00:00 Speaker A
One of the other phenomenon we’ve been watching closely is that of crypto Treasury companies putting various types of crypto on their balance sheet. and not surprisingly, when the prices go down, it’s not great for those companies. So does that mean if you think Bitcoin and crypto generally has bottom, does that mean those companies have too?
00:15 Speaker B
I think that you know, digital asset Treasuries have a unique opportunity to add value for investors in that if you look at asset management wrapped products, you have a limited number of tools in the toolbox, right? You can you can do things, you can write options, you can uh stake your tokens, you you find ways to get yield, you can manage portfolios actively. There’s a ton of things you can do. Um but you can’t do all the things that a corporate treasurer can do.
00:35 Speaker A
Like what?
00:36 Speaker B
Like lend, like actually have lending, uh like have bilateral agreements, like have term agreements that wouldn’t be allowed in a vehicle that needs daily liquidity, right? which ETFs do. So it it’s kind of uh enters into this new space where treasures can be uh can be clever when strategy uh micro strategy/ strategy issued converts and then issued preferred shares as a way of kind of making their balance sheet uh take advantage of Bitcoin’s volatility properties. That’s pretty interesting. So I think there’s a way to to bring new types of uh financial engineering skill that can add value. Now, uh that may cause people to want to rush into certain DATs, certain dats and that can push prices above, you know, their sort of book value. uh and when liquidity comes out, things will fall below the book value, known as MNAV in the new parlance. Um but I think that over time uh those that kind of structure will mature and you’ll see real skill, you’ll see fundamentals attached to certain dats. uh not just, you know, not just kind of uh religious following of them. And I think it’ll evolve over time. And the ones that trade below nav will trade below nav like closed end funds do and you know, that’s a market. So, um interestingly, a lot of crypto is being held by them as it is by ETFs and governments and other things. So that that that, you know, those digital assets tend to be parked, but I think it’s a space that is not going to go away and um I look forward to seeing what comes next.