Bitcoin-Backed Municipal Bonds Are Here

Join us at the 3rd Annual Bitcoin Investor Week! The 3rd annual Bitcoin Investor Week is returning to NYC on February 9th - 13th. This is the largest gathering of serious bitcoin investors in the world. 2,500+ people are expected this year. Speakers include Jan van Eck, Lyn Alden, Jeff Park, Anthony Scaramucci, Matt Cole, Caitlin Long, Dan Tapiero, Mark Yusko, Brandon Lutnick, Fred Thiel, and many others. TICKETS: https://bitcoininvestorweek.com Get Your Tickets Now To investors, The idea of a bitbond has long been floated by bitcoin proponents as a potential solution to the government debt problem. I explained them back in my June 3rd letter . Here is an excerpt: Sam Lyman writes for Forbes : “BitBonds are like regular bonds in the sense that Treasury would allocate 90% of the bond to fund the government. But it would then use the remaining 10% of funds to purchase bitcoin…Upon maturity, investors would receive 100% of the bitcoin upside up to 4.5% of the total compounded return. After this benchmark is reached, investors would receive 50% of all remaining bitcoin upside. Meanwhile, the government would keep the other 50% of remaining bitcoin upside to supply the strategic bitcoin reserve.” This graphic from the Bitcoin Policy Institute shows how they work: We have obviously not seen these bitbonds used at the nation state level yet. But yesterday news broke that New Hampshire is planning to issue the first bitcoin-backed municipal bond. Eleanor Terrett writes: “On Monday, the state’s business financing agency, the Business Finance Authority (BFA), approved a first-of-its-kind $100 million Bitcoin-backed conduit bond, letting companies borrow against over-collateralized Bitcoin held by a private custodian. While BFA is a state entity, the bond isn’t backed by the state or taxpayers. Instead, BFA acts as a conduit, approving and overseeing the deal without taking on repayment risk, while investors are covered by Bitcoin held in custody by BitGo.” This development at the state level comes in the same year as an explosion of bitcoin-backed credit offerings in the public market. We have seen Michael Saylor’s Strategy bring multiple perpetual preferred instruments to market, along with Metaplanet and Strive following suit. These securities are offering anywhere from 9-12% interest to investors, which is highly attractive in a yield starved world. This is worth paying attention to because it highlights bitcoin is in a transition period. The asset is moving from something that is merely bought as a speculation tool or a pure store-of-value to a financial tool that acts as pristine collateral. I have previously written about bitcoin as pristine collateral from the perspective of dollar loans against bitcoin in an asset-backed lending model. Now we are seeing the next iteration of bitcoin in traditional finance — bitcoin is becoming an asset that can be financed in novel, attractive ways. Investors need volatility. They need yield. And they need new shiny things to continuing growing their client base and revenue numbers. Bitcoin is able to provide all of those things in financial markets. And don’t forget that bitcoin will also be used to help finance government spending at the local, state, and federal level. This is the maturation of an asset right before our eyes. Sophisticated investors know the government will never stop printing money, which means bitcoin will never stop going up over the long run. This gives financial firms and asset managers a superpower when they use bitcoin in their financial products. Bitcoin-backed lending. Bitcoin-backed credit. Bitcoin as collateral for dollar loans. It is all happening right now. The critics are shrinking in size because the data is too overwhelming to ignore. Bitcoin is being integrated into the global financial system. The wolf is in the hen house and no one can get it out now. Hope you all have a great day. I’ll talk to everyone tomorrow. - Anthony Pompliano Founder & CEO, Professional Capital Management Bitcoin Crashes to $89,000 — What Happens Next? Anthony and John Pompliano dive into bitcoin’s latest price action, including the sharp sell-off and rising bear-market fears to what long-term investors should actually do right now. Anthony gets personal, breaking down how he invests, how he thinks about buying vs. selling, and why he separates the “gambling table” from the “long-term lounge.” Enjoy! Podcast Sponsors Figure - Need liquidity without selling your crypto? Figure’s Crypto-Backed Loans allow you to borrow against your BTC, ETH, or SOL with 12-month terms and lowest rates in the industry at 8.91%. 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Learn more about Bitlayer at https://x.com/BitlayerLabs 🚨READER NOTE: If you want to sponsor The Pomp Letter, you can fill out this form and someone from our team will get in touch with you. You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research.