➡ A $300 trillion credit shift is happening, with companies moving money from the traditional credit market into Bitcoin. These companies are creating financial products that draw money from the unstable credit market. This is happening because many investors, including pension funds and insurance companies, are legally required to hold fixed income, which is not performing well. The solution is to create financial products backed by Bitcoin, which has been appreciating at 60% annually for over a decade, offering a much higher return than traditional bonds.
➡ Companies are increasingly adopting Bitcoin Treasury strategies, with firms like Strategy and Metoplanet leading the way. These companies are converting traditional capital into Bitcoin, offering higher profit margins and attracting institutional investors. The trend is global, with companies in different markets using local regulations to adopt similar strategies. This shift is causing a supply shock in Bitcoin, as demand from corporations exceeds the new supply being mined.

Right now, a $300 trillion credit rotation is forming and nobody sees it coming. Most investors and even Wall Street think these Bitcoin treasury companies, they’re just a bubble, another creative play on Bitcoin, or maybe just a way to quickly generate cash. But they’re completely missing the real story and it’s way bigger than anyone realizes because these companies, they’re not just gambling. They’re building highly targeted financial products, each acting like a straw siphoning trillions out of a broken credit market and right into Bitcoin. I’m Mark Moss, partner at a leading Bitcoin venture fund officer of a publicly traded Bitcoin treasury company and today I’ll reveal exactly how this shift is unfolding, why banks are dangerously offsides, and how you can position yourself to benefit.

So let’s go. All right, so here’s what nobody talks about. 52% of US corporate pension funds are legally required to hold fixed income. Not because they want to, but because they have to. Now, since 2009 pension funds have shifted 14 percentage points away from stocks and into bonds. The number of plans holding more than half their assets in fixed income has tripled. Now this is an investment strategy. It’s regulatory handcuffs. The municipal bond market alone, $4 trillion. Insurance companies are mandated by law to file every unrated municipal bond with regulators for credit assessment.

Now they can’t just buy whatever makes sense. Property and casualty insurers, they hold 263 billion in muni bonds. Life insurers hold 218 billion. Why? Well, tax advantages, regulatory requirements. But here’s the real kicker. Total global debt just hit a record $318 trillion. That’s government and corporate bonds combined. The entire Bitcoin market, it’s only $2 trillion. We’re talking about 159 times more money trapped in traditional debt than exists in all of Bitcoin. And here’s what’s killing these investors. The M2 money supply that I talk about all the time, it’s grown from $4.7 trillion in 2000 to over $22 trillion today.

That’s a 467% increase. Now do the math. That’s roughly a 10% monetary debasement every single year. Meanwhile, your safe muni bonds, they’re paying you what, 3%, 5% before taxes. So you’ve got millions of retirees whose pension funds are legally forced to lose purchasing power every single year. And the lower their funding status gets, the more bonds they’re required to hold. It’s a death spiral with a regulatory mandate. Pension funds, of course they want out. Insurance companies, they want out. Muni bonds investors, they want out. But the mandates keep them locked in place until now.

Because what if there was a way to meet these exact same mandates while actually making money? But here’s the deeper problem. Traditional credit markets, they’re not just underperforming, they’re fundamentally broken. Remember back in 2008, the great financial crash, credit rating agencies downgraded 4,485 collateralized debt obligations in the first quarter alone. Now these were supposed to be safe. They’re supposed to be safe investments that had been packaged and repackaged until nobody could even articulate what the risk was. 50% of AAA rated CDO tranches got downgraded to junk status by 2010. The rating agencies, they had no idea what they were even doing, what they were rating.

That same bundled complexity, it’s everywhere now. Commercial lending is $16.4 trillion and growing. Sovereign debt, $12.3 trillion in new borrowing just this year. Add muni bonds, corporate debt, mortgage-backed securities, all of it packaged, all of it bundled and sliced into tranches that make the original assets impossible to even value. Now when one loan defaults, you can’t tell which other investments are going to get. And here’s what’s crushing everyone. Interest costs as a share of economic output just hit the highest level in 20 years. Between 2021 and 2024, debt servicing costs went from the lowest to the highest in two decades.

But investors, they keep bidding up bond prices anyway. Why? Again, because they’re mandated to buy this stuff. Pension funds, insurance companies, muni bond funds, they have no choice. So you’ve got desperate buyers bidding up prices of increasingly risky assets. Classic yield compression. Everyone’s racing to the bottom, accepting lower and lower returns for higher and higher risk. Total outstanding government and corporate bonds globally, over $100 trillion. That’s larger than global GDP. But nobody can actually tell you what’s in these things anymore. Commercial mortgage-backed securities, collateralized loan obligations, muni bond insurance, all wrapped around muni bond insurance.

Now this is 2008 all over again, except bigger. The CDO market peaked at $2 trillion before it imploded. Today’s credit market, 50 times larger. The system is drowning in complexity. Trillions of dollars trapped in instruments that nobody fully understands. Pain yields that don’t compensate for the actual risk. But what if there was a completely different approach? What if instead of bundled complexity, you add radical simplicity? Now here’s what Wall Street doesn’t want you to know. Of course, their margins are terrible. BlackRock, the world’s largest asset manager, charges 0.45 to 0.52% annually on their bond funds.

That’s less than half a percent per year to manage money. Muni bond underwriting, about 0.37% per deal. Corporate bond underwriting, even thinner. Now these spreads have been in a 15 year death spiral. Competition is driving these margins towards zero. It’s gotten so bad that Citi and UBS just exited the muni bond business entirely. The margins, they couldn’t support their operations. As one industry insider put it, you get to a point where spreads are so low that the margin on a deal for an underwriter becomes thin. But there’s a floor. They’re desperately trying to stay profitable by getting more efficient, better technology, lower costs, automated processes.

But they’re still just fighting over breadcrumbs. When your margins are this thin, you can’t innovate. Every dollar spent on research and development comes straight out of profit. So they’re stuck. They’re trapped in a commodity business with no way out. Now the smartest firms, they’ve tried to escape and do private credit. Higher fees, less competition. But even there, margins are getting compressed as more players crowd in. So let’s recap here real quickly. First, Wall Street’s best case scenario, three to 4% total margins on a good day. Annual management fees, under half a percent.

Underwriting fees, about 1%. Okay? That’s the problem. Now imagine an alternative. What if instead of managing other people’s money for tiny fees, you can create instruments that let you keep 50% of the upside? What if instead of fighting over basis points, you could capture the appreciation of the hardest money ever created? Well, that’s exactly what Michael Saylor has figured out. And it’s about to make traditional financial margins look like a rounding error. Now, here’s the breakthrough that changes everything. What if you could create financial instruments that pay junk bond yields, but qualify as investment grade under existing regulations? Investment grade means rated BBB or higher by the major agencies.

That’s the threshold that pension funds and insurance companies and muni bond investors are required to meet. And Saylor figured out how to hack this system. Instead of backing bonds with unpredictable cash flows, back them with Bitcoin. Take strategies, STRF, strife, preferred shares. They pay 10% annually. That’s backed by Bitcoin holdings worth 10 times the face value. Now, traditional corporate bonds, they’re backed by business cash flows that could disappear overnight. Muni bonds, they’re backed by tax revenues that fluctuate with the economy. But Bitcoin backed instrument, they’re backed by the hardest money ever created.

Strategy even created new metrics to prove this. Like BTC risk, that’s the likelihood of undercollateralization and maturity, or BTC credit spread. That’s the yield required to offset the Bitcoin risk. Now look, this isn’t theoretical. This is regulatory arbitrage at its finest. These instruments fit perfectly into the existing investment grade boxes that mandate investors are required to fill. Pension fund managers have a legal duty to maximize financial benefits. Insurance companies must invest in sufficiently rated securities. Muni bond funds need investment grade paper. Now, strategies strike STRK, it pays out 8% with convertibility. Strife pays 10% cash only.

And STRD stride pays 10% as the highest yielding option. Now, compare that to traditional investment grade bonds paying 3% to 5%. Now, this is the same regulatory approval, same fiduciary compliance, but it’s double the yield. It’s backed by an asset that’s been appreciated at 60% annually for over a decade. Now, again, this isn’t just a better mousetrap. It’s a completely different category of financial engineering. And here’s why Wall Street can’t compete with the math behind it. Bitcoin’s compound annual growth rate over any four-year rolling window, the minimum has been 24%. The average, about 65%.

Now, since inception, Bitcoin has delivered a 140% compound annual return. Even being conservative, let’s just use 60% annually going forward. Strategies preferred shares pay 10% coupons. Bitcoin appreciates 60% annually. That leaves 50% retained profit margins. Now, compare that to Wall Street’s 3%. Look, this isn’t theoretical. Recently, a real estate investor in Toronto deployed this strategy, borrowed $100,000 against a rental property cash flow, bought Bitcoin, generated an additional $859,000 in just 10 years. No additional out-of-pocket capital. Now, strategy takes this concept and scales it. It issues convertible bonds at 0% interest, issues preferred shares at 8% to 10%, buy Bitcoin with the proceeds.

Now, as one analyst put it, strategy strategically uses equity issuance, convertible bonds, and implied volatility arbitrage to build a hybrid capital stack. It mimics central bank’s mechanics by creating funding sources through equity and debt issuance. Now, traditional finance fights over basis points. Bitcoin Treasury companies, they capture 50 times higher margins. Now, the math is so compelling that Trump Media, GameStop, and dozens of other companies are now announcing Bitcoin Treasury strategies. Corporate Treasury adoption has entered a new phase. Companies whose primary objective is Bitcoin accumulation are purpose-built from the ground up.

And this is how capital always works. Money flows to the highest risk-adjusted returns. When one strategy delivers 15 times better margins than the alternative, capital moves. And here’s the beautiful part. Every successful Bitcoin Treasury company proves the model works, making it easier for the next company to get funding, get regulatory approval, get institutional backing. And Wall Street’s been optimizing around 3% margins for decades. Bitcoin Treasuries, they just showed them what 50% margins look like. Now, look, this isn’t competition. Like, it’s annihilation. And Saylor just built the blueprint that everyone else is copying.

Now, while Wall Street’s been sitting around debating whether Bitcoin Treasuries are sustainable, Michael Saylor and strategy have been quietly building the most sophisticated capital conversion machine in financial history. And I’m not talking about the theory anymore. I’m talking about a track record that makes Goldman Sachs look irrelevant. And the market has taken notice. Strategy stock has surged 258% from its 52-week low of $102. That’s not speculation rewarding. That’s systematic execution being recognized by institutional capital. Now, look at these numbers. Strategy now holds 592,000 Bitcoin. That’s over 62 billion worth, representing 2.8% of the entire Bitcoin supply.

But here’s what’s truly insane. They’ve added to their Bitcoin position every single quarter since August of 2020. Think about that. Through the 2021 peak, through the 2022 crash, to the 2023 banking crisis, the 2024 ETF launch that never stopped any of them. 2025, they’ve just continued to turn it up. $10 billion raised in just four months. $6.6 billion through their ATM equity program, $2 billion in convertible notes at 0% coupon, $1.4 billion through their new preferred instruments. I mean, this is industrial scale Bitcoin acquisition. But here’s where it gets really interesting.

Remember those precision straws I talked about? Saylor didn’t just build one. He built the entire assembly line. Strike for income investors, 8% perpetual coupon, convertible at $1,000 per share, launched in February already trading 22% above IPO price. Strive for institutions, 10% perpetual preferred with no dilution to shareholders. This is permanent capital with no refinancing risk, no covenants, no collateral requirements. And now Strive, their newest instrument targeting specific institutional mandates. See what’s happening here? Each instrument is a different precision tool targeting different pools of trapped capital. Pension funds that need steady income, strike.

Insurance companies that need yield without equity risk, strife. Municipal treasuries with specific mandates, stride. It’s like having four different drill bits for four different types of rock. And they’re just getting started. Strategy just announced their $42.42 plan. $42 billion in equity, $42 billion in fixed income by the end of 2027. Now to put this into perspective, they completed their previous $21 billion plan so fast, they just had to double it. Now, Wall Street loves to dismiss this as just another crypto play. But look at this correlation data. 98% correlation between strategy stock price and their Bitcoin value per share.

Now remember those Wall Street margins we talked about, like BlackRock makes 3% to 4% on placement fees. Strategy’s making 50% profit margins because they’re not just managing money, they’re converting it into the world’s hardest asset. And here’s the kicker. 100% of their Bitcoin remains unencumbered. That’s pristine collateral that can backstop every future instrument they create. And this isn’t just happening in the US. Over 80 public companies have now adopted Bitcoin treasury strategies. Metoplanet in Japan just announced their $5.4 billion 555 million plan. The playbook sailor debug is being replicated globally. The institutional validation, it’s already here.

These aren’t retail day traders buying strike. These are pension funds, insurance companies, and sovereign wealth funds that need yield without violating their mandates. As one analyst put it, strategy didn’t just prove the concept, they built the assembly line for capital conversion. The siphon’s working and the flow rate is accelerating. Now, let’s look at Metoplanet in Japan, which proves this model works across different markets and regulatory environments. Japan had negative interest rates until March 2024. Their 10-year government bonds currently yields just 1.42%. Japanese institutions have 5.4 trillion trapped in low-yielding instruments, which creates the same mandate problem that we have in the US.

Metoplanet adapted strategy’s playbook for Japanese regulations. They now hold 11,111 Bitcoin worth $1.12 billion, making them the seventh largest corporate Bitcoin holder globally. Now, their approach uses different instruments tailored in Japanese markets. They’ve issued $5.3 billion in moving strike warrants, the largest program in Japanese history. They also issued zero coupon bonds, specifically for Bitcoin purchases and generate 88% of their revenue from Bitcoin option strategies. And the results? Well, their stock’s up 2,200% year over year and about 300% Bitcoin yield, meaning they’re increasing Bitcoin per share faster than they diluted. Metoplanets target of 210,000 Bitcoin by 2027, with roughly 1% of the total supply.

The same concept of strategy, different regulatory framework. Now, this demonstrates that the model scales across different markets. American companies are accessing US credit markets, while Japanese companies are accessing Japanese bond markets. Both are converting trapped capital into Bitcoin using instruments that meet local regulatory requirements, which brings us to the supply implications when this scales globally. Now, here’s the math that’s hiding right in plain sight. Okay, so Bitcoin has a hard cap of 21 million coins. 19.7 have already been mined. That’s about 94% of the total supply. But the effective supply is much smaller.

Between three and four million Bitcoin are permanently lost, forgotten passwords, destroyed hard drives, whatever, right? The true circulating supply is closer to about 16 to 17 million Bitcoin. Now, the new supply is shrinking really fast. Only about 164,250 Bitcoin will be mined just this year. The halving schedule means that this number keeps getting smaller. Now, if we look at the corporate demand, public companies alone hold over 725,000 Bitcoin. That’s more than four years of new supply. Private companies hold an estimated 300,000 more. Now, corporate purchases in 2025 have already exceeded the entire annual mining output.

Now, this is just beginning. The regulatory barriers are just starting to fall. The strategy playbook is replicating globally. Metoplanet in Japan, new companies announced weekly across Asia, the Middle East, North America. I mean, run the numbers forward. If just 1% of the 300 trillion global credit market rotates into Bitcoin backed instruments, that’s 3 trillion chasing 21 million coins. We’re seeing the early stages of the rotation right now. Credit rating agencies are starting to recognize Bitcoin backed debt as instrument grade. Institutional mandates are beginning to approve these instruments. And this isn’t going to happen gradually.

Supply shocks in fixed cap assets happen suddenly. Each successful corporate issuance proves the model. Each regulatory approval opens new pools of capital. Now, consider this. Strategy alone targets $84 billion in Bitcoin purchases by 2027. Metoplanet targets 210,000 Bitcoin. Now, that’s before we count the dozens of other companies building similar programs, which brings us to the investment implications. All right. Now, there’s three ways to position for this rotation. Each target, different risk balances and return expectations. All right. First, there’s the pure play equity exposure, right? Strategy, Metoplanet, they offer maximum leverage to Bitcoin treasury execution.

Strategy shows a 98% correlation between its stock price and its Bitcoin value per share. The market now values it primarily as its Bitcoin holdings, not as a software business. Metoplanet trades at the 81st percentile of fair value, but has room to run. It’s achieved 391% gains year to date with a 306% Bitcoin yield. Second, yield plays through Bitcoin back preferreds. These instruments offer 8 to 10% annualized yields with Bitcoin collateralization. Third is the core Bitcoin holdings. The ultimate asymmetric bet remains native Bitcoin first. These companies are wrappers around Bitcoin exposure. They’re not substitutes for it.

The 300 trillion credit rotation isn’t a prediction. It’s a process that’s already underway. The precision straws, they’re already working. The supply shock, it’s accelerating. The investment window, it’s narrowing. The question isn’t whether this happens. The question is whether you’re positioned before everyone else figures it out. Now, if you want to know more about the number one thing most miss when valuing Bitcoin treasury companies, then you should watch this video right here. Otherwise, leave me a comment, thumbs up if you liked the video, thumbs down if you don’t, that’s okay. And that’s it.

[tr:trw].

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.