MONITOR TREASURIES

“Cantor starts crypto firm with backing from Tether and SoftBank. As we dig into it, they’re gonna start with about 42,000 Bitcoins, so about $4 billion worth of Bitcoin. Already talking about raising convertible debt, going full micro-strategy. Jack Mollers, who is also the CEO of Strike, is going to be the CEO of this company.”

“What is interesting is how US centric Bitcoin is starting to become, right? So much of the Bitcoin mining is done in the US. So much of the institution, like the vast majority of the institution of Bitcoin, which is an increasingly growing part of the overall Bitcoin pie is held by US entities.”

“And then on the other side of the credibility is, can we bring in substantial amounts of capital? This is a masterful play and obviously, they're much smaller than MicroStrategy. But this is the most single credible play and I think what is really interesting is that this might cause premium compression for the entire space, right?”

“I think this definitely legitimizes Bitcoin further as a treasury asset for a lot of these major public companies. So I think that we've been seeing it move this direction for a while now. I think there was kind of questions around what corporate accumulation would actually look like, but now I think that this is actually something that's going to set a pretty high floor on Bitcoin.”

“So there's two things I want to point out and then move on to a bit more macro and where this does fit in context. First is that this company's sole strategy is raises 500 million in convertible notes issuance to buy Solana tokens. Just putting it on your radar, there's another company actually in Canada that's doing this with Ethereum.”

“It means literally every American and every American institution will have exposure to the largest crypto exchange. That's a meaningful thing. I'm at a TradFi conference today, and I trialed this as a talking point. It mattered to people. It seemed to suggest to people that this industry has grown up.”

“Coinbase in the S&P means everybody's going to be exposed to Bitcoin, whether they like it or not. That's a big, big, big deal. And so passive investors associated with ETFs and the like, the vanguards of the world and others are going to have some small connection to Bitcoin based on the fact that Coinbase is going to be in the S&P 500.”

“I've always thought the risk. People have tried to pin risk on micro strategy. They're very sophisticated about their sort of debt to their Bitcoin holdings. The risk has always been somebody trying to outdo micro strategy. And I do worry that we're moving up that escalator of people who want to stick their neck out above Michael Saylor.”

“If Bitcoin, which it will, goes down 30, 40%, whatever, and some of these guys start to panic and do want to make people whole or want to have a company that exists, they're going to sell the Bitcoin and that's how you get the liquidation cascading, you know, sell, panic, sell, panic, sell, panic, sell.”

“But for now, it's absolutely true that companies are buying more than 100% of the supply of Bitcoin, right? And that is a good thing for price. That's one of the reasons we're up so much. And I suspect that that's going to continue, right? We think companies will buy 300 to 500,000 Bitcoin this year.”