Episode 32 – Everything’s Computer… Credit

True North – Episode 32 – Everything’s Computer… Credit

1:54:27 | July 09, 2025

🧭 MSTR True North episode 32
The crew does a deep dive into Strategy’s capital stack, leverage, and preferred instruments like Strike, Strife, and Stride—exploring risk, credit, and how institutional capital is recognizing the true creditworthiness of a treasury powered by Bitcoin.

🎛️ As of this recording, 7/9/25, Strategy’s (MSTR) performance:
Open: $401.60
Close: $415.41
Volume: 13,065,370 shares
mNAV: 1.96
Market Cap: ~$116B
U.S. Market Cap Ranking: 93
BTC: 597,325

⏱️ TIMESTAMPS & INSIGHTS:

• 00:00:00 – cue the music: reggae vibes
• 00:01:07 – agenda rundown
• 00:03:51 – bitcoin leverage: MSTR’s capital stack and strategic asset breakdown
• 00:08:55 – law of large numbers: market dynamics and shifts in the playbook globally
• 00:16:50 – EOY BTC holdings predictions: reflecting on initial predictions & re-evaluating possibilities
• 00:19:05 – S&P 500 catalyst: capital surges and strategic timing with indexes
• 00:25:05 – credit hierarchy: analysis of the capital stack & the creation of the credit curve
• 00:27:48 – risk premium: preferreds closing in on the risk-free rate
• 00:32:10 – pricing curve: preferreds moving from distressed to fair value
• 00:40:44 – strike convertibility: upside, dividends, and embedded call options
• 00:49:11 – liquidation logic: how claim seniority impacts bitcoin instrument value
• 00:56:10 – investor psychology: simplicity and yield driving adoption of new tools
• 01:03:45 – capital stack math: bitcoin CAGR vs. risk-free rate over time
• 01:09:15 – software business hiring reflex: why bitcoin-focused firms attract top software talent
• 01:15:20 – $STRF architecture: CAGR assumptions that outpace risk-free rate indefinitely
• 01:17:30 – $MSTY obsession: risk/reward breakdown and the impact of slippage
• 01:24:40 – market evolution: strike as self-replicating perpetual call option & importance of scale
• 01:29:05 – index fuel: index inclusion as rocket fuel & MSTR’s scale advantage with BTC moat
• 01:34:20 – buybacks vs. bitcoin: what Apple and Chevron could’ve gained
• 01:46:35 – earnings per employee: the reality of earnings powered by Bitcoin
• 01:50:20 – final thoughts

Disclaimer: The content in this video is for informational and educational purposes only and should not be considered financial advice. We are not financial advisors, and you should consult with a qualified professional before making any financial decisions. All investments involve risks, and you are responsible for your own decisions.