Strive's Jeff Walton Sees $1 Trillion Bitcoin Opportunity in Credit Markets
Bitcoin could attract its next trillion dollars from traditional credit markets as institutional investors increasingly , according to Strive Chief Risk Officer Jeff Walton.Why Strive Raised $700 MillionIn a Bitcoin Magazine interview on Oct. 21, Walton said the company raised almost $700 million through its new SATS perpetual preferred stock offering, exceeding its initial $500 million target.The company sold 7 million shares at $90 each, offering a fixed annual dividend of $15 per share. The investor demand exceeded the final offering size.Notably, two major SATS investors had not participated in Strive’s earlier SATA offering, signaling fresh institutional capital entering Bitcoin-backed securities.Strive after purchasing over 10,000 BTC recently.Where Will BTC’s Next $1 Trillion Come From?Walton believes the next major opportunity lies in bringing BTC-backed preferred securities into traditional rated credit markets.Currently, Bitcoin treasury companies primarily access equity markets and investors willing to purchase unrated preferred securities.Obtaining credit ratings could unlock institutional capital that allocates investments based on ratings rather than independently evaluating individual issuers.“That’s where the next trillion dollars of this capital comes from,” Walton said.He noted that Strive’s offering attracted strong demand even as traditional high-yield credit spreads widened, suggesting growing appetite for alternative credit products."This is a gold rush," Walton said, emphasizing competition among treasury companies to accumulate Bitcoin.Could Treasury Demand Drive Prices Higher?Walton expects rising demand from Bitcoin treasury firms, spot ETFs and credit investors to intensify competition for Bitcoin’s limited supply."If there’s a significant bid, it goes higher," he said.Strive plans to hold 18 months of dividend payments in cash reserves to weather Bitcoin downturns.Walton criticized MSCI’s restrictions on Bitcoin treasury firms, warning they could limit investor exposure.He believes access to institutional credit markets could boost Bitcoin demand, provided new products meet traditional credit rating standards.Preview Image: Shutterstock