True North
@TNorth
True North is a team of investors and analysts exploring the outer edges of Bitcoin, digital credit, finance and macro economics.
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Digital Credit vs. Traditional Income: Effective Yield
Grant Cardone says customers offered him Bitcoin, but never GOLD...
"I have had people offer me Bitcoin $BTC many times as as late as two weeks ago." - @GrantCardone
Grant Cardone thinks $BTC LIQUIDITY could change how lenders view a property portfolio...
"Right now, I just borrow against the real estate, but in the future, I think that they'll lend me against both." - @GrantCardone
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Grant Cardone recounts why @Saylor saw his audience’s TRUST as a route into Bitcoin...
"Because they trust you, and they don't understand $BTC." - @GrantCardone
More money PRINTING regardless of political color...
"I think we still have money printing on the horizon." @PunterJeff
What would S&P 500 inclusion mean beyond passive buying of $MSTR?
@_Adrian lays out his thesis for Bitcoin and digital credit ratings.
Trey Sellers borrowed against his home through a HELOC to buy $STRC.
“I’m going to borrow at five, I’m going to collect at ten, and I’m making essentially a free five percent.” - @ts_hodl
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True North Ep. 84: Bitcoin Is The Moat
Featuring @hillery_dan and @MasonFoard.
Timestamps:
00:00 True North Loading...
03:54 Daily Dividends Come To Strategy $MSTR
11:36 Strive's New $SATS Offering
22:48 Digital Credit As High Powered Money
27:51 AI Disruption And The $BTC Moat
36:26 Digital Credit's Growth Roadmap
45:05 Cash Reserve And $STRC Buybacks
53:14 Managing Amplification
01:01:15 Final Thoughts
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You asked. They’re back.
@MasonFoard and @hillery_dan on True North, with a lot to catch up on.
Ep. 84 drops today at 2PM PT / 5PM ET on X and YouTube.
A higher yield can attract the wrong kind of buyer.
@stonychambers says pushing income too high can draw leveraged investors while turning away people who just want a stable credit product.
“It attracts a crowd that behaves like that if you put the yield too high up.”
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Bitcoin's recent underperformance is part of Allard Peng's bullish case for the next two years.
@stonychambers on why he expects $BTC to outperform other major assets.
Allard Peng likes Strive adding $SATS alongside $SATA.
Fixed and variable rates appeal to different investors and give the market more ways to allocate capital.
“When you have competition like this, you create better products for the market, for consumers.” - @stonychambers
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Strategy $MSTR is spending cash to buy back and retire $STRC.
@PunterJeff says the buybacks, changing arbitrage flows and reduced leverage could help compress volatility and move the preferred back toward par.
“I think we will see this continue to trend toward par.”
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Digital Credit · Week in Review (Oct 19–23)
Three up, three down. $1.27B traded.
▲ $SATS +1.74% · $221.5M*
▲ $STRC +1.65% · $738.8M
▲ $SATA +1.18% · $222.0M
▼ $STRD −1.62% · $30.2M
▼ $STRF −2.12% · $27.3M
▼ $STRK −3.00% · $32.2M
$SATS is the latest addition to the digital credit market. Public trading began on the 20th.
$STRC took 58% of the flow.
Strive’s $SATA and $SATS took 83.2% of the rest:
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A missed dividend doesn’t mean the same thing for every preferred.
@PunterJeff explains the difference between SATS and STRD:
$SATS is cumulative, so deferred dividends build up and remain owed.
$STRD is noncumulative. If a dividend is skipped, investors don’t get it back later.
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Could BlackRock or JPMorgan offer the same risk profile?
@PunterJeff argues they'd have to change their balance sheets and take on the risk of paying a 15% dividend.
The True Innovation of Digital Credit - Explained!
Every piece of credit comes with an option.
Traditional credit gives it to the lender... which is the right to force a sale at the worst possible time.
Digital credit gives up the right to force a sale.
The value of that right accrues to the common, which pays for it through the dividend.
@AdamBLiv explains in less than 3 minutes:
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No other asset class comes close to touching Bitcoin's long term compounding trend.
@AdamBLiv breaks down why there is no second best... in only three minutes.
bitcoin:native
$SATA’s $100 issuance floor protects investors, but it can also close the door on new issuance.
@PunterJeff says a fixed-rate instrument gives Strive $ASST another way to access credit markets when SATA is below par.
“It gives significant optionality on when we can be utilizing that instrument to raise capital.”
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True North Episode 83: The Frontier of Credit
