BTC217: MicroStrategy 2025 w/ Jeff Walton (Bitcoin Podcast)
01/15/25 • 66 min
2 Listeners
Join us as Jeff Walton unpacks MicroStrategy's innovative financial strategies, including leveraging Bitcoin volatility, issuing convertible bonds, and building a balance sheet of permanent capital. We dive into valuations, ETF dynamics, accretive dilution, and what it means to be the "bank of the future."
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
01:49 - What "capturing the spread" means in MicroStrategy's strategy.
02:32 - The difference between issuing convertible notes and common stock.
06:26 - An explanation of accretive dilution and its role in corporate strategy.
09:44 - How MicroStrategy's Bitcoin holdings position it as a "bank of the future."
20:52 - Insights into constructing a leveraged balance sheet with permanent capital.
23:04 - Why MicroStrategy issued two consecutive convertible bonds.
28:49 - How Michael Saylor's "Bitcoin nuclear reactor" concept reshapes volatility.
39:47 - The impact of entering the NASDAQ and index weighting on stock performance.
48:33 - Metrics to consider when starting a position in MicroStrategy or Bitcoin.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Jeff’s X Account.
- Jeff’s YouTube Account.
- Michael Saylor’s full interview.
- Check out all the books mentioned and discussed in our podcast episodes here.
- Enjoy ad-free episodes when you subscribe to our Premium Feed.
NEW TO THE SHOW?
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Follow our official social media accounts: X (Twitter) | LinkedIn | | Instagram | Facebook | TikTok.
- Check out our Bitcoin Fundamentals Starter Packs.
- Browse through all our episodes (complete with transcripts) here.
- Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
- Enjoy exclusive perks from our favorite Apps and Services.
- Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter.
- Learn how to better start, manage, and grow your business with the best business podcasts.
SPONSORS
Support our free podcast by supporting our sponsors:
Join us as Jeff Walton unpacks MicroStrategy's innovative financial strategies, including leveraging Bitcoin volatility, issuing convertible bonds, and building a balance sheet of permanent capital. We dive into valuations, ETF dynamics, accretive dilution, and what it means to be the "bank of the future."
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
01:49 - What "capturing the spread" means in MicroStrategy's strategy.
02:32 - The difference between issuing convertible notes and common stock.
06:26 - An explanation of accretive dilution and its role in corporate strategy.
09:44 - How MicroStrategy's Bitcoin holdings position it as a "bank of the future."
20:52 - Insights into constructing a leveraged balance sheet with permanent capital.
23:04 - Why MicroStrategy issued two consecutive convertible bonds.
28:49 - How Michael Saylor's "Bitcoin nuclear reactor" concept reshapes volatility.
39:47 - The impact of entering the NASDAQ and index weighting on stock performance.
48:33 - Metrics to consider when starting a position in MicroStrategy or Bitcoin.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Jeff’s X Account.
- Jeff’s YouTube Account.
- Michael Saylor’s full interview.
- Check out all the books mentioned and discussed in our podcast episodes here.
- Enjoy ad-free episodes when you subscribe to our Premium Feed.
NEW TO THE SHOW?
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Follow our official social media accounts: X (Twitter) | LinkedIn | | Instagram | Facebook | TikTok.
- Check out our Bitcoin Fundamentals Starter Packs.
- Browse through all our episodes (complete with transcripts) here.
- Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
- Enjoy exclusive perks from our favorite Apps and Services.
- Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter.
- Learn how to better start, manage, and grow your business with the best business podcasts.
SPONSORS
Support our free podcast by supporting our sponsors:
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RWH053: Trouble Ahead w/ Bill Priest
In this episode, William Green speaks with Barron’s Roundtable member Bill Priest, who is Vice Chairman of TD Wealth and founder, Chairman, and Co-Chief Investment Officer of TD Epoch. Bill is the co-author of several books, including “Winning at Active Management.” Having prospered for six decades in the financial markets, Bill has seen it all. Here, he talks about his core investing principles & why he believes investors are too complacent in the face of mounting risk & fragility.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
06:50 - How Bill Priest fell in love with the stock market.
40:30 - Why he focuses relentlessly on free cash flow & cost of capital.
41:11 - How he goes about analyzing a business.
48:41 - Why growth stocks may start to struggle.
50:47 - Why he’s worried about the threat of stagflation.
59:16 - How investors can protect themselves from an unknowable future.
1:03:36 - Why AI is unstoppable, not just another bubble.
1:07:35 - Why he’d be “very careful” about investing in China.
1:15:38 - Why you should keep ample cash to ride out difficult times.
1:17:20 - Why his exposure to equities is much lower than usual.
1:21:16 - How to be a successful leader.
1:57:16 - What he’s learned from his daughter about happiness.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Bill Priest’s investment firm, Epoch Investment Partners.
- Bill Priest’s book, “Free Cash Flow & Shareholder Yield.”
- Bill Priest’s book, “Winning at Active Management.”
- Anne Applebaum’s book “Autocracy, Inc.”
- Ruchir Sharma’s book, “What Went Wrong with Capitalism.”
- William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
- Follow William Green on X.
- Check out all the books mentioned and discussed in our podcast episodes here.
- Enjoy ad-free episodes when you subscribe to our Premium Feed.
NEW TO THE SHOW?
- Join the exclusive TIP Mastermind Community to engage in m...
Next Episode
TIP691: Sol Price: The Retail Visionary Behind Costco w/ Clay Finck
Clay dives into the life and legacy of Sol Price, the pioneering retail entrepreneur who revolutionized the industry with FedMart and Price Club, ultimately leading to the creation of Costco.
The episode explores how Price's business philosophies, including treating employees well and maintaining a relentless focus on providing value to customers, inspired iconic entrepreneurs like Sam Walton and Jeff Bezos.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
01:45 - The story of Sol Price starting Fedmart and Price Club.
19:30 - Sol Price’s core business philosophies
50:47 - The key ingredients to the success of Costco’s business model.
52:58 - What led to the emergence of Costco and the eventual merger with Price Club.
01:01:40 - An overview of Costco’s business model today
And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Books mentioned: Sol Price: Retail Revolutionary & Social Innovator, and The Joy of Costco.
- Jim Sinegal’s interview with the Motley Fool.
- The Science of Hitting Blog.
- Email Shawn at [email protected] to attend our free events in Omaha or visit this page.
- Related Episode: Listen to TIP492: The Best Investor You've Never Heard Of.
- Related Episode: Listen to TIP634: Value Investing Fundamentals w/ John Huber.
- Follow Clay on Twitter.
- Check out all the books mentioned and discussed in our podcast episodes here.
- Enjoy ad-free episodes when you subscribe to our Premium Feed.
NEW TO THE SHOW?
- Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter.
- Check out our We Study Billionaires Starter Packs.
- Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok.
- Browse through all our episodes (complete with transcripts) here.
- Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
- Enjoy exclusive perks from our favorite Apps and Services.
- Learn how to better start, manage, and grow your business with the best business podcasts.
SPONSORS
Support our free podcast by supporting our sponsors:
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