Mike Treidl, chief investment officer at Blue Coin Capital, discussed recent changes in financing structures used by Bitcoin treasury companies. He noted a transition from convertible bonds to perpetual preferred equity, a move that allows issuers to defer payments without triggering a default.
Preferred Equity and Strategy’s Buying Engine
Treidl explained that when preferred shares return to par value, they could provide a second mechanism for the firm Strategy to purchase Bitcoin. This approach differs from traditional cash‑based buying by incorporating a financial instrument that can be redeemed at face value.
Sats Per Share and Leverage
The CIO highlighted a metric called “sats per share,” which he described as a form of leverage that does not involve margin calls. This structure offers additional value compared to holding Bitcoin directly, according to Treidl.
Institutional Interest
Treidl also mentioned growing interest from pensions, endowments, and other institutional investors in Bitcoin treasury strategies. He referenced Blue Coin Capital’s ranking by BarclayHedge and noted that the firm is acquiring STRC below par value.
Outlook
The discussion concluded with Treidl outlining what he sees as the biggest opportunities and risks for Bitcoin over the next two years, emphasizing the importance of risk budgeting and allocation sizing.
