Bitcoin Treasury Companies: The Arbitrage of the Century | Supply Shock

Corporate treasury departments face significant financial repression as inflation rates outpace prime rates, leading to an annual 5% to 10% loss in the value of cash reserves. Adopting Bitcoin as a reserve asset fulfills a fiduciary duty to preserve shareholder value, establishing the cryptocurrency as the fundamental hurdle rate for operating companies. MicroStrategy serves as a primary case study for this strategy, leveraging its status as a public company to use bonds and convertible notes for a massive capital arbitrage. By doubling its Bitcoin-per-share holdings in less than a year, the firm demonstrates a high-execution model that captures monetary premiums from traditional assets like real estate and bonds. This scalable arbitrage opportunity targets a $200 trillion addressable market, allowing companies to accumulate Bitcoin before it reaches full saturation and its growth rate stabilizes.