Inside OranjeBTC’s New Bitcoin Equity ETF
Speakers
Sam Callahan
— Director of Strategy & Research at Orange BTC
Gareth Jenkinson
— Host & Head of Multimedia, The Block
Summary
Gareth Jenkinson opens with The Block Briefing covering Bitmine's ETH treasury, IREN's Microsoft AI deployment, Harmony's rollback, US stablecoin rulemaking, and Ripple's Asia expansion. The main interview features OranjeBTC's Sam Callahan discussing the new Digi11 Bitcoin preferred equity ETF for Brazil, Strategy's STRC capital structure and Bitcoin accumulation strategy, and MSTR's long-term setup. Sam also explains Bitcoin's temporary decoupling from global M2 and OranjeBTC's treasury approach.
- Gareth recaps crypto news including Bitmine's ETH purchases, IREN-Microsoft AI progress, Harmony's network rollback, stablecoin rulemaking, and Ripple's Korean bank partnership.
- Sam Callahan introduces Digi11, Brazil's first monthly income ETF focused on Bitcoin preferred equity.
- Digi11 initially holds about 95% STRC and 5% Strive SATA with BRL currency hedging and daily liquidity.
- Strategy is building a USD reserve and supporting STRC to restore it toward par and preserve its Bitcoin accumulation machine.
- MSTR is framed as amplified Bitcoin exposure that requires a long-term horizon.
- Sam says Bitcoin's global M2 correlation has temporarily broken but should return over time.
- OranjeBTC is accumulating Bitcoin and avoiding DeFi yield strategies due unquantifiable protocol risk.
Ideas
Brazil's first Bitcoin preferred equity income ETF
OranjeBTC launched Digi11 as Brazil's first monthly income ETF focused on Bitcoin preferred equity. The fund is passive, currency-hedged, offers daily liquidity, and initially holds about 95% STRC and 5% Strive SATA. It aims to pay monthly distributions in Brazilian reais and gives Brazilian investors a genuinely different income source derived from large corporate Bitcoin balance sheets rather than the usual Brazilian bank, government, or property risk. OranjeBTC estimates it could return CDI plus 3 to 5 percentage points.
STRC is Strategy's best Bitcoin accumulation tool
Strategy is deliberately strengthening its balance sheet and capital structure by building a USD dividend reserve to around $4.8 billion, executing STRC buybacks, and creating a Bitcoin monetization program. Management views STRC as the most accretive long-term vehicle for accumulating Bitcoin for common shareholders, so getting STRC back to par and reducing its volatility is key to Strategy's 5-10 year Bitcoin accumulation machine. Sam Callahan says he is supportive of these moves.
MSTR benefits from stronger capital structure
MSTR is amplified Bitcoin exposure that should underperform Bitcoin in bear markets and outperform in bull markets, so investors need a long time horizon. Recent moves to pay down convertible debt, strengthen the USD reserve, and support STRC reduce senior obligations and hard cash liabilities, making the broader capital structure more resilient and ultimately allowing more Bitcoin accumulation. Long-term MSTR shareholders should therefore view these actions as positive despite short-term price pain.
Bitcoin's global M2 correlation should return
Bitcoin's correlation with global M2 has temporarily broken down because of crypto-specific deleveraging, long-term holder profit-taking, and liquidity being siphoned by prediction markets, AI stocks, and anticipated IPOs. Historically these breakdowns have occurred and then reverted. Sam expects the relationship to return, and OranjeBTC is accumulating Bitcoin around 50% off all-time high because it sees a great opportunity to increase Bitcoin holdings and Bitcoin per share.
