Bitbonds

It appears that some investors are being really creative when it comes to debt interest payments reduction. A private firm is proposing a new idea for the government to execute in order to solve the debt problem, and that idea is called Bitbonds. How do they work? The proposed idea will allow the Treausry to issue $2Tn of bonds, where 10% of the notional would be invested in Bitcoin and the remainder would fund the government. Instead of carrying an interest of 4.5%ish, it would have a 1% coupon with a kicker of 50% of bitcoin proceeds. The other 50% would be paid to the government. As in every Wall Street deck, the 10 year projections for Bitbonds results look fantastic. Furthermore, the words tax free appear frequently in the presentation (see the link below). Let’s see if institutional investors bite. Would YOU buy these Bitbonds?

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Source: https://x.com/tftc21/status/1899576324727115936?s=46&t=ZWNRoH4GDjskpTP3f_BZ_A