LS&C's Strategic Bitcoin Reserve

"The future belongs to those who hold the scarcest assets."

In 2018, I began accumulating Bitcoin—not as a speculative trade, but as a fundamental reallocation of how LS&C stores time, energy, and value. This decision was driven by principle. When you study the history of money, the fragility of fiat, and the mathematics of scarcity, one conclusion becomes increasingly difficult to ignore: Bitcoin is the most pristine monetary asset humanity has ever seen.

Why Bitcoin? Why Now?

We live in an age of compounding systemic failure. Central banks flood the economy with artificial liquidity. Governments run deficits without end. Fiat currencies, designed to inflate, are silently taxing savers. In the past, wealth turned to real estate, stocks, or gold to preserve wealth. These assets still have their place. But they are not absolute. They are not programmable. They are not finite.

Bitcoin is all three.

It cannot be printed. It cannot be diluted. It does not need trust. It is audited every 10 minutes and operates on open, permissionless rails. It is the first and only asset with a fixed terminal supply: 21 million. And with over 93% already mined, its marginal inflation is asymptotically approaching zero. Compared to fiat—where inflation is a design feature, not a bug.

The Supply-Demand Singularity

Bitcoin's fixed, inelastic supply creates a nonlinear pricing curve when institutional and sovereign demand begins to rise. Even modest daily withdrawals into long-term strategic reserves can trigger exponential price appreciation. And this isn’t theory—it’s already happening.

As of writing, ETFs are absorbing 285 BTC/day. Corporates like MicroStrategy, MetaPlanet, TwentyOne and more are issuing debt to buy more. Retail investors are HODLing longer than ever before. Sovereign entities are exploring national Bitcoin reserves.

With only ~11 million coins likely remaining in the liquid market, the stage is set for a historic supply squeeze.

‍

What This Means for Portfolios

‍

We only invest because fiat is broken.

In a world of stable money, you wouldn’t need to chase 7–8% annual returns just to preserve purchasing power. You wouldn’t need a portfolio of ETFs, bonds, hedge funds, insurance wrappers, and tax consultants just to not lose. The entire financial industry exists to solve a problem fiat created.

Bitcoin reverts the game. It removes the need to generate complex structures for preservation. It offers self-custody. Unseizable, borderless, and liquid in every timezone.

For LS&C, Bitcoin has become our strategic reserve, not our speculation.

‍

My Personal Allocation

‍

I started allocating with our family office in 2018. At first cautiously. Then gradually. Today, roughly 75% of our family office’s liquid capital sits in BTC. Not because of ideology—but because of asymmetric probability. Because every new participant reduces volatility through stronger hands. Because every withdrawal reduces sell-side pressure. Because the marginal buyer now wears a suit, files 13Fs, and thinks in decades.

“The best gains are behind us.” Wrong lens. The fastest adoption lies ahead. The reflexivity curve is just steepening. The flip in game theory is upon us: from greed to fear. In the early phase, ignoring Bitcoin cost you upside. Soon, it will cost you solvency.

‍

The Inevitable Flip

‍

Fiat is a system of debt. Every new dollar is born through a loan. Bitcoin is a system of ownership. One is based on promises; the other on math. And as more opt out of the fiat game, the burden on those remaining increases exponentially.

At some point, you may no longer be able to buy Bitcoin at any price. Not because the markets close, but because the sellers vanish. Strategic reserves don’t sell. They hold. Forever. Because they’re not playing the same game.

When that day comes, portfolios based on models will collapse. Not because of miscalculation, but because of misplaced assumptions. You cannot model exit velocity from fiat.

‍

From Treasuries to Bitcoin

‍

Treasury bills used to be the default reserve asset. That era is ending. What began with gold-backed paper is ending in credit-backed confidence. For the first time in 5,000 years, we now have a superior alternative.

We believe that within the next 10 years, every credible family office will have a Bitcoin position. Some small. Some symbolic. The smartest: strategic. The LS&C Bitcoin Reserve is not a gimmick. It is our firewall against currency debasement, our asymmetric upside, our proof-of-work for the future and my family.

We’re not betting on Bitcoin. We’re opting out of fiat.

‍

Lud Schroedl, Founder LS&C Family Office

‍