00:00Why the big disconnect between the medium price of DATS, down 43% according to Bloomberg calculations, and the underlying token that they actually hold?
00:12Yeah, well, first off, thank you for having me on. And I think Monique kind of nailed it.
00:16There's a lot of treasury companies that have come to market in the same time period.
00:20You know, we have seen a lot of volatility in the Bitcoin price.
00:23I think, you know, Bitcoin is down 25% or so over the past three or four months.
00:29But we've just seen a glut of treasury companies.
00:32And I think the market broadly is trying to assess what strategies differentiate them and, you know, who are going to be the winners from this 150 plus North American treasury companies that have come to market.
00:43So how do you make sure, David, that you're the winner?
00:45What is it about your strategy that makes you think you can stand out among these digital asset treasury firms?
00:50Well, I think at the end of the day, what the strategy is about is building a Bitcoin or crypto balance sheet and then monetizing that balance sheet.
01:00And I think the part of the the treasury company strategy that we haven't really seen play out yet is how are how are firms like KylieMD going to monetize their Bitcoin?
01:10So, you know, we we've seen just a few in the past couple of days.
01:13Major treasury companies get approved at the SEC.
01:16You start trading. I think today 21 started to trade.
01:20And so the question is really what are they going to do with their Bitcoin to make money?
01:23At the end of the day, you can think of a Bitcoin treasury company akin to a Bitcoin bank.
01:29You build a balance sheet, you put the capital to work and you use that to make, you know, nondilutive sources of income.
01:35So that's the phase that we are. We are in the cycle.
01:38Those that are going to be successful with it are going to be in the position to consolidate their peers.
01:43And those that aren't are going to be consolidated.
01:45So I guess the question for you is any plans to merge KylieMD with any other debt?
01:50Well, we're definitely assessing what our opportunities are out there in the market.
01:55I think what's a little bit different about our business is that we actually operate companies right now.
02:00We have I've been building, you know, BTC Inc. UTXO for over 14 years.
02:04It generates significant income. Income is optionality.
02:09And so I think we're going to see these companies as they're not able to run, you know, accretive financial tactics like running an ATM, for example.
02:17They're going to really focus on where do they generate income?
02:20If you can generate income, you're going to trade at a premium to NAV.
02:23You know, NAV is really a proxy for determining are you growing the amount of Bitcoin per share for your company or not.
02:30So if you're generating income, you're going to be able to consistently grow your Bitcoin per share.
02:34And if so, you're going to be able to do M&A transactions that are accretive to your shareholders.
02:38And, you know, just kind of sensing how many conversations are going on, I think Monique mentioned 150 companies that have recently pursued this strategy in the U.S.
02:49If I had to guess by middle of next year, there will probably be 70 of them operating.
02:55We'll have already seen half the industry consolidate.
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