BREAKING: JACK MALLERS QUITS??? (But not for the reasons you think...) | EP 1552

**Opti** (0:03)
Jack Mallers stepped down from 21 Capital, a CEO, the second biggest Bitcoin Treasury Company in the world, holding 43,514 Bitcoins. And on the same day, Bitcoin touched $67,000 this morning for the first time in months. Will Jack's exit from 21 Capital, from the second biggest Bitcoin Treasury Company, officially mark the bottom for the Bitcoin bear market? Obviously, we will have to wait for some time, but it is very interesting coincidences here. Anyways, before I delay and drag this on any further, let's just go straight into the announcement, guys. So Jack Mallers this morning posted this. I'm not gonna play the whole clip for you guys. It's about four minutes, but here is the synopsis from the tweet. And Jack Mallers goes, I've decided to step down as CEO of 21 Capital. This wasn't an easy decision, but it was the right one. This experience brought tremendous clarity about who I am and what I wanna build. My life works, remains Bitcoin. My Bitcoin company is at strike. The work continues. So if you did watch this clip this morning, it was pretty amicable. He was saying nice things about the 21 Capital team. It did seem maybe there's a disagreement between what Jack wants to do and what he's actually capable of doing. Hence why I think he kind of mentioned at the end of this, like, you know, my Bitcoin company is strike. I think the best kind of summary or like, if I were to take one soundbite from the clip, it would be exactly what TFTC quote tweeted this morning. And it goes, quote, I'm at my best when my heart is more or I'm at my best and my heart is most full when I pour my energy, my blood, my sweat and my tears into building tools Bitcoin and Bitcoiners, period. And that is kind of the big takeaway from this for me. And I'm going to read you guys the press release and everything. But from just watching the clip, it does seem like Jack Mallers just wants to build the tools. He wants the autonomy, the freedom to just build the tools. Now, obviously, 21 Capital Bitcoin Treasury Company, it is a corporate company. And if you know anything about corporations, if you watch the clip, there seems to have been a disagreement between the shareholders of the company and the freedom that Jack Mallers wanted to accomplish his goals. To me, that's probably what I would boil this down to. I will speculate a little more on how I view this, might have played out. Again, I don't have any inside news on this, inside baseball on this. I'm kind of just taking my view of this from everything that's been released publicly. So with that, before I get to it, let's read the news press release that happened this morning. Here is Business Wire. Again, I will read a little bit of this, guys. Sorry, it's Opti-Read-A-Long Day, but press release basically lays down a lot of what's going on in here. So 21 Capital Points, Hoffa Seguri as Chief Executive Officer. So Hoffa, of course, head of Electron, is now the CEO of 21 And if you remember, actually, let me back up a little bit. If you remember, when this news came out a couple of months ago, the big announcement was that Strike and Electron and 21 Capital will merge together to essentially create a Bitcoin Treasury Company that doesn't simply just hold Bitcoin on their balance sheet. It was not a strategy copycat. The goal or rather, and I think this probably leads to the where we are going in the next phase of this whole Bitcoin Treasury saga. What is becoming very clear? I think for anyone that is in Bitcoin and loosely understands what's going on with the Bitcoin Treasury space, maybe you're a stockholder in strategy, you know, MSTR or Strive or Stretch or 21, et cetera. Maybe you are an investor in Bitcoin Treasury stocks.
What is becoming very clear? I think for everyone is there is a pivot happening right now. And what is that pivot? The pivot is that it might not be the best business strategy to, and this might sound bad, but to take a zombie company, add Bitcoin to the balance sheet and expect the stock price to go up just because you hold Bitcoin. As we've seen, at least maybe it's the hype that's died down. I'm sure a lot of the Bitcoin Treasury companies will survive and further probably do very well moving forward.
It looks like there's only one big, maybe two elephants in the room that can basically do that. And the leader, of course, is strategy of just simply buying Bitcoin, holding it, issuing debt to buy more Bitcoin or doing the ATM sales to buy more Bitcoin. And basically your company is just a company, a wrapper for holding Bitcoin. Strategy, obviously, they got tested. There's some market pressure on them right now. But they will most likely be the company that takes the majority of the market share here. I think that's very clear that that's what's going on. And now for every other Bitcoin Treasury Company, a new question is being asked, or rather a new perspective needs to emerge. And it is the idea of like, okay, well, you know, as an individual holding Bitcoin, just simply holding Bitcoin, is probably not the best way to live your life. It is always the question of cash flow. You need to have cash flow so you don't sell your Bitcoin. And as we saw a couple of weeks ago, Strategy had to sell some Bitcoin to basically shore up the stretch product. And we all saw what that caused in the market. And so now I think the evolution of the Bitcoin Treasury Companies is trying to figure out, okay, how do we have a proper business that has cash flow coming in and obviously adds Bitcoin on the balance sheet? And will that also drive value to the stockholders? Now that is the phase that we're heading into. And again, before I go any further, let me read the press release here. Just wanted to expand a little bit on that. So, 21 Capital today announced that its Board of Directors has appointed Ohafa Seguri as the CEO effective yesterday. Mr. Seguri succeeds Jack Mallers, who is stepping down to focus on strike during the next phase of growth. He and Mr. Mallers, excuse me, are working together to ensure an orderly transition. Seguri founded and leads a team managing Electrical Energy, a large scale Bitcoin mining and infrastructure company, recognized as one of the largest and most efficient Bitcoin operating businesses in the world. I want you to keep this in mind. Electron, a large scale Bitcoin mining and infrastructure company, recognizes one of the largest and most efficient Bitcoin operating business in the world.