Strive CEO: Permanently long Bitcoin, short the US dollar; long-term currency depreciation is irreversible.

BlockBeats news, October 19: Matt Cole, CEO of Bitcoin treasury company Strive, published a post outlining his investment framework. He pointed out that long-term money supply trends are an important reference for assessing the cost of capital. History over the past 55-plus years proves that scarce assets have consistently outperformed currency debasement. Since 1970, gold's compound growth rate has been 9.0%, versus M2 at 6.7% over the same period; since the global financial crisis, the figures are 9.5% and 6.3% respectively; and since the COVID-19 pandemic, they have reached 18.3% versus 6.5%. Cole believes that Bitcoin, as digital gold, is a superior store of value and is still in its early stages; as it matures, its performance should surpass gold. As long as the long-term currency debasement trend continues and the debt crisis keeps worsening, the excess returns of scarce assets relative to the US dollar will continue to accelerate.

Regarding the company's strategy, Cole emphasized that the "Amplification Ratio" is the decisive factor for Strive to outperform Bitcoin, not the cost of capital. Building and maintaining a high amplification ratio without getting liquidated is extremely difficult, and most investors have not yet understood or fully priced in the moat Strive has built around high Bitcoin amplification and high liquidity; they will only wake up once Bitcoin hits a sustainable new high.

Cole also criticized consensus investors for still focusing excessively on the cost of capital and fiat cash flows, which is like picking up pennies in front of a debasement steamroller. Once one truly understands the Bitcoin standard, the core principles become crystal clear: maximize and permanently short the US dollar and go long Bitcoin.

In addition, yesterday Matt Cole posted a chart of Bitcoin holdings data with the caption "Now stacking sats with double the horsepower," hinting at upcoming disclosure of increased BTC holdings. Strive recently added another 2,822 bitcoins between October 12 and October 13, at an average price of about $83,266 per coin. The purchase cost $235 million, bringing its Bitcoin holdings to 35,600 coins.