Generating treasury yield via covered calls
The thesis argues that companies can generate incremental yield on their Bitcoin holdings by selling short-dated covered calls to cover operational expenses.
The argument
The speaker explained their 'Spot Plus' program, which sells short-dated, low-delta covered calls to capture volatility premium. This strategy is designed to meet predictable cash flow needs like salaries and power bills while retaining upside on the remaining treasury.
The thesis, stress-tested
✓ What validates it
- ✓Consistently outperforming spot market sales prices over multiple quarters
- ✓Successful execution of option strategies without disrupting operational cash flows
▸ Risks discussed
- ▸Forfeiting significant upside during rapid Bitcoin price spikes
- ▸Underperforming a simple buy-and-hold strategy in a strong bull market
Hear it yourself
"So we just sell short-dated covered calls, right? And so what's interesting about short-dated covered calls is, yeah, even as volatility has compressed, the kind of total all-in cash-on-cash or sats-on-stats return you're getting is incredibly attractive, right?"
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