The Hurdle Rate
Episode 59: Scale Like Crazy
- Strategy completed a $1.5 billion repurchase of 2029 convertible notes at an 8% discount, reducing its debt cliff maturity and lowering the Bitcoin price floor (from $9,500 to $7,500) at which liabilities would exceed assets.
- Strive acquired 1,109 Bitcoin in one week for $85.4 million, bringing total holdings to 16,500 Bitcoin (~$1.2 billion), making it the seventh-largest public Bitcoin holder. Company maintains 45% amplification with zero debt.
- Strive will launch daily dividends on June 16th, replacing monthly payments. This marks the first implementation of business-day dividend payments in the sector and is expected to reduce volatility and unlock new DeFi use cases.
- SEDA (Strive's preferred equity product) achieved a 3.74 Sharpe ratio over 30 days and traded 30% of STRC's volume despite holding 1/50th the Bitcoin, signaling strong demand for yield-focused instruments.
- New Federal Reserve Chair Warsh took office and faces an impossible balancing act: raising rates risks debt refinancing crisis; cutting rates risks inflation; holding flat maintains status quo but doesn't address structural debt problems.
- Ecosystem cooperation: hosts emphasize Strategy and Strive are complementary rather than competitive; multiple issuers of digital credit products strengthen the entire market and enable wider capital flows into Bitcoin.