[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Adam Livingston [@AdamBLiv](/creator/twitter/AdamBLiv) on x 47.6K followers Created: 2025-07-25 16:54:34 UTC Most underappreciated aspect of the Strategy preferred offerings IMHO: These are the first Bitcoin-backed instruments that are, psychologically, really going to serve typical, archetypal needs for investors that really will force them to break out of their traditional mental model. Think of all the institutions totally starved for income, and all the fiat skeptics that will be converted via collateral safety. Perfect cocktail of equity-like upside, debt stability, and high yields. Watching the market discover the utility of these products is going to be incredible. The fortress is unassailable. A XX% BTC drawdown (which will likely never happen again in my opinion) means the NAV drops to $35b... which is still 3x coverage on their $XXXXX billion of liabilities. Strategy has already explicitly signaled the path of letting the converts equitize to further strengthen their debt-to-equity ratio. Breaching the investment grade thresholds is inevitable. There is an inevitable paradigm shift in ratings. Traditional ratings penalize "junk" yields but Strategy's internal metrics are already screaming an investment grade equivalent. Also, you always need to remember that the financial strength just increases with the capital appreciation of Bitcoin itself. BTC doubles in price, the fortress strengthens. Maybe a BTC boom can take a BBB rating to an A. At some moment the markets begin to price the asymmetry of this strength compared to traditional companies. Every dollar locked into this credit stack is a wager that Bitcoin will continue to outrun fiat decay and that exponential assets can collateralize fixed-income certainty. Bondholders have traditionally feared inflation and rising rates, which erode the real value of future cash flows. This in turn just creates a fragile relationship between time and value... holding longer means more exposure to monetary debasement. Strategy backing a yield-bearing instrument w/ Bitcoin means that you just invert duration risk. The longer you hold, the stronger your position becomes, because Bitcoin is deflationary and volatile to the upside. Duration risk dies when the underlying collateral is exponential, antifragile, and uninflatable. Saylor has transformed "time as risk" into time as alpha. XXXXXX engagements  **Related Topics** [all the](/topic/all-the) [fiat](/topic/fiat) [Post Link](https://x.com/AdamBLiv/status/1948788979664384440)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Adam Livingston @AdamBLiv on x 47.6K followers
Created: 2025-07-25 16:54:34 UTC
Most underappreciated aspect of the Strategy preferred offerings IMHO:
These are the first Bitcoin-backed instruments that are, psychologically, really going to serve typical, archetypal needs for investors that really will force them to break out of their traditional mental model.
Think of all the institutions totally starved for income, and all the fiat skeptics that will be converted via collateral safety.
Perfect cocktail of equity-like upside, debt stability, and high yields. Watching the market discover the utility of these products is going to be incredible.
The fortress is unassailable. A XX% BTC drawdown (which will likely never happen again in my opinion) means the NAV drops to $35b... which is still 3x coverage on their $XXXXX billion of liabilities.
Strategy has already explicitly signaled the path of letting the converts equitize to further strengthen their debt-to-equity ratio. Breaching the investment grade thresholds is inevitable.
There is an inevitable paradigm shift in ratings. Traditional ratings penalize "junk" yields but Strategy's internal metrics are already screaming an investment grade equivalent.
Also, you always need to remember that the financial strength just increases with the capital appreciation of Bitcoin itself. BTC doubles in price, the fortress strengthens. Maybe a BTC boom can take a BBB rating to an A.
At some moment the markets begin to price the asymmetry of this strength compared to traditional companies. Every dollar locked into this credit stack is a wager that Bitcoin will continue to outrun fiat decay and that exponential assets can collateralize fixed-income certainty.
Bondholders have traditionally feared inflation and rising rates, which erode the real value of future cash flows. This in turn just creates a fragile relationship between time and value... holding longer means more exposure to monetary debasement.
Strategy backing a yield-bearing instrument w/ Bitcoin means that you just invert duration risk. The longer you hold, the stronger your position becomes, because Bitcoin is deflationary and volatile to the upside.
Duration risk dies when the underlying collateral is exponential, antifragile, and uninflatable.
Saylor has transformed "time as risk" into time as alpha.
XXXXXX engagements
