About This Episode
The crew is back to discuss Strategy’s latest Orange Buy, Saylor on What Bitcoin Did, disenchantment with the Fed, caps on credit card interest, the Strive Semler Scientific merger, and more.
In This Episode
- 00:03:25 — Strategy’s $1.25 Billion Orange Buy
- 00:16:26 — Michael Saylor on What Bitcoin Did
- 00:40:28 — Jerome Powell in Hot Water and Disenchantment with the Fed
- 00:51:00 — Trump Caps Credit Card Interest
- 00:56:33 — Strive Semler Merger
Episode Summary
Key Themes: Digital credit scaling fast; macro chaos; Bitcoin treasury companies aren’t doomed; valuation paradigm shift; building the future; the money printer distorts incentives; M&A with Bitcoin hurdle rate.
Chaos, Printing and Digital Credit Growth
Tim framed recent events as a reminder that there won’t be accountability for endless printing so move to what can’t be printed (Bitcoin), and that digital credit is the most scalable solution. Jeff agreed and noted that amid global chaos, there’s a surge in perpetual preferreds—$119mm raised from STRC last week on ~$420mm of trading volume while maintaining ~ $100 price, fueling Strategy’s massive 13k Bitcoin buy.
Why Is Digital Credit Accelerating?
Jeff asks the group why STRC’s volume is growing, and posits that its liquidity, transparency and “computer readable” risk may play an added role in its attractiveness to algorithms. Ben said because they’re simply great products—high-yield, highly-collateralized and tax-advantaged, so as awareness spreads demand will accelerate. Matt agreed, noting that real-world conversations quickly shift from confusion to “sign me up,” as digital credit is easy-to-grasp with strong liquidity versus traditional income products. Jeff agreed and added that perhaps there’s also a rotation from buyers that were long the IPO discount to holders that are long the credit quality.
Saylor on WBD Podcast & Why Bitcoin Companies Are Valuable
The team commented on Saylor’s viral, contentious moment on the What Bitcoin Did podcast. Jeff said the “are Bitcoin treasury companies doomed?” line of questioning is tired as these firms have capital and wide optionality to build products/pursue opportunities, while the broader market (including some Bitcoiners) ignores how non-Bitcoin equities have weaker balance sheets and inflated valuations. Matt emphasized that Bitcoin adoption isn’t a zero-sum competition and there’s room for many differentiated Bitcoin balance sheet companies. He also argued that some Bitcoiners resist growth and innovation, but if Bitcoin truly is better money, then individuals, corporations and nation-states alike will adopt it, so builders should be encouraged, not attacked. Ben zoomed out, reiterating that Bitcoin is an open-source gift that no one controls, and argued that Bitcoin companies will help rebuild outdated fiat-era industries, which requires builders and experimentation, not purity tests.
Valuing Equities with a Bitcoin Time Horizon
Continuing the conversation on how to value Bitcoin vs. non-Bitcoin equities, Jeff said trad-fi is trapped in quarterly thinking while Bitcoin incentivizes a multi-year horizon. He and Matt argued that legacy valuation tools like discounted cash flows can break down because they rely on a “risk-free rate,” which they contended either doesn’t exist or should be Bitcoin. Ben added that though Bitcoiners understand long-term thinking with the asset, equities tend to pull people back into short-term thinking and noise. He backed Saylor’s point: don’t judge results in “95 days” of a strategy centered on long-term compounding as scarcity meets money printing.
No Sympathy for the Printer
Jeff said the viral Jerome Powell video made him think “I do not have enough Bitcoin.” Matt agreed and explained his lack of sympathy, citing his experience at as CalPERS when the Fed/Treasury “gaslit” institutions about QE and money printing, using banks like Goldman as brief middlemen to claim they weren’t printing money. Matt also argued the Fed isn’t independent, is inherently political and has more than a dual mandate (it also cares about liquidity and asset prices). He also called the proposed $3B renovation as emblematic of distorted incentives when you control the printer, and contrasted it with Bitcoin as a system that runs continuously without the need for central planning. Jeff said he also witnessed that same government mindset during his insurance days: proposals that could save $15B–$30B were dismissed as not moving the needle enough because officials could effectively print money. Ben tied it all together by noting that that’s why they’re working in Bitcoin, having all witnessed the distorted incentives of the fiat system.
The 10% APR Cap: Solution or Signal?
Jeff asked about the proposal to cap credit card APRs at 10%—who absorbs the lost interest revenue? Matt and Ben argued that a hard cap would likely backfire and they’re skeptical it’s even enforceable, but see the pitch as a signal that policymakers recognize consumer debt is spiraling.
SMLR Acquisition
The group celebrated Strive’s acquisition of Semler as a “win-win” for shareholders of each company, and that the deal was accretive towards increasing Bitcoin per share (which is Strive’s mandate operating on a Bitcoin hurdle rate) and future capacity for digital credit. They also noted that the transaction boosted Strive’s Bitcoin holdings past Tesla and Trump Media, and highlighted the execution speed (about four months despite some SEC delay) and overwhelming shareholder support. The episode ended with optimism that this won’t be the last Bitcoin treasury consolidation and that 2026 will be a major year.
Main Takeaway: The solution to endless money printing, mounting chaos, distorted incentives and broken valuation models is operating on a Bitcoin hurdle rate, which incentivizes longer time horizons, a building mindset and practical, good products such as digital credit.