Part 12/17:
Shifting focus to corporate strategies, Lyn discusses Tesla's surprising $1.5 billion bitcoin purchase. While MicroStrategy has been a relentless buyer, Tesla’s move signals a new trend where larger firms allocate a small percentage of their cash reserves into Bitcoin as a hedge against inflation and to participate in its upside without risking their core business.
She notes that MicroStrategy’s strategy involves borrowing against their Bitcoin holdings via convertible notes—raising money with minimal downside if Bitcoin’s price appreciates. This approach allows firms to leverage Bitcoin as collateral rather than selling holdings, preserving their assets and increasing flexibility.