Bitcoin Treasuries Unconference 2025

Thank you.

Nice to see all the orange ties and the orange hats and the orange tennis shoes and

the orange shirts and the orange lanyards and the orange dresses.

I definitely envy the women that can wear the bright orange dresses and the orange jumpsuits.

I've been trying to figure out how to do an all orange suit that will work for me.

I'm still working on it.

But get ready.

So I'd like to talk about Beckoynt Treasury companies.

I wanted to lay out the basic principles.

There's a lot of ignorant antagonists in the world and they're all snively.

Why would you want to buy a Beckoynt Treasury company when you could buy the Beckoynt?

You hear that a lot.

We're the first year in my opinion.

This is the first year in the launch of this business.

You got in more than 12 months ago.

You were sort of ahead of ground zero.

I would say the business really legitimized took off November 5th, 2024.

That's the point when you had the red sweep.

That's the point when Beckoynt went from 60,000 and 95,000.

Very quickly what we saw was 12 cabinet members flipped pro-Betcoin.

The president flipped pro-Betcoin.

The secretary of treasury flipped pro-Betcoin.

And guidance from the SEC, the CFTC, the OCC, the FDIC, even the Federal Reserve and the

Treasury, all flipped to unequivocally pro-Betcoin.

If you look at crypto policies with the mega banks, the two big defailed banks, Bank of America,

City Group, Wells Fargo, etc.

They were constructed over the previous four years and that environment after the execution

of signature banks and silvergate, both of those were healthy banks that were destroyed

by the previous administration due to their involvement in crypto.

I think most large, systemically important banks, most banks in general, adopted a policy

out of an abundance of caution and the result of them, those policies were so vague, it

kind of meant that everyone in the industry was unbanked, you couldn't get credit.

Those policies still remain by the way.

You could post $10 billion of collateral to those banks, you can't get a nickel loan today.

That's not because of government guidance.

The government guidance is exactly the opposite over and over and over again.

The banking system of the Western world is uncramping itself and it'll probably take

four years for that to happen.

During that time frame, we're just in this epic of institutional adoption.

You've got the right accounting, you've got the right guidance, you've got the right law,

you've got the right tone at the top and that just means large risk averse bureaucratic

organizations are going to take their time to work through it but it's not like every

single week, I don't have a conversation with the president or the CEO of a bank or some

other large financial organization where I point out that they're about to miss out on

trillions of dollars of opportunities and this is why the private bank, the commercial

bank, the investment banks are getting involved.

If you have the, you know, I couldn't have those conversations four years ago.

Now we're going to have those conversations every day for the next four years, we're

going to convince 10%, 20%.

So we're in this transition.

You know, I think there's two massive forces in the world today.

There's digital intelligence, there's digital assets.

And if you look at financial institutions around the world, what's amusing to me is, is

you've got financial institutions that embrace digital intelligence.

Like, my company, I sit down on a Saturday afternoon, I play with the AI, I design a security,

I redesign the security, I design the security for the third time.

The AI says it's never been done in the history of the world, I send it to the lawyers, they

say it's never been done in the history of the world, I send it to the bankers, they

say it's never been done in the history of the world.

And then they come up with one little quibbling concern like, oh, there might be a fast pay

issue and it's unsolvable.

And then after two, three weeks of tradition, I go back to my AI and I say, is there a solution

to the fast pay issue and it says, yeah, make the liquidation preference floating.

Okay, whereas the floating liquidation preference come from in our press, it's because there's

a fast pay issue in the press and you can't sell them above par without that floating liquidation

preference.

I could hire 10,000 lawyers and wait 10,000 years, I wouldn't get the answer.

I got the answer in a few minutes from the AI because the AI has no prejudice, it has

no inertia.

Okay, that's a finance company that uses digital intelligence.

What happens in access?

We print $6 billion of those.

What happens without AI?

We sell zero.

Everyone says, well, what's the killer use case of AI?

Well, maybe design a security and sell billions of dollars a month of it.

That might, how many people see that one?

I'm sitting at a table with a lawyer that works for a mega multi trillion dollar financial

organization.

I said, you know, do you use AI?

Now our legal department won't let us use AI for security concerns.

They don't want us to put confidential information into the AI.

Okay, you literally have a set of mega corpse that won't use digital intelligence for security

concerns and they basically make everybody that works for the company slow and stupid.

And then you have another set of companies that you use AI and those people are smart and

fast.

Now if you take digital assets, it's the same thing.

There's a different set of banks.

You know, they're like, well, we don't touch digital assets, you know, because the government

because something, because something happened four years ago.

Well, what I would say is poor and weak.

And if you embrace digital assets, you become wealthy and powerful.

And so by the way, I can show you finance organizations that embrace digital assets reject

AI.

I can show you ones that claim they use AI, but they really reject it.

They just tell themselves they use it and maybe they do or do not embrace digital.

But you know, I think the opportunity for Bitcoin Treasury companies, what are they?

You know, they're digital companies using digital capital, hopefully using digital intelligence

to create digital securities, digital equities, digital credit instruments to sell into the

digital economy.

Nothing that we've done would have worked without digital capital, Bitcoin is digital capital.

And most of our more compelling ideas came from digital intelligence, because no one

ever did that before.

You know, like when we designed our prefs, we set them as part value 100 made them perpetual.

No one ever does that.

You can find 5,000 examples in the modern world where people don't do it.

They normally make retail prefs $25 or they make institutional prefs $1,000.

Okay, turns out if you go back and read the history of the Rothschilds and the history

of money, the British government in the 1780s did it.

The British government issued consoles.

They were perpetual bonds, part value 100, 100 pounds, yielding 3 or 5 percent that

floated above or below par.

And I look, you know, back by gold.

We created something 100 par value perpetual back by digital gold.

Okay.

So what happened in the middle for 100 years the world went backwards.

And now we read derive these elegant instruments that by the way every French, Austrian, British,

Spanish, Italian, Central Banker, they used the same instruments 300 years ago.

In fact, the entire world ran on gold back credit for 300 years or more.

That was the currency system of the world until 1971 with varying degrees of collateralization.

So we're in year one of reinventing the finance system, issuing digital securities and

digital credit on digital capital.

And we can do it into digital channels.

And right now the digital channels like the NASDAQ or other standard securities markets.

But in time, they'll be the crypto ecosystem 24, 7, 365 tokenized, self-custodied.

Your securities will be self-custodied.

Your credit instruments will be self-custodied.

They'll all trade everywhere in the world at the speed of light.

Now let me talk a little bit about treasury theory.

Bitcoin treasury company.

What's revolutionary?

Well, Bitcoin digital gold.

We all acknowledge digital gold.

Digital gold, digital capital, better than gold.

Capital, economic wealth that lasts forever.

You buy one twenty one million of all the money in the world forever.

That's the idea of digital capital.

That's a powerful idea.

Pure economic energy outperforms the cost of capital because it's pure economic energy.

When's the last time the human race agreed on something that was pure economic energy?

Well, it was gold for five thousand years.

Now we're starting to re-agree.

Five percent of the world is starting to re-agree that we've got a new form of digital capital.

Instead of metallic capital, which is what gold was, we've now got digital capital.

If you've got a digital capital asset that outperforms the S&P, you can capitalize a

public company on it.

That means you become positively polarized to capital.

That means that the more securities you sell, the more shareholder value you create, the

more capital you can raise.

For the last hundred years, the entire world was capitalized on sovereign debt or fiat

credit instruments.

They underperform.

Therefore, they're negatively polarized to capital.

There's a profound idea here of paradigm shift.

People don't get it.

There are strategic and competence.

A lot of people don't want to get it.

If you're just a cynical, curmudgeon-y, short seller, short-sighted trader, you don't want

to understand.

You just want to hate on it so you're not going to.

Once you embrace the idea, the Bitcoin is digital capital.

The next issue is what is Treasury company?

Treasury company is just a new kind of corporation.

Simply impossible in the world where public companies are capitalized on fiat credit, it

doesn't make sense to sell equity to buy back sovereign debt because the equity cost

to capital is above 14%.

The sovereign debt has an after-tax yield.

3%, 2%, 1%, doesn't make any sense.

Doesn't make sense to issue corporate credit to buy back fiat or sovereign debt, either,

right?

What does make sense?

Issue securities backed by digital capital.

I'd like to say we understood this business five years ago.

We didn't.

Our entree in the Bitcoin was first defensive, then it was opportunistic, then it was strategic,

and finally it became transformational.

Then we realized we're a different company.

What is the basic premise of a Treasury company?

It was very simple.

You have a block of digital capital, raw digital energy.

Here it's commodity.

The world doesn't want it.

What the world wants is a set of securities, either credit instruments or equity instruments

or derivatives that meet their requirements.

The analogy I've used before is standard oil.

Think of a refinery.

I have a block of raw liquid energy.

Einstein said matter and energy.

They're interchangeable.

I have raw liquid energy in the form of a barrel of crude oil.

The first application was kerosene.

Kerosene is jet fuel.

Kerosene lights up your house.

Kerosene was light.

Kerosene is rocket fuel.

You can't light up your house by barrel of crude oil.

You can't fly a jet with a barrel of crude oil.

So we needed kerosene.

We refine it.

We mark it up.

There's gasoline.

There's diesel.

There's asphalt.

And then if you actually go on an AI and say,

tell me all the specialty chemicals of crude oil.

There's also lycra.

There's also acrylic.

There's also plexiglass.

There's PVC piping.

Your lubricants, every form of plastic, stuff you eat nylon, polyester.

It goes on and on.

We build the houses.

We turn the machines.

We look through these things.

And they're all products.

So I can refine it to be a different form of energy,

whether it's kerosene or gasoline or diesel.

I can create lycra or I can create plexiglass.

And so products, services, forms of energy come from that

barrel of crude oil.

How big is that?

Well, I mean, just think about, at some point, standard oil.

Also, I don't have to gas station.

So you've got gas stations.

You've got every type of energy.

And you've got Dupont.

And you've got everything that every chemical company ever

created.

And look at the stuff you're wearing.

Probably you're wearing stuff that came out

of a barrel of crude oil.

It's the stuff that's in your tennis shoes.

So it's not a difficult stretch to say, oh, yeah.

In the first year when John D. Rockefeller, maybe 1965,

when he started screwing around with a barrel of crude oil,

and out came some kerosene.

A lot of haters said, well, there's

no future of this industry.

And of course, the industry today is what?

A third of everything.

Now let's take that digital energy.

What is the role of Bitcoin?

We say Bitcoin miners, they recycle stranded electricity

or stranded energy.

While Bitcoin Treasury companies recycle stranded capital,

more than half the capital, 2,000 of the capital

is locked up in structured institutions right now.

It's capital sitting in a bank and a pension fund,

an insurance fund, and a retirement account,

and an institutional investment fund, and an index fund,

in a money market fund.

They're all locked up, the great majority of this capital.

And they're in certain places.

So what do they want?

Well, the insurance companies and the pension funds,

they want long duration yield.

That's what they want.

The money markets, they want this very short duration,

liquidity, credit spread.

Everybody wants something different.

The equity investors want leverage

on some underlying business model.

The derivative investors want that.

Now if you think about the process of creating

a piece of digital credit, what I think in my mind is,

this is a block of a plexiglass, or this

is a block of acrylic.

Just think like a big block of plastic that's a meter

by a meter by a meter.

And then I have a CAD CAM system and a computer generated

a machine that's a computer controlled.

So I can operate the lay that I can chip out anything

I want from that block of plastic.

So I put in whatever my image is.

I unleash the computerized machine.

And I get out some beautiful sculpture,

not quite 3D printing, but something like that.

I'm converting a block of raw material

into something a beautiful work of art.

And of course, what is the person want

to see how many different types of sculptures?

There's infinite types of sculptures.

And they're all just coming from a single block of some kind

of acrylic or plastic.

Now I think about digital capital.

It's like you have a bunch of digital capital.

You have a billion dollars of Bitcoin on your balance sheet.

You can carve out any digital credit instrument you want.

And credit instruments are very,

what's the degree of collateralization?

Is it 10X over collateralized?

What's the degree of liquidity?

What's the credit guarantee?

Can I get my money back in a year, in a decade, in a century?

Is it perpetual?

What kind of yield does it give me?

What's the yield curve?

Is it high duration yield?

Here's the magic trick.

Your Japanese company, you want to create 5% yield in yen forever.

How do I create that?

Is there a market for that?

Yes.

There's like trillions of dollars of money markets in yen

that get 50 basis points.

So if I can carve out 500 basis points,

and I create this currency, I'm going

to take the currency risk of the yen,

I'm going to create this yield.

I'm going to actually create duration forever.

And what's the collateralization?

Do you want 10X over collateralized or 5X or 2X?

What kind of credit risk is going to be embedded in this instrument?

I can actually sell you that instrument,

and I can collateralize it 27 to 1.

I can collateralize it 20 to 7.1 and give you a credit put every three years.

And I can completely change the nature of the credit.

Or I can collateralize it 2 for 1.

I can create sub-junk yield, right?

And I can give you a different instrument.

So when it comes to credit, you've got all sorts of investors.

The Russians don't want US credit.

The Chinese don't want US credit.

The Japanese don't want US credit.

The Canadians, the Europeans, they don't want to take currency risk.

So you can create a credit instrument,

if you're a Bitcoin Treasury company, in any currency,

with any degree of duration, with any degree of collateralization,

with any degree of volatility.

I talked to a guy probably richer than everybody in this room.

And he's got a bit of Bitcoin.

And someone says, well, why do you only have one, two percent

of your portfolio of Bitcoin?

Well, frankly, something something years old,

and I can't handle the ball.

OK.

75-year-old, 80-year-old guy, with a lot of money,

he just doesn't want a 50-vol 50-ARR instrument

that you have to hold for, if you call it indefinite duration,

in theory, it's 120 months.

So if you're willing to hold this thing for 10 years,

somewhere between 120 and 240 months,

I'm pretty confident you get yourself, like, 30% a year,

ARR.

But when you're 92 years old, who wants to actually

hold something for the next 25 years?

They don't want it.

So there are a lot of people.

There are very wealthy pockets, and they

can't stand the duration.

They can't handle the volatility.

Another example of people can't take the ball.

Corporate treasure.

You've got a Bitcoin company.

You believe in Bitcoin, but you've got to make payroll,

and you need to make your rent.

And so you have working capital.

Conventional wisdom is keep one year of working capital

into the currency that your liabilities are denominated in.

That's your treasury.

You're not going to put that in Bitcoin.

You're going to put that in.

Right now, you're going to put in a money market.

And in the US, it will give you about 3% after tax.

But in Japan, it's going to give you 25 basis points

after tax.

And Switzerland is going to give you minus 50 basis points.

The entire yield curve in Switzerland

is negative out to four years.

And Europe is going to be 200 basis points, maybe.

So you've got how much?

$30, $40, $50 trillion tied up in treasury instruments

and money markets and the like between Japan, Europe,

Switzerland, Canada, the US.

$30 trillion in the US alone, they can't stand the ball.

They want you to strip the ball.

They want you to strip the interest

or the yield duration off the instrument.

Just give them pure spread.

So what is the closest thing to kerosene

that we can produce in this industry?

It's basically pure yield.

Something like we created with stretch.

It's like if you can just strip away the current,

I live in Japan and I'd like to 400 basis point treasury,

but I can't stand the US dollar risk.

I can't stand the currency risk.

Strip away the currency risk.

Strip away the duration risk.

Strip away the volatility.

Strip away the credit risk.

Give me liquidity.

Serve it up to me in some sort of credit instrument.

And you know what, take meta-planet,

they're sitting on billions of dollars of Bitcoin.

If they can open up the credit side of that trade

and they can sell met a yield at five or six percent in JPY,

they'll be arbitrage in 50% US dollar ARR versus five percent.

In the yen and they capture the 45% spread.

Which is to say they're getting 90% of the economic gain

is an understatement.

They're getting 100% of the economic gain up front.

They're getting 90% in the first increment

compounding exponentially.

So when you set up that instrument,

you're getting like 95% of the economics.

Right?

And so when you think about what is the opportunity here,

everywhere in the world, you need treasury companies.

Why?

Because you're creating the high quality credit

and what credit?

You can create that pure yield product

and you can sell it direct retail.

Go to the retail, like sort of we're doing.

You could also create that product

and partner with the largest bank in Switzerland

and you could power their treasury.

Well, B of A is running treasury for a trillion dollars

or something.

So what have you actually power the treasury

of another bank and you become a B to B player?

So a company could pursue a strategy

where they create the yield and they create the return

or the credit instrument, but they sell it through a bank.

How many banks are there?

25,000 banks.

There's 25,000 people to sell it to.

Well, what else?

Insurance companies and annuity companies.

This companies that have hundreds of billions of dollars

and they're on the hook for annuities,

open up a pipe to the annuity company

or the pension fund and you just sell the yield directly

through, you could do that as well.

Also, the insurance business.

And so when I look at this, people go,

well, how much room is there for Bitcoin treasury companies?

That's like, you know, like some dudes

says, why would you want to buy a hamburger on the upper east

side for 40 bucks when I'll sell you a hamburger

for $3 in Kansas?

Well, because I don't live in Kansas.

That's not OK.

Well, so I guess there's room for one restaurant in New York.

Well, what about the people downtown?

What about the people of living Tokyo that want to eat?

Right?

The truth is there's a lot of room for restaurants.

There's a lot of room for how many banks, 5,000 banks

in the US?

There are 25,000 banks in the US 80 years ago or 100 years ago.

So 100 years after their obsolete, there's still 5,000 of them.

Right?

There will be thousands and thousands of treasury companies,

just like there's thousands of insurance companies,

thousands of funds, thousands of banks.

And why would they exist?

They will exist because the risk-free fiat credit rate

is 50 basis points in Japan and minus 50 basis points

in Switzerland and 200 basis points in Europe

and 400 basis points in the US going to 300 basis points

soon.

And the world wants 10%.

Right?

And who wants 10%?

Everybody.

OK, so the real issue is, how are you going to wrap it?

How are you going to construct it?

I want it to run on my rails.

You can buy stretch on NASDAQ brokers,

but you can't buy stretch on Robinhood.

OK?

How do you get the security to go down the rail?

It's kind of like, yeah, I got a hamburger.

It's three bucks.

But how do I buy it in London when the hamburger is getting served up

in San Francisco?

The distribution matters, the container matters,

the compliance matters, the marketing matters, right?

I mean, do they like you?

Do they trust you?

So when I think about Bitcoin Treasury,

come to some like, well, do you have the management team?

Do you have a strategy?

There's 1,000 strategies.

1,000 ways to do this.

Do you have a focus?

Do you have a capital market, right?

Orange BTC is coming public in Brazil.

They'll be the first company that's where the capital structure

has been designed to be elastic to support

the ATMs and the like in that capital market.

So constructing the company with the strategy

in the right capital market is important.

But yeah, it goes without saying there's

going to be a monster treasury company in every capital market.

It won't be us in Japan.

It'll be met a planet most likely, right?

There'll be a monster in every capital market.

But that doesn't mean there isn't room for 100 other very successful

companies in every major capital market.

You just ask the question, how much capital

is there?

How much financial repression is there, right?

And yeah, I'm not going to go and issue credit instruments

in Turkey because the rate's like 46% or something.

I'm not going to go there first.

I'm going to go and issue credit instruments,

where a 10% seems like a screaming home run,

and 10% against a 30% AR over 20 years.

It works out to about 90% of the economics go to the issuer.

And then it just comes down to a question

of how you're going to construct the credit.

And there's stupid credit.

There's difficult credit.

And I guess I'd say there's a simple rule of thumb here.

If some guy with a billion dollars

is sitting across the table offering

to give you the money, it's probably

in their interest, not yours.

If I wanted to sell a billion dollar note

that had the warrants of equity,

that had the credit protections of a bond,

and do it with a single counterparty,

I would have 25 companies staying up all night

to do that deal, and it would be done tomorrow morning

or the next day.

It would be awful for my equity investors.

It would be bad for my capital structure,

but there's a certain amount of money that will come to you

that's easy to get that's just not necessarily

good for you.

And then there's the money that you have to work at.

I'm going to build a retail channel to 10 million retail

customers and sell them a preferred instrument

without the credit risk, which has got huge amplification

for the equity.

That's harder.

It's hard to do the things that are

going to create massive shareholder value for your company.

It's easy to get big and do things that basically transfer

your equity and your credit collateral to an investor.

So I would just say, the business is going to explode.

There's going to be 1,000 ways to win.

We're in year one.

Don't listen to the critics and the winers.

Think about the critics of the petroleum industry

in 1866 and put yourself in the place

of the entrepreneur, as an asher self,

would you get dejected when the price of crude oil traded down 35%

and people told you it's a crap business?

Because that's exactly what happened to Rockefeller

and what distinguished him is he just always believed

that it was going to work.

And when everybody else was selling, he was buying.

And when they were buying, he was buying.

And when everybody was whining, he was building.

And when everybody said, in 1909 or whatever,

when the entire industry was mature, that's

when the automobile got invented and it got 10 times bigger.

So this thing is going to be big.

There's no reason that credit, digital credit,

the credit on gold became bigger than the gold supply.

The digital credit may be bigger than the Bitcoin network.

A Bitcoin goes to 100 trillion or 200 trillion.

There could be 200 trillion of credit on top of it.

You may not want to issue it.

That's up to you.

Someone will want to buy it.

And that is the future that the market will determine.

And the market is 100 industries, 100 capital markets.

And your job as a Bitcoin Treasury company

solve the problem, solve the compliance problem,

solve the tax problem, solve the issuance problem,

solve the credit problem, do the marketing,

do the product design, solve the distribution problem,

evangelize the future of digital capital and digital credit,

and roll with the punches.

Don't get liquidated on volatility.

Build the most robust structure you can.

But otherwise, if the Bitcoin miners are the first line

of electric defense or computational defense

of the Bitcoin network, Bitcoin Treasury

companies are the first line of economic defense.

They're the ones that are going to spread

the entire ideology of digital capital, of perfect money.

The guys that say, fix the money, fix the world.

That's all well and good.

But the truth of the matter is you

didn't have to envisage that everything else disappears,

except perfect money.

It's not going to happen.

So a better thing to be thinking is,

if I'm going to fix the money and fix the world,

I need to fix the equity, fix the funds, fix the banks,

fix the money markets.

I need to fix the credit instruments.

I need to fix the currencies.

I need to fix the policies, fix the politics,

fix the ideologies, fix the attitudes, fix the distribution,

fix the technology.

That's not happening just via tweeting.

That's going to be a company in Japan, in Switzerland,

in the UK, in the US, in Nigeria, in Brazil.

They're the ones that are going to fix all that stuff.

And as you create all of these digital, wonderful, beautiful

instruments of the 21st century, you're

going to win fans and supporters and believers

in the political system, in the media,

in the economic system, in traditional banking,

in traditional finance.

They will be brought over to the orange movement.

And then they'll start to believe in Bitcoin.

But at the end of the day, just don't fall into the trap

of thinking that all the world needs as Bitcoin.

It doesn't just need Bitcoin.

It needs equities and credit, and it needs currencies,

and it needs governments, and it needs companies,

and it needs funds, and it needs services,

and it needs products.

And it's companies that are going to create these.

And it's hopefully the people in this room today.

So thank you for coming, and thank you

for being part of this movement.

And I look forward to hearing each and every one

of your stories.

Thank you.