Jeff Walton

"These instruments are targeting that entire market... people that would never buy Bitcoin ever. Like they literally can't. It's just a mandate." By offering high-yield (11-12%+), liquid preferred equity instruments backed by Bitcoin, treasury companies are tapping into the massive $200-$300 trillion global fixed-income market (pensions, insurance companies). As these traditional institutions buy the preferred equity for the yield, the issuing companies use that capital to buy spot Bitcoin. This creates a massive, continuous structural bid that drives up BTC prices regardless of retail sentiment. LONG because the plumbing of the market has changed, bringing unprecedented institutional capital inflows into the asset that were previously sidelined. A systemic collapse in the broader global credit markets, or a catastrophic drop in Bitcoin's price that forces treasury companies to liquidate their holdings to cover dividends.