A (31:28)
100%. Great segue because I'm gonna drop the business idea. Are you guys ready to kind of explore this? Because I'm super fired up about it and I can't stop thinking about it and it's probably everything I'm going to talk about next week at the bitcoin conference. So obviously we've got that strategy is a structured finance company. Strive is a structured finance company. We think about strategy is taking a raw commodity out of the Internet and proof of work, which is bitcoin. And they've created a structured finance product, right? They put a senior tranche that is digital credit and they've got the junior tranche which is amplified bitcoin. You could, you could throw all the prefs in there. But just to simplify it, you've got senior digital credit, junior equity, amplified bitcoin. Now I've got this slide. I'm going to share my screen. Okay, can you guys see this? Okay, so over on the left hand side, this is the current structure. You've got digital credit, right? BTC backed balance sheet, preferred securities, strc, seda. And you've got amplified bitcoin which is the leveraged bitcoin exposure. It's the residual claim, it's all of the excess risk return that the digital credit instruments, the people that hold the digital credit instruments don't want to hold. Now you can take this a step further. So I've got this titled as the Bitcoin the BTC development company capital structure. So what do we know about the marketplace right now? We know that retail has been incredibly interested in these products. There's been institutional demand, but it has been, it has been a little bit smaller. Why? Because these instruments are a little bit novel and they're a little bit new. Right? So they're backed by bitcoin. They're perpetuals, they don't have terms on them. So like getting a pension fund to buy these, they won't buy them because they're not structured, they're not rated. The issuer has a B minus credit rating. There's so many problems, right? S and P doesn't value any of the bitcoin on the balance sheet because of the Basel risk weightings. None of the banks are holding any bitcoin. So many problems. Now what this proposal is showing is how to solve that problem. And you can create a special purpose vehicle that is capitalized on digital credit. Okay. The entire vehicle itself could be the same structure of strategy or strive right now, but in a separate special purpose vehicle. Okay. I'm calling this the, the digital credit or the bitcoin development company structure. So you can take this pile of digital credit and you can tranch it out, right? So you can make a senior tranche and let's call this investment grade digital credit. Right? So you're doing the same thing we're doing with Bitcoin, but you're doing with digital credit. So you've got senior investment grade digital credit, let's say that's 70% of the exposure. And you can put a term, you could take this perpetual equity and you could put it, you could make it debt, convert it into debt and put a eight year term on it, okay. And, and then have like monthly rolling issuances of this debt. And the residual claim is amplified digital credit. So you think about investment grade digital credit, you're going to pay SOFR plus 215 basis points. SOFR plus 250 basis points, I don't know, something around 6.5, maybe 7%. Okay. But because you put a term structure on it and I've got in here a reinsured risk buffer as well. So how this works is the amplified digital credit, the equity takes first dollar loss, right? So if stretch or SATA de pegs, the equity takes first dollar loss, right? And then I put in a reinsured risk buffer here to take another additional 20% loss. So what I'm talking about is boxing in the risk into an instrument that the rating agencies can consume. Okay? You turn this perpetual into a term instrument, you've got an eight year term on it and you're going to wrap it with this reinsurance protection. Okay? And now you've got something that looks exactly like everything else that exists in the current market right now. Like this exact structure exists on like real estate development companies, business development companies. This is not a novel structure. This is just doing the same thing with digital credit backing. Now let's think about the, let's think about the structure for a moment. Let's think about the amplified digital credit. This is fascinating, right? You think about on the left hand side, the, the current excess risk return of digital credit goes to amplified Bitcoin. Well, the same thing happens with the investment grade digital credit. The excess risk return would go to amplified digital credit. So that amplified digital credit, that equity piece would be very attractive. You're looking at something that's like maybe 18, 20% potential yield the demand, like just understanding the demand for the digital credit instruments. The demand for an amplified digital credit instrument would be absolutely astronomical. There would be a ton of people that would be willing to underwrite the equity of a structure that looks like this. You're like, okay, the people that need the investment grade exposure, they just can't stomach the risk. Well, I can, I'm interested in that. Like I would buy this. I would buy Amplified Digital Credit all day, every day. I know several other people that would. Okay, now here's, here's a couple, here's a couple additional unlocks. The Amplified Digital Credit that, that equity piece can be held in a publicly traded vehicle. I'm gonna pause there for a moment. It can be publicly traded. You can put an ATM on top of Amplified Digital Credit and have the ability to bring additional capital into bolster the credit quality of the investment grade digital credit. AKA give you additional capacity to go issue more investment grade digital credit. So I think this is an enormous idea. I think this is like a 50 billion, 100 billion dollar idea over the next 10, 20 years. This is right like Saylor's talked about. Okay, hey, banks take all this digital credit and go make an 8% savings account. Amazing idea. This is an alternative idea. Go make, go do the same thing that we're already doing with Bitcoin, just go do it with digital credit. But you got to do a little bit more work because you got to structure it and put some risk around it. The other thing that's super interesting here, a couple things. One, you can contribute STRC in kind to this business model. So like if you're launching this business model, you can contribute STRC in kind. That's interesting. If somebody wants to exchange STRC for, in exchange for an equity position for Amplified Digital Credit, that's an interesting value proposition. I think there's 50 to $100 million of people that would be at least that would be interested in some sort of value proposition like that. Fascinating. The reinsured risk buffer I've got in here, I can calculate that, I can sell that. I, I literally have basically already calculated it. I've just got to like move it up in my calculations. I can sell that instrument. Why? Because I've back tested the history. I've run it on a forward looking Monte Carlo simulation. I can understand like the probability of loss in different scenarios and forecast it out. I've got all the math. I can sell that. And so, so thinking about the holistic structure here, this is a huge idea. There could be several of these, there could be 10 of these. Everybody could do it a little bit differently. Just like how strategy and strive are doing digital credit Amplified Bitcoin just a little bit differently. We have different capital structures, different ways of showing this. And so what this is doing, this is making private credit digitally. Like digital Bitcoin backed private credit, digital bitcoin backed private credit. You now are creating private credit that is transparent. That is huge. This is a huge idea. Like you're creating a private credit instrument, right? Like the investment grade digital credit instrument that's going to be 144A. You're going to sell that to insurance companies. There's $30 trillion of insurance capital that's just buying anything with yield on it. They would be incredibly interested in this if you could get a rating on it. So I'm going to pause there. It's a pretty big idea. I was, you know, walking around my house just like my head exploding. And this is, you know, the, with