Bitcoin Just Cleared Its BIGGEST Hurdle - Rally NOT DONE?

**SPEAKER_1** (0:00)
Hey babes, it's Paris Hilton. So I was checking my points balance in the Hilton Honors app the other day, and yeah, I've got about a billion, which feels excessive, even for me. Just kidding, you can never have too many Hilton Honors points. And I want to do something iconic this summer, so I'm giving away all my Paris points. Just find somewhere you've always wanted to stay, then go to my socials or Hilton's and tell me about it. Just make sure you're a Hilton Honors member, and I might be sending you Paris points, because when you want points that make your summer even hotter, it matters where you stay.

**Scott Melker** (0:31)
Bitcoin just quietly cleared one of its biggest hurdles, leading many to believe that a rally may be coming. We'll unpack that and all the news here live from the Out East Summit, presented by The Tie, and of course, I have the founder of The Tie with me today, Josh Frank. Let's go. Good morning, everybody, and welcome to the scenic North Fork in Long Island. Today, we are not having gale force winds like we did yesterday. We have the sun actually out yesterday. Everyone's hair was blowing around.

**Josh Frank** (1:17)
This is what happens when I'm not invited on day one. I just I said, right, when you brought as a Jew, people think that I can control the weather.

**Scott Melker** (1:24)
So, you know, I I've heard that rumor, too, but obviously not the case. So listen, first of all, it's been an absolutely incredible conference. It's beautiful out here. We have bottomless cups of coffee, bottomless.
Bottomless cups of coffee. Mine's empty. That's that was kind of the joke. Okay, so let's let's start from the beginning and then we'll dig into kind of what's happening with the conference. A few pieces of news that hit today, which sort of led into that that title. So Jack Mallers stepped down at not surprisingly, as the CEO of Twenty One and it blew up entirely, I guess, the merger between Electron, Twenty One and Tether. And I mean, you know, and we have another story that said Sumo, which is a UK based treasury company completely unwinding 90% vote on shareholders to sell off their treasury, which is only 600 and something Bitcoin, which is actually a lot of money.
But after raising 180 million to do it, I think it's worth about 40 And they're gonna delist, so, you know, I think a slightly different environment here with the digital asset treasury companies and maybe last year.

**Josh Frank** (2:31)
Yeah, I mean, last year, 12 months ago, we were out here. And as I mentioned earlier in passing, I mean, there was like a billion dollars plus worth of DAT deals that happened at the event last year. I mean, people running around foundations launching DATs. I mean, it was crazy. Multiple funds announced DAT funds. One fund in particular raised $100 million to invest in DATs. And I have to imagine doing particularly well.
And definitely no conversations about DATs these days. I think DATs is obviously an interesting phenomenon. I mean, they're all trying to figure out what do we do?
I mean, it's worse than holding the underlying token, because when you hold the underlying token, you own the token. When you hold the DAT, yes, there are tokens in the DAT. But also, in addition to executive compensation and fees and legal fees and everything else, one thing that's not really talked about publicly, and I speak to a lot of the founders of DATs, is these insane asinine asset management agreements that they signed. So some of the DATs signed with different asset managers that they'd pay 2% a year for 20 years of asset management fees with like a 90% buyout. So effectively, you got 100 Bitcoin, 40 something of it is going to the asset manager over the course of the 20 years. So some of these DATs are not even salvageable because you can't buy them because they have these agreements. And these agreements require that the DATs pay out to these asset managers. So the big winner here is all of the law firms that set up these entities, all the asset managers that are managing the assets of these entities, as well as the bankers that set up a tremendous number of these.

**Scott Melker** (4:03)
I was entirely unaware of that. So even if they're trading at a discount, if they have a commitment to the asset manager that amounts to 30, 40% of their assets, I mean, over the course of 20, but still, if you said we're going to sell our 100 Bitcoin, they literally can't, or there would have to be some...