free for 5-6 years
.
Nobody gets rich by holding cash
Bitcoin Company ***
.
Opportunistic
.
More opportunism
Bitcoin strategy
.
Bitcoin roller coaster
.
How can we buy more bitcoin?
.
Buy Bitcoin
.
7-800$ a share
Premium to develop
.
Build the capital base
Dozen transactions
.
2023
Bitcoin Dividend
.
ETF got approved
Trading at a premium
Borrow against your own stock, leverage the stock, option the stock — put and call.
.
- Massive volatility
- Liquidity –> trade in the spot market , hedge your exposure
- Durability or transparency — will continue — wont go on for years and years
.
Credible, durable … transparent strategy
Bitcoin 75– maximum volatility — 120-140 volatility points
.
Black shawls equation –> more volatility better options
Issue convertible debt
We want exposure
Liquidity, and also… options. Optionality .
Predictable
You’re buying it at reverse
Cheapest financing
Less than 1% interest unsecured
.
Gold wrap car?
.
Option … more optionality
Afraid of the future?
Predictable is terrible for options market and traders
.
Paradigm shift –> digital commodity not a physical commodity –> digital energy
Commodity into scarcity … 21M cap.
Other commodities are infinitely producible
Don’t use oil as treasury reserve asset
Scarcity
.
20-50% Bitcoin appreciation
Quadruple
.
Beat the cost to capital
.
Accretive
$15B of Bitcoin on balance sheet
.
21M * 60,000–>
Billion dollar swing on the weekend
Crypto ossilator engine
The whole crypto
Crypto engine