Trump’s 25% Tariffs: The Fiat Endgame and Bitcoin’s Ascent Trump just dropped a 25% tariff on steel and aluminum, and the financial media is stuck debating whether it’s “good” or “bad” for the economy. Cute. Let me translate: This is a desperate attempt to shield the U.S. manufacturing base from the economic gravity of its own currency devaluation. The Fed prints, the dollar weakens, and now protectionism is the only way to stop foreign producers (who aren’t chained to Jerome Powell’s balance sheet) from eating America’s lunch. But here’s the kicker: Tariffs don’t fight inflation. They are inflation. The cost of everything metal-based (cars, buildings, infrastructure) just went up overnight. Powell will pretend this is “temporary,” but the supply chain isn’t built for reversals. Once input costs rise, they stick. Meanwhile, China and BRICS nations are watching, smirking, and stacking hard assets. When tariffs go up, trade partners don’t say, “Oh no, guess we’ll take the loss.” They retaliate. Expect more dedollarization moves, more trade settlements in yuan, and more stealth dumping of U.S. Treasuries. And Bitcoin? Bitcoin doesn’t need a trade war or a tariff-induced supply crunch. But it thrives when sovereign incompetence accelerates its own obsolescence. Tariffs are just another step in the unwinding of dollar hegemony, another nail in the coffin of an empire taxing its own citizens via inflation while pretending it’s punishing foreign producers. The market will take a few days to process this. But when it does, the message is clear: Fiat systems need intervention. Bitcoin doesn’t. The long game isn’t hard to see when you’re not trapped in the fiat fog.

Michael Saylor is closing in on half a million BTC. •471,107 BTC and counting. •$45.3 billion in Bitcoin. •Up nearly 50% all-time. •Strategy has no brakes, only green dots. This is the most ultimate form of the monetization of energy the human race has ever seen. The dollar cost average is becoming a relic. Another few thousand potential whole-coiners vanishing.

The S&P 500 inclusion isn’t a magic wand that instantly sends the price vertical, it’s a long-term catalyst that forces institutional realignment, liquidity inflows, and index rebalancing over time. The reason it’s down post-Nasdaq inclusion is likely due to profit-taking, short-term repositioning, or macro factors… none of which negate the inevitable demand shock when S&P index funds are forced to buy.

Saylor vs. Buffett: The Death of TradFi Warren Buffett, once the undisputed king of capital markets, now stands at a crossroads. On one side, a $325 billion cash hoard, the largest in Berkshire Hathaway’s history, sits idle, waiting for “opportunities.” On the other, Michael Saylor, the CEO-turned-Bitcoin-philosopher, has weaponized balance sheets by converting dollars into an asset with zero counterparty risk and infinite upside. The contrast couldn’t be more stark: One man clings to TradFi orthodoxy, the other pioneers the financial future. Buffett’s Achilles’ heel is his deep miscalculation of monetary debasement. For decades, he played the fiat game well, exploiting inflation by holding productive businesses and cash-flowing assets. But what happens when cash itself becomes the toxic asset? His $325 billion pile is melting year over year as M2 expands. While the pace varies, 26.9% in 2021, 3.7% in 2024, the trend is clear: The Fed prints, and dollars bleed purchasing power. Buffett isn’t playing the same game anymore; the game has changed. The difference is understanding the new risk-free asset. Buffett sees treasuries as the safe haven; Saylor sees Bitcoin. Let’s run the numbers: Buffett’s Cash: $325 billion sits in treasuries, yielding a fraction of real inflation while losing value against scarce assets. Saylor’s Strategy: 471,107 BTC, worth $47.1 billion at $100,000 per coin, acquired at a far lower cost basis. The Result: Strategy’s capital compounds exponentially with Bitcoin’s monetization, while Buffett’s cash stagnates and devalues, waiting for “deals” in an era where fiat is the worst asset in existence. Buffett calls Bitcoin “rat poison squared.” The irony? Fiat is the poison—slow, creeping, and destructive. The M2 money supply debases capital year after year, and holding cash is equivalent to holding a melting ice cube. Buffett knows this, yet refuses to acknowledge the exit ramp. Why? Because the entire TradFi structure, his kingdom, is built on fiat-based valuations. If he recognizes Bitcoin as superior, he admits that his life’s work is being outmoded. The End of TradFi This isn’t just about Buffett. It’s about a generational shift in capital allocation. Legacy investors still cling to outdated models: discounted cash flows, equity valuations, bond spreads. The next generation understands that the true risk-free asset isn’t the 10-year treasury, it’s digital scarcity. The capital is flowing to Bitcoin and it’s fleeing TradFi. The old guard will die off, not because of age, but because their worldview can’t process a world where the apex asset is no longer government-backed. Buffett’s empire will be overtaken, not by stock-pickers, but by those who understand that money itself has changed. Saylor is proving, in real-time, that capital markets are undergoing the greatest rotation in history. Bitcoin isn’t a speculative asset; it’s the new financial foundation. Those who don’t adapt will watch their wealth erode while the digitally native financiers take over. Buffett had his era. Now it belongs to the cyber hornets.

@b23red I think a lot of people get hung up on BTC yield and accretion because the stock price is denominated in USD. But pricing in the ability to leverage so heavily obviously warrants a heavy premium IMHO. I also don't understand how some people don't grasp this :)

As global debt spirals, hyperinflation accelerates, and institutions scramble for the hardest asset in history, Strategy becomes the de facto Bitcoin central bank, controlling a treasury larger than most sovereign nations. With BTC supply locked in cold storage, liquidity dries up, forcing corporate treasuries, pension funds, and nation-states to bid for scraps at seven-figure Bitcoin valuations. At $10M BTC, Strategy’s market cap eclipses the entire S&P 500. This is inevitable.

@MrKaidB Thank you Mr. Kaid! That means a lot! Super passionate about Saylor's financial engineering... I'm gonna keep covering this for the next few years, until we're past the moon and into the rest of the solar system :)

@ruomarap It's gone down $5 per share since Nasdaq inclusion on December 23rd.

Strategy as a Bitcoin Bank: A Capital Markets Masterstroke This is arguably the most bullish aspect of the MSTR trade: 🔹 The Evolution: From Corporate Treasury to Bitcoin Bank The Core Thesis: Strategy is uniquely positioned to become the world’s first Bitcoin-native financial institution, using its 471,107 BTC as a monetary base for a new capital markets structure. First-Mover Advantage: No other publicly traded entity has EVER accumulated Bitcoin at this scale. Strategy’s ability to structure institutional lending, structured products, and liquidity facilities around BTC holdings places it ahead of both traditional banks and crypto-native firms that lack balance sheet credibility. Regulatory Positioning: Traditional banks are constrained by Basel III capital requirements and lack direct exposure to Bitcoin as Tier 1 capital. Strategy, as a non-bank entity, operates in a regulatory gray zone, @saylor has a massive opportunity to be able to offer BTC-backed financial products without the onerous reserve and reporting requirements of a traditional banking institution. Just as J.P. Morgan consolidated gold reserves in the early 1900s to backstop financial markets, Strategy can do the same with Bitcoin, acting as the central liquidity node in a Bitcoin-denominated economy. 🔹 Core Bitcoin Banking Products & Financial Mechanics: 1️⃣ Institutional Custody & Liquidity Solutions BTC as Core Collateral: Strategy holds one of the largest BTC reserves on Earth, making it the gold standard for institutional-grade custody. Prime Brokerage Services: Institutions looking for deep liquidity can borrow, lend, and hedge BTC exposure through Strategy, eliminating exchange counterparty risks and slippage from fragmented markets. On-Chain Auditable Reserves: Unlike traditional banks that engage in fractional reserve lending, Strategy can offer real-time proof-of-reserves, establishing trust in a Bitcoin-native financial system. 2️⃣ Bitcoin-Collateralized Loans (BCLs) & Liquidity Facilities Traditional Finance Parallel: Comparable to securities-backed lending, Strategy can offer BTC-backed credit lines to institutions, HNW individuals, and corporations - eliminating the need to sell BTC for liquidity. Interest Rate Arbitrage: With traditional banks charging 7-9% for unsecured business loans, Strategy could issue BTC-backed loans at significantly lower rates while maintaining zero credit risk (as liquidations occur programmatically on-chain). Key Metric – BTC Loan-to-Value (LTV) Ratios: Conservative Model (50% LTV): Ensures price volatility doesn’t trigger immediate liquidations. Aggressive Model (80% LTV): Higher risk but allows for greater capital efficiency, similar to gold-backed lending structures used by central banks. 3️⃣ Structured Products: Bitcoin Yield & Derivatives BTC Repo Market: Bitcoin repo agreements (BTC lent in exchange for stablecoin collateral) could create deep two-sided liquidity, much like the U.S. Treasury repo market. Covered Calls & Yield Enhancement: Institutional clients seeking yield can sell covered calls against BTC holdings, which means they can monetize BTC’s volatility without liquidating core positions. Bitcoin Bond Issuance: Strategy could underwrite BTC-denominated corporate bonds, offering a direct yield instrument for BTC holders. The obvious historical parallel of this are the early 20th-century gold bonds, where corporations issued debt backed by hard assets rather than fiat obligations. 🔹 Liquidity Constraints & Market Structure Bitcoin’s Supply Constraint: Only 21 million BTC will ever exist. Strategy already controls ~2.24% of total future supply. Institutional adoption will exacerbate supply-side illiquidity, driving a structural price imbalance over time. OTC Market Fragmentation: Institutional investors face high slippage and poor execution in OTC Bitcoin markets. Strategy’s balance sheet can act as a central liquidity provider, aggregating orders and reducing execution inefficiencies. 🔹 Key Metrics & Price Implications Bitcoin Liquidity-to-Market Cap Ratio (LMC): Unlike traditional asset classes, BTC’s free float is shrinking due to long-term holders and corporate treasuries. Strategy’s role as a liquidity hub constricts supply even further, amplifying BTC’s volatility profile. M2 Monetary Expansion vs. BTC Scarcity: While global M2 money supply continues to expand at ~7% YoY (let's call this an average hopefully, M2 expansion during the COVID years is the most destructive US government financial action in history), BTC supply issuance remains at 1.75% pre-halving (2024) and 0.875% post-halving (2028). This creates a structural demand imbalance that could see BTC reprice similarly to scarce monetary metals. Projected Price Impact (2025-2030) Institutional Bitcoinization Scenario (5% Global AUM Shift to BTC) $500T in global assets under management (AUM). 5% allocation = $25T BTC demand influx. Given finite BTC supply, implied price: $1M+ per BTC. 🔹 Strategy’s Role in the Hyperbitcoinized Future From Corporate Treasury to Bitcoin Central Bank: Strategy’s BTC holdings already dwarf most central bank gold reserves. Its ability to create BTC-backed financial instruments positions it as the J.P. Morgan of the Bitcoin era. Market Impact: As Strategy moves deeper into Bitcoin banking, expect: Supply-side liquidity crunches. Increased BTC institutionalization. A structural repricing of Bitcoin toward a six-to-seven-figure valuation. Investor Takeaway: Own Bitcoin before liquidity constraints drive exponential revaluation. (leveraged play by MSTR investment? YOU BETCHA!) Watch Strategy’s moves carefully - its balance sheet is the leading indicator of BTC’s monetization curve. Strategy is surely becoming the monetary base of a new Bitcoin capital market.

@MMMicroStrategy @saylor @MSTRTrueNorth @PunterJeff @TheBTCTherapist @MSTRUpdates @stackhodler @BenWerkman @hillery_dan Love the content! I love the daily updates for anything I might of missed regarding this trade :)

@VanGoyen1 100%… good call out!

@jemai_melek @PunterJeff Haha! I'd be honored if one day that were to happen. If I'm totally honest, the early Quant Bros episodes got me 100% sold on this trade. My conviction is growing by the day the more I study it :)

@AwareWealth Thanks Gael! We're going HIGHER!

@BitStrategy21 If by 'exist' you mean a hyperinflated relic of delusion, limping along like the Venezuelan bolívar, then sure, why not? But if you mean a relevant, functioning unit of account, then no. It's already on borrowed time. Bitcoin is inevitable.

@elonmusk Elon, thoughts on a US Bitcoin Reserve?

Bitcoin's digital architecture is an echo of cosmic symmetry. Just as the heavens are governed by precise laws that ensure the harmonious dance of celestial bodies, Bitcoin is governed by protocols that enforce a structure of unparalleled consistency and reliability. In this framework, value emerges naturally. Its legitimacy is not granted by external authorities but by a self-validating mechanism that reflects an unchanging pattern, a digital geometry that mirrors the inherent order of the universe. It is a system where every transaction, every cryptographic proof, resonates with the same mathematical certainty that underpins the natural world. Bitcoin becomes a beacon, a locus where the eternal and the digital converge. It is the modern vessel for an age-old search: a search for a currency that transcends the transient, that encapsulates the immutable laws of nature and reason. In every node that validates its transactions, in every hash that secures its history, lies an assertion of something far more profound than mere utility. It is a declaration that true value, much like beauty or truth, is an ideal to be discovered rather than manufactured. Is is the spark of cosmic order in a chaotic universe.

🚨 Institutions, Stablecoins, and the Strategy Endgame 🚨 Alright kiddos, listen up. The pieces are moving, the liquidity floodgates are cracking, and the fiat overlords are fumbling their way toward inevitable Bitcoin adoption. You don’t need a tinfoil hat to see where this is headed. Institutions are coming. Stablecoins are getting locked in. And Strategy ($MSTR) is sitting dead center, primed to reap the rewards. Here’s why this is absurdly bullish for Strategy: 🔥 Institutional Bitcoin Adoption: The Final Stage of Hyper-Financialization BlackRock, Fidelity, and the rest of TradFi have finally figured out what Bitcoiners knew a decade ago: The only way to survive fiat decay is to stack hard assets and there’s nothing harder than Bitcoin. We’re watching them roll out ETFs (even Trump himself), prime brokerage services, and quietly accumulate BTC behind the scenes. When these firms inevitably start allocating directly onto their balance sheets? That’s a one-way ticket to a BTC supply crunch. And when Bitcoin supply shrinks, Strategy, the biggest publicly traded BTC holder, becomes the most obvious way to get exposure. 💰 Stablecoin Legislation: The Trojan Horse for Bitcoin Demand Let’s talk stablecoins. You think it’s a coincidence that Congress is moving toward regulating them? Not a chance. Governments are realizing that stablecoins aren’t just “crypto” as they’re becoming the backbone of the future financial system. And here’s the kicker: every regulated stablecoin that gains adoption increases demand for Bitcoin. Why? Because stablecoins are only as good as the confidence behind them, and the more capital flows into digital dollars, the more liquidity enters crypto markets. More liquidity = more BTC exposure = more upward pressure on Bitcoin’s price. 🚀 Strategy’s BTC Hoard Becomes the Ultimate Liquidity Sink Let’s break it down: ✅ Institutions must hold BTC to hedge against dollar debasement. ✅ Stablecoin adoption expands crypto market liquidity. ✅ Bitcoin’s inelastic supply means price must increase. ✅ Strategy, holding 471,107 BTC, benefits every time institutions or stablecoins push Bitcoin’s value higher. It’s basic game theory. If you believe stablecoins are inevitable and institutional adoption is accelerating (which are two obvious facts), owning MSTR is an asymmetric bet on Bitcoin’s monetization. ⚡ The Corporate BTC Playbook: “Just Do What Saylor Did” Here’s the thing about market leaders: once they prove a strategy works, everyone else follows. Strategy already demonstrated how corporations can leverage debt to accumulate Bitcoin and turbocharge their balance sheets. If more companies follow suit, (which they obviously will and already are), you better believe they will once BTC breaks new all-time highs. MSTR won’t just be the first-mover; it’ll be the benchmark. The TradFi crowd won’t just be forced into Bitcoin, they’ll be forced into Strategy, the original BTC corporate whale. 🎢 The Path Forward: More Volatility, More Attention, More Value Regulated stablecoins mean more capital flowing into digital assets. Institutional Bitcoin adoption means more long-term BTC holders. Strategy is sitting at the intersection of both: as the largest public BTC holder and the original corporate Bitcoin pioneer. Translation? We’re staring down the barrel of a historic supply squeeze. And when Bitcoin moves, Strategy moves harder. The writing’s on the wall: 🏛️ Institutions can’t ignore Bitcoin anymore. 💵 Stablecoins will onboard trillions into digital finance. 🔷 Strategy owns more Bitcoin than any other public company. Do the math. Then buy the ticket, take the ride.