YouSaid · the spoken record

Jeff Walton

lines on the record: 57
first: 2024-03-27
most recent: 2024-03-27
sittings or episodes: 1
sources: podcast

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“Where they can follow Yeah, so we are going to be available on all streaming services here shortly. Look up quant bros, me and my buddy Ryan are researching these types of trades and transactions, thinking about different perspectives on the market, using game theory, thinking high level, thinking really down in the nitty gritty, and hoping to talk to interesting people that think differently and think about the markets.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It changed the game. We won that game. That was my senior year. That was the one game we won my senior year, and we turned the field and scored a touchdown right after that.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think it was probably from the line of scrimmage, it was probably 50 in the air, maybe 55. And then got a material role. Yeah.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Environmental setup. What's going on? Yeah, the environment was warm. It was Southern California. It was on turf. I just absolutely blasted this punt. It definitely rolled. Definitely rolled a little bit, but it went over the guy's head. And then just kept going.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“No, no. So in my four years in college, we won three games and we lost 33 games. So we went defeated two years in a row. So I got a lot of work. I was on the field quite a bit. But yeah, had a 75-yard punt. They called it the punt herd around the world. I posted it on Twitter a couple weeks ago. Dude, that's crazy. Out of the back of the end zone, I was like, my heels on the back of the end zone”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, yeah. So I was a punter. I had a 75-yard punt. This was in college. We went 3-33 in college. So we went in the game.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I'm with you. I'm with you 100%. It's filled my brain for the last 24 months. And full disclosure, I don't think I explained it at the beginning. I made this strategy in February of 2023. And I have more than multiple handfuls of leaps on this. And I was developing that strategy over time, recognizing what was kind of on the horizon and where this could potentially go. So like this. This is my strategy since early 2023, and it's starting to play out, and it's pretty insane.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think you nailed it. So Berkshire has enough capital. They're probably never going to do it. Meta Zuckerberg has 61% voting rights. Well, they have if he wanted to, he could”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Right. Okay. Then you zoom out. Let's compare the market cap to any of these other companies. And you go back and you look at this multiple assessment and you actually realistically say who can catch them? Who can catch micro strategy? I don't know that anyway.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Right, like if you're holding an asset and you're, and like you said, if you're going to hold it forever, wouldn't you want to think about what it might be worth?”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Tot But I think the exercise is useful. I think the exercise of thinking about it is useful, right? I'm a reinsurance broker. I think about tail events. Like what is happening one percent return period. I love that. That's what I think, that's what I think about. And you have to consider it.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So, market cap itself is synthetic. This is the same comparison of Samson Mao looking at a million dollar Bitcoin, right? If everybody at the same time decides that they're not going to sell their Bitcoin for a million dollar unless it's a million dollars And there's no liquidity left. The price of Bitcoin goes to a million.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“No, I absolutely think this is possible. The reason being against game, I don't like doing the direct comparison to GameStop, but it's a good perspective on what a short squeeze might look like where you've got very low liquidity. But GameStop, when that trade kind of blew up, there were 70 million. Micro strategy, there's 17 million shares tradable. So it's much, much, much, much smaller. Yet right, the market cap is bigger. But what is market cap? What is market cap? Market cap is synthetic.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“In looking at what a 49 times net asset value looks like at $125,000. At $125,000 Bitcoin price trading at 49 times multiple, you're looking at a $1 trillion market cap.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Its short squeeze, and there was significant pressure on the remaining float, and there was price discovery to the upside because the number of shares trading at the margin was so incredibly small. It was trading at a 49 times net asset value.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah. So I looked at multiple different trading multiples. So back in 2021, micro strategy hit a six times multiple, like when it when it really peaked at about $1,000 back in 2021. They were trading at six times multiple. So I took that same multiple and looked at different Bitcoin prices with that multiple. At $125,000 Bitcoin price and a six times multiple, that results in $137 billion market cap and about an $8,000 microstrategy price. Again, as you could start to see as you go further, if your price assumptions for Bitcoin go further out up to $275,000, or I've obviously got many columns hidden here, with a $275,000 Bitcoin price and a six times multiple, you're looking at $321 billion market cap and $18,000 share price. When GameStop had”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Which added 2.68 multiple results in $143 billion market cap and $8,000 stock price. Now, thinking about where passive funds, how passive money flows into this, right? You've got the potential S&P 500, which is a boom. You've got potential QQQ, which both are a boon to the amount of capital that would flow into the trade. But regardless, you still have market cap weighted indexes that are going to passively be pushing money into the transaction. And if people truly take this strong Bitcoin holder mentality to micro strategy, the number of shares traded at the margin is going to become razor thin and price discovery to the upside will tear people's faces off.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Today, 2.68, the price of micro strategy would be at a $61 billion market cap and a $3,500 price for micro strategy. You go all the way to the furthest right on the graph. I've got $275,000 Bitcoin price.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So this is what I used as my baseline. This is that table that I showed where I was looking at all of these homogenous risk characteristics or looking at PE ratios, multiples, et cetera. And I was looking at what micro strategy was trading on it as it's multiple somewhere around two and a half. And then you would see all of these other companies are trading in the range from anywhere from 1.6 to 1430 or 60 even in terms of their multiples relative to their net assets, basically their assets minus the debt. And to me, that's a representation of their financial strength. I looked at micro strategy and I took a, I wanted to do a dynamic price analysis looking at different Bitcoin prices into the future and how that would potentially impact the market cap at these different Bitcoin prices at different multiples. And looking at what they're trading at today, they're trading at 2.68 multiple of their net assets. So they're trading at a $30 billion market cap. And then you fast forward, when you look at a different, a couple different Bitcoin prices. And so looking at a Bitcoin price of $125,000, if you take the same multiple that they're trading at.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“He was also convertible debt. Yeah, I looked at their balance sheet and I don't know if they're using that billion to refinance expiring debt. I haven't really looked into that much. I would doubt they're taking as big of a move financially as micro strategy and Michael are doing.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I absolutely 100% fundamentally agree with that statement. I truly think that this is the biggest move, the biggest financial move in the history of finance. And in the history of all of finance, I mean, this is bigger than Rothschild's figuring out how to front run in the 1600s and turning into a multi- Generational wealth. Like, this is fundamentally beyond comprehension bigger than anything that's ever occurred before.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I think the one interesting question I've been talking about this on Twitter a little bit is I would love to be in the room sitting across the table at those meetings. Can you imagine what those meetings with the executive committee at MicroStrategy is like that when they're trying to go get $600 million of capital? And who are those people? Are they actual funds or are they maybe sidecars of large corporations that won't, they know that they won't be able to get a Bitcoin purchase past their board? So maybe they go buy convertible debt somewhere else, aka MicroStrategy. So I would really love to know who's on the other side of those transactions. And it's super opaque. I think the fact that you're”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I think that makes sense. When I was comparing what you can do, right? You can issue shares or you can issue debt. When I looked at the company's balance sheet relative to the assets that they hold, It's like raising flags. Go issue more debt. And that's what they did, right? They went and did this kind of convertible debt bond, which I thought was a, that's a brilliant, that's a brilliant trade Not to mention”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I am not selling micro strategy one forever, but why would I sell now when I know the bull market is on the horizon? And so if you know what everybody, well, you got institutions, they're not moving, you've got other smart traders that know what's going on, they're not moving. Everybody knows what's on the horizon. And then you have zombie money coming in the door to try to capture all of the remaining tiny liquid float. That spread is going to widen and the velocity, the acceleration. We've seen it. We've seen it in the last two weeks.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Because you're saying it's calculus, it's a bad idea. It's too complicated. Yeah. It's too complicated. Yeah. I definitely understand. I think one of the points I was getting is the velocity at that time was rapidly changing. And if everybody, if you think about, again, this is game theory, right? Just taking a step out, look at all the players in the game. If everybody that's actually truly holding Bitcoin is also holding micro strategy and the whole ethos of their entire trade is they're going to hold bitcoin forever and they're going to hold micro strategy forever. I like this. If you know that they're not moving.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Bull scenarios going on here. You've got quantitative easing, interest rates, everything that's going on. And my argument was just, I think you can be strategic. And I'm sure they're calculating some relative accelerations in the price of Bitcoin relative to the price of micro strategy in terms of rate of return. And you could take the derivative of that curve. And once that rate, the relative rate of change between Bitcoin and microstrategy changes, that's the time to issue new shares. To maximize the relative premium”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You're No, no, no, not the SP 500, right? Micro strategy is already included in a handful of market cap-weighted indexes. Index fund. So one being the Vanguard total stock market index fund. You've got all of the Russell index funds. They're in the Russell 2000. You've got many index funds that they're already included in. So passive money comes into this trade monthly, probably daily. There's no great way to see when it exactly comes in. But passive money is going to come in. And as the market cap rises and those funds rebalance and reallocate the weight distributions of their total funds, the relative proportion of new dollars coming in is going to be a larger proportion of the fund. Forget the S&P 500. It's a great story. And if it happens, it's jet fuel to this thing. But you already have passive money that's coming into the transaction. What do we know about Bitcoin? There's some pretty big events that are on the horizon in the next month and a half. And we've got the having. And, you know, there's a lot of, you know.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I'm saying that because the float is so incredibly the share's outstanding is so incredibly small. You've got $17 million, whatever people are going to argue about that. 17 million shares outstanding per se. Sailors got 15% of them. You've got ETFs that have another, I don't know, 30% institutional investors have 60%. Institutional investors are not selling this. You've got retail that's bullying their head here. And so now like when you start to do some really rough math of the 17 million shares outstanding, you probably have like, I don't know, 13 or 14 million that aren't moving at all. And it might be more than that. I would argue that it probably is more than that. And so really, you may see these massive volume figures, but I think those volume figures are a total misnomer because what's actually trading at the margin of people that are actually buying and people are actually selling is much, much, much, much smaller.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think the actual number of shares trading at the margin is far smaller than what the volume indicates. And I think that's why we're seeing the premium grow at such a rapid pace.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Think it's going more absurd. You know, I've tried to think through this volume conundrum a little bit on the micro strategy, daily volume. And I think it's a total misnomer of the actual shares trading at the margin because I think there's a bunch of HFT, high frequency trading algos that are trying to capture risk-free premium based on some underlying fundamental algorithm pegged to Bitcoin. And I think that is not real volume. Oh, really? Okay. So you don't.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Insurance component without insurance, life would be too risky to do anything without insurance and without reinsurance. Life would be too risky to do anything. And having both of those components are necessary for kind of a functioning economy. And if we're going to think about a Bitcoin-denominated world, you need to have lending and you need to have insurance. And if you're looking at a company with more than 10x the amount of Bitcoin of anybody else, I think they're going to have the opportunity to get into these ventures with lending and potentially insurance and generating a yield off of those functional business structures.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Bitcoin is going to be far less volatile on a relative numbers scale and basis. And it all comes down to like actuarial science. If you're able to throw a volatility charge on what Bitcoin price is moving and how where you're generating your yield from, that it will all be able to be calculated at some point in the future. And I think if you think about the current global economy and how things are produced and how the world kind of works, I tend to boil it down to there are two major components economically that allow the world to function. And it's lending and insurance. And because if you're a business idea and you want to go start a business because you think you can go make disproportionate amount of money, you need to go get a loan from somebody to run with this idea. So that's one component. And then you've got the”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I agree with that. I don't think there's a number. I also agree with your loan terms, right? However, it's naive to not consider it. 10, 20 years from now, the price of Bitcoin is going to be far less volatile because there's going to be much more, it's just the way that the S curve and the adoption curve works.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Micro strategy is effectively going to be the bank in the future offering liquidity for Bitcoin financial system at some point in the future. They don't need to do it now, way too volatile to do it now. But as the number of coins mined, as we get to 2034, where 99% of the coins have been mined, the volatility is likely going to have reduced decently.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Closest company with Bitcoin. And I was trying to think my way through like, okay, who can catch them if this is truly the new financial ecosystem, the rails of the new financial ecosystem? Who could possibly catch them? I think I heard sailors say, you know, if it's good for a million, it's good for 10 million. If it's good for 10 million, it's good for 100 million. And if you take that concept and you start applying 10 million dollars per Bitcoin times 100, you know, 205,000 now, you start looking at those numbers, they're staggering. And that is financial strength because they have the ability to use those assets as collateral to generate a yield. And I think that's something that most of the market misses is that Bitcoin is eventually going to be used as collateral. It's already being teased out right now, right? You start to see these loans where you could start to use your collateral, your Bitcoin collateral to give.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“In the stock market that is just a passive zombie and not really doing anything. If you know that there's this large chunk of capital that's a passive zombie in the market that's not doing anything, the value of a stock is actually everything else that's trading on the margin. It's actually a very small number of shares that people are trading that are determining the value of the stock. And if the sentiment of those small of that small tranche of people that are trading the equity changes or shifts, that's how you would see any change in like these large or any equity really. It's what's trading at the margin, not everything else very, very long-winded way of thinking about the market. That's how I think about the market. I take this like very, very high level view. So then I look at micro strategy, right? And they've got at the time when I was doing this, they had like 127,000 Bitcoin. And it was more than 10x the next class.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think it makes up like $360 billion. And that's a whale. That is an absolute whale. And they're not going anywhere. Any future dollars that are going to S&P 500 ETF, they have a market cap weighted allocation that's going to Apple. So, this kind of gets into the fundamental design of the stock market. I mean, who's investing in these passive ETFs? And it's pension funds, it's insurance companies, it's endowments, it's everybody with a 401k and they don't want to, they don't know what to do with it. So they're just putting it in index funds. And I think there's a large, a very, very, very, very large pool of capital.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Did some math on this. I think of Apple's holdings, I think about 12% of Apple's holdings are actually, I think 6% of Apple's holdings are S&P 500 ETFs.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And how long make it remain competitive? Absolutely, absolutely. That was the perspective I took, and I was trying to think about it occurred to me that every single one of these companies all had different types of assets. They all had fundamental different business models and ways of generating revenue and different ways of utilizing the financial markets. They all have different shares outstanding. Some are issuing shares. Some are doing share buybacks. Some are issuing debt. And there's an enormously creative and large world of capital markets that can be utilized. And all these companies are doing those types of things and doing them a little bit differently. But where those large companies really get value is from the passive component of the market, the passive index fund component of the market. So S&P 500, QQQ, total stock market index, all of those index funds.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Look at these investments and thinking about, again, like zooming out even further, right? Looking at Microsoft, Apple, some of the really top ones, I've really kind of boiled it down to this looking at net asset value and kind of comparing some net asset values because the top companies, in my opinion, the top companies in the stock market, they're valued purely based on sentiment and future financial strength. And future financial strength is a function of profits and revenues in the future or the strength of their assets and how productive their assets can be and how long they can remain competitive.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So I looked at the top 20 equities in the US stock market. And I looked at different metrics that people use to value these companies. I looked at PE ratios. I looked at liabilities to asset ratios. I looked at multiples on net asset value. I looked at earnings per share. And what I found was there was no one single homogenous way to compare any asset in the top 20 assets. I think I've heard you talk about PE ratios, like average PE ratios. There's average PE ratios, but the PE ratios deviate drastically, right? Like I think Eli Lilly's PE ratio is 123. And they're the eighth largest U.S. equity. And so when you start to think about this, like, okay, there's no homogenous way to compare any of these statistics. What is the true real indicator of what a company is worth and how far into the future do investors”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“If you understand those strategies and you understand the dynamics of the playing board, you can develop a strong strategy to understand where capital is going to move. There's more players to the game than just retail, just the people that are on Twitter. In fact, just retail probably except maybe 5% of the stock market. That's probably way too much, actually. Maybe it's 2%. Really, I tried to zoom out and think about the structural design of the stock market and how other stocks are evaluated, right? I started, I looked at how is Apple evaluated? And what I did is I created this top 20.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Was a pretty similar process. I mean, I really started with the Bitcoin holdings and where I thought Bitcoin could go as a baseline. And I was thinking, you know, okay, maybe it goes 200,000. What is their treasury of Bitcoin holdings at 200,000? What is it at 500,000? What is it at a million? And looking at those impacts to their corporate treasury over time at these different Bitcoin prices. And then I tried to zoom out and look at the market as a whole. What is a stock? What is the stock market? What drives value in the stock market? And this is where I really started to apply the game theory associated with the stock market. The stock market is not a casino. A lot of people think it's a casino, but really it's a playing field. It's a dynamic playing field and everybody's playing the game. And everybody's got a different strategy. And if you understand the strategy of the different players in the game and some of the strategies are very basic and very static.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Associated with different forms of purchasing Bitcoin correlated assets. And I think they both have a position in somebody's portfolio. I think that micro strategy is effectively creating a proof of concept of how somebody that holds Bitcoin and cold storage could potentially earn a yield on it. And we kind of get into that. But yeah.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Never have to hold or you never have to sell your micro strategy holdings in perpetuity. And I think having that thorough and fundamental understanding and thinking a little bit differently helps provide perspective on the micro strategy trade. I think the really interesting part to me is that Bitcoin effectively undermines the entire perspective of the micro strategy trade. You can't unbitcoin a Bitcoiner. I've never seen it happen. I've never seen somebody that's super pro-Bitcoin and ends up switching gears and ends up not being a Bitcoiner. And those are the people that are holding micro strategy. I think the other thing that I did want to talk about is that I've seen a lot of these like cold storage maxis where they're, you know, you should only buy Bitcoin in cold storage or you should only buy Bitcoin ETF, not the not micro strategy. There's risks associated with it. I definitely understand and agree that there are risks.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And then understanding that there's a company that holds drastically more Bitcoin than anybody else, and likely there's no other company that's going to catch them, I wanted to be on that side of the trade. Thinking about Horizon, if you take the same perspective with Bitcoin as you do with micro strategy, agree with you 100%. This is a buy and hold forever. And if you start to see what Michael Saylor is doing and how he's managing capital, you can do the same conceptual thing with your micro strategy holdings. You can use your micro strategy holdings in an investment account as collateral to take out a loan to do with it what you will. Like go buy a house or do whatever you need to do. Alternatively, there are other ways to harvest a yield off of long-term holdings with covered calls or covered put options. And there are strategies where”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think in the last four years, I've been fully orange pilled, right? Like I'm full Bitcoin, full steam ahead. I've got Bitcoin on cold storage. I think holding it on cold storage and making it on-chain transaction is a phenomenally worthwhile exercise. Once you do it on chain transaction, you see the math. You see how everything works.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Going to change their life. And knowing that the smart money is happy with two or three hundred percent returns and they're likely going to exit, I had to follow what smart money was doing.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And that is just pretty simple math. Like, okay, if there are more people buying this than there are shares available, then the shorts have to close this position. And it seems like a no-brainer. It's like, yeah, I'm going to take a position because I know other smart people see what I see. And that was my ultimate strategy. The hardest part was figuring out to exit. And because there's this diamond hand, I know I'm probably going to get crap for this, but there's this diamond diamond hands, you know, aping in and holding, but I had to figure out what smart money was doing. And smart money in thinking about this, right? If they got in at $70 and they wrote it to 300, if you've got a billion, a $500 million position on this and you just turn 300% return, you just made your entire company's returns for five years in a single trade. And whereas retail's holding out for $10,000 returns because that's”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, it was a small market cap. And I think more importantly, it was a small float. I think there were 72 million shares that were tradable at the very beginning when I looked into this. And I realized there were like 60 million shares short.”
2024-03-27 · We Study Billionaires · BTC175: MicroStrategy Deep Dive w/ Jeff Walton (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT