Jack Mallers

Keynote: Jack Mallers – The Bitcoin Company | Bitcoin 2026

🇬🇧 EN🇪🇸 ES
BitcoinMacroPolicy
Complete 37:05 min youtube 2026 Week 18 May 03, 2026 🇬🇧 EN
TL;DR
Research summary

▶ Strike and its Bitcoin financial services

The speaker introduces the keynote and says he is CEO of two Bitcoin companies, Strike and 21. He describes Strike as a global Bitcoin financial services company, while clarifying that it is not a bank because he does not have the required license. Strike offers fee-free Bitcoin purchases and cold storage withdrawals, direct deposit, bill payment, Bitcoin-backed loans, and a Bitcoin line of credit. He says Strike became his primary financial account after Chase debanked him.

▶ Bitcoin-backed borrowing and lending updates

The speaker frames money as a means to obtain things people value and says Bitcoin-backed lending can provide liquidity without selling Bitcoin. He calls Strike’s Bitcoin credit products its most successful launches, attributing their appeal to letting Bitcoin benefit customers’ lives while they retain their Bitcoin. He says fixed-term loans and a Bitcoin line of credit are available across almost the entire United States and in some countries, including the European Union. The line of credit is described as a rolling loan that can cover bills and everyday spending. Strike lowered tiered pricing, with its lowest rate reduced to 7.49%, and says it aims to be competitive, accessible, and trusted.

▶ Reserves transparency and segregated collateral

For Bitcoin held on Strike, the speaker recommends withdrawing it to cold storage, which Strike offers without fees. He says customers with Bitcoin pledged as loan collateral cannot withdraw it, and announces Strike’s first lending proof of reserves, with an aim to publish it quarterly with external auditors. Strike also partnered with Tether to offer segregated collateral addresses for customers with certain loan sizes, allowing them to observe collateral on the blockchain. The speaker says interested customers can contact Strike’s private client desk and describes the arrangement as a way to provide transparency and avoid rehypothecation.

▶ Volatility proof loans and Tether credit facility

Strike announces planned “volatility proof loans” for customers who fear liquidation during Bitcoin price drops or market volatility. The proposed product would let a customer pay a fee to avoid liquidation, with the speaker saying the customer could instead default or have the loan work out; selected customers will receive the service first, with a possible app rollout in the coming weeks or months. Strike also announces a $2.1 billion credit facility with Tether to finance Bitcoin-backed credit products, including potential lines of credit and credit cards. The speaker says the facility is intended to meet demand and support growth in Bitcoin-backed credit, which he says has had difficulty finding financing because such loans lack implicit government guarantees. He thanks customers and summarizes lending as Strike’s fastest-growing product in his Bitcoin career.

▶ Proposed 21 transactions and the conviction framework

The speaker changes from his Strike role to discuss 21. He describes a strategic plan proposed by his co-founders, who are also the company’s largest shareholders: merge 21 with Strike and with Electron, Tether’s Bitcoin infrastructure mining business. He characterizes Strike as a global, regulated and licensed distribution company for Bitcoin products, and says Electron has 50 exahash, roughly 5% of the current Bitcoin network. He says Tether invested in physical Bitcoin infrastructure for both economic and philosophical reasons, including contributing to and protecting the network. Speaking as 21’s CEO, he endorses the proposed direction and introduces his question: what would an ideal Bitcoin company be?

▶ Comparing Bitcoin businesses and defining 21’s ambition

The speaker lays out two dimensions for companies: Bitcoin conviction and operating income. In his view, crypto exchanges such as Coinbase and Binance can generate substantial income but may show low Bitcoin conviction; he cites Coinbase’s reported balance of over $10 billion in fiat versus $1 billion in Bitcoin. He also references a Jim Chanos tweet about Robinhood platform assets falling by an implied $15.8 billion, or 4.9%, in February despite $5.6 billion in net deposits, while the S&P 500 was down 90 basis points; he interprets this as illustrating the platform’s speculative character, while acknowledging Robinhood’s economic success. Conversely, he places Bitcoin treasury companies such as MicroStrategy and Metaplanet high in Bitcoin conviction but says they often do not focus on operating products, customers, or cash flow. His goal for 21 is to combine high Bitcoin conviction with a high-income operating business.

▶ The proposed ideal Bitcoin company

The speaker’s vision has a global financial services arm that distributes compliant Bitcoin brokerage, custody, lending, credit, payments, treasury, prime, banking, and structured products, with Strike potentially serving that role profitably and generating cash flow. It also includes vertically integrated, industrial-scale Bitcoin production at low cost, using energy and mining infrastructure and participating in network security. A capital markets arm would use treasury assets and cash flow, potentially financing growth without issuing common stock, and could issue or securitize products tied to mining, lending, and Bitcoin-backed debt. Finally, he proposes acquiring profitable Bitcoin companies and strategic assets at attractive valuations to compound cash flows, expand scale, and grow the combined business.

▶ Conviction, products, and the CEO’s position

The speaker reiterates that 21 should occupy the high-conviction, high-operating-income quadrant and says this is why he supports the proposed strategic direction. He clarifies that he considers Coinbase, Robinhood, and Binance successful businesses, but says he personally does not want his company to list other crypto coins or encourage sports gambling through prediction markets. He admires Michael Saylor and regards Bitcoin treasury companies as a net positive, while saying he wants to build products that put Bitcoin in people’s hands as well as on a balance sheet. He wants Bitcoin to improve people’s lives through services such as a Bitcoin line of credit, and says that as CEO he will set the company’s direction toward both building products and holding Bitcoin.

▶ 21’s stated purpose and closing

The speaker says that although 21 has 43,514 Bitcoin and the second-largest corporate Bitcoin holdings, he does not view it as merely a Bitcoin treasury company. He says he does not want to build a crypto casino or simply become the next Coinbase; he wants to build what he considers the ideal Bitcoin company. He and his co-founder, who is also the largest shareholder, intend to return to work and execute the proposed strategy. He thanks the audience and closes with a conference promotion for Nashville in July 2027.

Full transcript

◆ Strike / Visa watch

Exact transcript excerpts most relevant to a potential Strike card, Visa relationship, or adjacent payments product discussion.

  • Jack discusses a card product directly, not just generic Strike usage.
  • The card discussion is tied to the broader line-of-credit roadmap.

4:26 · Supporting context

[4:26] And so

[4:28] I have some announcements for you guys

[4:30] on our Bitcoin lending product.

[4:32] For starters

[4:34] we now have our Bitcoin backed loans and

[4:37] our Bitcoin line of credit in almost the

[4:40] entire map of the United States. These

[4:42] loans are also available in countries

[4:44] around the world in clear including the

[4:47] European Union and some and some

[4:48] countries. And so we are unbelievably

[4:51] excited to finally have both fixed term

[4:54] loans and a Bitcoin line of credit which

[4:56] acts almost like a HELOC, like a rolling

[4:58] real-time loan that you can live your

[5:00] life on, pay your bills on, strike, get

[5:02] your groceries, and make sure that you

[5:04] can live the way I use the product is I

[5:06] live on my credit cards. I go to Whole

[5:07] Foods, get a couple steaks, swipe my

[5:09] credit cards, and my Bitcoin line of

[5:11] credit pays off my credit card, pays my

[5:13] rent, pays my mortgage, pays my car

[5:16] note.

[5:18] Next uh I know you guys I know you guys

[5:21] on Twitter. I recognize you some of

[5:23] these faces uh want us to lower our

[5:25] pricing.

12:55 · Supporting context

[12:55] "Hey, listen. The biggest inhibitor to

[12:59] the growth of credit in the Bitcoin

[13:01] space, giving Bitcoiners a slew of

[13:05] financial products, not just a 12-month

[13:07] Bitcoin-backed loan, but what about a

[13:09] line of credit? What about a

[13:10] Bitcoin-backed credit card? There's so

[13:13] much we at Strike can do and the

[13:15] ambitions that we have, but the problem

[13:18] is who's going to finance it? Where's

[13:20] the money going to come from?

[13:21] Unfortunately,

[13:22] Bitcoin-backed loans don't have implicit

1:33 · Supporting context

[1:33] storage with no fees. You can get your

[1:36] direct deposit into Strike. You can pay

[1:38] bills with Strike. We have two different

[1:42] credit products. We have Bitcoin backed

[1:44] loans.

[1:46] We have a Bitcoin line of credit. I

[1:48] personally live my life on this product.

[1:52] Uh,

[1:52] I I got debanked by Chase not too long

[1:55] ago. And, uh, my company became my

[1:58] primary financial account um and it

[0:00] What's going on, Bitcoin? How are we?
[0:07] Yo.
[0:09] Um, all right. So, uh, thank you guys
[0:11] for joining me today.
[0:13] The title of my keynote is the Bitcoin
[0:16] company.
[0:17] All right.
[0:18] For those of you that don't know,
[0:20] I'm actually the CEO of two
[0:23] Bitcoin companies.
[0:25] And I was talking with my staff, my
[0:27] chief of staff,
[0:29] and I said, you know what? Everyone's
[0:30] always talking about how I'm wearing
[0:32] multiple hats, and I have things to say
[0:35] about both my companies. So, as I was
[0:37] packing for Las Vegas,
[0:40] I figured I would bring both my hats.
[0:44] And so, yeah.
[0:46] And so, here's what we're going to do.
[0:47] Uh, first, I'm going to put on the
[0:49] Strike hat. So, we've got a ton of new
[0:51] exciting products that I think you guys
[0:52] are going to love. We'll put the 21 hat
[0:55] down right here. We'll get back to 21 in
[0:57] a second. And, uh, let's talk about
[0:59] Strike. I got some exciting stuff for
[1:01] Bitcoiners.
[1:02] So,
[1:04] you guys can think of Strike like, uh,
[1:07] global Bitcoin bank. Now, the asterisk
[1:10] at the bottom is super important. We're
[1:12] not actually a bank. That requires a
[1:14] license that I don't have.
[1:16] But, you can think of us like a bank. We
[1:18] sell Bitcoin financial services. So,
[1:22] we're known predominantly for these
[1:24] products. We have buying and selling
[1:27] Bitcoin. In fact, you can acquire
[1:29] Bitcoin with no fees on our platform.
[1:32] You can withdraw that Bitcoin to cold
[1:33] storage with no fees. You can get your
[1:36] direct deposit into Strike. You can pay
[1:38] bills with Strike. We have two different
[1:42] credit products. We have Bitcoin backed
[1:44] loans.
[1:46] We have a Bitcoin line of credit. I
[1:48] personally live my life on this product.
[1:52] Uh,
[1:52] I I got debanked by Chase not too long
[1:55] ago. And, uh, my company became my
[1:58] primary financial account um and it
[2:00] suits me perfectly and many others as a
[2:03] Bitcoiner.
[2:05] So,
[2:06] recently on this stage last year,
[2:09] we announced Strike Lending. Okay? And
[2:12] part of this product, I was deeply
[2:14] inspired by my friend Ross Stevens. I
[2:16] want to read this quote to you guys that
[2:19] he wrote in his Stone Ridge 2024
[2:21] Shareholder Investor Letter.
[2:23] He said, "We hope our money keeps its
[2:26] value long enough for us to trade it in
[2:28] the future for something that we
[2:29] actually want. An education, a dream
[2:33] house,
[2:34] a wedding, a bucket list trip.
[2:37] Every never sell hodler will need to
[2:40] sell someday. They'll need liquidity
[2:42] someday.
[2:43] That's the entire point of having money
[2:46] in the first place.
[2:47] And last year I talked about this idea
[2:50] that money is ultimately a means to an
[2:52] end.
[2:53] Right? I don't value my Bitcoins because
[2:56] I can eat them, cuz I can live in them,
[2:59] cuz I can get married to them,
[3:01] because I can fly them, cuz I can drive
[3:03] them. I value my Bitcoins because how
[3:05] good they are
[3:07] at protecting the wealth that I've
[3:09] earned and allowing me to exchange it
[3:11] for those things when I need them.
[3:15] And so we launched this Bitcoin backed
[3:17] lending product as a way to allow
[3:20] Bitcoiners to get liquidity and change
[3:22] their lives with Bitcoin.
[3:24] I mean, for many of you guys in the
[3:25] room, Bitcoin's probably changed your
[3:27] life. Well, asset that's going up 30,
[3:30] 40, 50% a year on average depending on
[3:32] when you bought, that's real wealth and
[3:35] you want that wealth to impact your
[3:37] family, impact your kids,
[3:39] take you on a nice vacation, get you a
[3:41] nicer house, but you don't want to part
[3:43] with the Bitcoin. You don't want to sell
[3:45] the sats. Is there a way to get
[3:46] liquidity without having to part with
[3:49] the sats? Never sell your Bitcoin,
[3:51] right? And so this product has been a
[3:53] smashing hit for us. I've
[3:56] I mean, I've been working on Bitcoin for
[3:58] almost 14 years
[4:00] at this point. I just turned 32. I
[4:02] started working on Bitcoin when I was 18
[4:04] years old.
[4:06] These Bitcoin credit products are the
[4:07] most successful products I've ever
[4:09] launched in my entire life. And I've
[4:11] been all around the block and back. I
[4:13] failed many times over.
[4:15] And these products have found such
[4:17] product market fit for the reason that
[4:20] it allows Bitcoiners to let Bitcoin
[4:22] benefit their life without having to
[4:24] part with the Bitcoin.
[4:26] And so
[4:28] I have some announcements for you guys
[4:30] on our Bitcoin lending product.
[4:32] For starters
[4:34] we now have our Bitcoin backed loans and
[4:37] our Bitcoin line of credit in almost the
[4:40] entire map of the United States. These
[4:42] loans are also available in countries
[4:44] around the world in clear including the
[4:47] European Union and some and some
[4:48] countries. And so we are unbelievably
[4:51] excited to finally have both fixed term
[4:54] loans and a Bitcoin line of credit which
[4:56] acts almost like a HELOC, like a rolling
[4:58] real-time loan that you can live your
[5:00] life on, pay your bills on, strike, get
[5:02] your groceries, and make sure that you
[5:04] can live the way I use the product is I
[5:06] live on my credit cards. I go to Whole
[5:07] Foods, get a couple steaks, swipe my
[5:09] credit cards, and my Bitcoin line of
[5:11] credit pays off my credit card, pays my
[5:13] rent, pays my mortgage, pays my car
[5:16] note.
[5:18] Next uh I know you guys I know you guys
[5:21] on Twitter. I recognize you some of
[5:23] these faces uh want us to lower our
[5:25] pricing.
[5:27] Well, I'm really excited that we were
[5:29] able to lower our pricing quite
[5:31] significantly.
[5:32] So, the way we price our products is by
[5:35] tiers. It depends on the size of the
[5:37] loan.
[5:38] But we're able to bring our pricing all
[5:40] the way down to the lowest of 7.49%.
[5:44] But thank you. I appreciate that.
[5:52] And so, we we of course, as a business,
[5:54] we want to be the most competitive and
[5:56] hopefully the most accessible and
[5:58] trusted way for you guys to conduct
[6:00] finances with Bitcoin. And we're all
[6:02] here for Bitcoin. Bitcoin's a material
[6:04] part of our lives. And we want to be we
[6:07] we do not want to be offering you the
[6:10] highest rates. We want to be as
[6:12] competitive as cheap as we possibly can,
[6:13] as trusted as as we possibly can. So,
[6:15] we're very excited about that.
[6:18] Another one, uh proof of reserves.
[6:22] You know, it's interesting serving
[6:24] multiple Bitcoin products. For folks
[6:26] that buy Bitcoin on Strike, the best
[6:28] thing you can do to prove that your
[6:30] Bitcoin is your Bitcoin is withdraw to
[6:32] cold storage, right? And we offer that
[6:35] for free. You can withdraw your Bitcoin
[6:36] to cold storage for free. We highly
[6:38] recommend that. We encourage it. You can
[6:40] always reach out to our support staff
[6:42] and we're very happy to walk you through
[6:44] it.
[6:45] For our lending product, it's been
[6:46] interesting because obviously when
[6:48] you're posting collateral for a loan,
[6:50] you can't withdraw that collateral. And
[6:53] so, customers, all of you all, have say,
[6:55] "Hey, we would really appreciate if you
[6:57] could bring about more transparency that
[6:59] our collateral sitting there, more
[7:00] transparency that we can trust you with
[7:03] such an important transaction and
[7:04] financing of our lives." I mean, Bitcoin
[7:07] for many of us is our savings account.
[7:09] It's arguably the most important
[7:11] financial piece of our lives. And so, we
[7:15] are super proud to announce that we are
[7:17] also publishing our first iteration of
[7:20] our lending proof of reserves. And so,
[7:22] you'll be able to find this on our
[7:23] website. We aim to publish these
[7:25] quarterly with external auditors, so
[7:28] that our customers know that your
[7:30] collateral is there, we are who we say
[7:32] we are, and we don't blame the community
[7:35] and our customers for wanting that level
[7:37] of transparency and trust. We actually
[7:39] are really excited to be able to deliver
[7:40] on it. So, you guys will be able to find
[7:43] this on our website and in our FAQ for
[7:45] all the customers that want to see our
[7:47] lending proof of reserves.
[7:56] Next, we have partnered with Tether
[8:00] on a slew of really, really exciting
[8:04] both features, facilities that are
[8:07] either able to use for uh certain
[8:09] customers or up and coming for all of
[8:12] you guys.
[8:13] Uh
[8:14] big shout out to Tether, obviously. You
[8:16] guys know my relationship with them.
[8:17] Unbelievable business, great Bitcoiners.
[8:20] And uh we're really excited to unveil a
[8:21] few things. One, as part of our lending
[8:24] product, we're going to segregate
[8:26] address collateral for customers with
[8:29] certain size loans. Meaning, some
[8:31] customers came to us and said, "Hey
[8:33] Jack, if I'm giving you 50 Bitcoin for a
[8:36] loan, you mind putting it in an address
[8:38] that I can wake up and I can look at and
[8:40] I can see on the blockchain and I can
[8:42] verify with my own eyes that it's
[8:44] sitting there?"
[8:45] And we said, "Absolutely. That's a great
[8:47] idea. Of course Of course we can do
[8:49] that." And so, Tether, as one of our
[8:51] facilitators of loans,
[8:53] we worked together on enabling, again,
[8:55] the most ultimate transparency we can
[8:57] possibly give to you Bitcoiners in
[8:59] ensuring that if you want to get a loan
[9:02] against your Bitcoin, get a line of
[9:03] credit against your Bitcoin, you can see
[9:05] the collateral in an address, wake up,
[9:08] you can cuddle, you can
[9:09] with your phone in bed and just stare at
[9:12] the collateral, just knowing that it's
[9:13] there and that it's safe and that we are
[9:15] who we say we are. And so, for customers
[9:18] that are interested in this, we are
[9:19] currently offering it as part of our
[9:21] private client desk. You can reach out
[9:23] to private@strike.me
[9:25] if you're interested in opening a loan
[9:27] or you have an existing loan where you
[9:29] want to segregate the collateral into a
[9:32] separate address that you can observe,
[9:34] you can watch, and you can ensure that
[9:36] there's never any rehypothecation,
[9:37] there's never any funny business. We are
[9:40] a principled Bitcoin only firm that is
[9:42] dedicated to serving Bitcoiners.
[9:52] Now the this next one's arguably my
[9:54] favorite feature. Um
[9:56] so, I'm going to play a little video.
[9:58] This is easily the number one request we
[10:01] get for people that are interested in
[10:03] Bitcoin-backed lending or interested in
[10:05] potentially improving their lives with a
[10:07] way of accessing their Bitcoin wealth
[10:09] without having to get rid of the Bitcoin
[10:11] itself.
[10:19] The volatility is real. Bitcoin's
[10:20] volatility
[10:21] >> volatility of
[10:22] Uh speed bumps or volatility Technology
[10:25] and human nature sometimes are a
[10:27] volatile mix, aren't they?
[10:52] So, we are super excited to announce a
[10:55] new product that we'll be rolling out
[10:57] called volatility-proof
[10:59] loans. The idea is extremely simple,
[11:02] guys. Customers say, "Jack,
[11:04] what if the price wicks down? What if
[11:07] there's some volatility? What if there's
[11:09] a headline from the US government? Or
[11:11] what if the stock market crashes? I
[11:13] don't want you to liquidate my Bitcoin.
[11:15] That's my greatest fear. As long as I
[11:17] know that the collateral sitting in an
[11:20] address, you have proof of reserves,
[11:22] nothing's rehypothecated, I just don't
[11:25] want to get liquidated."
[11:27] And we thought and we worked with Tether
[11:29] really hard on we don't want to
[11:31] liquidate anybody. Of course, we don't.
[11:33] There's got to be a way to allow
[11:36] customers to pay a fee and say, "No
[11:39] matter what, don't touch my Bitcoin.
[11:43] I'll either default on the loan or
[11:45] everything will work out, but if the
[11:46] price wicks down, leave me out of it."
[11:50] And we have built that product. I am It
[11:53] is It was not easy. I'm super excited
[11:56] about it. And big thanks to Tether.
[11:59] Shoutout to the Strike team. This is the
[12:00] number one feature request we get is if
[12:03] I can know that my collateral sitting
[12:05] there and that I'm not going to get
[12:07] liquidated, I finally feel comfortable
[12:10] getting liquidity against my Bitcoin
[12:12] without selling it.
[12:14] So, this product, again, please reach
[12:17] out to private@strike.me.
[12:19] We're going to roll this out to selected
[12:21] customers first. If you're interested in
[12:23] a volatility-proof loan, a loan where
[12:26] you will not get liquidated, please let
[12:28] us know. Please reach out. will roll out
[12:30] as part of a white glove service. And
[12:32] then very soon, hopefully in the coming
[12:34] weeks or months, we're able to put it in
[12:36] the app for all of our customers all
[12:38] over the world.
[12:48] And the last big announcement is the new
[12:50] credit facility that we have with
[12:51] Tether. Um
[12:53] I I called the Tether guys. I said,
[12:55] "Hey, listen. The biggest inhibitor to
[12:59] the growth of credit in the Bitcoin
[13:01] space, giving Bitcoiners a slew of
[13:05] financial products, not just a 12-month
[13:07] Bitcoin-backed loan, but what about a
[13:09] line of credit? What about a
[13:10] Bitcoin-backed credit card? There's so
[13:13] much we at Strike can do and the
[13:15] ambitions that we have, but the problem
[13:18] is who's going to finance it? Where's
[13:20] the money going to come from?
[13:21] Unfortunately,
[13:22] Bitcoin-backed loans don't have implicit
[13:25] government guarantees yet. It's been
[13:27] very difficult for the space to be able
[13:29] to find financing.
[13:31] And Tether said, "We got your back."
[13:34] Any amount of capital, you let us know,
[13:36] and we're here for Bitcoiners with you
[13:38] guys. And so, we are going to start out
[13:41] with a $2.1 billion
[13:44] facility to make sure that we can meet
[13:46] any amount of demand, any order size. I
[13:49] challenge you guys to try me. Try me,
[13:52] and try to give me an order that you
[13:53] don't think I can fill, and I promise
[13:56] you Tether and I can fill that order,
[13:58] and we're tremendously excited to bring
[14:00] the level of scale to the Bitcoin-backed
[14:02] credit market so that Bitcoiners have
[14:05] all sorts of luxurious options,
[14:06] hopefully, in the coming years to
[14:08] utilize their Bitcoin without selling
[14:10] it.
[14:14] Don't be shy. Thank you, guys. Thank
[14:16] you.
[14:19] So, from the Strike side, I still got my
[14:20] Strike hat on. Here's a summary of our
[14:23] announcements. Our our lending arm of
[14:25] the business has been unbelievable.
[14:28] To all of our customers, thank you,
[14:29] guys. Thank you, guys, for trusting in
[14:31] us. Thank you, guys, for coming to us
[14:32] with your business. It's been the
[14:34] fastest-growing product I've ever
[14:36] launched in my Bitcoin career, and this
[14:38] is a summary of how we're improving,
[14:39] arguably, the most popular suite of
[14:42] products that we have at the company.
[14:46] All right.
[14:47] Time for Time for a a dress change.
[14:50] Back to my two hats. Let me take my
[14:52] Strike hat off. Lawyers, hat off.
[14:57] And let me put my 21 hat on.
[15:00] Cuz I want to talk about 21.
[15:03] So, 21.
[15:05] You guys may have seen,
[15:07] but my co-founders,
[15:09] who are also the largest shareholder in
[15:12] the business,
[15:14] issued a press release today
[15:17] with a strategic plan that they support
[15:21] for the next phase of the business.
[15:24] And that plan is a set of proposed
[15:26] transactions
[15:28] that would merge 21 and Strike, my other
[15:32] company that I just mentioned, and 21
[15:35] and Electron,
[15:37] Tether's Bitcoin infrastructure mining
[15:39] business.
[15:41] So, the press release
[15:43] goes on to state,
[15:45] "Strike is a global financial services
[15:46] firm, as I just explained to you guys.
[15:49] You can buy, you can sell, you can hold.
[15:51] We're regulated and licensed all over
[15:53] the world with an ability to distribute
[15:55] Bitcoin products to anybody where we're
[15:59] available. We can distribute credit
[16:02] products, brokerage products, custody
[16:04] products. It's a Bitcoin distribution
[16:06] company that is able to service any
[16:09] Bitcoiner in the world. We just have to
[16:11] build it."
[16:13] And the other piece of the proposed
[16:15] transaction is Electron.
[16:17] I mean, this business is huge. There's
[16:20] 50 exahash across the platform. It
[16:23] represents roughly 5% of the current
[16:27] Bitcoin network as I talked to you guys.
[16:30] Tether and my co-founders have poured a
[16:31] tremendous amount of resources in
[16:34] physical Bitcoin infrastructure, in
[16:36] things like mining, not only for
[16:39] economic benefit,
[16:41] make a make Bitcoins, be able to produce
[16:43] Bitcoins high margin profitable arm of
[16:45] their company, but also for
[16:47] philosophical reasons, because Bitcoin
[16:51] has a physical piece of the network, of
[16:54] the asset class, and wanting to
[16:56] contribute and protect the Bitcoin
[16:58] network and the Bitcoin asset was within
[17:01] Tether's philosophical beliefs and the
[17:03] responsibility that they believe they
[17:04] carry. They also propose to merge this
[17:07] business into 21 as well.
[17:11] So,
[17:13] you want to clap? Go ahead.
[17:14] Thank you.
[17:16] Uh
[17:18] So
[17:20] So I uh
[17:23] So I'm talking to them, obviously my
[17:24] co-founders, and I said, "Well, I'm
[17:26] going on stage at the Bitcoin
[17:27] conference. I should probably say
[17:29] something, shouldn't I? I should
[17:30] probably give my opinion."
[17:32] And so, I want to talk to you guys as
[17:34] the CEO of 21 what I think about the
[17:37] strategic direction of merging Strike,
[17:40] merging Electron, and creating a new
[17:42] proposed strategy for 21.
[17:46] Uh
[17:46] Simply put,
[17:48] I think it's a great idea. Ha.
[17:50] I love the idea. Uh ultimately, when I
[17:52] founded this business with Tether, um
[17:54] the goal was always to be a Bitcoin
[17:57] company, produce Bitcoin products,
[17:59] ideally produce cash flow with our
[18:01] businesses, and show our conviction in
[18:03] Bitcoin through our balance sheet. So,
[18:06] I want to tell you guys what I think
[18:08] about the strategy, what my strategy is
[18:10] as the CEO of the company, and talk to
[18:13] you about my thoughts, what we're
[18:15] working on, and comment on Tether's
[18:17] proposed plan.
[18:19] Um so, to understand
[18:22] my opinion, my beliefs, what I think we
[18:25] should do,
[18:26] uh I pose you all this question.
[18:29] What is the ideal Bitcoin company?
[18:33] Just think about it for a second.
[18:36] If you can close your eyes and snap your
[18:37] fingers, what would be the perfect
[18:40] Bitcoin company to you?
[18:43] And everyone can have a different
[18:44] answer, right? Bitcoin is nobody's to
[18:47] define and own outright.
[18:50] But I want to walk you guys what I think
[18:53] the ideal Bitcoin company would be, and
[18:55] what I want to build, and where I would
[18:57] like to see 21 go.
[19:01] So, to do this, I created this little
[19:04] diagram, okay? I'm I'm no artist here.
[19:08] But it's pretty straightforward.
[19:10] On one axis, you have
[19:12] extremely low conviction in Bitcoin.
[19:14] Companies that don't necessarily care
[19:17] that much about Bitcoin.
[19:19] Versus companies that are extremely
[19:21] highly convicted in Bitcoin. They
[19:23] believe Bitcoin is the best money. You
[19:24] should capitalize your balance sheet on
[19:26] Bitcoin. That Bitcoin is the future.
[19:30] And then on the other axis, you have
[19:31] businesses that are low operating
[19:33] income. They don't focus or care about
[19:36] their operating company.
[19:38] And on the other side, you have high
[19:40] operating income. Some of the most
[19:42] successful companies in the world that
[19:43] produce loads and loads of cash flow and
[19:45] have an ability to finance the world
[19:47] they want to see through the productive
[19:49] business that they're building. Make
[19:51] sense?
[19:54] So,
[19:55] I personally would put crypto exchanges
[19:58] in this quadrant.
[20:00] Crypto exchanges are extremely high
[20:03] operating income businesses. These
[20:05] businesses from an economic standpoint
[20:07] are awesome.
[20:09] I mean, looking at the earnings of
[20:10] something like a Binance or a Coinbase
[20:13] or a Robinhood or even now learning of
[20:15] the prediction markets, Polymarket,
[20:17] Kalshi. These businesses make tons of
[20:20] money. They're worth tens of billions of
[20:22] dollars. At some point, some of these
[20:23] businesses have been worth hundreds of
[20:25] billions of dollars.
[20:27] But I would also describe them as low
[20:29] conviction in Bitcoin.
[20:32] Right?
[20:33] I would say I read Coinbase's Q4
[20:37] shareholder letter and I was looking at
[20:39] some of their financials.
[20:40] And Coinbase holds over 10 billion
[20:43] dollars of fiat on their balance sheet
[20:46] versus 1 billion dollars of Bitcoin.
[20:49] And Coinbase economically is an
[20:51] incredible company. I would love for 21
[20:54] to get to the point where we are doing
[20:57] the same amount of revenue with the same
[20:58] amount of customers and the same amount
[21:00] of operating profits as Coinbase. I
[21:01] think in this room, we all would like to
[21:03] see that. At least if you're a fan of me
[21:05] and and you want me to do. Well, yeah,
[21:06] that'd be great.
[21:08] But like you
[21:10] But I would say that this is this does
[21:12] not display Bitcoin conviction. Does it
[21:14] to you guys?
[21:16] I mean this look when I looked at this,
[21:17] I was like, does Coinbase even believe
[21:20] in what we're working on?
[21:22] I thought we were trying to replace the
[21:25] old financial system and build a new
[21:27] one.
[21:29] Holding 10 times the amount of fiat as
[21:31] you do Bitcoin doesn't display to me as
[21:33] incredibly high conviction in Bitcoin.
[21:36] It's a great business, unbelievable
[21:37] business.
[21:39] I just don't know how much conviction
[21:40] Coinbase has in Bitcoin.
[21:44] This tweet and I got to preface. I know
[21:47] Jim Chanos is the ultimate short seller
[21:50] and is perceived to sound bearish
[21:53] anytime he talks. I actually know the
[21:55] CEO of Robinhood, Vlad. Unbelievably
[21:58] sweet guy. He's been nothing but nice to
[22:00] me. So I have to caveat my words here
[22:02] carefully.
[22:03] But this tweet from Jim Chanos I think
[22:06] is really interesting. He says, "It
[22:08] looks like Hood customers lost about 5%
[22:11] in February. Total platform assets
[22:14] dropped $10.2 billion in the month to
[22:17] $314.2 billion.
[22:19] But that includes a $5.6 billion in net
[22:22] deposits.
[22:23] So the implied loss of $15.8 billion was
[22:26] 4.9% of end to end of January total
[22:30] platform assets of $324.4 billion.
[22:34] The S&P 500 was only down 90 basis
[22:36] points. And that might sound a lot
[22:38] financial gibberish to some of you guys
[22:41] in the audience. What Jim is trying to
[22:43] say is the S&P 500 was only down less
[22:46] than a percent, but somehow Robinhood
[22:48] customers lost 5%.
[22:51] And what Jim is implying here
[22:54] is not that Robinhood is a bad company.
[22:56] In fact, of all the companies I've
[22:58] mentioned, Robinhood might be the the
[23:00] valuable. It might do the most revenue.
[23:02] It might be experiencing the most
[23:03] growth, and it might have the most
[23:05] operating income.
[23:07] But, the platform is for hyper
[23:09] speculation.
[23:11] You go to Robinhood to speculate on
[23:13] crypto coins. You go to Robinhood to
[23:15] speculate on the weather. You go to
[23:17] Robinhood to punt options on an earnings
[23:19] that you might not know a lot about.
[23:21] Robinhood is very open about being the
[23:23] place to pick stocks, speculate, what's
[23:27] the next GameStop, what's the next GME.
[23:30] And so, again, I would say that this
[23:32] business is extremely successful from an
[23:36] economic standpoint.
[23:38] But, what's the ideal Bitcoin company? I
[23:41] would say they don't have a lot of
[23:42] conviction in Bitcoin. I'm not sure they
[23:44] care much about Bitcoin. In fact, I have
[23:47] no idea. But, from their financials,
[23:50] from their messaging, from their
[23:51] products, it's not clear to me they're
[23:53] highly convicted in Bitcoin.
[23:57] Now,
[23:58] Bitcoin treasury companies, I personally
[24:01] would place in this quadrant, in the
[24:04] bottom right.
[24:05] And I would say Bitcoin treasury
[24:07] companies are the opposites. Bitcoin
[24:09] treasury companies sell Bitcoin
[24:11] conviction.
[24:13] That's why they're here. They are
[24:15] capital markets plus Bitcoin conviction.
[24:18] That's what they're about, that's what
[24:20] they do, and that has produced some of
[24:23] the greatest success stories in the
[24:25] history of Bitcoin.
[24:27] These companies are also tremendously
[24:29] successful. MicroStrategy, Metaplanet,
[24:32] these have been tremendous success
[24:34] stories on net for Bitcoin.
[24:36] But, I would also say they don't focus
[24:38] about on their operating business.
[24:41] They're not focused
[24:42] on bringing Bitcoin products to
[24:44] Bitcoiners. They're not focused on
[24:46] generating cash flow, necessarily.
[24:49] They're not focused on building a high
[24:52] operating income business.
[24:55] Right? When you look at
[24:57] the top 100 public Bitcoin treasury
[24:59] companies, I think it's super
[25:01] interesting because strategy 21,
[25:04] admittedly as of today, meta planet, I
[25:08] mean Bitcoin standard treasury company,
[25:10] these businesses don't talk about or
[25:13] mention or focus on their operating
[25:15] company at all. I actually don't know if
[25:18] these businesses have customers or cash
[25:21] flows or growth or exciting products
[25:23] they're working on to advance their
[25:26] world view and where they want to see
[25:27] the world going.
[25:29] So,
[25:30] I find it interesting on one side of the
[25:32] spectrum for me,
[25:35] you have extremely successful businesses
[25:38] that have no conviction in Bitcoin at
[25:40] all. And on the other side of the
[25:42] spectrum, you have
[25:44] extremely
[25:46] convicted businesses in Bitcoin and they
[25:48] never sell and they want to stack all
[25:50] the Bitcoin they can, but they don't
[25:52] necessarily focus on building products
[25:54] and cash flow and growth. In my dream,
[25:58] the ideal Bitcoin company, why I started
[26:00] 21 with Tether and what we want to do
[26:03] together, and why I am supportive of
[26:06] their latest press release for this new
[26:08] strategic direction, is because we want
[26:11] to land in this quadrant.
[26:14] How exciting would that be?
[26:16] And to be honest with you guys, that's
[26:18] always been the Bitcoin company that
[26:20] I've wanted to work for, that I've
[26:22] wanted to own equity in, that I'd wanted
[26:25] to use as a customer. That's my dream.
[26:27] That's my dream of a Bitcoin company.
[26:31] And so that's what I think we're going
[26:33] to do
[26:34] with this proposed strategic direction,
[26:36] and I want to walk you guys through a
[26:37] little bit more detail on the vision and
[26:39] why I think 21 and my vision fits within
[26:43] this quadrant.
[26:45] So, what is the ideal Bitcoin company?
[26:47] Here's my opinion. One,
[26:50] the ideal Bitcoin company has a
[26:52] financial services arm, where it can
[26:54] service any Bitcoin financial product
[26:56] and distribute that product globally,
[26:58] right? So,
[27:00] every financial product the Bitcoin
[27:01] economy needs, distributed in as many
[27:04] markets where it's compliant and
[27:05] regulated to do so. And I'm talking
[27:07] about brokerage, where you can buy and
[27:09] sell Bitcoin, custody, where you can
[27:11] hold Bitcoin, lending and credit,
[27:14] payments and rails, treasury services,
[27:16] prime services, banking services,
[27:18] structured products.
[27:20] Can Strike be this for 21? I think it
[27:23] can.
[27:24] I think it can. This is a financial
[27:27] services and distribution arm of a
[27:29] Bitcoin company that is able to build
[27:31] and service Bitcoin products for the
[27:34] Bitcoin economy, for Bitcoin customers,
[27:36] and do so profitably while generating
[27:38] cash cash flow and optimizing for
[27:40] growth.
[27:43] The next chapter of the ideal Bitcoin
[27:45] company, and where I'd like to take 21,
[27:48] is Bitcoin infrastructure, physical
[27:50] infrastructure, industrial-scale Bitcoin
[27:52] production at the lowest cost.
[27:54] And this is where Tether has poured a
[27:55] tremendous amount of their time, energy,
[27:58] and capital, and resources, and money
[28:01] into what I call the physical layer of
[28:03] the Bitcoin economy. You know, the
[28:05] no-coiners get really upset. I can't see
[28:07] the Bitcoin. I can't touch the Bitcoin.
[28:09] I can't bend the Bitcoin. Where is the
[28:12] Bitcoin? But what's funny is you can see
[28:14] miners. You can see physical sites. You
[28:17] can see energy contracts, right?
[28:20] And so, the second division of the ideal
[28:23] Bitcoin company is the physical layer,
[28:26] industrial-scale low-cost production of
[28:28] vertically integrated division of the
[28:31] business that goes from pure energy to
[28:33] producing Bitcoins. And so, the business
[28:36] ideally doesn't just buy Bitcoin with
[28:38] cash flow and with capital markets
[28:40] access, but it mines Bitcoin. It
[28:42] produces Bitcoin, and it's a participant
[28:44] in securing the network and
[28:47] participating in the physical economy
[28:49] that is the Bitcoin network.
[28:53] The next division is capital markets.
[28:55] Just because I want to build products
[28:57] and I want to service you guys with
[28:59] unbelievable tools that hopefully push
[29:02] Bitcoin and this mission that we're all
[29:03] here for in the right direction, we can
[29:06] absolutely still use capital markets to
[29:09] further our agenda and our vision. So,
[29:12] using our treasury to grow and using
[29:15] cash flow to ideally have non-diluted
[29:17] leverage, what if 21 can issue a
[29:21] preferred theoretically or issue a
[29:24] convertible bond theoretically, but not
[29:26] have to sell common stock to finance it?
[29:29] Able to finance these things with cash
[29:30] flow. What would be possible for the
[29:33] ideal Bitcoin company in the capital
[29:35] markets? Well, this could be the
[29:38] financing engine for the dream. We would
[29:41] issue against our treasury, we can
[29:42] originate against the network, we can
[29:44] securitize things like mining, things
[29:47] like lending, we can securitize our loan
[29:49] book, can securitize our mining revenue,
[29:51] we can build structured products, fixed
[29:53] income products, and bonds. Can have
[29:55] Bitcoin backed debt. I mean, with a
[29:57] company that lives in that upper right
[29:59] quadrant, that's building businesses,
[30:01] that's producing cash flow, that's able
[30:04] to build a network of companies that's
[30:07] so integrated and invested in the space,
[30:09] access to the capital markets takes on a
[30:11] different meaning, totally and
[30:13] completely.
[30:15] And then the last division of the
[30:16] business is mergers and acquisitions.
[30:19] As I've mentioned, I've been in the
[30:20] Bitcoin space for almost 14 years, okay?
[30:24] Since I was 18 years old. There are
[30:26] plenty of unbelievable
[30:28] companies and assets that live in this
[30:30] space, and we think that at an
[30:33] attractive valuation,
[30:35] they'd actually be better off joining
[30:37] this ideal company, in joining this
[30:39] mission, in joining us in both producing
[30:41] amazing products and amazing cash flow
[30:43] and moving the world in what we think is
[30:45] the right direction while also
[30:48] displaying our conviction on our balance
[30:50] sheet, acquiring as much Bitcoin as we
[30:52] can, not being afraid to to use
[30:54] leverage, to use our cash flow, and to
[30:56] use capital markets to do so. So, what
[30:58] would that look like?
[30:59] I mean, ideally we're interested in
[31:02] acquiring profitable Bitcoin companies
[31:03] and strategic Bitcoin assets. There's so
[31:06] many. This space is full of unbelievable
[31:08] builders that are convicted along the
[31:10] same vision that I am, and we can
[31:12] compound other companies' cash flows. We
[31:14] can compound the valuable assets that
[31:16] other businesses have that will grow our
[31:19] network effect, grow our economies of
[31:21] scale, and really grow this Bitcoin
[31:23] machine that I'm laying out in front of
[31:26] you guys that Tether and I are really
[31:27] aligned in uh proposing and executing as
[31:31] the future of 21.
[31:34] And so,
[31:35] in my opinion,
[31:37] this to me is the ideal Bitcoin company.
[31:41] It's the dream Bitcoin company. It's a
[31:44] Bitcoin company that's able to produce
[31:46] cash flow, produce profits, change the
[31:48] world with its products, participate in
[31:50] the physical Bitcoin economy with energy
[31:53] and miners and electricity and
[31:55] production of the commodity itself,
[31:57] whilst also continuing to stack as much
[32:00] Bitcoin as possible for our
[32:01] shareholders, continuing to innovate and
[32:04] take Bitcoin even further in the capital
[32:06] markets, and pursue extremely exciting
[32:09] strategic mergers and acquisitions.
[32:13] So, this
[32:16] is the vision for 21.
[32:18] 21
[32:20] will live in the top right quadrant.
[32:23] That's my vision. That's why I support
[32:26] our largest shareholder and my
[32:27] co-founder in this new strategic
[32:29] direction, and why I'm tremendously
[32:30] excited about it as the CEO, because
[32:33] ultimately, just to be candid with you
[32:35] guys, that's why I'm here.
[32:38] This is why I'm here.
[32:51] I have to be careful because at this
[32:53] point, you know, people will clip my my
[32:57] videos and my words and they'll
[32:59] sometimes quote me out of context and so
[33:01] I want to be extremely clear.
[33:04] A Robinhood, a Coinbase, a Binance,
[33:07] those are incredible businesses. They
[33:09] produce tons of cash, they've
[33:11] experienced tons of growth
[33:13] and I would love to hit those financial
[33:17] metrics someday, but I personally
[33:19] believe too much in Bitcoin
[33:22] and too much about how it can change the
[33:24] world and do right for society to list
[33:27] other crypto coins, to encourage people
[33:29] to do sports gambling via prediction
[33:31] markets. That's not me and that's not
[33:33] going to be my company.
[33:43] I also want to be clear that I
[33:45] absolutely admire Michael Saylor for
[33:47] some somehow the internet works in
[33:49] mysterious ways. People think I don't.
[33:52] Of course I do.
[33:54] What a genius.
[33:55] I mean, what he did is one of the more
[33:56] remarkable stories in the history of
[33:58] finance.
[33:59] And Bitcoin treasury companies
[34:01] are great. I think they've been a net
[34:03] positive for the space. I mean, I think
[34:04] Saylor's orange peeled more people than
[34:06] arguably anyone ever. You can certainly
[34:09] make the argument. But for me, I want to
[34:12] build things. I'm a builder and to me,
[34:15] Bitcoin not only lives on a balance
[34:17] sheet, but also in the hands of the
[34:19] people. We need to build products. I
[34:21] want to see Bitcoin improving everyone's
[34:23] life in ways that we couldn't have
[34:26] imagined 20 years ago. I want to be able
[34:29] to get a Bitcoin line of credit. I want
[34:30] to be able to live on a Bitcoin
[34:32] financial services platform. I think
[34:34] Bitcoin can change the world so much
[34:36] further than just capital markets. And
[34:39] so, to me, my company will aim to do
[34:44] both. As long as I am the CEO
[34:47] and I set the direction,
[34:49] that's who we are.
[34:51] And ultimately, this is who we are.
[34:54] And
[35:04] And so, to end the 21 section, that
[35:05] ultimately it is what I want you guys to
[35:08] understand is uh when I say I don't view
[35:12] 21 as a Bitcoin treasury company, and
[35:14] historically people will say, "Well,
[35:15] what do you mean by that? You guys have
[35:17] the second most corporate holdings in
[35:19] the world. You guys have 43,514
[35:22] Bitcoin." Do you guys know what I mean
[35:24] now?
[35:27] When I say I don't want to build a
[35:28] crypto casino, I don't want to be the
[35:30] next Coinbase, and investors say, "What
[35:31] do you mean by that?" Well, do you guys
[35:33] understand now?
[35:35] I want to build something different.
[35:37] I want to build the ideal Bitcoin
[35:38] company. That's why I'm here. That's why
[35:40] I started and that's why I'm at this
[35:41] conference.
[35:43] So,
[35:49] my hope and my co-founder's hope and the
[35:50] larger shareholders' hope is that um
[35:53] we're back to work and we're going to
[35:54] we're going to go execute and uh build
[35:56] something truly different that we
[35:58] believe represents Bitcoin uh in one of
[36:01] the most exciting equities in the
[36:03] capital markets and uh will change the
[36:05] world.
[36:06] And so, with that, I'm back to work. I
[36:09] thank you guys for all the support.
[36:10] Where's my other hat?
[36:12] I'll exit stage like I'm in a rap music
[36:14] video or something.
[36:17] Thank you guys for the support and I
[36:18] look forward to building for you.
[36:27] Every year,
[36:29] this community comes together
[36:31] to celebrate,
[36:33] to debate,
[36:35] to build what comes next.
[36:39] And every year,
[36:41] the stage gets bigger.
[36:46] Sound money
[36:47] center stage. So, where do you go to
[36:51] celebrate the next chapter in Bitcoin
[36:53] history?
[36:56] You come home.
[36:59] Nashville, July 2027.

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