BTC217: MicroStrategy 2025 w/ Jeff Walton (Bitcoin Podcast)

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 15 January 2025

⏱️ 63 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Join us as Jeff Walton unpacks MicroStrategy's innovative financial strategies, including leveraging Bitcoin volatility, issuing convertible bonds, and building a balance sheet of permanent capital. We dive into valuations, ETF dynamics, accretive dilution, and what it means to be the "bank of the future." IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 01:49 - What "capturing the spread" means in MicroStrategy's strategy. 02:32 - The difference between issuing convertible notes and common stock. 06:26 - An explanation of accretive dilution and its role in corporate strategy. 09:44 - How MicroStrategy's Bitcoin holdings position it as a "bank of the future." 20:52 - Insights into constructing a leveraged balance sheet with permanent capital. 23:04 - Why MicroStrategy issued two consecutive convertible bonds. 28:49 - How Michael Saylor's "Bitcoin nuclear reactor" concept reshapes volatility. 39:47 - The impact of entering the NASDAQ and index weighting on stock performance. 48:33 - Metrics to consider when starting a position in MicroStrategy or Bitcoin. Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Follow our official social media accounts: X (Twitter) | LinkedIn | | Instagram | Facebook | TikTok. Check out our Bitcoin Fundamentals Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Hardblock SimpleMining Unchained The Bitcoin Way Found Fintool Bluehost Vanta Fintool PrizePicks Onramp TurboTax Fundrise Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.0	Hey everyone, welcome to this Wednesday's release of the Bitcoin Fundamentals podcast.
0:07.0	On this week's show, I bring back a very popular guest with Mr. Jeff Walton to talk about
0:11.8	micro strategy and what we might expect to see in 2025.
0:16.2	About a year ago, Jeff and I had a discussion about the company and what Michael Saylor
0:19.5	was doing back then, and right now, maybe even more interesting than last year.
0:25.1	Recently, Micro Strategy has announced an initiative to acquire 21 billion more Bitcoin
0:29.7	through equity issuance than 21 billion more through fixed income for a total of $42 billion
0:35.4	worth. Not only this, but Micro Strategy is now a Bitcoin
0:38.6	development company amongst many other initiatives that have it as one of the top common
0:43.1	stocks on the planet, even outperforming Nvidia since he was focusing on Bitcoin back in 2020.
0:49.1	This discussion is a whopper, so sit back, relax, and enjoy this chat with Mr. Jeff Walton.
0:59.0	Celebrating 10 years. You are listening to Bitcoin Fundamentals by the Investors Podcast Network.
1:05.7	Now for your host, Preston Pish.
1:17.8	Hey, everyone.
1:19.8	Welcome to Bitcoin Fundamentals.
1:21.8	I'm here with the one and only Jeff Walton.
1:24.1	And welcome back to the show, man.
1:24.8	Oh, my goodness.
1:27.2	It's been almost a year since we've chatted last.
1:27.9	So welcome back. Thank you very much. Yeah, excited almost a year since we've chatted last. So welcome back.
1:32.7	Thank you very much. Yeah, excited to be here. Thanks for having me back. Some exciting things going on in the market right now. So, Jeff, I was trying to prep for this discussion. And I went back and I looked
	...

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