Key Insight from Bitcoin for Institutions: 2. Bitcoin is already less inflationary than gold at ~0.8% annual supply increase, halving every four years until 0% in 2140. Chapter: Bitcoin Requires a Deflationary Mindset

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 4. Coinbase's legacy technology predates Segwit best practices, creating systemic risk for ETFs using them as custodian. Chapter: Bitcoin Custody Requires a Higher Understanding of Tradeoffs

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

What hasn't been done: Companies loading their pension trusts with bitcoin or bitcoin proxies, hoping to exploit their ability to enjoy bitcoin's superior returns, tax-free, over a significantly long time horizon. What should happen: Companies starting new qualified pension plans to accumulate bitcoin tax-free. Outside of a Roth IRA, there aren't really any other ways to accumulate bitcoin gains on a tax-free basis. Small Employers: It would make sense for owners of small companies (under 100 employees) to offer a defined benefit plan and maximize their contributions in bitcoin. Before the 1990s, hundreds of thousands of such companies offered pensions as a great tax shelter that also provid... From: Pensions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 4. Direct treasury eliminates counterparty risk - the superior long-term solution removes all ETF/custodian dependencies. Chapter: Deferred Compensation - Riding the Wave

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 3. "Pulling the goalie" is the right analogy - increasing volatility through bitcoin actually reduces the risk of not meeting obligations. Chapter: Pensions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 3. Fiduciary risk is shifting - the greater liability may now be from NOT including bitcoin rather than including it. Chapter: Mutual Funds / ETFs - Wielding the Blade

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

ℹ️ The Great Bond Bull Market: Long-duration bonds were one of the greatest-performing asset classes from 2004 through 2022. Rates went straight down, and if you forgot they were tracking a liability, you might confuse pension assets with gains available for company operations. From: BlackRock (Redefining Portfolio Construction)

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 2. Bitcoin treasuries provide optionality - companies can hold for appreciation or deploy to lower operating costs. Chapter: Treasury / Balance Sheet - Having Optionality

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 3. Tesla's exit validates the theory - without a dominant individual, institutional pressure will force selling. Chapter: Strategy (Balance Sheet Strength)

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

ℹ️ Countries vs. Companies: Countries can have a longer time horizon than companies (economists call this "low time preference"). However, most nations are unable to develop a long horizon and end up endlessly borrowing from the IMF and World Bank. Western democracies have generally short time horizons as leaders are elected every few years. From: HODL'ing Bitcoin is Irrational

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 5. ETFs provide price exposure but enormous counterparty risk —they are not a substitute for true bitcoin ownership through self-custody. Chapter: Bitcoin Custody Requires a Higher Understanding of Tradeoffs

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 4. This isn't accounting trickery - bitcoin genuinely lowers costs over time because USD underperforms BTC by design. Chapter: Treasury / Balance Sheet - Having Optionality

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 4. Corporate balance sheet holdings require a dominant individual (like Saylor) to overcome institutional pressure to sell. Chapter: HODL'ing Bitcoin is Irrational

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 5. Self-custody enables unprecedented sovereignty —unlimited wealth stored in a 12-word seed phrase, accessible anywhere on Earth. Chapter: Bitcoin is a Bearer Asset

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 4. Corporate balance sheet holdings require a dominant individual (like Saylor) to overcome institutional pressure to sell. Chapter: HODL'ing Bitcoin is Irrational

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Phase 1: ETF-Based Program Start with ETFs (IBIT, FBTC) to get the program operational. This is the fastest path to offering bitcoin in NQDC. From: Bitcoin for Institutions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

The "1" in front of the bitcoin address told us that Coinbase was holding the bitcoin for the ETF in "pre-Segwit" addresses . The potential danger this signals is highly concerning. From: Bitcoin Custody Requires a Higher Understanding of Tradeoffs

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 4. Don't be unintentionally short bitcoin - holdings in banks, payment processors, and bonds may create hidden short exposure. Chapter: Mutual Funds / ETFs - Wielding the Blade

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Institutional Holdings Even dedicated institutions like Strategy will act like individuals with limited power in the Bitcoin economy. From: Bitcoin for Institutions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 1. Institutional resistance is ruthless - incentives, not logic, drive corporate decision-making. The LDI story proves this. Chapter: Epilogue

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors