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Brandon Burton (00:00.824)
Hello, Chamber Champions. Welcome to Chamber Chat podcast. I’m your host, Brandon Burton, and it’s my goal here on the podcast to introduce you to people and ideas to better help you serve your Chamber members and your community. Our topic for this episode is going to be a little bit unique. It’s something that I haven’t really dove into on Chamber Chat yet. Typically, I have guests and
Given this time of year, we’re coming into the holiday season. I wanted to be able to give a little reprieve to the guests that I would normally have on and allow them to enjoy the holidays, but also to dive into what I see as an important topic for Chambers to be paying attention to right now so you can be better prepared for the future. So before I dive in,
In this episode, I am going to be sharing some ideas around Bitcoin and how Bitcoin can help strengthen the finance, the outlook, financial outlook for your chamber. But I do want to put out the disclaimer that I am not a financial advisor, that this is not financial advice. You know, all the disclaimers go along with that. What I want to do with this episode
is really just give you some exposure to Bitcoin, what it is, kind of a vision that I’ve had of seeing how Chambers can utilize Bitcoin in the long term and give you something to be able to talk over with your board, with your executive committee, with your accountant, see what makes sense for your organization and to look to some other models and
how they’re utilizing Bitcoin as well. without further ado, this episode, the thought came to me, chambers are always looking for long-term sustainable revenue streams and ways to strengthen their role as community stewards. that’s a long way of saying chambers are always looking to remain relevant, right? But as Matt Appenzeller,
Brandon Burton (02:22.881)
talked about as he was a guest on the podcast a few weeks ago, it’s not enough to be relevant anymore. You need to be forward thinking. You need to be looking at what’s coming next. And it’s part of my thesis, you can say, that Bitcoin can very much be part of that long-term sustainable revenue stream and way to strengthen your role as community leader. We’re seeing
around the country, around the world, major institutions, Fortune 500 companies, and even universities are adopting Bitcoin as a long-term strategic asset. And I’ll get a little bit more into that as we go along. But to kind of frame the thought process as we get into this, what would it mean for a chamber foundation to build a strategic reserve
designed for growth for decades, designed to grow for decades. Think about that, ponder on that. What would it mean for your chamber foundation to build a strategic reserve designed to grow for decades? This is big thinking, long-term thinking, and we’re gonna dive into it as soon as we get back from this quick break.
All right, so before the break, I kind of set the table for you. Explaining what this episode’s all about with introducing you to Bitcoin and more importantly with how Bitcoin can be a great asset for long-term growth for your chamber, specifically for Foundation. So I’ll get into the details of it. I do kind have an outline that I’m going to follow. So as I go through the outline, it may seem like I’m reading some things, but I wanted to make sure that I had…
as much of the detail and reference points available as possible so I’m not missing anything. Bitcoin can be a complex topic. So I’ve been in it and involved with Bitcoin for nearly a decade now. So as I’ve gotten into it, there’s some things that I take for granted that I realize other people don’t have that framework or that foundation for understanding Bitcoin.
Brandon Burton (04:44.844)
I’m hoping to be able to give some of that background about what Bitcoin is generally before I build on the bigger ideas. So what is Bitcoin? Bitcoin is a decentralized digital monetary network. So some people call it like a digital gold. So it’s a store of value. It’s an investment tool, but it’s a way to be able to send money digitally.
anywhere in the world for very low fees. In the past, as I use the term digital gold, in the past, people would look to gold as a store of value. But if you needed to send gold across the world, there’s a lot of effort required with that, including insuring it and transporting it and the whole nine yards. So Bitcoin is a way for you to digitally transfer large amounts of money without
or large amounts of value without all the extra friction. Bitcoin is not a company. There is no CEO of Bitcoin. There is no website for Bitcoin. It was created anonymously about 17 years ago at this point. So as I record this, we’re in December of 2025, which is important because I will reference some different
things that will be important for us to pin back to this date in mid-December 2025. So Bitcoin was created anonymously and the way that it works is it’s mined a lot like gold is. Where gold, you have to get the tools, you gotta go into the mountains, you gotta dig through the granite and put forth a lot of effort to reveal the gold. So with Bitcoin,
Bitcoin is mined in the digital landscape. And the easiest way to explain this is there’s very complex equations that are put out there that computers work on essentially nonstop. And as a computer solves this equation, they are rewarded with a block. So a block
Brandon Burton (07:07.598)
for the blockchain technology maybe. So a block is mined roughly every 10 minutes. So every 10 minutes a block reward is issued. And what that is is that block of transactions gets approved and there’s a consensus across the different nodes that are being run on the network to validate that the ledger is correct. And then that block of transactions can get cleared and
and move on into the history of the blockchain. So as Bitcoin is mined, so there’s miners who they have expensive mining rigs that are used to mine the Bitcoin and it uses an intense amount of power to be able to do the mining. So a lot like mining gold, there’s a lot of effort that goes into it, a lot of energy. Same thing with mining Bitcoin.
So there is a difficulty in achieving it. And if there’s a whole bunch of miners that come on at one time, there’s a difficulty adjustment that gets made within the software. So it makes it harder to solve those problems, to earn that block reward. And if there’s less miners on the network, then that difficulty adjustment comes down to where it becomes a little bit easier to solve the problem. So it can stay on track for every 10 minutes for a…
a block to be mined. And that’s important too because miners, they are not online unless they can be profitable. So if they’re in an area where you can’t get cheap energy, then they’re not going to mine. So they tend to go to places where energy can be as close to free as possible. So maybe by a waterfall or some kind of water source where they can get electricity or solar or nuclear plant or
Even in oil fields where they’ll use some of the flare at the oil rigs to be able to convert into energy. Even methane from junkyard, from landfills, they’ll use the methane and convert that into electricity to be able to run their mining rigs. So there’s very creative ways that miners are able to access power to be able to do the mining. And it’s kind of transforming the world with giving a
Brandon Burton (09:33.311)
Access to energy in places the world that haven’t had it before so back to the minor so minor Is online they they go through the process to Earn a block reward and I keep saying block reward because if they win the block saying they solve the problem and and get that block there is a reward to it so that reward is a certain number of Bitcoin, so
Let’s say at one point it was 10 Bitcoin and then every four years there’s a halving cycle. So every roughly every four years, what was 10 Bitcoin be cut down to five Bitcoin as a block reward. And then four years later, that five gets cut down to two and a half. And then four years later it gets cut down. So you understand what I’m saying. Every four years that block reward gets cut down, cut in half.
However, the price of Bitcoin continues to rise very dramatically. So with that having, it tends to help boost the price of Bitcoin as well. Some of this may seem technical and really I just want to give a basis so you can kind of have a concept, a better concept maybe of what Bitcoin is. But Bitcoin is built to be long-term inflation resistant store about
So in the end, that’s what it is. institutions are starting to pay attention to Bitcoin. And you might ask why, why are institutions paying attention? Well, there’s the number go up technology. So the price of Bitcoin is dramatically increasing. But over the last 15 years of operation, there’s been zero downtime with the Bitcoin network. So because there’s no company, it’s not centralized into one.
building or one locale, these nodes and miners are spread throughout the world. So if one node or miner, if there’s a power outage in a certain area, there’s redundancy throughout the world. So there’s been zero downtime with the Bitcoin network. Historically, there’s been a 200 % average annual compounded return over the past decade.
Brandon Burton (12:00.258)
That number is a little bit deceiving because on the front end of the decade, this is averages. So the front end of that decade, that return was much higher. And as time has gone on, it’s not quite as high, but it is still very attractive. Usually around 40 to 50 % return annually at this point in time. Bitcoin has outperformed stocks, real estate, bonds, gold, and nearly every major asset class.
which is mind boggling. A lot of people say Bitcoin is too volatile and it is, it’s volatile. has its ups, it has its downs, but once you zoom out and look at it long-term, it’s just up and to the right ever since its creation. it is an amazing asset. Bitcoin is increasingly recognized as digital property. rather than risk on speculative assets.
This is where I want to make the distinction. People talk about crypto, cryptocurrency, and then there’s Bitcoin. So technically Bitcoin is a cryptocurrency, but cryptocurrency is not Bitcoin. So I hope we can be clear on that. In fact, I don’t ever talk about crypto. I have zero interest in any crypto asset. I don’t even want to name them, but there’s a lot of speculative assets in the crypto world.
to me, Bitcoin is the only thing that matters. Because even with all those speculative cryptos, people will buy and sell them, but they’ll accumulate value just to buy more Bitcoin, because that’s Bitcoin’s key. So let’s talk about what Bitcoin is not. So Bitcoin is not a get rich quick scheme. It’s not as, in fact, when you buy it, I would say you need to buy it and hold it. Otherwise you’re going to get burned. It’s not something to trade.
So if you try to time the market, try to buy low, sell high, one, there’s going to be tax ramifications, two, you’re never going to beat the market. It’s always going to burn you in the end. So it’s not a get rich scheme and it’s not something you trade. It’s also not a traditional investment managed like equities. It’s best used as a long-term reserve asset. So just buy it and hold it and.
Brandon Burton (14:26.57)
As you buy and hold it, there’s other things you can do with it, which I’ll touch on in a little bit. So the background or the inspiration that I had into bringing Chambers into the Bitcoin world is there is a company, it was called MicroStrategy. Now it just goes by strategy and MicroStrategy was, I’m going to say more of a struggling
software company. They were doing, I believe, about a hundred million a year in software. But as a software company, that’s not a lot. As we hear in his chambers, that’s a lot of money. But software speaking, that’s not a whole lot. But MicroStrategy, it’s a publicly traded business, intelligence company, software company. Their CEO is Michael Saylor. And he pioneered what I’m going to call the Bitcoin Treasury Strategy.
So in 2020, Michael Saylor was looking for ways to save their company. And he learned about Bitcoin and he dove in about what all Bitcoin has to offer. And in 2020, Michael Saylor announced that they would be shifting excess cash into Bitcoin as a long-term reserve. As of early 2025,
Um, and this number is not even going to be accurate anymore because they keep buying and acquiring more and more Bitcoin. But as of the beginning of this year, um, they, they held about 1 % of the global Bitcoin supply. I believe they’re closer to 5 % at this point. Um, every few weeks they’re buying more, um, in massive loads. So they accumulated initially through.
excess cash reserves. So whatever cash was sitting on their balance sheet, they were buying Bitcoin because cash as we know is subject to inflation and over time devalues itself where Bitcoin, it inflates over time and it’s inflation proof as it continues to outpace every other asset out there. And once they exhausted their cash reserves,
Brandon Burton (16:52.472)
They started looking for other ways to accumulate more bitcoins. So they got into convertible notes. They got into issuing bonds. They got into regular, regular treasury allocations. So they are creating new treasury products that they’re putting out there in the market that you can purchase. And essentially by one of these different treasury notes that they
that they produce and it’ll return, depending on the price of Bitcoin, roughly a 10 % return. So when you look at people on fixed income, for example, looking at retirement and they want a steady return, you can purchase some of these shares, these fixed income equities, and they’ll return roughly a 10 % a year guaranteed return.
MicroStrategy has built out their balance sheet and issued these notes and bonds and so forth where they are over collateralized massively with Bitcoin. So the price of Bitcoin, when it was at its peak earlier this year, it could take a down ride. It could dip down to like 80 % of its top value.
and MicroStrategy would still have a strong balance sheet to be able to make all their debt payments. So super strong company, very creative with how they’re accumulating Bitcoin. But as a result, the market cap or the value of MicroStrategy went from about $1 billion to over $80 billion during peak cycles.
So within about a five year period, went from 1 billion to over 80 billion. Their operating business didn’t change, but their balance sheet strategy did, and that’s key. So as we think of Bitcoin for chambers, I don’t want you to think of changing your operating business. Your day to day, what you do shouldn’t change much, but the way you structure your balance sheet should to be able to adopt
Brandon Burton (19:15.454)
this kind of a strategy. So you don’t need to change your programs or events. You can strengthen your foundation by adopting a smarter treasury approach. So that was the initial inspiration that I had. And then as I’ve, I dove into Bitcoin education several years ago, just learning as much as I can about it. And there were ideas floated out there about
what’s called bit bonds. So what a bit bond is, if you think of a municipality issuing a bond, maybe they need to build a new fire station. They can allocate a percentage, even just a small percentage of the bond to purchase Bitcoin with, but then as the math plays out would vastly outperform the interest on the rest of the bond. So then in the end, the
the end of the term of this bond would be split between the bond purchaser and the issuer. So they both end up better off for it. So BitBonds are tokenized bonds issued on Bitcoin’s layer. They have been issued first in El Salvador.
to raise capital through what they called volcano bonds. So if you wanted to Google that and dive in more on what volcano bonds were with bit bonds. But they resent a government using Bitcoin, the Bitcoin rails to raise capital. It’s a hybrid model between traditional bonds and the Bitcoin upside. This matters kind of as a precedent because it shows that public institutions are now using Bitcoin.
as part of sovereign financial strategy. It demonstrates how Bitcoin-backed instruments can support infrastructure growth, tourism, national development projects. And as far as the relevance to chambers, if nation states, El Salvador, we’ve recently heard even the United States building a Bitcoin reserve, strategic Bitcoin reserve for the United States,
Brandon Burton (21:38.145)
I’m in Texas. Texas has started a strategic Bitcoin reserve. But if nation states are leveraging Bitcoin for a long-term capital formation, then why shouldn’t local business institutions consider smaller scale version of this? Why shouldn’t chambers consider having a long-term capital, strategic capital, strategic Bitcoin reserve rather? So as my thinking, it went from
MicroStrategy, the corporate Bitcoin reserve that they set up, it’s the idea of these BitBonds. And I’m thinking, man, how can Chambers take advantage of this? So as I started diving into that thought and exploring that and flushing it out, the idea came to me of Bitcoin being part of a strategic reserve for Chamber foundations. So a lot of you listening will already have…
a Chamber Foundation or 501C3. I know many Chambers out there are exploring starting a foundation or would like to start a foundation. And I would suggest having the 501C3 to hold the Bitcoin, just the structure for it is much better and how you can allocate it throughout its life. But foundations are already managed and restricted.
sorry, foundations already manage restricted or endowed funds. So it’s a right entity for that. They operate with long-term stewardship in mind. So it’s not just something that you get money in, turn around and use it, but it’s meant for long-term growth and development in your community. And they are ideal vehicles for building intergenerational financial resilience. So.
the proposed chamber Bitcoin reserve strategy that I would put out there. So this is where you get your pen and paper and start jotting down notes. But I would say to accumulate small amounts consistently. I mentioned before trying to buy low, high. if you buy, if you dollar cost average consistently, you’re able to take advantage of the upside. So whether you use fundraising,
Brandon Burton (24:03.646)
surplus of revenues or earmark economic development funds or maybe you do a capital campaign and you take a portion of the money raised with that capital campaign to fund your strategic Bitcoin Reserve. You could also accept direct Bitcoin donations from local tech forward businesses. If they knew that you’re building a Bitcoin Reserve,
there would be people in your community who would want to give you Bitcoin directly to participate in that. And you probably know who some of those tech forward businesses are who would be interested in that. So the accumulation is one way. So how do you accumulate it? And there’s different strategies of how to do that. But then the custody of the Bitcoin. So Bitcoin has keys.
There’s a key phrase that accesses the Bitcoin. I would strongly, strongly recommend that, again, this isn’t financial advice, but I would strongly recommend that you use a third party as a custodian for your Bitcoin. And that way you can do what’s called have a multi-signature vault, which means maybe you as a CEO
maybe your board chair and this third party all have a signature to access the Bitcoin. if you wanted to, let’s say one of the, you or your board chair, you know, were to lose the keys, you could still access it with two out of three of those individuals having those keys. The other thing is,
A lot of chambers have policies in place, so you can’t write a check or sign a check over a certain amount without a second signature. So multi-sig would kind of help with that as well to make sure that any transactions or spending of the Bitcoin is done with a lot of thought to it and not done casually or just on a whim. But there’s some good companies out there that can help with that.
Brandon Burton (26:26.702)
And it just, really reduces the exposure to losing the keys. So you want to make sure you have a third party multi-sig vault and there’s some that will even insure it. So if anything were to happen and you’ve lost the Bitcoin, you can purchase insurance on it as well, which is pretty cool. So the next point is
My thoughts on this is if you choose to go with the strategy of building a strategic Bitcoin reserve, don’t do it unless you can commit to at least five to 10 years of holding the Bitcoin. Don’t sell it. Whatever you do, don’t sell. Ideally, you would accumulate the Bitcoin within your foundation and you would never sell it because it’ll continue to increase in value over time.
And there’s ways that you can access it. So you could take a loan out against it. You can, can act as collateral to do some pretty interesting things. that marketplace for how to use Bitcoin as a collateral is just growing and becoming more innovative. But let’s say, well, if you have this reserve and
you have that commitment of five to 10 years to not sell it, hopefully never sell it, the reserve becomes a long-term economic development asset. So chambers could eventually use the appreciated value to acquire land for industrial recruitment. You could seed a revolving loan fund for small businesses. You can fund chamber-backed grants or workforce programs.
You could create interest-based scholarships or talent pipeline programs. It could serve as a rainy day fund for future crises that may come. Again, I would say, please don’t sell it, though. I would take a loan out against it. so for the example, if you’re acquiring land for industrial recruitment,
Brandon Burton (28:40.878)
You acquire the land, you get that recruitment, you turn the land over, and then you pay off the loan that you had from the Bitcoin. So you continue to grow in that appreciation of Bitcoin while you’re putting that capital to use. So hopefully that makes sense. So expected outcomes over time. So just to give you an idea, if a chamber accumulates $100,000 in Bitcoin and holds it for 10 years, just as an example.
Historical averages suggest the potential 10 year growth to be about 25 times that initial investment. So that’s huge. I always want to think more conservatively. So even if it was 10 times, that still, that turns a hundred thousand dollars into a million over 10 years. But even 10 % of the historical performance will, you know,
dramatically outpace a bond or CD yield. I would say start small, contribute steady and consistently, and in the future you’ll have meaningful economic power in the future. So there’s validation. This is already happening with other institutions like Harvard.
is Harvard’s endowment, the largest academic endowment globally. They began holding Bitcoin in private funds as early as 2019. Other institutions, Stanford, Yale, MIT, all have different levels of Bitcoin exposure. Black Rocks, Bitcoin ETF or iBit.
is now one of the fastest growing ETFs in history. And Fidelity has publicly positioned Bitcoin as a superior store of value. And why does this matter to Chambers? Well, foundations with the 100 years outlook are embracing Bitcoin. Chambers, which also should have a plan for generational impact, should consider doing the same. So thinking big, thinking well into the future, building your community.
Brandon Burton (31:05.902)
Having that resilience Bitcoin is that tool to get you there now as you present this idea to your board as you present this to your accountant as you present it as you start talking about it out loud, sometimes I’m a little hesitant because People have different ideas about Bitcoin and more and more they’re becoming positive but man about eight years ago when I got into it
I mentioned Bitcoin to people, they thought I was crazy. But now it’s obviously much more mainstream and it’s been proving itself. But people will say Bitcoin is too volatile. And yeah, that’s true. From day to day, it’s super volatile. But long term, it’s been extremely strong. And as a chamber, you shouldn’t be trading the day to day. You’re building reserves for long time into the future.
The volatility really can be a gift. And Michael Saylor has talked about that. The volatility of Bitcoin is really a gift for us long term. Somebody may say, well, we can’t risk member dollars on Bitcoin. So this strategy uses foundation funds with clear restrictions and long-term intentions. So it’s not for operating budgets or for event revenue.
It has a specific purpose for funding this foundation. Some might say our board won’t understand Bitcoin and this is why education matters. It’s important for you to learn about Bitcoin so you can help answer their questions. You can compare it to land. There’s a limited supply. There’s only ever going to be 21 million Bitcoin ever produced. 21 million. That’s it. There’s not even enough Bitcoin.
for every millionaire in the country to have a Bitcoin. So there’s definitely an early mover advantage. And Bitcoin can be broken down into smaller units called Satoshis. And you can learn more about that as you dive into your education on Bitcoin. But it’s a hard asset, has long-term appreciation. It doesn’t require ongoing maintenance. So the idea of like real estate, there’s always, know, maintenance that goes on with that.
Brandon Burton (33:30.754)
Bitcoin doesn’t have any of that. Bitcoin is digital land, globally scarce and infinitely divisible. So another risk, I guess you could say, or objection to it is what if we lose the Bitcoin? And that’s a question that makes me sick to think about, to lose your Bitcoin. So I’d mentioned before the multi-sig vaults.
use a third party, a trusted third party multi-signature vault, and that removes that risk of a single person losing the Bitcoin keys. But keys can be distributed among board members and with rotating responsibility. All right. So if you are wanting to implement this into your organization, into your foundation,
So one would be set up a foundation or sub foundation specifically labeled as a strategic digital asset reserve to adopt a written policy that says we’re not going to sell the Bitcoin for five to 10 years or whatever you want that policy to read. But that would be my my guideline is for sure. If you sell it if you sell it less than five years, you may end up losing money.
But if you keep it five to 10 years, you’re going to be on the upside. If you keep it forever, you’re definitely going to be on the upside. Part of that written policy, have it spelled out what your annual allocation target is, what your specific custody standards are. So you know how to access it you don’t lose your keys. Educate your board and your membership about what you’re
doing and how you’re going to put this strategic fund to use in the future or ways that it could be utilized in the future. And then begin to dollar cost average, just monthly or quarterly or annually, whatever interval you want to set up, but have a way to dollar cost average. then track reserve performance annually as part of your foundation reporting, you know, see what that growth looks like here to here.
Brandon Burton (35:49.719)
start getting excited because this can really transform your community and your organization. So imagine your chamber foundation in the year 2035, 10 years from now, with a reserve worth two to $10 million because you simply committed to accumulating a small amount of Bitcoin each year. Imagine funding major workforce facility.
securing land for a business park or seeding your own microloan program, all because your chamber thought ahead. This position’s chamber’s not as followers, but as innovators in community economic resilience. So in closing, I this has kind of gone a little long just hearing me ramble on without another guest or somebody to have that ongoing dialogue, but.
Chambers have always been the boots on the ground leaders in economic development. The future will reward those who embrace asymmetric opportunities early.
Bitcoin is not a silver bullet, but it is an incredible tool for long-term local prosperity. And I would encourage you to explore, ask questions, and consider whether your foundation is structured to take advantage of generational opportunities. But I hope that you found this interesting, at the least, transformational at the most. I really hope that
Chambers listening right now will take this and really transform the organization. And I would love to hear of anybody who adopts this strategy, especially 10 years from now. And you are that chamber who’s sitting on a $10 million strategic fund because you implemented something today. I would love to hear about that. But if you have any questions, reach out to me.
Brandon Burton (37:54.201)
Brandon@ChamberChatPodcast.com and Anyways, I hope this episode helps and hope you hopefully you learned a few things and sparked some ideas of how you can Set up your community for long-term growth into the future
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