In this episode, we’re joined by Bitwise’s Head of Alpha Strategies, Jeff Park! We explore the financial engineering behind Bitcoin treasury companies, focusing on Michael Saylor’s capital structure innovations. We discuss convertible debt, preferred equity, market demand dynamics, options chains, in-kind contributions, tax and regulatory implications, and the sustainability of these treasury vehicles. Thanks for tuning in!

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Timestamps:

(0:00) Introduction

(1:49) The Convertible Debt Market

(9:44) Preferred Shares vs Converts

(12:19) Ads (Arkham & Eigen)

(13:10) The Demand Side

(21:35) How is Saylor's Strategy Possible?

(30:47) Ads (Arkham & Eigen)

(32:24) What Is The Investment Bank's Role?

(37:45) Bitcoin Treasury Companies Abroad

(45:38) What Are Treasury Companies Allowed To Do Onchain?

(48:29) Treasury Company Financial Metrics

(51:44) The Best Path For Ethereum Treasury Companies

(56:56) Bitmine's Options Chain

(1:00:05) The Impact of In-kind Contributions

(1:03:56) The Doom Loop

(1:08:35) Comparing Treasury Vehicles and GBTC

(1:11:47) How Do Treasury Companies Impact Demand?

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Disclaimer: Nothing said on Bell Curve is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Mike, Jason, Michael, Vance and our guests may hold positions in the companies, funds, or projects discussed, and our guests may hold positions in the companies, funds, or projects discussed.