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Paper Trail of Tears

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by Coinbits
Friday, Sep 26, 2025 - 18:33

The world of institutional investors is now confronted with the sad truth. Trillions of dollars are trapped in private equity and credit structures run by managers who are failing to fulfill their fiduciary duty. While fund managers cling to fiat benchmark-beating narratives, they're orchestrating slow-motion wealth destruction by avoiding bitcoin.

Why do they do this? Because bitcoin does two things that makes it hard for them to change.

First, it’s a completely different system than the one they learned, so many investors end their thought process at, “it shouldn’t work.”

And second, it makes their jobs obsolete. As Upton Sinclair famously wrote, “It is difficult to get a man to understand something when his salary depends upon his not understanding it.”

Battery Finance CEO Andrew Hohns argues that, "There is a need for these investors to act with moral courage, because deep down they know that even though they're in line or modestly outperforming the benchmark, they are doing their clients a disservice."

The math is brutal. Credit sleeves that "keep up" with benchmarks lose value in real terms once fees and inflation are factored in. Meanwhile, institutional managers refuse to acknowledge their largest risk is denominating client wealth in currency that has been specifically designed to lose purchasing power and route asset value gains to the politically connected.

Moral courage is needed, but not logic. After all, the math maths – when you study bitcoin, it’s easy to recognize the tremendous value of a global monetary network featuring sixteen years of 99.99999% uptime and perfect audibility.

As Vivek Ramaswamy notes, "The private sector will adopt bitcoin first. What seems unthinkable today will be obvious in hindsight."

NEWS

Circle considers reversible transactions for USDC, further abandons core bitcoin principles

Circle is reportedly exploring ways to reverse USDC stablecoin transactions to address fraud and disputes. Circle President Heath Tarbert believes allowing refunds similar to traditional finance would help push stablecoins into mainstream adoption.

Settlement finality under attack

Reversible transactions would be a fundamental departure from one of bitcoin's core innovations: thermodynamically-secure final settlement that requires no trusted, centralized “registry” of valid transactions. Circle's willingness to sacrifice immutability for mainstream acceptance demonstrates why stablecoins, for all their hype, cannot offer a truly decentralized monetary system.

Bitcoin treasury companies resort to debt-funded share buybacks as valuations decline

At least seven companies that pivoted to bitcoin treasury strategies are launching share buybacks funded by debt as their stock prices tumble below the value of their bitcoin holdings. ETHZilla secured $80 million in debt for a $250 million buyback after its stock dropped 76%, while Empery Digital expanded its debt facility to $85 million despite holding more bitcoin than its market cap.

Market inefficiencies create acquisition opportunities

When firms trade below their net asset value (NAV), it creates prime M&A opportunities – exactly what we saw with Strive Asset Management's acquisition of Semler Scientific, discussed in last week’s edition of this newsletter. Expect more consolidation as the market works out how to price these new vehicles.

Digital euro delayed until 2029 as European bureaucrats fumble yet again

The European Union's central bank digital currency project faces another setback, with ECB Executive Board member Piero Cipollone now forecasting a mid-2029 launch. The digital euro has been under development since October of 2020 with the European Parliament cited as the primary obstacle to progress. Scrutiny over the project continues to grow as ECB members believe that a digital euro will cause them to lose yet more control over their own economies.

Europe chooses surveillance over innovation

While Europe debates implementing a privacy-compromising surveillance system, bitcoin continues advancing globally without permission from any parliament or central bank.

Tether seeks $500 billion valuation in potential $20 billion funding round

Tether is reportedly in talks with investors to raise up to $20 billion at a $500 billion valuation, which would rank it among the world's most valuable private companies alongside OpenAI and SpaceX. The stablecoin issuer recorded $4.9 billion in net profit during the second quarter of 2025.

Bitcoin-focused leadership drives massive profitability

Although Tether is in the business of stablecoins, CEO Paolo Ardoino has repeatedly affirmed the company's commitment to bitcoin, positioning USDT as a bridge to bitcoin adoption rather than a replacement for it. This bitcoin-centric vision, combined with massive profits from treasury management, demonstrates how companies aligned with bitcoin's mission can achieve extraordinary valuations even in adjacent markets.

 

BITCOIN ADOPTION CONTINUES

Metaplanet launched U.S. and Japanese subsidiaries with $15 million capital to expand bitcoin derivatives trading and media operations while structurally separating its core bitcoin holdings from revenue activities.

Coinbase CEO Brian Armstrong predicts bitcoin could reach $1 million by 2030, citing regulatory clarity, government reserves, and ETF adoption as key drivers while warning of resistance from banking lobbyists.

Michigan's House Bill 4087 advances to committee stage, allowing up to 10% of state funds to be invested in bitcoin and other digital assets through secure custody solutions.

UK-listed company B HODL purchased 100 bitcoins worth $11.3 million immediately after its Aquis Stock Exchange IPO, becoming one of the first British firms to adopt a corporate bitcoin treasury strategy formally.

OranjeBTC will debut on Brazil's B3 stock exchange in October with 3,650 bitcoins worth $410 million, becoming Latin America's first publicly traded company 100% focused on bitcoin accumulation.

Morgan Stanley will add bitcoin trading to its E*Trade platform in the first half of 2026, partnering with Zerohash to provide retail investors direct access to bitcoin alongside traditional assets in their brokerage accounts.

HOW BITCOIN WORKS

Learn one key idea about bitcoin each week. This week:

How Sovereign States Join the Bitcoin Revolution

The sovereign adoption of bitcoin is accelerating rapidly. According to recent research from the Bitcoin Policy Institute, 32 countries – roughly one in six worldwide – either have active bitcoin exposure or are pursuing it through legislation. This is a massive change since just a few years back when tiny El Salvador made headlines as the first country to publicize an aggressive bitcoin strategy.

Countries are choosing various different pathways. Strategic Bitcoin Reserves (SBRs) have emerged as a common thread, with 16 nations proposing or enacting legislation to hold bitcoin as a national reserve asset. The United States leads this trend, establishing an SBR through executive order and directing that bitcoin holdings "will generally not be sold and will be maintained as reserve assets."

Government-backed mining operations represent another adoption route, with 14 countries using their excess electricity to mine bitcoin directly. Nations like Bhutan have accumulated massive bitcoin holdings through hydroelectric-powered mining operations, while countries like Argentina are expanding their mining initiatives using flared natural gas.

Other creative approaches include accepting tax payments in bitcoin, utilizing sovereign wealth funds for purchases, and maintaining "passive holdings" from law enforcement seizures without selling them.

What all of these have in common is that governments are choosing to hold bitcoin rather than immediately liquidating it.

The game theory is compelling. Early-adopter countries gain a durable advantage while those who wait risk missing out. As the report notes, "the calculus may shift from fearing the risks of early adoption to fearing the costs of adopting too late."

With bitcoin's fixed supply of 21 million coins and sovereign demand increasing globally, nations are recognizing that accumulating this scarce digital asset could provide significant strategic advantages. The question is no longer if nations will adopt bitcoin, but how quickly they'll act before their competitors do.

COIN CHECK

What were the French revolutionary paper currency notes called that caused massive inflation and economic collapse in the 1790s?

A. Assignats

B. Solana

C. Francs

D. Livres

Check your answer at the end of the page.

FROM THE MEME POOL

 

Follow us on X for more fresh content 

ANSWER

A) Assignats.

Assignats were paper money notes issued by the government during the French Revolution. They were initially backed by confiscated church and noble lands but eventually printed in massive quantities, leading to hyperinflation and economic devastation. Assignats became virtually worthless, requiring wheelbarrows full of notes to buy basic goods, before the government finally abandoned them in 1797. Everyone remembers Weimar, but historical examples abound that illustrate the dangers of fiat currency.

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