The Digital Transformation of Capital, Credit, and Money $STRC

I am delighted to be with you today.

And the topic of my presentation is the latest developments in digital credit, digital

yield, digital money, and the digital transformation of the capital markets.

I think the last 12 months have been extraordinary, and not the least of which for the reason that

the digital credit industry has been born in the last 12 months.

And I want to talk first about digital credit, why it's even possible.

Digital credit is a killer application of digital capital.

Bitcoin represents ideal capital.

It represents engineered capital.

It represents digital capital.

And it was created, as you know, by putting together a set of technologies, proof of work,

public key cryptography, peer-to-peer networking, distributed time stamping.

And by putting together a set of components that had been around, Satoshi was able to create

an ideal capital asset, an asset that's non-sovereign store of value, bearer instrument without

counter-party risk.

Digital credit, in a similar way, it's engineered credit.

It's ideal credit.

It's digital credit.

How do we build it?

Well, we start with some off-the-shelf techniques.

Listed public companies, they've been around for 100 years.

A capital asset on the balance sheet, we chose Bitcoin.

A perpetual preferred equity.

Purchase equities have been around for hundreds of years.

We used a monthly variable dividend.

It's been available and possible, but no one ever thought to put it into a credit instrument

like SDRC.

We use a standard tax treatment called Return of Capital.

It's been around for more than 100 years.

And then we combined all those things with a shelf registration, an ATM program.

Those had been around a long time.

Just no one had ever thought to put it together with a credit instrument.

And by combining all of these things, we were able to create digital credit.

What is credit?

What is capital?

Well, the world's built on capital.

The world runs on credit.

Capital is for someone that wants to make a long-term investment without cash flows.

And they're going to bear all the currency risk, all the duration risk, all the volatility.

They're going to bear all the uncertainty for a long period of time because they have

a low time preference.

There are a set of people and a set of investors that want that capital investment.

But credit is for people that have a much shorter time preference.

They don't want the risk.

They don't want the weight.

They want steady cash flows.

They don't want the volatility.

They don't want the anxiety.

They have immediate bills to pay.

And they want that cash flow now.

And so our company's strategy converts capital into credit.

We take the BTC commodity and we convert it into our currency, like the US dollar or the

Euro, with stretch its USD.

We take the risk that's one for one and then we over-collateralize the strip it away.

If you collateralize something five to one, that means that the capital asset can fall

80% and you're still fully collateralized.

So the capital investor has lost 80% of their collateral.

The credit investor is still protected.

So you're stripping risk.

When you do that, you damp volatility.

The volatility of Bitcoin has been 40.

We strip that volatility away when we strip the risk away by targeting a standard value.

And from that, you distill extract a yield, a cash flow.

And you do that while compressing duration.

Instead of waiting a decade in order to get a capital gain, you get a yield within a month.

And so the world's built on capital, the world runs on credit.

We designed a lot of credit instruments, but after many, many tries, we finally discovered

that we have a good SDRC.

And SDRC is built to provide the benefits of equity investors, like double-digit returns

and tax efficiency, with the benefits the credit investors get, like low volatility and capital

preservation.

So if you can combine all those together, you have the best of the credit world and the

best of the equity world and a single instrument.

So credit appeals to people that might like private credit.

Private credit is the reach for yield.

People that don't like money markets, they don't like investment grade bonds or junk

bonds, they buy private credit.

There's $3.5 or more trillion in private credit.

But private credit is a liquid, it's opaque, it's heterogeneous, it's a portfolio of a thousand

private loans.

It's discrete.

It's restricted to qualified investors, there's a high fee associated with it.

And we just saw in the past month that private credit markets have been melting down.

They got hit with a rash of redemptions, they couldn't meet their redemptions.

And yet it's $3.5 trillion of money that wants to invest in these instruments.

Digital credit, it's liquid, it's transparent, it's homogeneous, it's scalable, it's

accessible to everybody and there's no fee.

And so if you look at this, you could see that digital credit, even if it just transformed

10% of the private credit market would be $350 billion in today's dollars.

Digital credit's meant to appeal lots of different investors.

It's meant for retail investors.

It's meant for digital native or crypto investors.

It appeals to hedge funds and hybrid investors.

It appeals to institutional credit investors.

And it's also an appeal to corporate treasures and CFOs that want to hold some high performance

monetary asset on their balance sheet.

A lot of people were surprised when we used a preferred stock to do this.

It turns out the digital credit is just the reemergence of preferred capital after 100

years.

If you go back to the 19th century and think about the last major capital development

effort which was railroads, most railroads in a lot of the early industries during the

industrial revolution, they were financed by preferred stocks.

They used to be 20 to 40% of the capital structure of corporations.

In the 20th century, preferred stocks fell out of favor.

It's almost like they were forgotten.

And now in the 21st century, we've reintroduced the idea of preferred credit or preferred stocks

back into the capital markets.

Now how do you create it?

People always wonder, how do you create an 11% yield and credit instrument?

Well, you start with the performance of asset classes.

And if you look at the performance of Bitcoin over the last five years, it's up 38% a year,

which is much better than gold or the S&P.

Real estate's up 6% a year.

Money markets are up 3% a year.

You can't create a credit instrument that pays a dividend higher than the capital return

of the capital that the credit is being invested in.

So as you can see, the theoretical highest yield you could ever pay on gold back credit

would be 16%.

The theoretical highest yield you can pay on real estate credit is 6%.

On the other hand, with Bitcoin, the theoretical yield is 38%.

So if you think about the theory of asset back credit or the theory of digital credit,

what you do is you take the capital gain you expect in the capital asset and then you

pay a portion of it to the credit investor.

If you expect 30% in Bitcoin, you could pay 11% to the credit investor.

The excess yield, in this case, the 19% yield spread between 30 and 11, that goes to the

equity.

And so the common equity investor gets the actual carry or the yield boost.

The credit investor gets that first 11% strip of return with risk management, principal

protection.

You could do what we've done in theory with gold, with real estate, or with the S&P index,

but you wouldn't be able to pay as high a dividend because those asset classes don't perform

as well.

So here's another way to look at it.

Bitcoin is something for people that want to hold for 10 years.

It's a roller coaster.

It's got 30 ARR.

It's got 30 or 40 volatility.

You're going to have years where you're up, years when you're down.

You're going to have no cash flow for a decade.

Digital credit simply strips the first 11%.

You return it to the credit investor and you get a very comfortable ride.

Now if you look at that chart, you see we're just doing signal processing on a financial

signal.

Where does the excess volatility go?

Where does the excess return go?

It goes to the equity.

And so we created digital credit off of digital capital and then that creates digital equity.

As it turns out, all three of these assets are created with digital intelligence.

We couldn't create digital credit without digital intelligence.

So if you're looking for a killer application of AI, it's taking digital intelligence

and working on digital assets or digital capital to create digital equity and digital credit.

And you can see it at work here.

In fact, we've done it with our own securities.

So now if you think about how this sits for an investor, if your time arrives in this

less than four years, if you need the money in a month or a quarter or a year, you probably

want to hold the credit because you don't want any volatility in the principal.

If you don't need the money for a decade and you don't want counter-party risk, if you

want complete self-sobriety, you should buy the Bitcoin, the commodity.

And if you, on the other hand, have a long time horizon, but you want to bet on the future

of digital capital and digital credit in an amplified way, you buy the equity, the digital

equity instrument.

Now lots of people have different views and you have to see Bitcoin as one poll, one polarity

and credit is the other.

People that want to be completely without counter-party risk and self-sobriety, they want the

commodity.

But on the other hand, in your life, you buy things all the time from corporations where

you rely on the company to perform.

When you get in an airplane, you trust the pilot to land the plane.

When you buy an iPhone, you trust Apple not to turn off your iPhone.

When you go to a dentist, you trust the dentist to not stop halfway through the operation.

The world is full of examples.

When you watch a Netflix series, you trust Netflix to let you finish the show.

When you buy electricity, you trust the power company to keep pumping the electricity.

In fact, I would say there's a lot of people that want unlimited free electricity.

They do not want to install a nuclear reactor in their backyard.

And so what's happened here is we have created a crypto reactor and we're using it to create

credit in order to serve a group of people that don't want to do this work themselves.

They don't want to wait a decade before they actually monetize their investment.

They want to consistently monetize the investment every month for 120 months in a row.

Who would do that?

A retiree, a three year old, a 12 year old, a conservative institution, a company that

has lots of consistent bills and if they don't make their payroll in two months, they get

shut down.

People that if they miss their bills, they go to jail, right?

There are plenty of institutions and individuals and investors that can't stand, they can't

take a long duration capital investment for them, they need the credit.

One serendipitous result we found while we were engaged in this was that if you finance

the dividends from a credit instrument by monetizing an unrealized capital gain, you've

created a return of capital dividend and that's tax deferred.

So the people backstage, the timer in front of me is not working.

So I may very well go on forever if you don't turn the timer back on.

Maybe they're being polite.

That return of capital dividend has been around for more than 100 years but it turns out

that we were the company that figured out how to scale it by combining the credit instrument

with digital capital.

Now how is it doing?

This is stretch recently.

Stretch has grown from nothing to eight and a half billion dollars in about nine months.

It's currently got four hundred million dollars almost of daily liquidity.

This volatility has fallen to 2.9%.

The sharper a show is the high twos.

It's 4x over collateralized.

Here's another chart.

This is hyper growth.

How do you know that a product's working?

Well, it's growing 350% a year.

That's how fast it's growing.

It's 100% month over month growth.

So I don't know how long this will be in hyper growth but right now this is the fastest

growing credit instrument in the world maybe in the decade or the century.

Why is it growing so fast?

Well it's growing fast because it's ideal credit because it was engineered to provide

everything a credit investor would want if you look at it from the point of view of the

investor not from the point of view of the issuer.

Most credit issuers want to create an instrument that's good for them that's bad for the investor.

We started with a blank sheet of paper using digital capital and then we used digital intelligence

and then we designed a credit instrument that's good for the investor that's the ideal credit

instrument.

Now how can we tell the instrument grew to be the largest preferred stock in the world

within eight months.

It's now eight and a billion.

I'm showing you the 10 largest preferred stocks.

If you read the chart what you'll see is that stretch is a simple thing to remember.

STRC.

The other stocks are C slash PN or POW dot PR dot E.

If you went and searched for these you wouldn't find half of them.

Well you can't even Google them hardly.

How do you buy them and sell them if you can't find them?

They're actually institutional products.

They were never meant to be bought.

Some of them, the ones that say OTC, it's illegal for you to buy them.

They weren't built for the public investor.

They were built for an institutional world that traded credit in the 20th century.

And so what's the result?

Nobody trades them.

STRC isn't just the biggest preferred.

It's actually the most liquid preferred in the world in eight months.

Let me say again in the world it's the most liquid one.

It's not even 12 months old.

Look how it's competing against Wells Fargo, Bank of America, Fannie Mae, City, JP Morgan.

It's 25X more than the next best one and it's not a year old.

It's like Superman as a toddler beating the crap out of everybody.

And it's because it's Bitcoin powered.

Now if you delve a little bit deeper you'll see that it trades 4.5% of its AUM everyday.

So it's not just that it's more liquid and it's bigger.

It's actually faster, higher powered money and it's higher powered by an order of magnitude.

And so you can see the superior engineering design.

Now what else is highly liquid?

Bitcoin.

The reason digital credit is highly liquid is because digital capital is highly liquid and

the digital equity is highly liquid.

And it's not an accident.

They're all correlated to each other.

If you want to build the one, if you want a high energy credit you have to build them on

a high energy capital asset.

What else do you want from credit?

You want it to be stable.

And so you can see in the middle of the crypto or the bear market here in the crypto winner,

Bitcoin peaked in October 6th.

It was 125,000.

Bitcoin is 38% down.

SDRC is 0%.

It's exactly held par.

And so what you can see is that the credit instrument is something you can manage to

whole principal value.

And you need an issuer to do that.

That's where the company comes in.

The capital instrument has no issuer, no counter party, no one's managing it.

If you're a long-term investor, I would tell you every day, buy Bitcoin, don't buy the

credit.

But the truth of the matter is, most people aren't long-term investors able to take that

volatility.

They simply want to put their money in a bank account, collect 10 or 11% and not worry

about it.

Let's somebody else worry about it.

And SDRC is built for them.

You can see it seasoning.

This is the last eight months or so.

And it started off with a rocky start and it gradually fell into the zone.

In January, it traded in its target trading range 90% of the time.

February was a very difficult month.

It traded 80% of the time.

And then in March and April, it locked in into place.

It's been 100% in the trading zone in March and April.

So you can see it's hitting its target range now.

And of course, liquidity is everything.

There's no point in me telling you this is a good product.

If you can only buy or sell 100,000 a day, you're not going to get someone to invest a billion

dollars in something that trades that it would take them 10 years to get out of.

And so you can see the liquidity here is grown by a factor of eight in five months.

Again, hyper growth.

And off the charts, there's never been a credit instrument that grew in liquidity like this.

This is going viral.

This is a chart of perfords where you look at the return versus the daily liquidity.

And you can see STRC is in a class all by itself.

It's the supernova of credit.

And then everything else is on the sidewall here.

It's all illiquid mediocre.

The result is the velocity of this thing is exploding.

This is the demand for STRC.

It was about a $500 million business per month in January.

$500 million, call it $6 billion a year.

In February, we got punched in the face.

It was a really difficult month.

Massive Bitcoin drawdown.

And it fell to $80 million in demand.

In March, it jumped to $1.5 billion.

It became an $18 billion a year product.

Imagine going zero to $18 billion a year in the first year.

And then in April, it went to three and a half billion.

Multi by three and a half billion by 12.

All of a sudden, zero to $38 billion a year in a run rate is not a year old.

So clearly, we're in hyper growth right now.

May will be interesting.

June will be interesting.

July.

But you might go Google and ask how many products in the world went from zero to $20 billion

a year in the first year?

Not many.

It's very difficult to do.

Now, if you come back to this other innovation of shelf registrations, what you can see is

before we started selling digital credit, the largest shelf-registered in the world,

the registration on a credit instrument in the world ever in the history of the market,

was $500 million.

And then strategy created a $2 billion registration for strike, a $2 billion one for strife,

a $4 billion one for stride, and then a $21 billion shelf registration for STRC.

And so you can see here that innovation, that idea of a shelf registration on a credit

instrument, it was not materially used by anybody in the world in the capital market.

And the truth is, the US is the leader in shelf registrations.

So when I say in the world, I mean, they're not doing in Japan, they're not doing in Europe,

the US is the leader, and in the US, we just did something which is $40,000 bigger than

the next biggest thing that's ever been tried by anybody.

And again, we're not even one year old.

Why?

There's so much demand.

Well, private credit yields 8.5%.

You could characterize the entire credit market as return-free risk.

You're getting 80 basis points of yield over the risk-free rate, if you buy investment bonds

or corporate bonds.

You're getting 200 basis points for junk bonds.

You're getting 300 or 400 basis points for private credit that's a liquid.

It's all taxable.

And we come up with something which pays 11.5% that's tax-deferred that's liquid that's

transparent.

If you're a taxpayer in Miami Beach, that's the equivalent to a bank account that pays

you 18%.

Now what you see is we've created the short end of the yield curve, like the one month

Bitcoin bond, the risk-free rate in the crypto ecosystem.

So what is the free market rate of capital?

The free market costs the capital.

It's 11.5% right now.

And you can see what the risk-free rate is in every other currency.

3, 2, 1, 0.

And now if you're an investor, you can start to imagine a world where I borrow euros

a 2% and I buy STRC at 11% and I keep the difference.

Or borrow YIN at 70 basis points and invest at 11% and keep the difference.

There's a massive arbitrage here.

What if you live in New York City?

What is like a bank that pays you 24% interest in New York City?

What if you live in San Francisco?

23.1% tax equivalent yield.

Your money market pays you 3.6%.

The bank deposits pay almost nothing.

Why wouldn't you buy it?

Volatility?

It's too volatile.

You can see we've actually taken the volatility from 13 down to 2.3 through the end of April.

Our goal is to get it into the ones.

We've had it into the one range a few weeks ago.

The only instruments in the entire credit industry to have a one volatility are money markets.

Now, it's worthwhile to talk about some financial theory here.

The sharp ratio is defined as the return of the instrument minus the risk-free rate divided

by the volatility.

It tells you how much you're getting paid for the volatility that you're incurring or

the risk that you're taking.

What is the risk-adjusted return?

When the sharp ratio is above one, you're getting paid more in return than the volatility

you're incurring.

What you can see here is the sharp ratio of stretches 2.7.

The best sharp ratio of a credit instrument is 0.5.

It's 5x better than the next best credit instrument.

It's 10x better than most credit instruments.

Your money markets have a negative sharp ratio.

The fee charged to you by the issuer or the sponsor or the money market is higher.

It's so high 20 or 30 basis points that this is an essence.

There is no return.

It's return-free risk, negative sharp ratio.

Compare digital credit to equity.

The best equity in the world is in video.

Video's got a positive sharp ratio, 1.89 right now.

Nobody else in the Mag 7 does.

None of them return the risk that you're taking.

Amazon, the volatility is 5x the return.

Stretch is outperforming them all.

And it's a credit instrument.

Imagine doing that with credit.

And now let's look at assets.

The S&P index doesn't return its volatility.

It's got a sharp ratio of less than 1.

Bitcoin, it's got a return lower than its volatility right now.

Nasdaq same thing, gold.

0.4 real estate real estate is awful right.

It's got high volatility low return.

17.1 7% really weak 17 basis points.

So you see stretches got a higher sharp ratio than any of these instruments.

In fact it's kind of like monetary fuel.

And that means it competes with $300 trillion a credit.

$100 trillion of equity.

It competes with real estate.

Digital credit is going to cannibalize.

It's going to replace real estate capital, equity capital markets, credit capital markets,

currency capital markets.

And you can see here on the screen, most of them are just sitting with very lackluster

yields and all sorts of risks and opacity.

Some of them are liquid.

None of them compare a favorable to digital credit.

You can see it on the chart here.

He walked down the street and asked a hundred people.

Do you want a 30-year bond?

Do you want something you got a hole for a decade and see if you get wealthy on it?

Or do you want a bank account that pays you 10%.

And the answer is everybody wants a bank account that pays them 10%.

Some people that are specialists might think they can do better than that with some of

their money.

But every corporation, every individual, every institution has a lot of money they want

to put in a bank, preserve the principle, and they want to get paid three times the money

market rate or four times the money market rate.

One of the serendipity's results of digital credit is you can buy digital credit, you

can collect the dividends tax-free, tax-deferred, you can reinvest them, tax-deferred, and you

can compound your wealth and a tax-deferred basis on a credit instrument.

Which normal, you can't do it with a bond.

You can't do it with a preferred stock that's a normal, qualified dividend distribution.

So there's a powerful compounding effect.

And as you compound those dividends, you're lowering the basis in the instrument.

So you collect dividends until the basis in the instrument is reduced to zero.

If you then pass that instrument to your heir, if your daughter or your son inherits that

instrument, they get a step up basis.

And so you got a hundred dollars of dividends tax-free.

They will get a hundred dollars of dividends tax-free.

And you can collect over 20 or 30 years, you can collect $200 of dividends tax-free on

a hundred dollar investment in the instrument.

And what does that convert to?

Well, look at this.

You have a hundred dollars.

You invested for 21 years in T-bills.

You pay taxes on it.

You reinvest the dividends after tax.

After 20 years, you've got 158 bucks.

And you're getting $3.68 in after tax cash flow.

If you do the same thing with digital credit, after the same time period, you have 10, you

know, not 10, but six times as much money.

You have $965.

And you're collecting $107 a year on an original investment of $100.

And so there's a massively powerful generational wealth transfer opportunity here for risk-adverse

investors and credit investors and people that never want to stomach a major drawdown,

but they do want to compound their wealth in a very tax-efficient way.

So let's talk about adoption.

Who's buying this?

80% of STRC is held by retail accounts.

It's been a retail-explosive phenomenon.

We counted 120,000 distinct retail accounts as of a few months ago.

And it's also being adopted by corporate treasuries and size.

It's also being adopted by institutional investors and credit indexes.

It's also being adopted crypto natively.

It's also being adopted by a bunch of financial innovators.

Our estimate is, well, first of all, there's a lot of ways to buy it.

You can see you can get it on e-trade or Robinhood or Fidelity or Charles Schwab.

So all of the standard retail rails are supporting this.

You can buy it in 10 seconds.

So it's easy.

It has spread very rapidly.

It's been a very successful retail product.

And we estimate three million households right now are benefiting from STRC.

So what is our vision?

Our vision is to power millions and then tens of millions and then hundreds of millions

of households with a high yield savings account.

It's a straightforward thing.

Everybody wants more money.

Everybody would like a bank to pay them three times more than they're being paid right

now.

It's not even debatable.

Create a digital yield account or a digital money account.

A billion people want that.

And so we've got a good start.

Three million in eight months.

But we're not going to stop there.

We're going to go to corporations too.

If you're a company, you probably got most of your money in T-bills.

And T-bills are giving you three and a half percent before tax, two percent after tax.

Well, STRC appeals to a lot of these corporations because the tax equivalent yield is five

acts higher.

Wouldn't you like to get paid 16 percent instead of 3.6 percent of your corporate treasure?

So clearly this has become very interesting to a lot of people.

If you allocate one third of your treasury capital to STRC, you double your cash flows.

And if you actually can point your treasury into STRC, you can generate nearly four times

the cash flow.

So imagine four times the cash flow on assets that you have to hold on your balance sheet.

And every company has to hold this.

They need to make payroll.

They need to pay taxes.

They need to have one, two, three years of working capital.

But they don't need to hold it in a low performance money market if they could do better.

So who's done it?

Energy companies, crypto companies, Bitcoin companies, it's starting to spread pretty rapidly now.

I talked about institutional investors.

BlackRock and Vanack run two of the more well-known larger credit funds.

Stretch is the third largest holding in each one of them.

It's anywhere from two to six percent of their entire credit index.

So as money flows into those credit indexes, that money flows to stretch, that flows to

Bitcoin.

And so increasingly, I think we'll see where index to credit.

There's also been a ton of ETFs.

21 shares embedded stretch in an ETF and took it public in Europe a few weeks ago.

Strive is creating a digital yield fund.

And they're going to bring that to market in the US.

There's a number of other interesting public funds that are being put together and they'll

come to market in a coming few months.

And that's probably a good segue for me to talk about money and yield.

The opportunity is for a thousand companies to create their own digital monetary instrument

or digital yield instruments all powered by digital credit, which is in turn powered by

digital capital.

Look at what we've done here.

We've taken digital capital, 35-vol, 39-ARR, and we split it into equity and credit.

The credit is 3-vol, 11-percent yield, the equity, 72-vol, 58-percent ARR.

So you can see what happens when you tranche the commodity into a credit and an equity instrument.

The credit is layer 2.

We think of layer 3 as money and yield.

And there's a lot of interesting layer 3 applications that your company could implement, that any bank,

any crypto exchange, any investment manager, even an individual can implement.

So we define digital money as 0% volatility, daily liquidity.

It's high-powered money.

Zero-vol, I can get the money back every day, I get streaming dividends.

Digital yield would be maybe non-zero-vol, maybe not liquid every single day, but is built on digital credit.

Well, you can imagine, you can take stretch, you can tokenize it,

you can put it in a private fund, you can put it in a public fund, an ETF, you can put it into a bank account.

You can deploy it via any platform, via Binance, via Coinbase, via CashApp,

you can deploy it via the Commonwealth Bank in Australia, or Deutsche Bank, or JP Morgan, or Morgan Stanley.

You can take it public on the NASDAQ, or the Euro-NACs, or the Nice Stock Exchange.

You can step up and down the volatility, you can step up and down the yield, you want to crank the yield to 30%.

You could do that, you could actually step down the yield.

And then you can modify or program the liquidity from continuous to daily, to weekly, to monthly, to quarterly, to annual.

We've seen people doing all these things, right?

And so digital money, it can come as a coin, it can come as a fund, it can come as an account.

When you start thinking about it this way, you realize that if you step it down, you create 0%, 0% volatility,

7.5% yield money, like a perfect stable coin, Bitcoin backed, to pay 7.5%.

There are announcements about that that are just coming out right now, there are companies that are going to do that in the crypto ecosystem.

And then you can see here that why wouldn't you just lever it up, 3 to 1, and maybe you collect $33,

or $35 of dividends, you pay $8 of interest, and you keep $25 on $100 investments, you've got 25% yield.

You just loop it three times, and so that's also possible with digital yield.

And here are some examples of companies doing it.

Apex is doing it, Saturn is doing it, Hermetic is doing it.

There's a big thirst in the crypto economy to generate Bitcoin backed yield, and so some companies are creating yield on Bitcoin with this.

And then there's a lot of people that want to create stable coin backed yield.

How do I get yield off my stable coins?

And then that's a very straightforward thing as well, and Apex and Saturn are doing that.

Of course, you can also innovate with mutual funds and private funds, and you're seeing tokenization taking place right now.

How fast?

You know, the chart's out of date.

It was zero to 200 million in the last four weeks, and now it's about to go through 300 million.

So this has gone from nothing to hundreds of millions of dollars.

I think we'll probably go through a billion dollars of AUM over the next four to eight weeks.

So this is explosive industry downstream of stretch.

And we're committed to helping everybody that builds on top of SDRC, and we want to make it higher frequency, more liquid, less volatile.

And one way we think we can do it is to double the frequency of the dividend.

So go from monthly to semi-monthly.

So.

You guys get paid every two weeks by our employer, so why shouldn't your assets pay you every two weeks, right?

Why wouldn't you want that?

So it works out instead of 12 cycles where you have a dividend cycle, a drawdown, it goes to 24 cycles.

But 24 cycles with half of the intensity, half the dividend, which means that in theory, we should be able to get the thing to vibrate in a much tighter range.

And that will decrease the vol, we're hopeful it'll decrease the vol, increase the liquidity.

That's what we would expect.

And whenever you double the frequency of something in the physical world, that's called taking an octave higher.

A note that's an octave higher is double the frequency.

It's a higher energy, you know, higher fidelity signal.

That's what we're doing with SDRC.

I just make a couple of points here.

It will be the only preferred stock in the world to pay semi-monthly out of 921.

It will be the only stock in the world that pays a dividend monthly out of 24,000 comment stocks.

It'll be the only one that pays semi-monthly.

So we are innovating in frequency and engineering construction and design.

But at the end of the day, the great innovations will be the people that put the funds and the coins and the tokens on top of it,

because they can go to hourly streaming.

They can go to hourly frequency 24, 7, 3, 65.

They could, you know, step it down, loop it up, transform it into yen, euros, dollars, whatever you might want.

And so we're really excited to provide a stable platform for everyone else to build on top of it.

This will go to a vote and the polls will close in early June.

And if it's approved by the shareholders, then the first record date will be the end of June.

And the first payment date will be July 15th.

And those polls are now open.

So if you would like, if you're a stretch holder and you'd like to make your voice heard, you can go to our website and you can vote or you can do it here.

And with that, I will end with the thought.

Digital credit is a killer application of Bitcoin.

We expect to sell tens of billions of digital credit until we sell hundreds of billions of digital credit.

And if we sell hundreds of billions of digital credit, we will then move to see if we can sell trillions of dollars of digital credit.

Every dollar that goes into digital credit will flow into digital capital.

It will flow into the Bitcoin network.

And as it flows in the Bitcoin network, the price of Bitcoin should increase.

We expect that digital credit will drive the size of the Bitcoin network.

And what's the end game?

The end game isn't that complicated.

It's give a bank account, an 8% to 10% a year, yielding high yield digital bank account to a billion people.

Drive Bitcoin to $10 million a coin and make Bitcoin a $200 trillion network until it grows higher.

And give everybody in the world an alternative to 20th century credit instruments, zero yielding bank accounts,

lackluster junk bonds, private credit, or risky, rickety equities, or all of the challenging real estate investments that are difficult to manage that are illiquid, that are immobile.

And those things collectively represent the digital transformation of all the capital markets.

And as we like to say in this business, in the Bitcoin community, we say fix the money, fix the world.

Digital credit is the next killer application to fix the money.

And it's going to spread Bitcoin everywhere in the world.

And it's going to cause Bitcoin to back all the stable coins, all the crypto tokens,

all sorts of other conventional credit instruments.

And it'll be a good day when the major banks and the major investors in the world all own some digital credit,

or they offer digital bank accounts powered by Bitcoin.

You guys all made it possible and you inspire me every day.

So thank you.

I'm appreciative to be on the journey with you all.

Every year, this community comes together to celebrate, to debate, to build what comes next.

And every year, the stage gets bigger.

Sound money, center stage.

So where do you go to celebrate the next chapter in Bitcoin history?

You come home.

Nashville, July, 2027.