Bitcoin Bonds • Treasury Innovation • Capital Markets
BitBonds
The Aligned Solution
The U.S. needs to refinance $14T in debt.
Investors want protection from inflation and asset debasement.
90% Treasury
Stable, government-backed bond
10% Bitcoin
Full BTC upside exposure
How It Works
- 🔗Full BTC upside until you reach a 4.5% annual return.
- 🔗After 4.5% YTM, any additional BTC gains are split 50/50 between the investor and the US government.
- 🔗Sale Value: $100 → Redemption: $90 + BTC Value
Why BitBonds?
BitBonds on the federal, state, and municipal levels would be a game-changer—reducing debt burdens, boosting purchasing power, and making everyday life more manageable. By indexing repayment to the hardest asset on Earth—Bitcoin—BitBonds could restore trust in public debt, unlock dormant capital, and turn inflationary liabilities into deflationary incentives.
The French Precedent
In 1952, France faced a similar crisis of confidence in government debt. Antoine Pinay's solution? Bonds indexed to gold. The result? 17 tons of gold unlocked from private savings in just four days. This proved that aligning investor interests with inflation-resilient assets can restore faith in sovereign debt.
The Modern Solution
BitBonds are inflation-resistant bonds indexed to Bitcoin's value, offering:
- 📈Principal guaranteed (denominated in fiat or BTC)
- 💸Interest paid in BTC or BTC-linked value
- 🛡️CPI-beating performance via BTC's historical CAGR (~35%)
- 🧱Settlement rails via Ethereum/Solana, using tokenized BTC
Real-World Example
Consider a $100M BitBond from a company like Nike:
- 🎯Principal: 100% guaranteed
- 💰Interest: 10% annual, paid in BTC
- 💎Backed by: 35% of principal in BTC reserves
- 📊Expected outcome: 2.5x return over 7 years
Sovereign Potential
Governments can use BitBonds to:
- 🔓Tap into crypto wealth avoiding fiat systems
- 🧲Attract international capital via hard-asset-linked securities
- 🔄Align government incentives with sound money principles
- 🌐Issue programmable, fractionalized, globally tradable debt
The question isn't whether we can afford to issue BitBonds. It's whether we can afford not to.
The Bitcoin Bond Revolution
The Zero-Risk Model
The issuer of BitBonds maintains zero Bitcoin exposure. Through intermediaries like Cantor, the Bitcoin-linked cash flows are swapped for traditional fixed or floating rate debt, resulting in cheaper financing costs for the issuer.
Retail Investor Appeal
BitBonds are designed to be instant hits with retail investors seeking Bitcoin exposure. They can offer high coupons and yields even under modest Bitcoin growth assumptions, making them attractive investment vehicles.
The Saylor Effect
Following MicroStrategy's success with $STRF and $STRK, sovereign and municipal BitBonds could be even more powerful. A triple tax-free municipal BitBond yielding 10% would be revolutionary in the fixed income market.
The Ultimate Strategy
The true power of BitBonds as a Service (BBAAS) lies in the residual Bitcoin accumulation. By structuring these instruments correctly, issuers can potentially accumulate more Bitcoin than even MicroStrategy, creating a new paradigm in treasury management.