Podcast Summary: The Wolf Of All Streets with Scott Melker
Episode: $500 Billion! The Truth Behind Crypto Treasuries & Tether's Future
Date: September 24, 2025

Episode Overview

In this episode, Scott Melker dives deep into the world of crypto treasury companies—exploring their structures, the pros and cons for both retail and institutional investors, and their impact on the broader crypto market. New developments, like Tether seeking a staggering $500 billion valuation, and ongoing institutional adoption by giants like Morgan Stanley, set the stage. Scott is joined by Alan and Brian from Apexi, recognized experts in the field, to break down these complex topics in plain language. The latter half features technical analysis from Chris (TX West Capital) on Bitcoin and prominent altcoins.

Key Discussion Points & Insights

1. Complexity & Accessibility of Crypto Treasury Companies

[00:00–04:10]

• Growing Complexity:
  • Alan and Brian discuss how treasury deals have become increasingly complicated, echoing traditional Wall Street financial engineering.
  • Alan observes, “Each deal afterwards has gotten more and more, more complicated. It's kind of what Wall Street does...” [02:25]
• Investor Understanding:
  • Scott and guests note that retail and even institutional investors often invest based on hearsay rather than due diligence:
    • Scott: “The way that people invest now is friend says ticker, go on Robinhood, buy ticker, hope for the best. I mean that's research at this point.” [03:27]
  • Brian: Even experienced analysts struggle with the nuances, as understanding capital structure and value drivers takes “literally decades to really learn.” [03:42]
• FTX Cautionary Tale:
  • Scott and Alan recall major failures of institutional diligence, e.g. “Sequoia invested first, and then everybody else's due diligence was Sequoia invested.” [04:10]

2. Analogy: Crypto Treasuries as Modern Banks

[05:06–06:36]

• Brian likens treasury companies’ economics to banks:
  • “Banks make spread income... The market will then essentially present value all that future spread income added to book value... I think of all these treasury strategies as exactly the same construct.”
  • Instead of depositors, treasuries raise capital; instead of making loans, they invest in digital assets; returns are analyzed via NAV (Net Asset Value) and market multiples.

3. Deal Structures: Leverage, Dilution & Transparency

[07:11–09:19]

• Leverage:
  • Scott asks about leverage in Apexi’s treasury, which Alan says is “extremely low”—targeting only around 20% of NAV, often even less, to manage volatility risk. [08:13–08:54]
• Dilution:
  • Alan: Structures have become more “dilutive,” with more warrants, consulting contracts, and layered fees, which erode value for ordinary investors. [07:11]
• Transparency Issues:
  • Despite public dashboards and disclosures, misunderstandings persist about real NAV and value metrics.

4. Why Solana Over Bitcoin or Ethereum?

[09:19–13:41]

• Yield Generation:
  • Brian: Unlike Bitcoin treasuries, Solana allows the treasury to generate yield (via staking), making it possible to “beat the benchmark asset” with lower risk.
    • “We can actually improve on the MicroStrategy model by staking our treasury and turning it into this productive asset versus a bitcoin treasury company that just sits on its treasury and does nothing with it.” [10:53]
• Market Positioning:
  • Solana chosen for:
    1. Tech advantages (parallel transaction execution, recent launch provides “great network effects”)
    2. Growing ecosystem of users, developers, dApps
    3. Strong usage stats (daily users, revenue, DEX volumes)
• Differentiation:
  • “There were probably 50 bitcoin treasury companies. We didn’t want to be the 51st. We’d rather be... leading Solana treasury companies.” [11:55]
• Upside Potential:
  • Solana's market cap is only 5% of Bitcoin; much more room to 5-10x.

5. Valuation Hype vs. Reality: Finding a Sustainable Model

[13:41–18:42]

• Initial Euphoria:
  • Scott and Alan discuss how early treasury companies saw wild price swings well before acquiring assets (“woke up, the stock was at 22 from $2... what is going on?” [14:36])
• Long-Term Value Creation:
  • Alan advises investors to focus on long-term NAV growth, not fast pumps: “Building a Treasury is the same as building a business. It doesn't happen overnight, it takes a little time.” [14:36]
• Discounts and Arbitrage:
  • Brian and Alan highlight mechanisms for value:
    • Buybacks below NAV in bear markets.
    • Issuing equity above NAV is accretive (e.g., “MicroStrategy issues equity at 2 times NAV, they’re literally selling a dollar for two, or buying bitcoin half off.” [10:53], [18:03])
    • Over-the-counter (OTC) discounts: “You can buy Solana at a 15% discount.” [18:12]
• Market Correction Expected:
  • As the landscape matures and oversupply clears, premium NAV multiples will narrow; only the best operators will be rewarded.

6. Handling Bear Markets:

[19:23–21:52]

• Brian: In bear markets, the “model is simply on pause.”
  • “In a bear market a dad [digital asset DAO] can and probably should trade at a discount to its nav, but the model is simply on pause.” [19:29]
• Buybacks and prudent leverage use can still create value for shareholders.
• Patience is emphasized: “You gotta be patient here.” [21:47]

7. Tether’s Massive $500B Valuation Attempt

[21:52–26:08]

• The News:
  • Tether seeks $20B in funding at a $500B valuation, making it the largest private company globally by some measures—bigger than OpenAI, SpaceX. [22:38]
• Why Raise That Much?
  • “When valuations are high and the money's available, take it. I'm like, but we don't need it. He said, shut...” — Alan quoting a veteran investor [22:38]
• Comparable to Major Banks:
  • If valued as a bank, only JPMorgan would be bigger.
  • Alan: “At $13B earnings, that’s only 40x, which is not crazy in tech with high growth.”
• Implications:
  • Brian: Investors can’t really access stablecoins otherwise, and Tether’s network effect is immense.
  • Scott: Is this a setup for a future IPO? Guests unsure—private valuations are appealing without public scrutiny.

8. Institutional Adoption & ETFs: Morgan Stanley, 401ks, and the Path Forward

[26:08–29:30]

• Morgan Stanley's Crypto Trading via E-Trade:
  • Set for H1 2026, could further open the floodgates for retail and wealth managers.
  • Alan: “If we can hold Solana on Morgan Stanley... that’s great news for us and for the industry.” [27:10]
• Upcoming Solana ETF with Staking:
  • Will make exposure and staking rewards even more mainstream.
• Regulatory Moves:
  • Executive order enabling crypto as a standard 401(k) option could “unlock a casual $10 trillion in investment accounts to crypto.” [28:42]
  • Alan: “It goes up every pay period... underlying liquidity in the market that's really needed…” [29:15]

Notable Quotes & Timestamps

• “I think the average retail investor... spends more time like, you know, researching a hotel room when they're going on vacation than they realize.” — Alan [02:25]
• “The way that people invest now is: friend says ticker, go on Robinhood, buy ticker, hope for the best. I mean that's research at this point.” — Scott [03:27]
• "When MicroStrategy issues equity at two times NAV, they're literally selling a dollar for two—or buying bitcoin half off.” — Brian [10:53]
• “There were probably 50 bitcoin treasury companies. We didn't want to be the 51st. We'd rather be... leading Solana treasury companies.” — Brian [11:55]
• "If you're getting this kind of valuation, I would, you know, personally wait for [an IPO], but who knows?" — Alan on Tether [24:02]
• “Tether is a bank with free funding so they don’t have to pay for deposits or borrowings.” — Brian [26:00]
• "If we can hold Solana on Morgan Stanley... that's great news for us and for the industry." — Alan [27:10]

Market & Technical Analysis (with Chris / TX West Capital)

[30:25–44:03]

• Bitcoin Analysis:
  • Chris breaks down recent price action, citing bullish divergence and structural support.
  • “We just want to see some follow through… If we are breaking out above that 116,217, I think... for all intents and purposes, we’ve all but confirmed that that low is in and we're going to new all time highs…” [34:50]
• Altcoin Highlights:
  • Noteworthy moves in tokens like Astar, Hemi, Arkm, IMX, and Algo suggest the market is not in a bear phase.
  • “Bear markets don’t start with everybody being all upset that it’s a bear market. That realization comes at the end... and then it goes up.” [35:54]
• Zoom Out for Perspective:
  • Emphasizes the importance of considering longer timeframes and prudent risk management.

Final Thoughts

• Retail and institutional investors face enormous complexity as structures evolve, but tools and transparency are slowly improving.
• Solana is emerging as the platform of choice for new treasury companies thanks to staking rewards, ecosystem growth, and higher growth potential versus Bitcoin.
• Tether’s astronomical fundraising ambition is a sign of crypto's maturation and adoption at the highest levels, mirroring the trajectory of tech unicorns before it.
• Institutional acceptance—ETFs, 401k approvals, and banking adoption—is set to transform crypto's next chapter.

For more information or to follow the guests:

• Apexi X Accounts: Check the comments on the episode
• Chris (TX West Capital): @TXWestCapital on X & YouTube