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Financial Engineering 101

January 29, 2025 • 2:06:59

In Episode 15, MSTR True North Episode 15: The crew explores MicroStrategy’s financial strategies, Bitcoin treasury management, preferred stock offering, and market trends. Key discussion points include preferred equity 101, “the battlefront”, bitcoin’s role in balance sheet strength, s&p 500 inclusion debate, bitcoin’s game theory intensifies. Market context: MSTR closed at $341.25 with mNAV at ~1.76.

Market Snapshot

  • Date: 1/29/25
  • MSTR Open/Close: $338.20 / $341.25
  • Volume: 11,675,200 shares
  • mNAV: ~1.76
  • Market Cap: ~$85.53B
  • U.S. Market Cap Rank: 112
  • BTC Held: 471,107

Chapters

  • 00:00:00Introduction: Overview of MicroStrategy & discussion objectives
  • 00:03:40Preferred Equity 101: Ben Workman explains key financial concepts
  • 00:06:41“The Battlefront”: MicroStrategy’s deleveraging strategy
  • 00:10:25Bitcoin’s Role in Balance Sheet Strength: Why BTC price impacts stability
  • 00:13:42S&P 500 Inclusion Debate: How Bitcoin holdings affect eligibility
  • 00:17:23Bitcoin’s Game Theory Intensifies: Adoption acceleration & institutional resistance
  • 00:20:11Two Treasury Models: Buy & hold vs. financial engineering approach
  • 00:24:28Leverage & Volatility: How Bitcoin price movements impact corporate balance sheets
  • 00:28:36Bulls vs. Bears in Valuation Debates: Bitcoin’s role in earnings reports
  • 00:33:42Preferred Stock Offering (Strike): Structure, pricing & purpose
  • 00:37:52How ATMs Fund Dividends & Bitcoin Purchases: A dual approach
  • 00:42:05Preferred Stock vs. Common Stock: Risks & advantages in bankruptcy
  • 00:46:27SAB 121 Repeal & Banking Rules: Bitcoin custody implications
  • 00:50:44Bitcoin as Collateral for Loans: How corporations may leverage holdings
  • 00:55:20Who Buys Preferred Stock?: Institutional vs. retail investors
  • 01:05:31Convertible Debt vs. Preferred Stock: Understanding capital structure
  • 01:16:01Japan’s Bitcoin Strategy: Meta Planet’s impact in the Japanese market
  • 01:21:47Bitcoin as a Risk-On vs. Risk-Off Asset: How market conditions shape perception
  • 01:27:52Building a Capital Powerhouse: The long-term impact of BTC holdings
  • 01:34:06The Competitive Advantage of Bitcoin Treasury Strategies: Disrupting traditional finance
  • 01:40:41Preparing for Market Volatility: What’s next for MicroStrategy & Bitcoin
  • 01:46:56Staying Level-Headed in Financial Markets: Avoiding emotional decision-making
  • 01:52:42Community Updates & MicroStrategy World 2025: Upcoming events & opportunities

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