An important feature that makes it unintuitive for both individuals and institutions to integrate bitcoin into their financial landscapes is its deflationary nature , or at least highly disinflationary design. Bitcoin is the largest fixed-supply asset on Earth, programmed by its immutable protocol to cap out at 21 million whole units. From: Bitcoin Requires a Deflationary Mindset

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

A key determinant of whether it pays to pull the goalie is how much time is left in the game . According to Brown/Asness, it made sense to pull the goalie with six minutes left - an uncomfortably long time that seems unintuitive but maximizes winning probability. From: Pensions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Existential Necessity It usually requires an existential problem to get all of the battleships aligned around a single long-term objective. From: Bitcoin for Institutions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Bitcoin can be uniquely used by companies which hold it in their treasury to lower their operating costs . This is of interest to CFOs and management teams because "operating profitability" is typically how they are judged by their boards and what their incentive compensation payouts depend on. From: Treasury / Balance Sheet - Having Optionality

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 5. Self-custody enables unprecedented sovereignty —unlimited wealth stored in a 12-word seed phrase, accessible anywhere on Earth. Chapter: Bitcoin is a Bearer Asset

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 2. Small employers should consider new pension plans as a tax-advantaged vehicle for bitcoin accumulation. Chapter: Pensions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 3. Tesla's exit validates the theory - without a dominant individual, institutional pressure will force selling. Chapter: Strategy (Balance Sheet Strength)

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

ℹ️ Bitcoin is already less inflationary than gold, and will eventually add no new stock to the world's supply. When inserted into a monetary landscape of vastly inflationary monies like fiat currencies, stocks, bonds, and real estate, the supply-capped bitcoin will continue to absorb the monetary energy of its peers. From: Bitcoin Requires a Deflationary Mindset

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 1. Mastery takes time —just as learning guitar requires years of dedicated practice, understanding bitcoin requires sustained commitment. Chapter: Bitcoin Requires More Patience and Time than Institutions Have

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 4. KYC/AML regulations are weaponized —while most crime happens in dollars, these regulations strangle innovation and honest business. Chapter: Bitcoin Users Value Privacy

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 4. Coinbase's legacy technology predates Segwit best practices, creating systemic risk for ETFs using them as custodian. Chapter: Bitcoin Custody Requires a Higher Understanding of Tradeoffs

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

The Four-Year Rhythm: The earliest that bitcoin collateral can be wound down is four years, aligned with bitcoin's four-year halving cycle. The loan carries a single-digit interest rate and has a maturity of 10 years. Credit markets operate around the concept of subordination - which loans get paid off first if a borrower has multiple loans. The most senior loan (paid off first) is the most creditworthy and demands the lowest yield. This idea of seniority is about to be flipped on its head by Battery Finance's loan product. If a borrower posts bitcoin as collateral, this loan would automatically become the most senior loan - not because of contractual priority, but because of behavioral prio... From: Structured Credit

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 3. Present Value masks debasement —traditional financial valuation hides the erosion of purchasing power in fiat currencies. Chapter: Bitcoin Requires a Deflationary Mindset

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

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

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 2. Bitcoin is already less inflationary than gold at ~0.8% annual supply increase, halving every four years until 0% in 2140. Chapter: Bitcoin Requires a Deflationary Mindset

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Institutional Holdings Even dedicated institutions like Strategy will act like individuals with limited power in the Bitcoin economy. From: Bitcoin for Institutions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 2. Freedom to transact is an extension of free speech —monetary transactions in the digital world are just messages. Chapter: Bitcoin Users Value Privacy

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

📌 What you'll gain: By working through Bitcoin for Institutions , you'll develop a comprehensive understanding of Bitcoin from an institutional perspective— including its limitations, its opportunities, and the specific strategies available for institutional exposure through deferred compensation, ETFs, treasury management, structured credit, and pension funds. From: Introduction

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

The Strategy 1. Assume a forward-looking return of bitcoin as an actuarial assumption (30% or 40% a year is reasonable based on historical data). 2. Establish a clearly defined program that actually sells a certain amount of bitcoin regularly. 3. Demonstrate to auditors and regulators the ability to execute this strategy. 4. Classify a percentage of treasury gains as operating income instead of capital gains. To illustrate how a company could do this, consider a large bitcoin mining company that holds a BTC treasury from their mining operations: From: Bitcoin for Institutions

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors

Key Insight from Bitcoin for Institutions: 2. "Risk-free" assets proved to be an illusion - government bonds lost 30-50% of value, shattering Modern Portfolio Theory. Chapter: BlackRock (Redefining Portfolio Construction)

Bitcoin for Institutions | Math Academy

Interactive course on Bitcoin for institutional investors