Adam Livingston@AdamBLiv
SATA is going to be massive. You just have to look at the total addressable market of retail investor cash sitting in low-risk, liquid vehicles like money market funds and bank savings/checking-style accounts.
13% yield with a potential 1-2% volatility will be the highest Sharpe ratio on the planet. Undeniably competitive, especially in a falling rate environment.
Retail money market fund assets right now is about $3.08 trillion, that is out of $7.75 total MMFs. This data is from ici.org as of this month.
Retail savings accounts and bank deposits are at $10.2 trillion.
Sum the two and you could call it $13 trillion out there yielding 0.4%?
Bitcoin happened to be the perfect base to build a highly liquid, low volatility vehicle that is objectively a better product for retail. The choice is pretty simple at this point, either the average Joe will decide to let his cash position get eviscerated by inflation or he'll keep it in a stock that retains its value and pays 13%, which is likely double the rate of monetary debasement in any given year.
0.1% of $13 trillion is $13 billion, about 13x the size of Strive's Bitcoin hoard currently.
1% is $130 billion.
How quickly can the company scale to a $10 billion balance sheet with zero debt? How soon can the ratings agencies play ball and open up the addressable market for SATA?
The passive bid on Bitcoin from this will be immense, and the growth story for the ASST NAV multiple is totally there. Do you really only assign a 25% premium for 43% amplified Bitcoin with an endless stream of capital additions that are compounding at 20-30% per year?
How does this NOT enable much more issuance of ASST at favorable pricing to the shareholders? Bitcoin compounds, the liability doesn't, coverage ratio improves, risk profile improves... MAN this is quite the machine.
Even in the world where SATA isn't meeting every mandate requirement for allocation, the Bitcoin NAV growth potential is just mind boggling here.
Can't be bearish on ASST or Bitcoin here. Quite the contrary.
