“There’s a sentiment in Bitcoin that is not overly euphoric at the moment. It’s almost like negative or concerned.” – 02:02
Matt Cole, Chairman & CEO at Strive Asset Management, joins Remy Blaire to discuss the current state of Bitcoin and its implications in the financial markets. The segment opens with a focus on Bitcoin’s recent surge, breaking above $117,000, amid expectations of a 25 basis point rate cut by the Federal Reserve later that day.
Remy and Matt delve into Strive’s ambitious plan to accumulate Bitcoin following its merger with asset entities, which successfully raised $750 million. Matt explains that the company has also authorized a $500 million stock buyback and plans to issue a perpetual preferred equity security to finance additional Bitcoin purchases.
As the conversation shifts to the long-term price action of Bitcoin, Matt emphasizes the significance of global liquidity conditions, interest rates, and the strength of the dollar. He notes that while Bitcoin has not yet reached its all-time highs, it is closely tracking gold, which has recently hit record highs. Matt believes that once Bitcoin surpasses gold’s performance, it could trigger a substantial bull market for Bitcoin.
Remy inquires about price targets, and Matt shares his perspective on the evolving nature of Bitcoin cycles. He suggests that the relevance of halvenings may diminish over time, predicting a medium-term target of $500,000 for Bitcoin, driven by the ongoing debasement of the dollar.
The discussion also addresses the risks associated with managing a large Bitcoin accumulation strategy. Matt reassures listeners that Strive’s balance sheet, backed by Bitcoin, presents a unique opportunity compared to traditional companies that rely on uncertain future cash flows. He highlights the strength of Strive’s board, which includes experienced individuals from the industry, such as Sharish, who has a background in building Bitcoin balance sheets.