Bitcoin Magazine has released a new episode featuring Jeff Park, chief investment officer at Strive, examining what the "AI pain trade" means for Bitcoin. The "pain trade" is a long-standing trading term for the market move that inflicts the most losses on the largest group of positioned investors — the lens Park applies to the AI trade here. The conversation covers record stock volatility and market dispersion (the spread of returns across individual stocks), why Park argues that owning zero Bitcoin could be the bigger risk, and how Bitcoin has been rising even with 10-year Treasury yields above 5%.

Park also rethinks the traditional 60/40 portfolio — the classic benchmark allocation of 60% equities and 40% bonds — and the role of the risk-free rate, the baseline return investors can theoretically earn without credit risk, and explores Bitcoin's expanding function as collateral alongside the rise of Bitcoin-based income.

A central theme of the episode is corporate financing. From Strategy and Strive to Google and Super Micro, companies are turning to preferred securities to fund their growth. Preferred stock occupies a middle ground between bonds and common equity, typically paying fixed distributions and ranking ahead of common shareholders in the capital structure — the same mechanics behind the Bitcoin-linked preferreds discussed throughout the episode. Park explains why digital credit is set to become a main fixture for investors accessing income.

Strategy, the software company formerly known as MicroStrategy, is the largest corporate holder of Bitcoin and has issued a series of Bitcoin-linked preferred stock offerings, including STRK, STRF and STRD, to fund its treasury strategy. Strive, where Park leads investments, has pursued a Bitcoin-focused treasury strategy of its own.

On the regulatory front, Park frames the GENIUS Act — the July 2025 federal law establishing the first regulatory framework for payment stablecoins in the United States — as becoming an implementation story, and considers where future stablecoin demand will come from. In that framing, the thread to follow is how the statute's rules take hold in actual issuance and usage.

He also discusses tokenization and collateral mobility, including the BNY–Citadel repo (repurchase agreements are the short-term collateralized loans that anchor institutional funding markets); MSCI, Strategy and booming demand for Bitcoin preferreds; AI developer Anthropic's IPO; and why liquidity — the ease of entering and exiting positions — is at a premium in current markets. Throughout the discussion, Park returns to the idea that knowing value, not just price, is the hardest skill in investing.

Chapters:

• 0:00 – Jeff Park on Record Stock Volatility and Market Dispersion
• 1:53 – Why Owning Zero Bitcoin Could Be the Bigger Risk
• 3:05 – Bitcoin Rising With 10-Year Yields Above 5%
• 3:43 – Rethinking the 60/40 Portfolio and the Risk-Free Rate
• 5:02 – Bitcoin as Collateral and the Rise of Bitcoin Income
• 6:02 – The GENIUS Act Becomes an Implementation Story
• 7:37 – Where Stablecoin Demand Will Come From
• 9:18 – Tokenization, Collateral Mobility and the BNY–Citadel Repo
• 12:11 – MSCI, Strategy and Booming Demand for Bitcoin Preferreds
• 15:19 – Anthropic's IPO and Why Liquidity Is at a Premium

Disclaimer: The views and opinions expressed in this show are those of the participants and do not necessarily reflect the official policy or position of BTC Inc., Bitcoin Magazine, or any affiliated entities. This content is provided for informational and educational purposes only and should not be construed as investment, legal, tax, or accounting advice. Nothing contained in this show constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or financial instruments. Viewers should consult their own advisors before making financial or business decisions.

This post first appeared on Bitcoin Magazine and was written by Patrick Green.