đź“ť On writing this book: "Bitcoin doesn't write books, but it enables people to see value more clearly for themselves, particularly when it comes to what a person spends their scarce time on. Understanding what in the world comes from work and energy, as opposed to the stroke of someone's pen or from printed money, helps people clarify what has true value."
From: Introduction
Key Insight from Bitcoin for Institutions:
2. Bitcoin requires multi-disciplinary knowledge —economics, computer science, history, mathematics, game theory, and cryptography.
Chapter: Bitcoin Requires More Patience and Time than Institutions Have
⚠️ The Biggest Borrower: The US government has issued close to $40 trillion in debt - far in excess of GDP. There is zero likelihood of ever paying it back without significant dollar devaluation. If we include unfunded liabilities, we're looking at over $200 trillion.
From: Structured Credit
⚠️ All of these companies' failures took down large chunks of the industry and did a lot to slow the worldwide adoption of bitcoin. Not all were criminal, and many didn't begin with intentions to scam people, but they all eventually found their way near that neighborhood, whether unwittingly or not.
From: HODL'ing Bitcoin is Irrational
The key to Strategy's success is that it is effectively an extension of one individual who believes in bitcoin . This is fundamentally different from a typical corporate governance structure.
From: Strategy (Balance Sheet Strength)
Key Insight from Bitcoin for Institutions:
2. Bitcoin treasuries provide optionality - companies can hold for appreciation or deploy to lower operating costs.
Chapter: Treasury / Balance Sheet - Having Optionality
The Decision
Saylor drew the line and refused to allow the US government to debase his company's cash and cash equivalents.
From: Bitcoin for Institutions
ℹ️ Countries vs. Companies: Countries can have a longer time horizon than companies (economists call this "low time preference"). However, most nations are unable to develop a long horizon and end up endlessly borrowing from the IMF and World Bank. Western democracies have generally short time horizons as leaders are elected every few years.
From: HODL'ing Bitcoin is Irrational
""If bitcoin is going to help the current financial system transcend the problems of previous systems, then institutions that wish to utilize it are going to need to develop optics and metrics that demonstrate success and failure.""
— Brian Hirschfield
From: Epilogue
The optionality that bitcoin gives a company is of tremendous value. It is important to understand what bitcoin actually is: money (the hardest money the world has ever seen) and not a return-bearing asset.
From: Treasury / Balance Sheet - Having Optionality
Key Insight from Bitcoin for Institutions:
4. This isn't accounting trickery - bitcoin genuinely lowers costs over time because USD underperforms BTC by design.
Chapter: Treasury / Balance Sheet - Having Optionality
Key Insight from Bitcoin for Institutions:
5. Credit markets will be transformed - what creditworthiness actually means is being redefined by this innovation.
Chapter: Structured Credit
Key Insight from Bitcoin for Institutions:
5. ETFs provide price exposure but enormous counterparty risk —they are not a substitute for true bitcoin ownership through self-custody.
Chapter: Bitcoin Custody Requires a Higher Understanding of Tradeoffs
Key Insight from Bitcoin for Institutions:
2. Small employers should consider new pension plans as a tax-advantaged vehicle for bitcoin accumulation.
Chapter: Pensions
Key Insight from Bitcoin for Institutions:
3. Bitcoin collateral redefines subordination - behaviorally, it becomes the most senior loan regardless of contractual priority.
Chapter: Structured Credit
Key Insight from Bitcoin for Institutions:
5. Start today —there are no easy answers, but beginning the journey now will get institutions there faster than waiting.
Chapter: Bitcoin Requires More Patience and Time than Institutions Have
""The world came to the realization that there does not exist a risk-free asset, and at the same time, they would grapple with the question of where bitcoin belongs in an investment portfolio.""
— Brian Hirschfield
From: BlackRock (Redefining Portfolio Construction)
Corporate Finance Innovation
Strategy has turned corporate finance into a bitcoin accumulation vehicle that other companies are beginning to copy.
From: Bitcoin for Institutions
Key Insight from Bitcoin for Institutions:
5. BlackRock's ETF may be the vehicle that finally brings institutional bitcoin exposure—by making it indirect and almost invisible.
Chapter: HODL'ing Bitcoin is Irrational
Key Insight from Bitcoin for Institutions:
4. Soft money (fiat currency) represents a form of tyranny that Bitcoin seeks to address.
Chapter: Introduction
Key Insight from Bitcoin for Institutions:
4. Both degens and savers will prioritize bitcoin-collateralized loans, creating potential AAA-equivalent credit quality.
Chapter: Structured Credit