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

Key Insight from Bitcoin for Institutions: 4. Cash lost its bearer status in 1971 —when Nixon closed the gold window, breaking the direct link to gold. Chapter: Bitcoin is a Bearer Asset

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 2. Battery Finance enables bitcoin collateral without mark-to-market liquidation triggers, aligned with bitcoin's four-year cycle. Chapter: Structured Credit

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

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

""A company that holds bitcoin in its treasury has a significant optionality advantage over one that does not."" — Brian Hirschfield From: Treasury / Balance Sheet - Having Optionality

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 4. Six minutes left in the game - there are limited bailouts remaining, and pensions need to act now. Chapter: Pensions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

⚠️ The ERISA Tradeoff: NQDC plans are not protected by ERISA. Participants are unsecured creditors of the company - if the company goes bankrupt, they may lose their deferred compensation. This is why it's called "riding the wave" - you're tied to the company's fate. From: Deferred Compensation - Riding the Wave

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 2. Saylor's engineering mindset elevated bitcoin from "Magic Internet Money" to "Thermodynamically Sound Digital Real Estate." Chapter: Strategy (Balance Sheet Strength)

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

The Question If there's no risk-free asset, where does bitcoin belong in an investment portfolio? This is what BlackRock had to grapple with. From: Bitcoin for Institutions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Low Interest Rates Convertible bonds often have near-zero coupon rates because investors want exposure to potential equity upside. From: Bitcoin for Institutions

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

⚠️ The UK LDI Disaster: LDI became very popular in the UK, but companies that offset liability increases with investment gains ultimately leveraged them via borrowing, causing the very Bank of England bailout that demonstrated the system's fragility. From: Epilogue

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

There are tens, maybe hundreds of thousands of ordinary people - most of whom would never pass the hiring process of any investment company - who have massively outperformed every professional fund manager simply by buying and holding bitcoin. From: Mutual Funds / ETFs - Wielding the Blade

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

""When the money used by the world is hard to make and easy to validate, it becomes an exceptional tool for capital accumulation, coordination of trade, and generally aligning the incentives of spenders, savers, entrepreneurs, and planners."" — Brian Hirschfield From: Introduction

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 2. Bitcoin is the most powerful bearer asset ever created —non-physical, easy to validate, and impossible to seize without consent. Chapter: Bitcoin is a Bearer Asset

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

""He described bitcoin as a 'dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.'"" — Brian Hirschfield From: Strategy (Balance Sheet Strength)

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

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

""Using bitcoin in funds is the most obvious and non-thinking way for a fund, their investors, and their investors' shareholders to sleepwalk their way to unimaginable wealth."" — Brian Hirschfield From: Mutual Funds / ETFs - Wielding the Blade

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Imagine: BlackRock's IBIT ETF has acquired 2 million bitcoin on behalf of its users. Bitcoin reaches gold's market capitalization of $20 trillion — that's about $1M per bitcoin. BlackRock's ETF would represent 10% of that value, or $2 trillion . That's $2 trillion of value on balance sheets of companies all over the world. Now imagine we discover that BlackRock cannot sell back that bitcoin because its custodian cannot perform the signatures required to move the keys. BlackRock loses $2 trillion, and all of their customers have to write down 100% of that value on their balance sheets. Poof. The world that understands BlackRock knows very little about their custodian, Coinbase. The problems w... 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: 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