""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

""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

⚠️ The Asymmetric Risk: Bitcoin drawdowns are temporary (historically always recovering to new highs), but missing bitcoin's appreciation is permanent. Fiduciaries face greater long-term risk from exclusion than inclusion. From: Mutual Funds / ETFs - Wielding the Blade

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Hidden Debasement US dollars are being devalued in purchasing power by inflationary forces. Even at "2-3% CPI," $1,000 in ten years has a purchasing power of only ~$800. From: Bitcoin for Institutions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 5. 100% allocation is justified for pensions that will survive the next two halving cycles (eight years). Chapter: Pensions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

ℹ️ About this course: This interactive course follows the structure of Bitcoin for Institutions , covering why Bitcoin favors individuals, how key individuals drive institutional adoption, and specific strategies for institutional Bitcoin exposure. From: Introduction

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 2. HODL'ing is irrational —it requires a willful ability to resist selling pressure that institutions are structurally incapable of. Chapter: HODL'ing Bitcoin is Irrational

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 3. Institutional failures in bitcoin (FTX, Celsius, etc.) share common themes of not respecting bitcoin's nature. Chapter: HODL'ing Bitcoin is Irrational

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 1. Ordinary bitcoin holders outperformed every professional fund - fund managers who ignored bitcoin have explaining to do. Chapter: Mutual Funds / ETFs - Wielding the Blade

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

""If a borrower posts bitcoin as collateral, this loan would automatically become the most senior loan. A person will let any other asset go before relinquishing their bitcoin to a lender."" — Brian Hirschfield From: Structured Credit

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

⚠️ It is unacceptable to view a bitcoin payoff today as worth anything less than its current USD equivalent on an apples-to-apples basis with a fiat-denominated bond. These estimates assume no further currency debasements, which is a highly unreasonable assumption. From: Bitcoin Requires a Deflationary Mindset

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

The Strategy 1. Assume a forward-looking return of bitcoin as an actuarial assumption (30% or 40% a year is reasonable based on historical data). 2. Establish a clearly defined program that actually sells a certain amount of bitcoin regularly. 3. Demonstrate to auditors and regulators the ability to execute this strategy. 4. Classify a percentage of treasury gains as operating income instead of capital gains. To illustrate how a company could do this, consider a large bitcoin mining company that holds a BTC treasury from their mining operations: From: Bitcoin for Institutions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 5. There is no free lunch - deploying bitcoin means sacrificing its long-term potential and superior monetary properties. Chapter: Treasury / Balance Sheet - Having Optionality

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 1. Mastery takes time —just as learning guitar requires years of dedicated practice, understanding bitcoin requires sustained commitment. Chapter: Bitcoin Requires More Patience and Time than Institutions Have

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 2. Small allocations generate significant alpha - even 1-2% bitcoin can meaningfully improve portfolio Sharpe ratios. 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: 2. "Risk-free" assets proved to be an illusion - government bonds lost 30-50% of value, shattering Modern Portfolio Theory. Chapter: BlackRock (Redefining Portfolio Construction)

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 1. Traditional collateral has failed - the 2008, 2022, and 2023 crises showed that housing, gilts, and treasuries can rapidly become unreliable. Chapter: Structured Credit

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

It might seem odd to begin a book about institutional bitcoin with a section titled "Bitcoin is for Individuals," but this foundation is critical to any organization that aspires to use bitcoin successfully. Many have tried, and few have succeeded. From: HODL'ing Bitcoin is Irrational

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Government Debt Governments raise money by selling securities called bonds, backed by the promise of future tax revenue and the ability to print currency. From: Bitcoin for Institutions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 1. Traditional collateral has failed - the 2008, 2022, and 2023 crises showed that housing, gilts, and treasuries can rapidly become unreliable. Chapter: Structured Credit

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors