Latest / Simply Bitcoin / They are silently taking your last chance to buy 1 Bitcoin AWAY ... | EP 1474

Transcript

They are silently taking your last chance to buy 1 Bitcoin AWAY ... | EP 1474 · Simply Bitcoin

• 0:01
  Why A lot of the smaller treasury companies have been
• 0:04
  selling Bitcoin in the last couple of weeks.
• 0:08
  The biggest players in the space are quietly making impossible
• 0:12
  for all of us to buy one. Bitcoin Strategy has bought over
• 0:17
  100 days of the Bitcoin supply this month and then today we saw
• 0:22
  12 more days of Bitcoin supply disappear forever as Metaplanet
• 0:27
  bought another 5000 Bitcoin and now this makes them the third
• 0:32
  largest Bitcoin treasury company is in the world as they executed
• 0:36
  their first buy in 120 days. Are they trying to front run
• 0:42
  sailors newest $42 billion buy announcement?
• 0:46
  Where are we right now? Why are they doing this now is
• 0:49
  the real question. And there is there is another
• 0:52
  little update on Bitcoin treasury companies.
• 0:54
  We we are seeing, I don't know if I would say necessarily bad
• 0:57
  news per SE, but the Bitcoin treasury hype cycle is slowly
• 1:03
  coming to an end, which is kind of bullish overall if this is
• 1:07
  where the capitulation is going to come from.
• 1:09
  Anyways, let's get into the first news story here, which is
• 1:12
  of course Metaplanet. Oh, sorry guys, I'm on.
• 1:15
  I'm on their Bitcoin treasury. So here's just the official
• 1:18
  announcement. Metaplanet adds another 5075
• 1:22
  Bitcoin to their Bitcoin treasury holdings now bringing
• 1:26
  the total holdings to 40,177 Bitcoin.
• 1:31
  I think one of the most interesting aspects of the story
• 1:34
  is you got to remember when Metaplan started, they weren't
• 1:37
  the first one to get on the Bitcoin treasury hype.
• 1:41
  They were probably, I don't remember exactly, maybe like
• 1:45
  3:00-ish on on that race. But they're doing a pretty good
• 1:49
  job of maintaining their very strong position and as we've
• 1:54
  been covering it does look like winners going to take all in
• 2:00
  terms of Bitcoin treasury companies.
• 2:02
  We've been kind of having this conversation wondering how many
• 2:05
  of these Bitcoin treasury companies are actually going to
• 2:08
  to survive? How many are actually going to
• 2:10
  be able to maintain their large Bitcoin positions in the face of
• 2:15
  a prolonged bear market? Well, it looks like it's
• 2:19
  consolidating towards the top here and when you go into the
• 2:22
  Bitcoin treasury site, Bitcoin treasury.net, I think this is
• 2:26
  where it really starts to paint an interesting picture.
• 2:29
  But here, this is the Metaplanet portfolio.
• 2:31
  Let me let me go back to the first page and you can see now
• 2:35
  remember this week? No, sorry, last week we were
• 2:38
  covering the idea that Mara was at #3 and now they're falling
• 2:43
  off. They sold billion dollars worth
• 2:47
  of Bitcoin to pivot from AI to Bitcoin or sorry from Bitcoin
• 2:52
  treasury mining public company to a more AI centric play here.
• 2:57
  They were pretty solidly at #3 Now they're sliding, they're
• 3:02
  sliding on the leaderboard here and Metaplanic comes out strong.
• 3:06
  Now they're #3 and they're not that far away from 21 capital at
• 3:10
  #2 So again, I think we are seeing a divide going to happen
• 3:16
  on this leaderboard. I think strategy is going to
• 3:18
  very clearly be the number one leader on this.
• 3:21
  They're probably going to get to 1,000,000 coins within the end
• 3:24
  of the year. Then we have 21 capital.
• 3:27
  Jack Mullen. Oh Nico, you want to come in
• 3:29
  already? Yeah, I want to chime in, bro.
• 3:31
  Like we were talking about this earlier there.
• 3:33
  Oh, wait, wait, wait. Sorry I I didn't show.
• 3:35
  I wasn't showing this, so let me pull.
• 3:37
  This out real quick. Like my here's my take on this.
• 3:40
  There's no underlying business with Metaplanet.
• 3:44
  There's no underlying business with Metaplanet.
• 3:46
  They'd stop the hotels. That there's no underlying
• 3:48
  business like what do they do? Where's the cash flow?
• 3:51
  Where's the revenue coming from? Like that's?
• 3:53
  My hotels that's. My correct and and I think this
• 3:56
  is gonna be like the. Full circle and the.
• 3:58
  Full realization this cycle, like ultimately strategy has an
• 4:04
  underlying software business behind it.
• 4:07
  Obviously it's not as big as, as you know, their current
• 4:10
  valuation justifies, but they had the first mover advantage.
• 4:21
  They managed to be able to, they managed to to be able to acquire
• 4:25
  like a a ridiculous amount of of of Bitcoin.
• 4:28
  Mana Planet doesn't have an underlying business.
• 4:31
  Like where where's the revenue coming from?
• 4:33
  Like ultimately like that's the whole point, right?
• 4:38
  Like so you just buying Metaplanet to get exposure to
• 4:41
  Bitcoin in Japan. Like, so it like it's
• 4:43
  essentially acting like a de facto ETF essentially.
• 4:47
  Pretty much for. People in Japan to get exposure
• 4:50
  to Bitcoin and because of the tax regulations there, right,
• 4:54
  it's, it's kind of incentivizes you to buy something like planet
• 4:57
  like metaplanet instead of like Bitcoin.
• 5:00
  But I, I think that this cycle like the whole concept of a
• 5:04
  Bitcoin treasury company without an underlying business, I think
• 5:08
  that ends because it's crazy. It's like it's crazy if you
• 5:11
  think about it. And I, and I, and I told you
• 5:14
  guys this the other day, I had the pleasure of being able to,
• 5:18
  it's the first time I ever interviewed Jack Mahlers in El
• 5:21
  Salvador at the Plan B forum. And he was even talking about
• 5:25
  how they essentially how 21 has to pivot to produce a, a cash
• 5:31
  flowing business that's behind the, the, the Bitcoin treasury.
• 5:34
  I think this whole concept of having a Bitcoin treasury
• 5:37
  without having a business behind it, I think is hollow.
• 5:41
  I don't think the markets are buying into it anymore.
• 5:44
  And I think you'd much rather you'd, you'd be much better off
• 5:48
  just buying spot Bitcoin. Why are you going to do that?
• 5:50
  It doesn't make sense. That's my opinion on all this.
• 5:54
  I would agree. But anyways, so go back to like
• 5:56
  the original topic because I do want to, I want to do, I do want
• 5:59
  to talk about that. Besides that, besides my
• 6:02
  personal opinion on on the treasury companies and all these
• 6:06
  treasury companies, by the way, this isn't just me saying this
• 6:08
  and just talking and just talking like like old man
• 6:11
  screaming at the sky, whatever. Like there are there every
• 6:17
  treasury companies like acknowledging this and they're
• 6:21
  obviously pivoting because they realize this.
• 6:24
  But going back to the first thing that you're talking about,
• 6:28
  with the amount of Bitcoin they are buying, they're actively
• 6:32
  buying more of the supply than is actively being mined, right?
• 6:38
  At the end of the day though, however it it it seems like it's
• 6:43
  not really making a big dent in the current.
• 6:45
  Well, that, that, yeah, well, that's that's kind of where the
• 6:49
  second story leads. So let me let me just let's
• 6:51
  cover metaplan. It's holdings real quick.
• 6:54
  We'll talk about those, you know, so you guys know I'm not
• 6:57
  just reading some fake news here.
• 6:59
  So you can see their last Bitcoin buy was December 30th of
• 7:04
  last year. And now you see another uptick.
• 7:08
  They added another 5000 coins getting over 40K.
• 7:12
  Obviously, the timing is interesting.
• 7:15
  I think personally, a lot of what we've been seeing from
• 7:19
  Sailor himself and probably the metaplanet board is they are
• 7:24
  looking at the Bitcoin price. And they, I think, are all
• 7:28
  starting to get a little bit of the FOMO here where they're
• 7:30
  like, hey, we got to acquire as much of this thing before it
• 7:34
  starts running because we probably won't be able to stack
• 7:37
  again. If you've been in Bitcoin for a
• 7:39
  while, you know, that feeling, the feeling of, hey, my dollars
• 7:43
  aren't going as far as they used to.
• 7:45
  We used to joke about, I remember when we would buying,
• 7:48
  you know, a million sets for $100, you know, like those were
• 7:52
  good days. We were all feeling pretty good
• 7:54
  about ourselves in those days. Or if you've been in Bitcoin a
• 7:57
  lot earlier, it's like, you know, $500 used to buy you
• 8:01
  coins, you know, So like now we're getting to the point where
• 8:04
  we're seeing millions, even billion dollar buys.
• 8:08
  And yeah, it's buying you a lot of Bitcoin, a couple thousand.
• 8:11
  But you're not going to be able to catch up to Sailor, who did
• 8:16
  this when Bitcoin was at low prices and he was buying
• 8:20
  freaking. What Hundreds 20,000?
• 8:23
  It's an entirely different model though, because again, like
• 8:26
  sailors, like core bit yet number 1, he has first mover
• 8:31
  advantage #2 with that first mover advantage, I think he's
• 8:35
  able to offer, you know, different products.
• 8:40
  Specifically the fixed income product is the latest one, which
• 8:43
  is stretch. But again, I would, I would
• 8:48
  still say like you know, the stretch product only works if
• 8:54
  Bitcoin has that 20% CAGR moving forward.
• 8:58
  You don't think that's going to? Happen, I mean.
• 9:02
  I think. I think I can only take so much.
• 9:06
  That's the minimum, I think. I think from here, from here,
• 9:10
  from from here, 4 or five years out, after bitcoins had a 45%
• 9:14
  correction, do I think we're going to get at least a 20%
• 9:18
  Kaggar 100,000,000%, right? 21 million.
• 9:23
  For because we've already had a 45% correction, but I mean like
• 9:27
  take a look at the drop bro. Like if you bought the peak at
• 9:32
  if you bought the Bitcoin peak in 2021, we're at the Bitcoin
• 9:37
  peak of 2021 right now, right. So like the IT really depends
• 9:42
  when you bought Bitcoin because if you bought Bitcoin at the top
• 9:46
  at the at the top of at the top of 2021, you waited four years.
• 9:50
  Yeah, dude, we full. You're right.
• 9:53
  You're you're right back where you started.
• 9:54
  We ran it back, bro, We ran it back.
• 9:56
  We ran it back, right? So yeah, man.
• 9:58
  I mean dude, am I bullish on Bitcoin at these?
• 10:01
  Price levels a. 100% cause we've already had a a correction, we
• 10:06
  could see more of a correction 100% I'm not doubting that.
• 10:10
  But anyways, continue with the. Story.
• 10:13
  Yeah, yeah, yeah, let's, let's keep going 'cause there is a
• 10:15
  news story that does kind of fall in line with what Nico was
• 10:19
  saying. Look, we are seeing.
• 10:23
  Arguably unprecedented amount of Bitcoin buys coming from
• 10:26
  strategy and even metaplanet, you know, 5000 buys or 5000
• 10:30
  Bitcoin buys, sailors raising $42 billion of Bitcoin.
• 10:34
  And everyone's kind of wondering like, well, if we are seeing all
• 10:38
  of these Bitcoin buys from these treasury companies, the question
• 10:42
  really remains in most people's heads, are they really buying
• 10:46
  Bitcoin if the price isn't going up?
• 10:49
  That's, that's kind of what everyone's asking.
• 10:51
  Well, as we've been following along for the last couple of
• 10:54
  days, actually maybe weeks at this point, we realize and now I
• 11:00
  think since we're getting, you know, since we passed Q1, we
• 11:02
  start to see Q1 reports come out.
• 11:05
  We start to hear the news of where is the selling come from.
• 11:08
  We've been asking this question in the chat on the show.
• 11:10
  It's like who is selling Bitcoin right now?
• 11:13
  And I think this is part of the broader conversation.
• 11:16
  This is why I was saying we, it looks like we are seeing a
• 11:20
  consolidation moment happen in these Bitcoin treasury
• 11:23
  companies. I think as a lot of people have
• 11:25
  been saying for a long time, Winner is going to take all in
• 11:29
  the Bitcoin treasury companies, whether that's Strategy or
• 11:32
  Metaplanet in Japan or I forget what the one is in the UK right
• 11:38
  now. That's I think this is it.
• 11:42
  Sorry, Sorry guys. I, I, I think Nika's blaming me
• 11:48
  for my phone calling off. It wasn't me.
• 11:51
  But we are seeing that the top dogs, the, the, the big treasury
• 11:55
  companies, I think are the ones that are going to survive.
• 11:59
  And with what sailors doing with the stretch product, I, I think
• 12:02
  that's only going to increase. But we are starting to see that
• 12:06
  a lot of the Bitcoin treasury companies are starting to feel a
• 12:08
  little pain here. And that's where the second
• 12:10
  story kind of connects the dots here of like, well, if we're
• 12:14
  seeing 1000 Bitcoin buys, why is the price going down?
• 12:19
  Well, we're seeing from the smaller Bitcoin treasury
• 12:22
  companies, they're selling Bitcoin and maybe it's not as
• 12:27
  big of sells as the buys that we're currently seeing, but it
• 12:32
  is significant because it does paint a broader picture of what
• 12:36
  is going on in these Bitcoin treasury companies.
• 12:39
  So here's Coindesk's headline. The Bitcoin treasury boom is
• 12:43
  unwinding as some companies and governments sell their holdings.
• 12:48
  Falling prices and prolonged consolidation are pushing public
• 12:51
  firms and sovereign holders to liquidate Bitcoin reserves to
• 12:54
  shore up their balance sheet. And again, this is a trend we've
• 12:57
  been seeing for the last couple of weeks.
• 12:59
  I, I can't even remember the amount of Bitcoin companies that
• 13:03
  have sold. I think it's been over public
• 13:06
  Bitcoin treasury companies that have sold Bitcoin in the last
• 13:10
  two months or so. I think it's up there around
• 13:13
  like 7 to 8 companies are starting to sell off a little
• 13:17
  bit of their Bitcoin holdings, which is obviously adding to the
• 13:20
  cell pressure that we are seeing.
• 13:22
  So even though sailors announcing billion dollar buys,
• 13:25
  Metaplan, it's announcing what a 5000 Bitcoin buy, there's still
• 13:31
  mine Bitcoin that's released daily that yes, they are taking
• 13:34
  that much amount, you know, 100 days, multiple days of the
• 13:37
  Bitcoin mine supply off the table.
• 13:40
  But we are seeing treasury companies start to sell and this
• 13:43
  is where it starts getting interesting.
• 13:45
  Public companies, including Emperor digital genius group and
• 13:48
  Riot platforms have all sold Bitcoin this week, citing either
• 13:53
  debt repayment, liquidity needs or strategic pivots into AI and
• 13:58
  HPC. The first points I think are the
• 14:01
  most interesting. That is why this headline is the
• 14:04
  Bitcoin treasury boom is most likely unwinding.
• 14:08
  And remember what Nico's thesis is here on the show that the
• 14:12
  most likely capitulation moment that we're going to see in
• 14:15
  Bitcoin is going to come from these Bitcoin treasury
• 14:18
  companies, which does add to the idea of where are we in this
• 14:23
  bear market? When are we going to see a final
• 14:26
  sacrifice here? When are we going to see a
• 14:29
  Bitcoin treasury company blow up, which in all actualities, at
• 14:33
  least from our perspective, they seem to have taken a lot of the
• 14:37
  gains from the Bitcoin price. A lot of the euphoria that we
• 14:40
  saw on the run up after the Trump election was in the
• 14:44
  Bitcoin treasury companies. And now that's most likely where
• 14:49
  the capitulation is going to happen.
• 14:50
  Yes, it's going to have some selling pressure on the Bitcoin
• 14:53
  price. Yes, it's going to have an
• 14:54
  effect on the Bitcoin price. But let's let's look into this.
• 14:57
  So Emperor Digital announced on Wednesday it sold 370 Bitcoin at
• 15:01
  an average price of 66 K for 24.7 million, leaving the
• 15:06
  company with just two 1989 bitcoins.
• 15:09
  So not the biggest sell, but they also released approximately
• 15:16
  1800 Bitcoin that had previously been held as collateral.
• 15:20
  So it's not that they're dumping all of this Bitcoin at once.
• 15:24
  They're kind of realizing their financials and noticing, oh man,
• 15:27
  we can't actually just sit on all this Bitcoin.
• 15:29
  We really have to release a lot more Bitcoin.
• 15:32
  Let there's more, Nico, there's more.
• 15:34
  Genius Group, an AI powered Bitcoin focus education company
• 15:38
  held up to 440 Bitcoin in March of last year.
• 15:42
  They sold off 84 Bitcoin. Again, not the biggest number,
• 15:46
  but when you add it up, that's some cell pressure.
• 15:50
  Riot platforms, which we've talked about in the last month
• 15:53
  or so, they're selling more. They supposedly moved 500
• 15:57
  bitcoins, so not sold yet, but they had about 1900 Bitcoin and
• 16:04
  now they're down to 17,500 Bitcoin.
• 16:07
  So they've sold 2500 Bitcoin. Meanwhile, we're seeing the
• 16:12
  government of Bhutan, which was the kind of unsung hero of
• 16:17
  nation state accumulation of Bitcoin.
• 16:19
  They've sold 3103 Bitcoin and just few days ago liquidated the
• 16:26
  final 375 big, Well, not final, but another 374 batch of
• 16:31
  Bitcoin. And that doesn't even account
• 16:32
  for all of the other Bitcoin treasury companies that we've
• 16:35
  been following up on this show and telling you, look, they're
• 16:37
  selling. So this headline of the Bitcoin
• 16:40
  treasury boom is unwinding. It seems to actually be
• 16:44
  happening. And the thesis of the Bitcoin
• 16:47
  treasury capitulation is where the price dumps.
• 16:49
  Where is that headline coming from?
• 16:51
  Coindesk, Coindesk. All right, OK.
• 16:53
  So it's a reputable source, ish reputable and then reputable in
• 16:58
  our space, in our space, in the industry.
• 17:01
  I mean called it. I said this, I said I predict.
• 17:05
  You did. You did.
• 17:06
  You did. In October, I predicted this was
• 17:09
  going to happen. In October, I told you guys, I
• 17:11
  said that this cycle, one of the indicators that we will start to
• 17:18
  see once we're starting to bottom out is a capitulation of
• 17:21
  a lot of these institutions. And you're seeing IT industry,
• 17:25
  right, industry wide. It's like Bitcoin treasury
• 17:28
  companies, Bitcoin infrastructure companies, you
• 17:34
  have nation states. Like I didn't even know about
• 17:37
  the Kingdom of Bhutan, bro. Like that's crazy.
• 17:40
  So and I told you guys this was going to happen this cycle.
• 17:43
  It was in inevitability. And I, and I remember I was
• 17:46
  reading and I think it was, it was about one of the treasury
• 17:49
  companies about how they, they are essentially A distressed
• 17:52
  seller and that their average accumulation price was like
• 17:56
  above 100,000. It was like 111,000 and they
• 17:59
  were selling at you know, 60 or 71 or something like that.
• 18:04
  So that they were actively, they actively took on a loss on this.
• 18:07
  But I told you guys this was going to happen because this is
• 18:11
  what happens every single bear cycle.
• 18:14
  I think the only difference this cycle compared to the previous
• 18:17
  cycles is the amount of institutional adoption and the
• 18:21
  amount of institutional involvement this cycle.
• 18:24
  So the headlines are a lot more public, but the Wall Street
• 18:29
  Peach sheet psychology does not change, right?
• 18:33
  We did. Humans have not changed.
• 18:34
  We did have a euphoric moment. We did have a euphoric moment in
• 18:38
  the previous cycle. That euphoric moment was when
• 18:42
  Michael Saylor threw 100K party at his house.
• 18:44
  It was dope. I had a lot of fun.
• 18:47
  And when President Trump got elected, if you look at the
• 18:51
  Bitcoin versus gold price comparison, that is where
• 18:55
  Bitcoin and gold peaked. Right now, the Bitcoin versus
• 18:59
  gold compares, sorry, Bitcoin versus U.S. dollar peak came
• 19:04
  much later in October. But that euphoric peak, I never
• 19:07
  forget it. Me and Opti.
• 19:08
  Were dropping shows and we had literally thousands of people
• 19:12
  just on one platform on YouTube watching us live and looking
• 19:16
  back on it. We were celebrating.
• 19:19
  We were. Euphoric, but the reason we
• 19:21
  didn't see it. 'Cause we thought we were
• 19:23
  genius. Eyesight is 2020.
• 19:25
  The reason we didn't see it is because you didn't have that
• 19:28
  that crazy price run up. So that like didn't allow us to
• 19:32
  see the obvious. But looking back in the past, of
• 19:36
  course that was the euphoric top, right?
• 19:39
  And then of course, the price cop, the price top came later in
• 19:43
  October. Now I think that this cycle,
• 19:47
  you're gonna continue to see capitulation not only in, in, in
• 19:52
  retail and individual holders of Bitcoin, but I think you're also
• 19:56
  going to see it. You're gonna continue to see it
• 19:58
  in institutions and that have exposure to Bitcoin that that's
• 20:03
  my prediction. That's what, what, what I think
• 20:05
  is gonna happen this cycle. And I got it right in October.
• 20:09
  I got it so right in October. And now the the institutions.
• 20:14
  And the companies that have built responsibly and have have
• 20:21
  positioned themselves correctly from this are literally going to
• 20:26
  thrive in 202720282029. Nature is healing itself, right?
• 20:33
  This is what happens every single Bitcoin bear cycle.
• 20:37
  I think people have just forgot the past because the last time
• 20:40
  this happened was like 4 years ago, right?
• 20:43
  We had three years of a bull market.
• 20:44
  Ladies and gentlemen, this is what people forget.
• 20:46
  We had three years of a bull market.
• 20:48
  We were, we were expecting the euphoric top in 2025, but people
• 20:52
  forget that 2023 and 2024, we had a massive price run up like
• 20:58
  people forget that, right? So, you know, I think that the
• 21:04
  companies, the institutions, retail that survives until 2027,
• 21:14
  you're going to thrive in the next cycle.
• 21:16
  You're going to thrive in 20272028 and 2029.
• 21:20
  And the last thing I'll say is Bitcoin bear markets are for
• 21:25
  building. This is where you want to build.
• 21:28
  This is where you want to double down.
• 21:29
  This is where you want to lay out all the infrastructure you
• 21:33
  this is where you want to develop the products that you're
• 21:36
  developing. You want to do it right now
• 21:39
  because when the Bitcoin bull market comes back, and it
• 21:42
  inevitably will, in my opinion, you're going to be very well
• 21:46
  positioned to catch the wave. You don't want to start building
• 21:50
  once the wave commences. You want to start building
• 21:53
  before the wave commences so that you can catch the wave with
• 21:56
  the right, you know, with the right stance, the right
• 21:59
  infrastructure already put into place.
• 22:01
  So I'm extremely long term bullish on the Bitcoin companies
• 22:07
  that are going to are continuing to build during the bear because
• 22:11
  they're going to be the winners during the bull when the bull
• 22:15
  comes back. But to go back to Opti's point,
• 22:18
  yes, this is all part of the course.
• 22:21
  A a lot of these, you know, a lot of these companies and
• 22:24
  institutions, you know, selling Bitcoin at a loss, selling it at
• 22:28
  lower levels, that is part of capitulation, that is part of
• 22:32
  bear markets. And if we head to lower price
• 22:35
  levels, the lower 40K region, the mid 40K region, higher, you
• 22:41
  know, lower 50K region, again, you're going to see more
• 22:44
  capitulations, you're going to see more despair.
• 22:47
  But from a risk adjusted return perspective, that happens to be
• 22:51
  the most opportune moment to get invested into Bitcoin,
• 22:55
  potentially to invest in some of these Bitcoin companies,
• 22:59
  specifically the ones that have the strong fundamentals, right?
• 23:04
  So anyways, that's my take on this whole thing.
• 23:08
  You know, I've been telling you guys since October, I've been
• 23:10
  right so far. Yeah.
• 23:11
  That doesn't mean I'm going to continue to be right for heading
• 23:14
  into the future. I told you guys that if for the
• 23:17
  next 6 months we stick around at this 60K70K region, I'll say all
• 23:23
  right, we bottomed right. But six months, Yeah, for the
• 23:28
  next 6 months. Bro, I I can't, I can't do that
• 23:31
  if we stick. Around give me.
• 23:33
  Some I need volatility guys if we.
• 23:35
  Stick around at this at this region for the next 6 months.
• 23:39
  I would say, OK, we bottomed and it's only up for here, but I
• 23:42
  have yet to see that right? So I'm just kind of waiting and
• 23:47
  and seeing what's going to happen.
• 23:49
  But anyways. On a wait, wait, wait on.
• 23:51
  A more positive note I do have some videos to play for you guys
• 23:55
  from Kathy Wood and Lynn Alden regarding regarding the price
• 24:02
  action Kathy Wood thinks we're never going to see 80%
• 24:06
  corrections again and Lynn Alden, both of them geniuses.
• 24:12
  You got to stop saying that both of them geniuses.
• 24:18
  Lynn Alden is basically saying like right now is a is a great
• 24:22
  time to buy Bitcoin at the, at these price levels.
• 24:24
  And by the way, I, I absolutely agree with her because even if
• 24:28
  Bitcoin does go down to the 50K region, you're still
• 24:32
  fundamentally buying Bitcoin at a 45% discount like you're,
• 24:36
  you're still getting Bitcoin at a discount, right?
• 24:39
  So it might go a little bit lower, but like you're.
• 24:41
  Still, you're still getting it 45% cheaper and if you know if
• 24:45
  it just reaches it's all time high, you're getting a 45%
• 24:47
  return. I think that in and of itself is
• 24:49
  excellent, right? So anyways, guys, buckle up.
• 24:54
  It seems like, you know, some companies that are well run are
• 24:58
  well positioned or taking advantage of the dip.
• 25:01
  I don't know how Metaplanet is is coming up with that money to
• 25:04
  buy that much Bitcoin. Dude, Dylan McLaren's a genius.
• 25:07
  Yeah, he is. He is an absolute genius.
• 25:08
  Shouts out Dylan. Strategy is obviously taking
• 25:11
  advantage of that opportunity. And then there are other
• 25:13
  companies that obviously, you know, like are are you know,
• 25:18
  again, they, they have to sell some Bitcoin to endure the bear
• 25:23
  market and that's completely normal.
• 25:24
  This is this is what the cycles are all about.
• 25:27
  Ladies and gentlemen, this is literally what they're all
• 25:30
  about. The only difference here, the
• 25:32
  only fundamental difference is that the numbers bigger, the
• 25:36
  numbers are bigger. The institutions that are
• 25:38
  involved are much bigger. Wall Street is now involved.
• 25:45
  It's not so much retail driven anymore.
• 25:47
  This same process happened to retail multiple times, the same
• 25:51
  exact thing, right? It's just happening.
• 25:55
  More publicly now, right? But again, what is the long
• 25:59
  term? What is your long term thesis of
• 26:01
  Bitcoin? Right?
• 26:02
  At the end of the day, it doesn't change it's Infinity
• 26:04
  divided by 20 words. It is it.
• 26:07
  Everything divided by 20. Everything.
• 26:08
  Everything divided by 21 million.
• 26:10
  Same difference. Well, you could say Infinity.
• 26:12
  They're gonna print Infinity dollars soon.
• 26:14
  So like the core thesis of Bitcoin doesn't change.
• 26:17
  It's the only asset on the on planet Earth that has absolute
• 26:19
  scarcity. There's only 21 million.
• 26:24
  It's censorship resistant. The physical characteristics
• 26:27
  allow allow you to take self custody of it doesn't matter
• 26:31
  what the quantity of Bitcoin is. I think it's a superior asset
• 26:36
  and I think the world's going to realize that.
• 26:39
  I think this next cycle coming up makes me really excited
• 26:44
  because at that point, the companies that did decide to
• 26:50
  double down on Bitcoin will have been absolutely 100% vindicated.
• 26:56
  And I think that creates A domino effect on Wall Street.
• 26:58
  Anyways, guys, we have to move on to the next segment.
• 27:01
  We have Frank Holmes, Executive Chairman of High Digital
• 27:04
  Technologies, joining us a little bit later to talk about
• 27:06
  Bitcoin mining. Anyways, let's start the show.
• 27:08
  We're going to be right back in just a bit.
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• 30:12
  At the time of recording, the Bitcoin price is $67,340.
• 30:17
  Sats per dollar 1485 block height 943,386 Realized monetary
• 30:25
  inflation .83% Market cap of Bitcoin 1.35 trillion Bitcoin
• 30:31
  versus gold market cap 4.49% Percentage issued 95.28%
• 30:38
  declined from all time high 46.6%.
• 30:42
  So if you're buying Bitcoin right now, you're getting it at
• 30:45
  a 46% discount. That's a big discount.
• 30:49
  Anyways, I got some treats for you guys.
• 30:51
  I got some videos of Lynn Alden and Kathy Wood on CNNBC and
• 30:56
  they're talking about the the current market downturn, how how
• 31:03
  opportune it is to buy Bitcoin at these current price levels.
• 31:06
  And Kathy's Wood takes on Kathy Wood's opinion on she doesn't
• 31:11
  believe we'll ever see 80% corrections ever again.
• 31:14
  So I'll let you guys hear it from them.
• 31:17
  Let's check it out. First video is Kathy Wood.
• 31:20
  Yes, I think what we're seeing now is the institutionalization
• 31:25
  of this new asset class that has a very low correlation with
• 31:30
  other asset classes. So believe it or not, in the in
• 31:33
  the Bitcoin community down 50%, if that's as far as it goes,
• 31:38
  they'll consider that a real victory because you're right,
• 31:42
  the 8595% collapses associated with a very new technology
• 31:48
  that's done. This is a proven technology,
• 31:50
  it's a proven monetary system, and it's a new asset class.
• 31:56
  So do you believe that? I want to believe.
• 32:01
  I really do want to believe. I have been saying that for a
• 32:05
  minute. Do I know for a fact that that's
• 32:09
  gonna happen? No.
• 32:09
  But I do agree with what she said in terms of if we don't see
• 32:14
  an 80% correction, that's totally AW, that's, that's
• 32:17
  totally an overall win here. I, I, I, I'll step in.
• 32:21
  I'll see. I don't think we'll see an 80%
• 32:23
  correction dude. That, but hold on, hold on, hold
• 32:26
  on, hold, Hold the horses here. Nico, you've been making the
• 32:29
  case for literally 6 months that we're going to 3040 K, Now
• 32:33
  you're saying we're not going 80%?
• 32:34
  That's a 70. Percent Oh, OK, OK, that's.
• 32:36
  A 70. What 8020?
• 32:39
  70% correction puts us at like, I think it's like 3940. 80 would
• 32:44
  be 29. I don't think we'll go to 20.
• 32:47
  We're not going 80. There's no way.
• 32:49
  It's 70% still a win? Or is that still just Bitcoin
• 32:52
  doing Bitcoin? I think it's Bitcoin doing
• 32:54
  Bitcoin. I think people underestimate how
• 32:56
  how much like I I the halving cycle is completely intact, like
• 33:01
  it's never broken. Well, if we only go this low.
• 33:06
  You still follow your cycle maxi forever.
• 33:08
  It's. Still intact.
• 33:09
  I mean, like it's playing out. Timing wise, it's.
• 33:12
  Playing out timing wise, the supposed bottom is in October.
• 33:18
  That's the. Supposed bottom.
• 33:19
  So what's Bitcoin going to do from here till October?
• 33:23
  If Bitcoin has this like massive capitulation of that in like
• 33:27
  over the summer, in the next couple of months, then maybe
• 33:31
  I'll change my mind, right? And by the way, 50K is the
• 33:36
  floor. So let's talk about the 50K59.
• 33:38
  So the 200 week, I think it's the 200 week moving average is
• 33:42
  around 59 K. But if you take a look, if you
• 33:46
  take a look at bitcoins price action during bear markets, it's
• 33:53
  known to spend some time under the 200 week moving average.
• 33:58
  So the the current 200 week moving average is about 59 K.
• 34:04
  It's currently at 54. 54 Ki thought it was.
• 34:07
  I thought it was. I thought it was higher.
• 34:09
  Well, I'm pretty sure it was higher.
• 34:11
  That's what I'm saying. Look, I'll show you.
• 34:13
  I'm. I'll show you.
• 34:14
  I saw Adam, I saw Adam back talks.
• 34:16
  About. Well, it could.
• 34:17
  Be. The EMA and not just the pure MA
• 34:23
  so. Anyways, so the 200.
• 34:25
  It's roughly around the same the 200 week.
• 34:27
  Moving average historically, right, Bitcoin on a bear market
• 34:31
  always tends to touch that again, right?
• 34:34
  So Optis is saying 54 Adams is Adam Back saying 5859 K, this is
• 34:42
  a bear market, so we should tap that line again right now, every
• 34:49
  other bear market Bitcoin not only taps that line, but
• 34:53
  actually spends some time under that line.
• 34:56
  It doesn't spend that much time under that line, but it does
• 34:59
  spend some time under that line. So this leads me to the second
• 35:03
  video of Lynn Alden also on CNNBC talking about Bitcoin.
• 35:08
  Let's check it out. Is this Bitcoin a buying
• 35:10
  opportunity? I do, I think Bitcoin's a buying
• 35:13
  opportunity. I also think, you know, Latin
• 35:16
  American banks, for example, airlines, airports, I, I think
• 35:20
  these things don't necessarily bounce back quickly, but once we
• 35:22
  do have a light at the end of the tunnel, I think some of
• 35:24
  those beat you down areas have a lot of upside.
• 35:28
  I 100% agree with Lynn. Right.
• 35:30
  But she did. She'd.
• 35:31
  Say, by Latin American airlines. No, but just.
• 35:34
  But that has nothing to do with what we're talking about.
• 35:36
  I know, but yeah, that's kind of crazy.
• 35:41
  That's crazy. Anyways, if you guys are
• 35:42
  enjoying the show so far, make sure.
• 35:43
  To smash that like button. Shout out thousand live viewers
• 35:47
  across all platforms. Shout out to you guys on Rumble.
• 35:49
  Shout out to you guys on YouTube.
• 35:50
  Shout out to you guys on Noster. Thank you for the zaps on
• 35:53
  Noster. Shout out to you guys on X
• 35:56
  again, if you guys are enjoying the show, make sure to smash
• 35:58
  that like button and of course, follow or subscribe to Simply
• 36:00
  Bitcoin. Anyways, back to the topic
• 36:04
  before Opti started talking about Latin American airlines.
• 36:06
  I didn't talk about that. She did.
• 36:08
  No, but you brought. It up.
• 36:09
  You brought it up, man. It has nothing to do.
• 36:11
  I'm just. Clarifying here simply Latin
• 36:13
  American. Airlines.
• 36:14
  Honestly, that's a good pivot. They were asking us what we're
• 36:16
  going to pivot if we don't go up ever again.
• 36:18
  We're never pivoting bro, we're. Going simply Latin American
• 36:21
  airlines. At Simply Bitcoin.
• 36:23
  We're going down with the ship if if that is if that is, you
• 36:27
  know, our destiny anyways. OK, so let's focus on what Lynn
• 36:33
  said. So Lynn said the great buying
• 36:35
  opportunities, but she also said that it's not necessarily true
• 36:42
  that they're going to take they're going to be quick to
• 36:44
  recover, right. But again, if you're thinking on
• 36:48
  a one to two to three-year time scale, I 100% agree with Lynn.
• 36:55
  So if you want to put what Kathy Wood said, she's she doesn't
• 36:58
  believe we'll have 80% draw downs anymore.
• 37:00
  If you put together what Lynn Alden said on CNNBC, so public
• 37:05
  national TV, she's saying the quiet, quiet part out loud,
• 37:09
  ladies and gentlemen, she is saying literally hey guys, you
• 37:14
  know what it's probably a good time to buy Bitcoin if you have,
• 37:19
  you know, low time preference. Now, what's really interesting
• 37:24
  about Kathy Woods comment is you notice how she didn't say 70%,
• 37:32
  she said 80%. So the reason I believe I'm the
• 37:38
  reason I'm saying this is every single cycle Bitcoin actually
• 37:44
  has the bear market is better than the last bear market.
• 37:50
  So if you go back to the early bear markets, the corrections
• 37:54
  were like 80%. If you go back to the previous
• 37:58
  like the last couple bear markets, they're in the seven,
• 38:00
  the high 70 region, then it was like the mid 70 region.
• 38:04
  So if that trend continues and I think it will, right, you're,
• 38:10
  you're looking at a 60 to 70% correction maximum.
• 38:15
  And again, this is not putting into account a Black Swan type
• 38:18
  of event, of course, right. But that's my opinion on this.
• 38:22
  Like guys, from an from a risk adjusted return perspective,
• 38:28
  this is a great time to be buying Bitcoin or companies that
• 38:33
  are involved in the Bitcoin space that you know are well
• 38:35
  run. I think that's a very, it's a
• 38:37
  very good time to do that. Of course they can go lower,
• 38:40
  Bitcoin can go lower. But again, from a dollar cost
• 38:44
  averaging perspective, this is a great time in my opinion, right?
• 38:49
  And I think the question on everybody's minds is this is
• 38:52
  what Lynn was referring to when she was talking about it is when
• 38:55
  are we going to start to see that light at the end of the
• 38:57
  tunnel? I was running October.
• 39:00
  I'm going to give you my perspective here now in, in, in
• 39:03
  the beginning of April, I think we're going to see that light at
• 39:06
  the end of the tunnel either during the summer when, you
• 39:10
  know, if we have a capitulation event or towards the end of the
• 39:14
  year. I think we'll start to see that
• 39:15
  light at the end of the tunnel. But I, I, you know, we might see
• 39:20
  more pain up until that point, right?
• 39:23
  It would be. Great if we just stuck at these
• 39:25
  prices, but it also would be extremely boring at the same
• 39:27
  time. Like it'd be difficult to to
• 39:30
  talk about things like, what else are we gonna talk about if
• 39:33
  yeah, maybe just go sideways for an entire year.
• 39:36
  Maybe the light at the end of the tunnel is really a train and
• 39:39
  we're cooked. Oh my God, like like the like
• 39:43
  the cartoon. Yeah, like the cartoon.
• 39:46
  No, no, no, I, I think, I think Bitcoin's going to the.
• 39:48
  Moon. I know I agree.
• 39:49
  I agree. I.
• 39:49
  Just Bitcoin's going to the moon.
• 39:50
  I think it's just gonna, I think it's just gonna take some time.
• 39:53
  Right, I'm trolling anyway. I do.
• 39:55
  I do want to get to the new segment 'cause we do have a lot
• 39:59
  of things to talk about. And then like I told you guys,
• 40:01
  we have Frank Holmes joining us in about 10-15 minutes.
• 40:05
  He's the chairman of Hive Digital Technologies.
• 40:08
  We're gonna be talking about some misconceptions of about
• 40:10
  Bitcoin mining and looking really looking forward to that.
• 40:13
  Always love when Frank comes on the on the show drops pure
• 40:17
  signal. Anyways, everybody let's we'll
• 40:19
  be right back in just a bit. I want to give a shout out to
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  code simply. Hi, ladies and gentlemen.
• 43:01
  We are back and we got a special guest joining us today.
• 43:05
  The. One the only Bulldog.
• 43:07
  Holmes, AK Frank Holmes, executive Chairman of Hive
• 43:11
  Digital Technologies. Frank, thank you so much for
• 43:13
  joining us on the show today. Great to be rolling with you.
• 43:18
  Frank, so lots of things to talk about.
• 43:22
  And I, I thought, I thought this topic was, was interesting and
• 43:26
  fascinating. And I actually, and, and I want
• 43:28
  to talk about this with our audience.
• 43:31
  And let's break down what Bitcoin mining actually is,
• 43:37
  because I think that there's a a, a, this misconception perhaps
• 43:41
  in the public that Bitcoin mining is like the California
• 43:45
  Gold Rush. Perspectors digging through
• 43:47
  dirt, crushing rock, walking away with shiny physical gold
• 43:51
  coins that could hold in their hands.
• 43:53
  But that's a completely wrong conception of what Bitcoin
• 43:57
  mining is. So of course, who, who?
• 44:01
  Who better to bring than to talk about this topic than of course,
• 44:06
  the legend Frank Holmes. Hive is the first publicly
• 44:10
  traded Bitcoin miner for anyone who doesn't know.
• 44:12
  By the way, BT dubs. So, Frank, let's talk about this
• 44:16
  topic. Well, you know, it's a, it's a,
• 44:18
  it's an important topic because we're have noticed that
• 44:22
  government agencies in the Nordic countries, in Paraguay
• 44:27
  also and in Canada, they think that you're, you have an ATM
• 44:33
  machine basically and you run. Through.
• 44:36
  Energy through the ASIC chips and out pop these little coins
• 44:40
  and then you're. Trading them to the public like
• 44:42
  you're selling popsicles. And, and it's really bizarre,
• 44:46
  but it's true. It's how they think about it.
• 44:49
  So I was talking to guys that were building data centers, this
• 44:53
  is a few years back and they were building in Venezuela and
• 44:58
  guys came with rifles and guns to rob their Bitcoin from the
• 45:03
  data center. And the guys are Croatian
• 45:07
  engineers and they said they had to run out of the back door and
• 45:11
  they're running and going and hiding because literally this is
• 45:15
  what people think that there is these coins there.
• 45:19
  And and then you get the more sophisticated level that that
• 45:23
  think it's, it's you're still having some way of having a
• 45:27
  wallet in your facility that the bitcoins go into a wallet.
• 45:33
  It just doesn't. Happen that way.
• 45:35
  And so for simplicity, we basically sell hashing power.
• 45:40
  That's what we do. And we sell hashing power to
• 45:44
  foundry which is AUS audited pool, Bitcoin pool and SoC one
• 45:50
  and two compliant. So it meets all those.
• 45:53
  Regulatory requirements. We sell hashing power to them
• 45:58
  and based on the amount of hashing power we are able to
• 46:01
  sell to them on a daily basis, they will give back our pro rata
• 46:06
  number of bit virgin Bitcoins. So they're the real really that
• 46:10
  they're the ones that are manufacturing if you want to
• 46:12
  think of it that way. And they pay us in Bermuda
• 46:16
  because we have to function over all these different
• 46:18
  jurisdictions. But there are people and
• 46:21
  governments and tax people in Canada and, and in Sweden that
• 46:25
  we know that think that we're trading in the public.
• 46:29
  We are an exchange. We do this we got and it just
• 46:32
  doesn't happen. And what's really interesting,
• 46:34
  Nico, it's the same thing for AI.
• 46:37
  Basically you're the large language model working at the
• 46:42
  University of Columbia and you're running your model.
• 46:45
  So you need the the power, the compute power.
• 46:48
  So you come and rent our GPU chips, but you pay us in U.S.
• 46:54
  dollars. You're not paying us in Bitcoin.
• 46:58
  And so a lot of people think that when you're running large
• 47:01
  language models that you now own those large language models in
• 47:04
  your data center. That's not true.
• 47:06
  Those large language models are basically back.
• 47:09
  Whoever want to write them and create them, it's their
• 47:13
  proprietary, their IP, their product.
• 47:16
  And and so that was the big part that people realize that.
• 47:19
  So now we get paid in Bermuda, we sell the hashing power, we
• 47:25
  get paid 10 Bitcoin a day and drops off into Bermuda and then
• 47:29
  we can leave on the balance sheet or we get to sell to pay
• 47:32
  electricity bills which we have to pay with dollars or Corona,
• 47:37
  but we have usually it's U.S. dollars we're paying with.
• 47:40
  Yeah, and, and I think that's like it, it's, it's a, it's a
• 47:43
  big misconception, Frank, because it, Bitcoin never
• 47:47
  touches the local financial system, right?
• 47:50
  And I think that's the like the mental hurdle that and, and
• 47:55
  again, it requires education, right?
• 47:57
  Because I and it and it comes, it's like, oh, this is Bitcoin
• 48:00
  mining. So people assume it's the same
• 48:02
  as gold mining, right? They assume there's like a, a
• 48:04
  physical component to this, but and there is a physical
• 48:07
  component to this, but all of this the, the, the Bitcoin, it's
• 48:11
  all digital, right? It's all digital.
• 48:13
  And at the end of the day, when you were, you were describing
• 48:16
  the, the, the, the pool you're, you're pulling up your your your
• 48:21
  resources with Foundry so that you can have a consistent payout
• 48:27
  and then that is getting paid out to an entity in Bermuda.
• 48:30
  So again it. But it's all audited.
• 48:33
  You know, the think about it, it's it's socks one and two
• 48:36
  compliant. It's in the US safe
• 48:39
  jurisdiction. It's not in some third world
• 48:43
  country where there's no rules or regulations.
• 48:46
  It's in a regulated environment. And what we want to make sure is
• 48:51
  that we got the virgin coins and that's what we get.
• 48:55
  What Frank, what, what fascinates me the most is I
• 48:58
  understand how this could happen with, with Bitcoin, right?
• 49:03
  Like I understand, you know, when you hear about Bitcoin
• 49:05
  mining, it's like, oh, you know, these Bitcoin ATMs. And I love
• 49:08
  the example, you know, in, in the, the, the example in
• 49:12
  Venezuela where people just showed up and they said, Hey,
• 49:14
  you know, give me this Bitcoin that, that example was a great
• 49:19
  example. I understand how regulators and
• 49:23
  politicians could get confused and they could think as Bitcoin
• 49:26
  mining, as gold mining. What's really interesting to me
• 49:30
  about this conversation is why do you think they get confused
• 49:34
  with AI? Right, 'cause I, I feel like you
• 49:36
  know, it, it, it's a, it's different.
• 49:38
  What did you say? Yeah, but really, we're selling
• 49:42
  compute. Power.
• 49:43
  And, and that user wants to know what chips you have, is it an
• 49:47
  H-100 or is it more powerful, the H200 or they have new levels
• 49:54
  of, of, of chips from NVIDIA and now they're getting up to
• 49:59
  Bugatti's from Lamborghinis, what they're making.
• 50:02
  And so they're really caught up with that.
• 50:04
  But we don't we, we, they'll pay us more per hour to have access
• 50:09
  to that motor. But it's, it's the output, the
• 50:13
  product created from running it through that high performance
• 50:16
  engine. It's theirs.
• 50:18
  It's not ours. Yeah, of course they're,
• 50:21
  they're, they're coming to you guys for the infrastructure,
• 50:24
  they're coming to you guys for the computing power.
• 50:27
  They're paying for the computing power.
• 50:29
  But ultimately you guys are not deciding what they're doing with
• 50:32
  that computing power. It's.
• 50:33
  The same but they think AI is different than Bitcoin mining.
• 50:38
  That's the thing that that blows me away that you have actually
• 50:41
  educated people that still think that Bitcoin is you have this
• 50:45
  ATM or wallet. There and it.
• 50:47
  Just doesn't happen that way. But they say oh, AI is.
• 50:50
  Cool. And that's OK, but not Bitcoin
• 50:53
  mining. But actually they're just data
• 50:56
  centers with more complexity. Tier one data centre is a lot
• 51:01
  less expensive per MW than tier 31 million versus 10 million per
• 51:07
  MW the construction because you need so much more air
• 51:10
  conditioning for GPU chips. And so that makes the the big
• 51:15
  difference. But the whole idea that you're
• 51:17
  selling compute, that's really what you're doing.
• 51:20
  And our mechanism is that we sell compute to foundry and
• 51:25
  foundry turns around and rewards us based on the hashing power
• 51:29
  that we're selling to them in Bitcoin.
• 51:32
  Absolutely. And, and Frank, let's, let's
• 51:34
  talk about another misconception as well, which to me, this was
• 51:39
  the most fascinating when I was going down the Bitcoin rabbit
• 51:42
  hole, is this idea that Bitcoin mining wastes energy.
• 51:47
  And the way that I phrase it in my mind is Bitcoin mining gives
• 51:53
  value to energy that would otherwise go to waste.
• 51:57
  Do you do you want to elaborate a little bit on that?
• 51:59
  Because again, this is another big misconception with the
• 52:02
  public. There was a, there is a big
• 52:04
  marketing campaign to really push this.
• 52:06
  You heard it's like Bitcoin mining uses more energy than the
• 52:10
  country of, of Denmark. Without getting into the nuance
• 52:13
  of what energy is Bitcoin mining using, because you can't set up
• 52:17
  a Bitcoin mine in the middle of Manhattan.
• 52:20
  It would be uneconomical. So, Frank, can you talk a little
• 52:22
  bit about that? Well, they're, they're really
• 52:25
  scrappy entrepreneurs and they went out and sourced stranded
• 52:30
  electricity or surplus electricity that was going
• 52:35
  nowhere, wasn't being used. And, and local communities said,
• 52:40
  great, we're going to have some economic revenue from this
• 52:44
  surplus or stranded electricity. It's stranded means it's not
• 52:47
  hooked up to a grid that a major utility is going to buy your
• 52:51
  electricity from. And you can see that in a lot of
• 52:54
  emerging countries, especially when they went to Ethiopia, they
• 52:58
  built these big hydro dams and but there was no real National
• 53:01
  Grid. So the electricity was basically
• 53:04
  comes to a halt that goes nowhere.
• 53:06
  And in comes Bitcoin miners to build up the infrastructure in
• 53:10
  the substation that bring in the Transformers and they're all of
• 53:13
  a sudden creating economic viability from this stranded
• 53:18
  electricity. In West TX it was predominantly
• 53:21
  a surplus of electricity that came from flare gas that came
• 53:26
  from solar and wind, huge wind farms that were built all
• 53:31
  through West TX. So where was that electricity
• 53:34
  going? There were a couple days in
• 53:36
  Houston that it went to zero. Your cost of electricity as a
• 53:39
  consumer because they had this surplus electricity and and so
• 53:44
  now they have this almost strand electricity and they start
• 53:48
  building up this massive Bitcoin operation.
• 53:50
  What today is the largest spend in America?
• 53:54
  In Abilene, TX for $500 billion spend.
• 53:59
  Wow, wow. And then Frank, I also want to
• 54:01
  talk about the secondary effects, right.
• 54:04
  So not only are you monetizing energy that otherwise would be,
• 54:11
  you know, it, it'd be stranded, you're also producing high
• 54:15
  skilled, you're, you're also creating high skilled jobs,
• 54:19
  right? You're also creating revenue for
• 54:22
  those local governments that otherwise wouldn't have that
• 54:25
  tax, tax revenue as well. So there's secondary effects of
• 54:30
  creating these data centers, right, Whether it's tier one or
• 54:33
  the, the, the GPU tier, I think it's tier 3.
• 54:36
  Is that correct, Frank? I'm, I'm learning as I go.
• 54:40
  So could you talk about the secondary effects?
• 54:42
  Right. And I saw some of those I had, I
• 54:44
  had the shout out to the hive team, had the, the, the
• 54:48
  privilege and the honor of, of being able to see the hive site
• 54:51
  in, in, in Paraguay. And, you know, I visited a local
• 54:56
  school. So there are secondary effects
• 54:59
  to, you know, Bitcoin miners building out these tier one
• 55:03
  centers and building out the infrastructure and how that
• 55:07
  actually helps out the local community.
• 55:09
  So can you talk a little bit about that, Frank?
• 55:11
  Well. When you look at the the the.
• 55:14
  CapEx that goes into a data. Center tier 1-2 and three tier
• 55:19
  one creates the most job short term and it's the mechanism.
• 55:24
  Tier one data centers is you source the electricity.
• 55:28
  You've. Bought the land and then you use
• 55:31
  predominantly local contractors to dig up the ground, lay the
• 55:35
  cement, put up the steel girders.
• 55:37
  You're you're building that basic infrastructure which has
• 55:40
  the biggest multiplying effect short term for job creation.
• 55:46
  And when you look at after the data center's been.
• 55:49
  Built. You can turn around and create.
• 55:51
  These data center jobs that are not, that's not huge compared to
• 55:55
  the construction. When you go Tier 3, the biggest
• 55:59
  cost, like 95% of the cost is. Really.
• 56:03
  The NVIDIA chips and the infrastructure that goes around
• 56:07
  those chips, those chips are very, very expensive we were
• 56:11
  doing. Cost for clusters, our recent
• 56:13
  cluster it's like $70,000 a a chip to.
• 56:17
  Create that network for that chip to be slid into.
• 56:20
  So those chips are very, very valuable.
• 56:23
  More than than than an ounce of gold substantially more.
• 56:26
  And so when you get them delivered, you have to you have
• 56:28
  them delivered with security guards I.
• 56:30
  Didn't know that. And, and because they're
• 56:33
  extremely valuable and you have to have big security around
• 56:36
  those data centers because the value of those chips.
• 56:39
  And the other interesting part which has happened is that the
• 56:42
  GPU chip market is now become an asset class.
• 56:46
  So we saw this evolve 40 years ago with cars, car loans,
• 56:51
  secondary car loans. All of a sudden people would buy
• 56:54
  that loan package. It became an asset class and and
• 56:59
  you could go and buy other types of industries if they get big
• 57:03
  enough. Well in this.
• 57:04
  Past year GPU chip lending has all of a sudden evolved.
• 57:09
  That is not just a bank. There are hedge funds and
• 57:12
  they're charging between 7 and 11% for the cost to buy the GPU
• 57:17
  chips. So I go, you borrow money from
• 57:20
  them and 7% I buy the chips, I use Kappa to go build the
• 57:24
  building and I have a client that's going to use that compute
• 57:28
  power. So the mechanism is evolving
• 57:31
  very rapidly for the value of these GPU chips because they
• 57:35
  found unlike ASIC chips, ASIC chips go down in value and they
• 57:40
  don't really get a bounce back up just because more people come
• 57:45
  in and the difficulty has been rising.
• 57:48
  But with GPU chips, it's a different market.
• 57:51
  You we know from our A 40s, which we purchased five years
• 57:55
  ago, we depreciated them over 4 years, got our money back from
• 57:59
  mining Ethereum. Then we had them using them for
• 58:02
  AI business and we can get almost 75% of the value for
• 58:06
  them. It's still today, today despite,
• 58:10
  yeah, that's unheard of with Asic's, that's unheard of.
• 58:13
  Of course that's. That's wow with with, with ASIC
• 58:17
  chips. And, and So what we're, we're
• 58:19
  seeing is, is that the Bitcoin miners were the first to go and
• 58:24
  get the electrical contract, buy the land and then get the
• 58:29
  permitting to build a substation today to go do that for an AAI
• 58:35
  factory, it's a long lead time, long to get the HVAC equipments,
• 58:41
  like 50 weeks of of waiting for the air conditioning components
• 58:45
  are extremely expensive. You can get the NVIDIA chips
• 58:47
  faster then you can get all the air conditioning components.
• 58:51
  And, and so what's happening is, is the market is saying the best
• 58:55
  place to go is go to the Bitcoin miners because they already have
• 58:59
  the electricity, they already have the land, they built the
• 59:03
  substation. Now we have to upgrade the
• 59:05
  facilities. So not $1,000,000 a MW, We have
• 59:09
  to spend another 7 to 10 million to upgrade the facility with
• 59:13
  more air conditioning units because these GPU chips give off
• 59:18
  so much heat, you need more air conditioning.
• 59:21
  So the fastest path. Is the goal where the Bitcoin
• 59:24
  miners are and that's what we've seen where the core, we went
• 59:28
  after Core Scientific and then a hedge fund came in to stop it,
• 59:31
  etcetera. But they had a joint venture and
• 59:34
  they said it's best for us just to buy them.
• 59:37
  We've seen Cyprus and Hot 8 go and basically sell the real
• 59:43
  estate. It's like a real estate contract
• 59:45
  and getting a tenant. So if you owned a building and
• 59:49
  you got a 15 year tenant from JP Morgan's, your tenant, that
• 59:53
  tenant for 15 years is extremely valuable to a bank to lend you
• 59:57
  money. Absolutely, because it's it's
• 1:00:00
  consistent and, and, and it's, it's a reliable tenant, right?
• 1:00:03
  It's a consistent and reliable tenant.
• 1:00:05
  So if you for a long period of time.
• 1:00:07
  If you have AWS, you have Azure Core, you have some of these
• 1:00:12
  hyper scalers coming in to a Bitcoin miner and saying we will
• 1:00:17
  take all your electricity, you're no longer be doing a
• 1:00:19
  Bitcoin mining, you're going to do AI.
• 1:00:23
  We will give you this long term contract and that all of a
• 1:00:27
  sudden creates a new valuation that many of these sort of
• 1:00:30
  Bitcoin miners that are able to get a long term contract are
• 1:00:34
  being re rated as a real estate play.
• 1:00:38
  So they're really not a Bitcoin miner.
• 1:00:40
  There are real estate play and and some of them have made
• 1:00:45
  comments about becoming a REIT like Digital Realty and when I
• 1:00:49
  first. Went down this path.
• 1:00:51
  To learn about Realty companies, I bought some shares of Digital
• 1:00:54
  Realty and, and, and I tracked them and, and they have great
• 1:01:01
  content on their quarterly earnings releases, etcetera, but
• 1:01:04
  they trade at a huge multiple forward revenue, forward
• 1:01:08
  earnings. So if you looked at at Hive, you
• 1:01:12
  would say, well, what is your forward revenue looking like?
• 1:01:14
  What's your market cap? It's three times.
• 1:01:17
  But if you had a hyperscaler long term contract, well all of
• 1:01:21
  a sudden you're trading at 8 to 10 times next year's revenue.
• 1:01:26
  So you've seen this sort of two tier market and it's because
• 1:01:31
  analysts from the buy side are looking at this conversion to a
• 1:01:35
  real estate play. This is this is fascinating.
• 1:01:38
  Frank, there is one thing that I, I wanted to ask you on,
• 1:01:41
  right? Because I now I understand tier
• 1:01:43
  3 centers and I understand tier one centers.
• 1:01:47
  I don't think we've ever talked about Tier 2 center.
• 1:01:49
  What is a Tier 2 center? Well, it has a little more air.
• 1:01:52
  Conditioning. And it has a little more, has
• 1:01:56
  more memory. A lot of a lot of like Rackspace
• 1:02:00
  would be more Tier 2. If you're going to start
• 1:02:03
  becoming an AI factory, then 40% of your electrical bill is air
• 1:02:07
  conditioning. That's the big difference.
• 1:02:10
  So if you have 100 megawatts, you might have five of the 100
• 1:02:14
  for air conditioning for a Bitcoin mining tier one operator
• 1:02:19
  if. You're going to go tier. 3 for
• 1:02:22
  AI factory it's going to be 40% of your energy is for cooling
• 1:02:27
  the GPU chips. Gotcha.
• 1:02:31
  But this is I'm I'm every time Frank comes on the show, I
• 1:02:34
  learned so much. I really appreciate it.
• 1:02:36
  Seems like the audience is loving it as well.
• 1:02:38
  Smash the like button, everybody.
• 1:02:40
  Frank, I just want to clarify this right, which is you guys
• 1:02:45
  are not competing with local residents and businesses for
• 1:02:50
  power. You guys are actually putting
• 1:02:52
  wasted energy to productive use. Is that correct?
• 1:02:55
  That's exactly what's taking place and and we've also have a
• 1:03:00
  real strong a very strong focused which is not a buzzword
• 1:03:05
  today at ESG strategy in in all the communities that were
• 1:03:09
  involved with and especially. When you go to.
• 1:03:12
  Sweden sponsoring 12 hockey teams.
• 1:03:16
  Sponsoring the hockey arena, which is a big saving for the
• 1:03:19
  city. Little town Boden, we cover
• 1:03:22
  those costs. So we are very much involved
• 1:03:25
  the. Community and you visit the
• 1:03:26
  schools that in Paraguay, within one kilometer of our data
• 1:03:30
  center, we refurbish these country schools which still have
• 1:03:34
  an outhouse. For going to the.
• 1:03:36
  Bathroom that wasn't built in. Maybe. 40 years ago, 50 years
• 1:03:41
  ago. So we rebuilt that.
• 1:03:43
  But more important for the students is that we bring in air
• 1:03:46
  conditioning and it's very hot there.
• 1:03:48
  It's it's in in the winter, it's like. 80.
• 1:03:51
  Degrees and in the summer it's 110.
• 1:03:54
  So we we're, we're lighting up communities at night time.
• 1:03:58
  So that, that's part of our, our ambition to make sure that we're
• 1:04:01
  helping the local communities. And when asked to build a new
• 1:04:05
  substation, we said that the extra 100 megawatts which would
• 1:04:09
  allow us, it has to be for the community, not for another
• 1:04:13
  Bitcoin mining or a company, any business has to be the
• 1:04:17
  electricity surplus that we create from our power station
• 1:04:21
  is. Going to be.
• 1:04:21
  Used for the community and that's how we think.
• 1:04:24
  And it's a win win because the utility doesn't have that
• 1:04:27
  capital bill. That substation is 30 to $40
• 1:04:30
  million in Paraguay. And so we we have a very focused
• 1:04:36
  model that's inclusive within one kilometer from where we
• 1:04:40
  function. Absolutely.
• 1:04:41
  And I, and I saw it, I saw it in person, right?
• 1:04:45
  And it, it's, it's beautiful, right?
• 1:04:47
  You know, 'cause it fundamentally kids are the
• 1:04:49
  future and, you know, providing AC so they can learn, right?
• 1:04:55
  And it, and ultimately it was, it was, it was Bitcoin that did
• 1:04:58
  this. It was Bitcoin that created the
• 1:05:00
  incentive for Hive to come in there and, and, and build out
• 1:05:04
  all this infrastructure and it creates a win win situation for
• 1:05:08
  the local government, you know, the, the, the local residents
• 1:05:12
  and obviously Hive and, and the public markets as a whole.
• 1:05:14
  So it's it's, it's aligned incentives and it's one of the
• 1:05:17
  most beautiful things that I love about Bitcoin.
• 1:05:21
  And I want to add to it that we've created new designs for
• 1:05:26
  Tier 1 and how you can convert that into making robotics.
• 1:05:31
  You can convert that into other industries and you can convert
• 1:05:36
  that into a Tier 3 high performance computing data
• 1:05:39
  center. So you, you want to, when you go
• 1:05:43
  to build this tier one data center today, when you look at
• 1:05:48
  the, the weight of the rocking space and the height of the
• 1:05:53
  rocking space and all the components in the HVAC that's
• 1:05:56
  necessary. You need a different cement
• 1:05:58
  floor. You need something that's deeper
• 1:06:00
  and thicker that has other magical ingredients.
• 1:06:03
  It's like making a cake. And what what other flavors?
• 1:06:07
  Do you want to put in that cake? So it has this other strength to
• 1:06:11
  it, so. There there's more of a.
• 1:06:13
  Thought process going going into what we're scaling in Paraguay
• 1:06:18
  so that these tier one data centers very quickly can become
• 1:06:23
  tier 3 or be transformed into manufacture like Dell computers
• 1:06:30
  and and Sao Paulo manufacturers notebooks and and laptops
• 1:06:35
  etcetera. Well, you need a certain
• 1:06:36
  facility that could do that. So you need a tier. 1.
• 1:06:39
  Basic infrastructure because you have all the electrical, you
• 1:06:43
  have the water, you have the thick floors, you have the
• 1:06:46
  loading docks, all prepared in advance.
• 1:06:49
  So therefore it's easy to scale to tier 3.
• 1:06:53
  I love I love that. I love the fact that to me, the
• 1:06:57
  most fascinating thing, Frank, about all this, and I think we
• 1:07:00
  actually had this conversation, you open my eyes to this at
• 1:07:04
  mining disrupt is Bitcoin miners really were The Pioneers, right?
• 1:07:08
  They really, you know, they really went into, you know,
• 1:07:11
  these, these these places that were not developed and they,
• 1:07:14
  they built out these tier, the tier one systems that now could
• 1:07:18
  potentially be turned into, you know, a tier 3 system for AI or,
• 1:07:22
  as you said, manufacturing, manufacturing.
• 1:07:24
  But ultimately is really Bitcoin that created that initial
• 1:07:27
  incentive and is a Bitcoiner that makes me very proud and
• 1:07:31
  that makes me very happy. So it's, it's super, super cool
• 1:07:35
  to see that. Frank Holmes, thank you so much
• 1:07:38
  for joining us on simply Bitcoin Live Today.
• 1:07:41
  Guys, go give Bulldog Holmes a follow on X for some great
• 1:07:47
  takes. He's been dropping some AI memes
• 1:07:50
  recently. They've been really, really
• 1:07:51
  cool. You know who designs those?
• 1:07:54
  I heard, I heard, but I want, I want you to say it.
• 1:07:57
  It's my daughter. She's amazing, amazing.
• 1:08:00
  It's. Better of her bonding going to
• 1:08:01
  school in the morning that she's becoming this expert in Bitcoin
• 1:08:05
  and she uses Grok and she writes in long prompts to create these.
• 1:08:11
  So it's, it's, it's a great way for father and daughter to bond
• 1:08:15
  which, and, and then people love them.
• 1:08:18
  So now she wants to know which one do they love the most?
• 1:08:23
  They've been no, they've been amazing and I I remember Frank
• 1:08:26
  was sending them to me on on Frank was sending them to me and
• 1:08:29
  I saw him like these are really, really good.
• 1:08:31
  And then I heard more of the back story.
• 1:08:33
  But Frank, always a pleasure to have you on the on the show
• 1:08:36
  guys. If you want to find out more
• 1:08:38
  about hive, go to hivedigitaltechnologies.com.
• 1:08:41
  The link is in the video slash podcast description.
• 1:08:44
  Go give them a follow on next. They're dropping really good
• 1:08:46
  memes and really good signal. And always a pleasure, Frank,
• 1:08:49
  having you on the show. The audience loves it as well.
• 1:08:51
  Thank you so much for joining us.
• 1:08:53
  Thank you, Nico. Appreciate it.
• 1:08:56
  All right, Opti, well, we got the culture segment coming up
• 1:08:59
  and we got lots to talk about, but yeah, man, I love, love
• 1:09:03
  Frank coming on. Man, I I wish you came with me
• 1:09:06
  to to Paraguay, dude. I think it would have blew blew
• 1:09:08
  your mind seeing eat the poo dam and the amount of energy bro it
• 1:09:13
  was it was it was crazy. Yeah, I think I was a little
• 1:09:15
  busy that week doing the show. Oh.
• 1:09:20
  Man, maybe we should have asked Luke and Sophie to do the show
• 1:09:23
  that. Maybe I need a break, I don't
• 1:09:25
  know. You took a break.
• 1:09:26
  You. Took a break dude.
• 1:09:27
  Not really. I need like I need like a real
• 1:09:29
  vacation anyways. Speaking of breaks, guys, we're
• 1:09:31
  going to be right back. We got some interesting stuff to
• 1:09:35
  cover. Frannie Mae approves Bitcoin as
• 1:09:38
  collateral for mortgages. We knew this was coming.
• 1:09:42
  It's happening. It's here we're going to talk
• 1:09:45
  talk a little bit more about that right after the break.
• 1:09:48
  In just a bit, I want to give a shout out to our partner Hive
• 1:09:52
  Digital Technologies. Fueled by clean energy, Hive has
• 1:09:56
  quadrupled its global Bitcoin mining footprint and channels
• 1:10:00
  that same scale into high performance compute where their
• 1:10:04
  AI cloud is now ranked number one in the world for network
• 1:10:08
  performance. At Hive, you've got dual
• 1:10:11
  engines, Bitcoin and AI humming, boring, accelerating and unison.
• 1:10:16
  They're lean and mean, they're green and clean, and they're
• 1:10:19
  rewriting the playbook on sustainable digital
• 1:10:22
  infrastructure. You can catch the latest buzz at
• 1:10:25
  Hive Digital Tech or at Hive digitaltech.com.
• 1:10:33
  All right, everybody, we are back.
• 1:10:36
  We are back. And I do want to show did they
• 1:10:39
  change the the? What is going on here?
• 1:10:43
  I don't know our streaming softwares have an.
• 1:10:45
  Can we not share a screen? OK, no, I can't.
• 1:10:49
  I can't. I can't.
• 1:10:49
  I can't. I can't.
• 1:10:51
  Anyways, this is what I wanted to talk about today during the
• 1:10:53
  culture segment because this is kind of cultural.
• 1:10:56
  I, I do I, I will say this. Buy home with Bitcoin, Coinbase,
• 1:11:01
  Fannie Mae bring crypto mortgages to mainstream buyers.
• 1:11:06
  Coinbase is partnering with Better Home and Finance to roll
• 1:11:10
  out crypto backed mortgage-backed by Fannie Mae,
• 1:11:13
  marking a step forward integrating digital assets into
• 1:11:17
  traditional housing finance. The new offering allows
• 1:11:21
  qualified borrowers to pledge BTC or USDC as collateral for a
• 1:11:27
  down payment without selling their holdings, avoiding
• 1:11:30
  potential capital gains taxes while maintaining exposure to
• 1:11:34
  their assets. Structured as conforming loans,
• 1:11:37
  the mortgages carry the same standards and protections as
• 1:11:41
  traditional Fannie Mae backed loans.
• 1:11:44
  Better Better originates and services the loans while
• 1:11:48
  Coinbase. I think they there's a typo
• 1:11:51
  there. While Coinbase provides custody
• 1:11:53
  and infrastructure for the pledged Bitcoin or crypto, the
• 1:11:56
  product targets a long standing barrier in the housing market,
• 1:12:00
  the upfront cost of a down payment.
• 1:12:02
  According to Better, roughly 41% of American families failed to
• 1:12:06
  purchase homes due to inefficient liquid cash.
• 1:12:10
  Quote For decades, the path to home ownership has required
• 1:12:13
  Americans to sell assets, liquidate investments, or
• 1:12:17
  withdrawal retirement savings. Quote This partnership
• 1:12:20
  introduces a new pathway for millions of Americans who hold
• 1:12:24
  digital assets. The company estimates that
• 1:12:27
  around 52,000,000 Americans, roughly 20% of adults, have
• 1:12:31
  owned digital assets, according to a company press release.
• 1:12:34
  By allowing borrowers to pledge crypto instead of cash, the
• 1:12:37
  product aims to unlock that balance sheet for housing
• 1:12:41
  access. Unlike traditional crypto back
• 1:12:44
  lending, the mortgages are designed to minimize volatility
• 1:12:48
  risk for borrowers. The loans do not include margin
• 1:12:52
  calls or collateral top UPS. That's nice If Bitcoin price
• 1:12:56
  falls, borrowers are not required to add more collateral,
• 1:12:59
  and market movements alone do not trigger liquidations.
• 1:13:02
  Collateral is only at risk if a borrower becomes at least 60
• 1:13:06
  days delinquent on mortgage payments, aligning with standard
• 1:13:10
  foreclosure timelines in conventional housing finance.
• 1:13:13
  So I think the only reason they're able to do this is
• 1:13:15
  because the the piece of real estate itself as functioning as
• 1:13:19
  a form of collateral, right? Versus if there wasn't another
• 1:13:24
  form of collateral, they wouldn't be able to do this,
• 1:13:26
  right? So they actually, the borrower,
• 1:13:28
  the lender actually has 2 forms of collateral.
• 1:13:31
  They have Bitcoin as a form of collateral and they have the
• 1:13:34
  piece of real estate of as a form of collateral.
• 1:13:36
  I mean, this is a no brainer to whoever's offering this cause
• 1:13:41
  again, there's very little risk to the lender, right?
• 1:13:44
  Interest rates on the crypto backed structure are expected to
• 1:13:47
  be higher than the standard 30 year, 30 year mortgages by
• 1:13:51
  roughly point .5 to 1.5 percentage points depending on
• 1:13:55
  borrower profiles. Still, Coinbase argues the trade
• 1:13:58
  off may be worth it if for borrowers seeking to avoid
• 1:14:01
  liquidating assets. So this is I think like a huge
• 1:14:08
  game changer that I don't think we're going to see the full
• 1:14:11
  effects of for many years. And the reason I'm saying that
• 1:14:17
  is the vast majority of people that own real estate right now
• 1:14:20
  are the younger, the old, the older generation, specifically
• 1:14:24
  the boomers, and I'll leave it at that.
• 1:14:31
  And the younger generations have essentially been priced out in,
• 1:14:37
  in, in many locations, right? Real estate is too expensive.
• 1:14:41
  So they have resorted to renting, right?
• 1:14:45
  I think this is a great product to offer to younger, you know,
• 1:14:52
  the younger generations that that essentially have been
• 1:14:58
  priced out. They don't want to sell their
• 1:14:59
  assets. This is this is a game changer
• 1:15:03
  in in my opinion, but but obviously, you know, you got to
• 1:15:11
  read between the lines, man, because it's, it's not just
• 1:15:14
  loans for it, it, the collateral isn't just your Bitcoin.
• 1:15:17
  The collateral is a piece of real estate that you're in in as
• 1:15:21
  well, right. So anyways, I thought I would
• 1:15:25
  say that, and I'm sure that there's going to be more
• 1:15:28
  companies that are going to follow in the footsteps of
• 1:15:30
  Coinbase. I'm 100% sure that, you know,
• 1:15:34
  Leaden is going to offer something similar in the future.
• 1:15:39
  But very exciting, man. The things that you can do with
• 1:15:42
  your Bitcoin, just it's, it's exciting.
• 1:15:45
  You don't have to sell it. This is the whole thesis with
• 1:15:48
  Mark Moss, right? With the whole.
• 1:15:51
  Thesis with Mark Moss is like look like you don't have to sell
• 1:15:55
  your assets, just take on debt. That way you don't have to pay
• 1:15:59
  capital gains, you don't have to incur capital gains tax on that.
• 1:16:04
  And that way you can actually pass on some assets to, you
• 1:16:08
  know, the the next generation. I think that's something that
• 1:16:12
  people don't talk a lot about enough, right?
• 1:16:17
  Which is like you have this concept of retirement, which is
• 1:16:21
  like, look like if I reach a certain liquid net worth, I'm
• 1:16:27
  going to be able to retire because I'm going to be able to
• 1:16:29
  take out a certain amount of, I'm going to be able to take out
• 1:16:34
  a certain amount of money every single year, you know, for the
• 1:16:37
  next, you know, 20-30 years. But that's a terrible way of
• 1:16:41
  looking at it because essentially your net worth just
• 1:16:43
  gets progressively lower over time versus I think the way that
• 1:16:47
  you should be looking at it is if you believe, and Michael
• 1:16:52
  Saylor built an entire product around this belief, right?
• 1:16:56
  If you believe that, if you believe that bitcoin's going to
• 1:17:01
  have a 20% CAGAR moving forward into the future and you take out
• 1:17:06
  a loan right now, the loans on Leaden are like I think it like
• 1:17:10
  like around 11% and then they get lower depending on on the
• 1:17:15
  size. Go check it out.
• 1:17:20
  It's a no brainer. It's a no brainer, right,
• 1:17:24
  because the asset that you're barring against is appreciating
• 1:17:28
  more than the loan amount, right?
• 1:17:32
  Than the, the, the, the, the yearly interest rate that you
• 1:17:35
  have to pay on the loan. So you're actually in the green
• 1:17:39
  by like roughly like 10%. Like it's a no brainer in
• 1:17:42
  theory. In theory.
• 1:17:44
  Well, no, no, no, I mean, not, not, not, not only in theory.
• 1:17:47
  Like there comes the obviously it comes with risks, right?
• 1:17:50
  Because again, if you buy the top, I don't think you're going
• 1:17:53
  to get a a 2020% CAGR, but if you buy the bottom, like I think
• 1:17:57
  you're going to get more than A. 20% I was basically just
• 1:18:00
  trolling out. Are we going to get another 20%
• 1:18:03
  CAGR year year over year? Look some someone you know
• 1:18:07
  someone in the chat already said it like I've done it since 2017,
• 1:18:10
  Chad, right. So anyways, I I do want to I do
• 1:18:15
  want to mention. All all I want to say is I'm old
• 1:18:17
  enough to remember Fannie Mae and I wouldn't be giving them my
• 1:18:21
  Bitcoin. What do you mean?
• 1:18:25
  I don't know. I'm pretty sure Fannie Mae was
• 1:18:27
  one of the big companies that was caught up in the 2008
• 1:18:30
  crisis. But you know, what do I know?
• 1:18:32
  I think it's an Overton window shift, but we are seeing other
• 1:18:36
  things I think. Barring against Bitcoin is an
• 1:18:38
  absolute no brainer. By the way, our partner Leaden,
• 1:18:41
  which is fantastic. If you do want to take a Bitcoin
• 1:18:44
  collateralized loan, I think right now is the most opportune
• 1:18:47
  time. With Bitcoin being 45% down it
• 1:18:50
  definitely eliminates a lot of the risk.
• 1:18:52
  But big announcement. For loans under $250,000 the the
• 1:18:59
  APR is 11.49%. For loans between 250,000 and
• 1:19:04
  500,000 the APR is 10.99%. For half a million to 1,000,000
• 1:19:12
  the APR is 10.49% and for a million plus the APR is 9.99%.
• 1:19:19
  Better rate, same protection. Go check out Leaden right now.
• 1:19:23
  There's a link in the video description.
• 1:19:25
  If it's your first loan, you get .25% off your first first loan.
• 1:19:29
  Absolutely love the guys over at Leaden, unlike Coinbase, you
• 1:19:36
  know they have they have proof of reserves and they have a
• 1:19:39
  proven track record and they're a Bitcoin only company.
• 1:19:43
  So absolutely love Leaden. Go to leaden dot IO, use the
• 1:19:46
  link and you'll get a you'll get a discount anyways, if you guys
• 1:19:50
  enjoyed today's show, you know what to do smash the like
• 1:19:52
  button. Also, I do want to give a shout
• 1:19:55
  out to our sponsor, the Bitcoin conference.
• 1:19:59
  This is Bitcoin 2026. It's coming up.
• 1:20:03
  This month, ladies and gentlemen, less than 30 days.
• 1:20:06
  If you scan the QR code, it'll take you to the website.
• 1:20:08
  It's April 26, twenty 7th through the 29th.
• 1:20:11
  The speaker list is absolutely crazy.
• 1:20:13
  Of course you have Michael Saylor going.
• 1:20:16
  You have Afroman made major announcement.
• 1:20:21
  Afroman. Yeah, Yeah.
• 1:20:22
  Can we talk about it's pretty much speech case.
• 1:20:25
  That's hilarious. Who had the craziest?
• 1:20:28
  The craziest case. The craziest case?
• 1:20:33
  Let's talk about that. It's part of the culture,
• 1:20:35
  brother. I I I don't really know that
• 1:20:37
  much I. Just some cops raided his house,
• 1:20:40
  right? And they were like, seeking for
• 1:20:42
  like, like. Three years ago, he made.
• 1:20:44
  Three albums about that Talking mad.
• 1:20:47
  They raided his house, they found nothing, like he had to
• 1:20:51
  pay like $5000 or something to like fix up the house.
• 1:20:55
  He was super pissed. So he decided to make out like
• 1:20:58
  the funniest songs, 3 songs about.
• 1:21:00
  No, I think it was like 3 albums, Three albums about it.
• 1:21:03
  And like, if you watch these albums, they're absolutely
• 1:21:06
  hysterical because he takes camera footage from his house
• 1:21:10
  and he's just talking shit about the cops.
• 1:21:12
  Like it it. Oh my God.
• 1:21:14
  And then there. Was and then wins the case and
• 1:21:16
  now he's at the Bitcoin cop one. One of the cops, one of the cops
• 1:21:20
  like one of the, I think one of the songs is like called like
• 1:21:22
  yellow cake or something. Yeah, yeah, Apparently he was
• 1:21:24
  looking at the yellow cake. And apparently one of the cops
• 1:21:27
  like ate the yellow cake. Or they looked at the yellow
• 1:21:30
  cake. Anyways, look, it was just.
• 1:21:32
  Lemon pound cake into the chat thing.
• 1:21:34
  Lemon pound cake. Lemon pound cake it was.
• 1:21:37
  Yellow cake. Yellow cake.
• 1:21:39
  Dave Chappelle. All right.
• 1:21:40
  Dave Chappelle, All right. Whatever, dude.
• 1:21:42
  I'm a I'm a millennial. Whatever.
• 1:21:44
  Dave Chappelle's skin just it sticks in my mind, man.
• 1:21:47
  It's so funny, bro. So lemon pound cake.
• 1:21:51
  All right, to clarify, you guys got to listen to these songs.
• 1:21:54
  You're. Lemon pound cake, but the.
• 1:21:56
  Reason I'm bringing this up is this happened back in like
• 1:21:58
  2021-2022. OK, and the case that basically
• 1:22:04
  the Police Department got really pissed off that I, I, I saw Afro
• 1:22:10
  Jack over the weekend. I went to ultra with Opti dude
• 1:22:14
  dogs. So I'm like, I'm I'm confusing
• 1:22:15
  the two ducks Afroman. They got really pissed off that
• 1:22:22
  Afroman made a album and they sued Afroman for like, it was
• 1:22:28
  like defamation or like libel or something.
• 1:22:30
  Like that? And the case just resolved.
• 1:22:33
  Afroman won the case and This is why, you know.
• 1:22:39
  Huge win for free speech. Huge win for free speech, but
• 1:22:42
  This is why it's part of the discussion.
• 1:22:44
  So anyways, here's the TLDR. They raid this dude's house,
• 1:22:48
  they find nothing. There's thousands of dollars in
• 1:22:51
  damages. Apparently they ate his lemon.
• 1:22:55
  Pound cake. He just looked at the.
• 1:22:56
  Lemon pound cake. They just looked at the lemon
• 1:22:59
  pound cake. The Police Department got pissed
• 1:23:03
  off because he made music about it.
• 1:23:05
  The music went viral. The Police Department sued him
• 1:23:09
  and then. He won the case.
• 1:23:11
  They lost and he won the case, right?
• 1:23:13
  So, and remember, Afroman is the legendary artist that created
• 1:23:20
  the song because I got. We can say it right.
• 1:23:27
  Because I got up. My God, that got down.
• 1:23:30
  Because I got up. Because I got up.
• 1:23:33
  Because I got up. I'll sell, Palmdale Native
• 1:23:36
  shouts out to him. Anyways, that was today's show.
• 1:23:39
  If you guys enjoyed the show, you need to do smash the like
• 1:23:41
  button. Consider subscribing to Simply
• 1:23:43
  Bitcoin share, share the show. If you guys want to support us,
• 1:23:46
  support our sponsors. Check out our sponsors, click
• 1:23:49
  those links and we'll see you tomorrow for a brand new episode
• 1:23:53
  of Simply Bitcoin Live. Today's episode was brought to
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  you by bitcoinwell.com, a Bitcoin only platform on a
• 1:24:01
  mission to enable financial independence.