Podcast Summary: "Bitcoin Treasuries Are Booming - Are You Missing Out?"
The Wolf Of All Streets
Host: Scott Melker
Guests: Andrew (Affiliation: Arch Public), Todd Shapiro (CEO & Founder of Red Light Holland)
Release Date: July 22, 2025
Introduction
In the episode titled "Bitcoin Treasuries Are Booming - Are You Missing Out?", host Scott Melker delves deep into the burgeoning trend of cryptocurrency treasury companies. Joined by Andrew from Arch Public and Todd Shapiro, CEO of Red Light Holland, the discussion centers on the rapid expansion of Bitcoin, Ethereum, Solana, Doge, and other crypto treasuries, exploring their distinct structures, market impact, and strategic importance for modern businesses.
Scott Melker [00:00]: “Bitcoin treasury companies are booming and so are Ethereum treasury companies and Solana treasury companies and Doge treasury companies... But they are not all built the same.”
Understanding Crypto Treasury Companies
The conversation begins with Scott highlighting the surge in treasury companies across various cryptocurrencies. He differentiates between balance sheet companies, which allocate a portion of their cash reserves to buy Bitcoin, and treasury companies that strategically engineer their finances to acquire more Bitcoin, creating an entire business model around it.
Scott Melker [04:02]: “I think there's bitcoin balance sheet companies... And then there's people who financially engineer their balance sheets to buy more bitcoin.”
Todd Shapiro introduces Red Light Holland, emphasizing its pioneering role as the first publicly traded company focused on selling legal psychedelics. Faced with banking challenges, Todd discusses the decision to integrate Bitcoin into the company's balance sheet to align with their mission of deregulation and decentralization.
Market Trends and Institutional Involvement
Andrew provides insights into how traditional Wall Street perceives and interacts with Bitcoin treasuries. He criticizes the narrow view of institutions like MicroStrategy, which focus predominantly on Bitcoin without exploring broader strategic integrations.
Andrew [09:31]: “...the pure Bitcoin treasury company plays... what Todd is doing, what others are doing, that's where the value is long term.”
The discussion touches upon the proliferation of various crypto treasury announcements, highlighting companies raising substantial funds to pursue their cryptocurrency strategies. Scott and Andrew remark on the misconception that all treasury companies mimic MicroStrategy's approach, noting that true value lies in diversified and intelligent Bitcoin integration.
Impact on Companies and Financial Strategies
Scott and Andrew explore how integrating Bitcoin into a company's balance sheet can significantly enhance operational profits and overall valuation. Andrew presents research indicating that companies allocating even a small percentage of their portfolio to Bitcoin can double their operating profits, positioning themselves advantageously against competitors.
Andrew [11:25]: “if you have... you effectively double your operating profits... that's meaningful.”
Todd agrees, emphasizing that Red Light Holland's strategy is not merely a financial maneuver but a commitment to aligning with their core values of personal sovereignty and decentralization.
Regulatory Landscape and Challenges
The conversation shifts to the regulatory hurdles faced by crypto companies. Todd recounts Red Light Holland's experience with being "debanked" by a Tier One bank despite strict compliance, underscoring the precarious nature of crypto-related businesses in the current regulatory environment.
Todd Shapiro [04:45]: “But then again, I'm not the expert. Even though I've been delving in this...”
Andrew echoes similar sentiments, discussing the prolonged efforts to gain regulatory approval for innovations like spot Bitcoin ETFs, which only materialized after over a decade of advocacy and persistence.
Public Perception and Educational Aspects
Both Todd and Andrew highlight the diminishing stigma around Bitcoin and cryptocurrencies. Todd points out the growing interest from older generations, often sparked by younger family members educating them on crypto investments.
Todd Shapiro [20:30]: “...a lot of people who are in their 50s and 60s are still inquiring about it...”
Andrew cites influential figures like Rick Edelman, who has significantly increased Bitcoin allocation recommendations for financial advisors, signaling a broader acceptance and integration of Bitcoin into mainstream portfolios.
Andrew [21:43]: “Rick has said... you absolutely should be at 3 to 5%, even 10% bitcoin allocation.”
The Future of Crypto in Traditional Markets
Scott and his guests discuss the transformative potential of cryptocurrencies in traditional financial systems. They examine the advent of products like perpetual futures on platforms like Coinbase, drawing parallels to traditional leveraged trading instruments and predicting a seamless migration of sophisticated trading strategies from conventional markets to the crypto space.
Scott Melker [37:12]: “Like last week guy sold 80,000 Bitcoin last week... most of them are doing it by sending their Bitcoin into Treasury companies.”
Andrew anticipates significant shifts within the next few years, with algorithmic trading becoming prevalent in crypto markets, mirroring its dominance in traditional finance.
Andrew [44:35]: “Crypto innovation is pressing traditional markets... it's happening effectively in about 30 months right now.”
Personal Stories and Company Insights
Todd Shapiro provides a deep dive into Red Light Holland's mission beyond financial gains, emphasizing their commitment to mental health through psychedelic therapies and responsible business practices. He outlines their strategic partnerships and cautious financial management to ensure longevity and impactful operations.
Todd Shapiro [45:14]: “...we are a mental health company... getting product from the Netherlands into a compliant laboratory in California...”
Andrew showcases Arch Public's success with their algorithmic trading strategies, boasting impressive returns and the ability to execute trades based on data-driven decisions devoid of emotional biases.
Andrew [55:57]: “our futures algorithms up to 18 and as low as 4%. None of those, none of those 10 algorithms have gone down.”
Conclusion
The episode culminates with a reaffirmation of the critical role Bitcoin treasury companies play in modern finance. Scott Melker, alongside Todd and Andrew, underscores the importance of strategic Bitcoin integration for businesses seeking to enhance profitability and embrace the future of decentralized finance.
Scott Melker [62:34]: “...going to wrap a bow on this Red Light Holland announces Bitcoin balance sheet strategy...”
Overall, the discussion paints a vivid picture of a rapidly evolving crypto landscape, where intelligent financial strategies, regulatory perseverance, and educational initiatives are paving the way for widespread Bitcoin adoption and the normalization of cryptocurrency treasuries in both corporate and individual portfolios.
Notable Quotes:
- Scott Melker [00:00]: “Bitcoin treasury companies are booming... But they are not all built the same.”
- Andrew [09:31]: “...the value is long term.”
- Todd Shapiro [04:45]: “...we felt this was a really good theme for the company.”
- Andrew [21:43]: “...you absolutely should be at 3 to 5%, even 10% bitcoin allocation.”
- Scott Melker [37:12]: “...people want access and still don't even have it...”