About This Episode
The crew is back with the latest including Ben joining Strive as CIO, tribalism and doubt in Bitcoin, the fastest growing ETF of all time, the corporate alternative minimum tax, and more.
In This Episode
- 00:00:50 — Ben Joins Strive as CIO
- 00:18:37 — Tribalism and Doubt in Bitcoin
- 00:33:17 — The Fastest Growing ETF of All Time
- 00:35:33 — Corporate Alternative Minimum Tax (CAMT)
- 00:42:22 — Uptober Getting Revved Up
Episode Summary
Key Themes: Growing institutional interest and advantageous regulatory change clear the path for the next phase of the digital gold rush.
Ben Werkman Appointed CIO and the Importance of a Well-Rounded Team
Ben’s role at Strive shifts from independent director to CIO. Matt emphasized that Bitcoin treasury companies require more than two people, but an elite, multi-disciplinary team. Ben added that Bitcoin treasury companies need enough people to maintain a culture of “70% operations, 30% think tank” that’s essential for a rapidly evolving industry. Jeff added that having people competent in “all 3: thinking, working and communicating” allows the team to be flexible and make good decisions.
Building a Bridge to Institutions
Pensions and major institutions are now watching Bitcoin treasury company developments. As institutions that struggle with high volatility seek to understand digital credit and amplified Bitcoin, Strive aims to serve as both operator and educator. Matt: Strive’s long-term focus mirrors the duration requirements of institutional investors, so there’s an opportunity to effectively communicate Strive’s holistic approach to institutions.
Early Days of a New Industry
Jeff likened today’s digital credit revolution to the birth of the insurance industry hundreds of years ago—early, misunderstood and full of opportunity. And that future products in this marketplace are unimaginable today. Ben argued to block out the haters and stay focused on building over a long-time horizon. Matt noted that Wall Street is only now beginning to publish research about the “debasement trade,” proving how new the sector still is.
The Math of Bitcoin Treasuries “Just Works”
Matt points out that if the cost of capital remains below Bitcoin’s long-term return—30% a year—then the math of Bitcoin treasury companies’ models “just work.” Matt contrasted their structure favorably against hedge funds, most of which underperform the S&P 500 while charging higher fees than Bitcoin treasury companies.
Regulatory Breakthrough: CAMT Guidance
New IRS guidance on the Corporate Alternative Minimum Tax (CAMT), which clarified that unrealized Bitcoin gains won’t be taxed as income, removed what Matt called a potential “death-blow” regulatory risk. Matt added that it’s a major step towards being able to spend Bitcoin as money. Jeff and Ben agreed that the change puts Bitcoin on par with other treasury assets regulation-wise and removes a major fear surrounding Bitcoin treasuries.
Outlook for Q4 and Beyond
Q4 has historically been Bitcoin’s most bullish quarter, and the team expects that trend to continue this year. Capital rotation back into Bitcoin treasuries is already beginning a week into Q4, and Strategy has the slot for 2nd largest corporate treasury in its sights.
Main Takeaway: With regulatory risks fading, institutional attention rising and Bitcoin entering a historically bullish quarter, Bitcoin treasury companies are entering their next phase of growth. Continuing to build out its team and zooming out, Strive is positioned to be a leader in the still novel industry of digital credit and amplified Bitcoin.