CLOSING DOWN.

**Jack Mallers** (0:01)
Hey, everyone, I have decided to step down as the CEO of 21 Capital. I wanted to tell you that myself, in my own words, because you deserve to hear it from me directly.
When I helped-

**Ran** (0:16)
So, that was Jack Mallers, and he's stepping down as the CEO of 21 21 is a treasury company that's backed by Tether, or was backed, or is actually still backed by Tether. And it's one of the darling treasury companies of the cycle, and he's decided to step down as the CEO of that treasury company. That wasn't the only company that announced that they're closing down yesterday. We also had Mark Moss, you know, everyone knows Mark Moss. He's a creator, he's a content creator, and he's an influencer. And he also had a Bitcoin treasury company called Satsuma Technology, and they voted to close down and to return the grand total of 668 Bitcoin to their shareholders. I'm going to show you some charts later, which are going to make this very fun.
And then you've got Movement Labs. Now, Movement Labs is a company that's also shut down.
They filed for Chapter 11 bankruptcy.
They were a company that was going to use the Move language, the Facebook developed Move language to build another blockchain. They did actually build another blockchain, and they've also shut down. So what you're getting is, you're getting a lot of businesses in Crypto actually closing down. I know you thought when you read the thumbnail that we were talking about ourselves, we're not closing down, we're still here. But we are getting a lot of businesses in Crypto, which are actually closing down. And that's actually a great thing. And I'll explain to you why I think that's a great thing. Because in every cycle, you get these businesses closing down.
In the last cycle, when we got to the bottom of the cycle, the businesses that closed down were businesses like Celsius, they were businesses like Genesis, they were businesses that all had one thing in common. So what were the businesses that closed down? They were the businesses that created the leverage in the cycle. Last cycle, when you look at the last cycle, the businesses that closed down, the businesses that collapsed were things like Luna. What is Luna? Luna created money out of thin air. They created this UST coin out of thin air. And when you create money out of thin air, when it doesn't have a value, that's called leverage, right?
Genesis, Celsius, what did they do? They gave people loans against their crypto, which effectively created leverage, right? Cycles generally end, or cycles generally peak, when there's too much leverage in the system, and they generally end when the leverage is flushed out of the system. And what we're seeing now, if you take a deeper look at the companies that are actually, he's not closing down, but he's stepping down as CEO of this company. It is a company that creates leverage. How do I know that this company creates leverage? Because if you look at the Bitcoin holdings of this company versus the valuation of the company, that's what the chart looks like. Now, that's not what the chart of Bitcoin looks like. Bitcoin doesn't look like that chart. The reason is because people were willing to pay more than was on the balance sheet of this company to hold this company, which is effectively leverage. When you're willing to pay more than the value of a company, that is effectively leverage. And now the leverage is emptying. Right now, you can see that the leverage has ended, and this thing is probably trading at its net asset value, which means that there is no more leverage in this part of or this company in the cycle. Here, in Mark Moss' Bitcoin company, and again, all respect to Mark Moss. Sorry, I want to get a thing for my back. One second.
I have a... I want to put a back thing so I can actually sit up properly.
Mark Moss, who's actually a great guy and he's actually a great creator, obviously fell into the hype of these Bitcoin treasury companies, started a Bitcoin treasury company. People paid so much of a premium for the Bitcoin treasury company, and now that share is down 98.8 percent. So they've taken a vote and they basically said, let's just give the 668 Bitcoin back to the users. The users are going to be something like 98.8 percent down, but that leverage is now out the system. So now we have a situation where we are... You can see I'm kind of happy that we're getting all of this... that these people are closing down and moving on. And the reason why I'm happy is because I know that this means that it's the end of the cycle. At the end of the cycle, the leverage that caused the top of the cycle, the fake top of the cycle, which in this cycle, you could say was primarily treasury companies. Treasury companies were demanding premiums for just holding Bitcoin. I mean, how dumb were people that were buying them? And I kept saying it at the time, that the treasury companies will cause the liquidation... They will be the liquidation of the cycle. Researchers, if you can find me a tweet where I actually said it, because I know I said it many, many, many times. But right now, these treasury companies are starting to fold. They're trading it under net asset value. Some of them are, some of them aren't. I mean, I don't know if you guys have been watching the whole Anthony Pompliano story. His treasury company is also trading at about a 50% discount or 30% discount to the Bitcoin that they hold on their balance sheet. He's decided to fight back. I mean, respect. I mean, respect that he's deciding to fight back. The main thing is that these companies over here, the leverage in the system has basically gone. They're shutting down, and that represents the end of this cycle's leverage. Just like in the last cycle, when we got rid of the leverage, then we could... The biggest leverage in last crypto cycle was FTX. When someone uses their customer funds to enter into VC investments and to prop up tokens, you call that leverage. And that's exactly what Sam Bankpoint Feed was doing. And when we got rid of that leverage and Celsius and Luna and all the other leverage, the total leverage... Leverage is not only what you see on Binance as the leverage that people are actually borrowing on exchanges. Leverage is any situation where you create money that you don't have in order to invest it in the market. So taking loans against your tokens or against your shares or against your house, that's leverage. And leverage causes market bubbles. It also causes markets to unwind the bubbles. And that's exactly what's basically happening. So right now, those companies are closing down, the leverage is getting out of the system, and we're moving into a new sector in crypto, or a new season in crypto. And that's exactly what happens when you look at this chart. When you look at this chart, you'll realize that we are not so far away from the end of the four-year cycle. Now, if this four-year cycle thing holds in, it may hold, it may not hold right now. I hate saying it because I don't really believe in the four-year cycle, but it has been the most accurate predictor of the market cycle. I want to say, the four-year cycle is garbage, the four-year cycle is garbage, the four-year cycle is garbage.