5 Bitcoin Bear Cases Just Got Destroyed w/ Sam Callahan

**Sam Callahan** (0:00)
Bitcoin is no longer evaluated on a standalone basis. It's now evaluated alongside equities, bonds, other commodities, other alternative assets.
And so when there's a risk-off moment, Bitcoin can trade like an equity gets sold off, but that's not really, it doesn't change the fundamental reasons why you hold it in the first place.

**SPEAKER_2** (0:21)
What's up, everybody? It's LGDU Set here, and welcome to The Milk Road Show, the daily crypto show that woke up today feeling bullish, which is a complete turnaround from how we felt going to bed on Friday night. Today is June 8th, 2026 John is off today, so instead of our usual Monday episode, we have a special treat. Today, we're going to dive into Bitcoin and how we're all thinking about it the wrong way as we freak out over the recent price action. Sam Callahan, Director of Strategy and Research at Orange BTC, is here to explain how Bitcoin has grown up as an asset and why the fear in the market right now is just a little too much overblown. Also, our analysts have been busy. They made over 20 trades last week, I'm not kidding. There was like 23 at the deadline on Friday. Some are buying the blood, others are waiting to see how the dip plays out. You can see what they sold and what they bought. For just a dollar in Milk Road Pro, you get seven days in there and you can cancel anytime. Today's episode is brought to you by Cape, the privacy first mobile carrier. Sam, welcome back to the show, man.

**Sam Callahan** (1:15)
Thanks for having me on.

**SPEAKER_2** (1:16)
Okay, so let's get into it. When there are days like last week where we went down like 20% or something, are you, are you, do you freak out? Or are you like, this has to happen for us to go higher? How do you visualize that kind of stuff as somebody we're going to adapt?

**Sam Callahan** (1:31)
I mean, I'm pretty unfazed by Bitcoin short-term volatility at this point. It's not my first rodeo. It's pretty par for the course.
When you're managing a treasury of a public company that holds a lot of Bitcoin, when you're thinking about the capital structure, how much leverage you have, we're always thinking about risks. The main risks that we think about with Bitcoin is its short-term volatility. We're not so much concerned about its long-term potential, its ability to appreciate in value because it's denominated in fiat currencies that continue to be debased. Really, we're just trying to manage our capital structure to be resilient for Bitcoin short-term volatility. It's a characteristic of the asset. This is par for the course. I mean, Bitcoin is a 45-50 vol asset or a little bit over 50% off its all-time highs. This is the volatility that you should expect, but without risk, there's no reward. So, this is typically the volatility goes up into the right over the long-term. You'll have drawdowns like this, but volatility is a gift to those that have conviction in its long-term potential.

**SPEAKER_2** (2:36)
And you guys are buying, right? This is you guys are buying at these levels. This is a juicy level for you.

**Sam Callahan** (2:41)
Yeah, it's great opportunity to lower our average cost basis, to buy some Bitcoin, stack the dip.
We just bought another 41 Bitcoin. We also bought back some of our shares that are trading at a discount. We think they're undervalued. The market's kind of undervaluing them right now. And so, we generated a BTC yield of over 5% this quarter alone. And we'll continue to be buying this dip because obviously, we haven't lost conviction in Bitcoin's long-term potential.

**SPEAKER_2** (3:14)
Where does your yield come from?

**Sam Callahan** (3:16)
Well, we just raised the first of its kind debt transaction. About a month ago, we announced it to the market with Itaewoo Asset Management. And so, that's a five-year, it's a long-dated debt instrument with zero cash burden, all in cost with hedging around 11%.
You know, Bitcoin correcting off these levels, we look at the forward potential returns of Bitcoin from here based off the adoption trends that we see, as well as Bitcoin's historical rolling five-year CAGR. And we believe that it's going to be an accretive transaction long-term for our shareholders. And so, we use some of the proceeds primarily to acquire more Bitcoin, to increase our Bitcoin holdings. And then we have cash on the balance sheet as well, that we can use to accumulate more Bitcoin too. So, this is why a public vehicle with a large Bitcoin balance sheet has access to capital that can be very favorable in terms of the terms. An individual can't get a five-year loan with zero cash burden to basically accumulate Bitcoin at those terms, at that cost of financing. And so, that's the benefit or the advantage of being a public company operating company that can use its access to acquire Bitcoin.