In this week’s Hurdle Rate, the crew breaks down the $700 million SATS IPO, Strive’s first year as a public company, and growing from 5,886 to 36,818 Bitcoin through a bear market. They also discuss why SATS is a 15% fixed rate preferred junior to SATA, how the amplification engine was built, and what TradFi investors asked during a high yield selloff. The episode closes on the digital credit bubble and why Strive’s 18-month dividend reserve is stronger than it looks.
Here’s the latest with Matt Cole, Jeff Walton, Ben Werkman, Joe Burnett, and Adam Livingston.
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Timestamps:
00:00 - Intro
00:54 - Strive’s First Year
06:58 - 6x the Bitcoin in a Bear Market
14:40 - The Amplification Engine
22:18 - The Dream Bear Market
25:22 - Why SATS Is 15% Fixed
34:32 - Designing SATS
42:27 - Treasury Breakeven ARR
46:40 - The Digital Credit Bubble
55:54 - Pricing Through a High Yield Selloff
01:01:13 - What’s Your LTV?
01:06:30 - The 18-Month Dividend Reserve
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Any securities referred to herein, including those of True North’s parent Strive, are not collateralized by underlying bitcoin holdings and may be subordinated to senior claims. There are no guarantee of returns liquidity or future performance. The securities referred to herein are neither bank deposits, nor FDIC insured, nor regulated in the same way, and do not have the same regulatory and other protections as bank accounts, money market funds, treasuries, or similar investments and as a result may not be comparable investments. Current trading prices and effective yields may vary, current rates are not indicative of future rates, and in some cases rates are subject to frequent adjustments and may be significantly lower than discussed herein. Cash dividends are not guaranteed. In some cases, dividends have not been paid and may not be paid in the future. Ownership of securities referred to in herein does not confer ownership in the underlying assets, including bitcoin.
