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Greetings. I have 20 minutes to talk to you about something I think is very important, which is— congratulations. We are at the beginning of a cryptocurrency bull market. And if I had to name a date, I would say it was August. But you may wonder if this is a "bull" market because people think it's fragile, but that's exactly what happens at the beginning of an uptrend.
So, let me introduce you to my presentation. First, we are witnessing a full-fledged “bull ” cryptocurrency market. Too many signs point to something that only happens during a “bull” market. So let me begin. First, we have institutional support . I mean, it's not just Franklin talking about the beginning of a "bull" market.
These are Fidelity, BlackRock and all the big players. I've never seen this in the last three crypto winter cycles, I've never seen institutions make such a statement. We also have a technical argument. Bitcoin is above its 200-day moving average. This happened on August 19. Also on August 19, a “golden cross” occurred on Ethereum.
But you see, the last time Bitcoin crossed the 200-day moving average was last August, no, last April. However, since 2010, Bitcoin has shown an average of 80% positive dynamics over the next 6 months and 200% profit. Ethereum yields 290% on average. OK. Now you can see it on the graph because I can simplify things.
These are other crossings of the 200-day moving average. Of the last nine crossings, eight marked the beginning of a bull market. We also have positive flows in ETFs. You will not have positive flows into cryptocurrency during a bear market, only during a bull market. Only in "bull" stock markets are there positive inflows of funds.
And we have direct proof, because in the third quarter of this year, from June to September, cryptocurrency was the best macro asset by a huge margin. AI stocks fell this quarter. We were in very dire financial circumstances. We had a hawkish Fed, rising oil prices , rising global bond yields, and tight financial conditions, but cryptocurrency outperformed expectations.
This is what happens in a bull market. The crypto market ignores the fact that the Fed is quite hostile. And lastly, this comes from Tom Demark. He is one of our exclusive timing consultants. This year, it saved Bitmain at least a hundred million dollars. His advice is worth its weight in gold, and he says we are confident that Ethereum will continue to trade higher.
He believes that Ethereum should easily surpass the 3,000 mark in the next few weeks. And finally: I know this is a bull market because the four-year cycle has bottomed out. So, if you check the clock, the bottom was on October 5th. Thus, we have been through the bottom for the crypt for two days now.
In short , it's all about math. We are currently in a "bull" market. But here's the thing. This could be the biggest bull market we've ever seen , okay? So I'll give you four reasons why this market is different from others, okay? As Joe Lubin says, you're not optimistic enough. OK. First, there is a large institutional history surrounding tokenization.
The 2016-2017 bull market was all about ICOs. This was a story for retail investors. The period from 2019 to 2021 is an NFT boom , but it was a retail boom. Of course, new and wonderful technologies have come out of this. Last year we had a boom in stablecoins. It was interrupted by the automatic deleveraging event on October 10th, which wiped out many and started a major crypto winter.
But we are here. An institutional wave awaits us. BlackRock and other asset managers want to tokenize everything on blockchains. Vlad Tenev of Robinhood, which I believe will become a top-10 financial institution within a decade, says: “ We are at the beginning of a supercycle. "Everything that works on traditional financial rails will be tokenized." This is a huge wave.
How big is this wave? Well, the crypto market is $2 trillion. Today, there are $200 trillion in liquid assets outside of crypto, growing by $7 trillion per year. If you've ever wondered if there's money to build data centers, there's $ 7 trillion in new money coming in every year. Just the three largest markets—that’s $160 trillion that could go into crypto.
Remember, the ratio is 1 to 37. A trillion dollars invested in crypto will turn it into a 37 trillion market. And of course, a lot of this is happening on Ethereum. BlackRock, JP Morgan, Robinhood—they are building on Ethereum. Ethereum, of course, has a huge community. The number of developers today is equal to the entire rest of the community combined.
So this is a massive wave. The second difference of this " bull" market is that there is a huge redistribution of wealth. I don't think people have talked about it enough. But Vlad says it's a hundred trillion over the next 10 years. We see it. This is data from the IRS (US Internal Revenue Service ).
During the past "bull" crypto market, right? There was $400 billion in inherited wealth. In the next cycle, it will probably be around one and a half to two trillion. This is when baby boomers or older people retire and millennials take over . This allocation shifts from bonds to stocks and cryptocurrencies.
Huge, just massive tides. A significant portion will come from private equity and private debt, at least 12 trillion. So, consider this a huge purchasing power. And, of course, I think that explains why we have such huge, just colossal results. I mean, amazing numbers. The third thing that is happening in this cycle that hasn't happened in the past is digital asset treasuries.
You ask , what role can they play? Well, first of all, DAT is a friend of crypto in a bull market. Of course? In this bear market, people have been asking, do DATs make sense? By the way, Bitmain is a treasury of digital assets. And that's because in this bear market, only four digital asset treasuries are trading above their net asset value.
However, including Bitmain. But I believe that in the next "bull " market, all these DATs will recover. And they will start buying cryptocurrency. In a bull market, this means they will support the underlying blockchain. Why is that? Because they are withdrawing the offer from circulation. Ethereum DAT today owns 7% of the crypto supply.
Bitcoin-DOT is owned by 6.5%. Solana-DOT—3%. But look at Hyperliquid. It is a very successful chain and project, but this is partly because Hyperliquid-DOT owns 14% of the supply. When you take away the offer , take it off the market, and then a bull market comes along, guess what? The price will increase much faster.
And Ethereum-DOT own the largest share of the “big three.” 7%offer. This wasn't, you know, the last "bull" market, it didn't exist back then. So if you're thinking about the upside potential of ETH, I think you're underestimating how far it can go. And lastly: a new story has emerged . You can see it at this conference among the exhibitors: crypto is an important story about AI.
So, AI is, of course, a megatrend. But everyone thinks it's just about semiconductors, memory, and bottlenecks, but that's not the case. As semiconductors and memory adjusted, the next-stage stocks outperformed them . Mag 7, software and crypto. Marc Andreessen from a16z—I know your next panel will be someone from a16z— thinks that agent payments are a great combination of AI and crypto, because AI agents will be handling money.
They might carry a Visa card in their wallet, but most likely a crypto wallet. And we know that non-human entities are becoming a major source of traffic. In fact, they are also the largest consumers of crypto and computing tokens in AI today. These are other agents. And we should be careful, because agents can now bypass the captcha.
We can't even tell who is who. Therefore, we need to keep people informed. This is where crypto, finality, smart contracts, and enforcement come into play. So I say again: I don't think you're optimistic enough . The biggest crypto cycle is ahead. And I just want to emphasize this. So whatever your expectations for growth, or if you doubt that we are in a cycle, having been through the last 12 months, which have been quite difficult.
We see it here. This conference is full of crypto energy. This was also noticeable on KBW last week, and it's a big change from what we experienced before. So, the last point I want to make is: let's say you're bullish on ETH, and I think you're right. You should be optimistic about L1 networks. I recently had dinner in Taiwan with people I met 10 years ago when I first started researching Bitcoin .
Imagine, 10 years ago, a bitcoin was worth less than a thousand. And today, Bitcoin is worth 80,000. So these venture capitalists , when I had dinner with them, I expected them to be living on private jets, because if Bitcoin was at least 80 times more profitable, their projects could be hundreds or thousands of times more profitable.
But here's what they said. They said their venture profits were good, but they regret not just buying Bitcoin. Of course. And that's what I'm telling you now. You want to have maximum exposure to Bitcoin, Ethereum, and even Solana in this cycle. I think L1 networks will absorb most of the cost. But there is a way to get ahead of L1— it’s by buying digital asset treasuries.
And Bitmain is positioned to perform better in this cycle. I want to emphasize this point clearly. So, here are three ways we do it. First: Bitmain maintains maximum exposure to Ethereum in this bull market cycle. Of course? Here is the price of Ethereum. It has been consolidated for 5 years. You know, the longer the base, the more powerful the breakthrough.
The last time Ethereum consolidated, it grew 227 times. And before that, the previous time, 54 times. I think , considering tokenization, AI, everything I talked about, DAT and wealth redistribution, it's at least a 25x increase. Of course? What does this mean for Bitmain's share price? The stock is currently worth 26.
And Bitmain is 90% correlated with Ethereum. So, if Ethereum reaches 22,000, which I believe is the minimum target, Bitmain's share price will go from 26 to 300-500. This is a colossal movement. If Ethereum hits 62,000, Bitmain's stock price will be between 1,200 and 1,500. But you see, we're really focused on making sure Bitmain's stock price has maximum exposure to Ethereum.
Of course? Second point: we wanted to reach 5% of the offer. This is a strict restriction. We will not accumulate more than 5 %. Of course? Because people don't want to think that we are diluting shareholder equity, which we haven't done. Of course? Because look what we achieved in our first year. Bitmain has only been around for 15 months, and we have already made breakthroughs and pioneered many things.
Let me tell you about some of them. First, we reached 6 million ETH. This is 4.9% of the total supply . I want you to pay attention to the bottom. Bitmain has also been added to the Russell 1000 index. This is an index of large US companies. There are only six cryptocurrency stocks in the Russell 1000 .
We are the only asset tied to Ethereum. This means that when large institutions and hedge funds want to gain exposure to crypto, there is only one stock they will buy—and that is Bitmain. But we said that we have a strict limit of 5% . We will not own more than 5% of Ethereum. This is what Vitalik asked us to do— to stop at five percent.
Justin Drake, foundation. We will stop at 5%. So where are we in relation to this 5%? This is our ETH accumulation over the last 15 months, you know? And you see that now we have 6 million. It took a little over a year. We thought it would take five years. It took a little over a year. More importantly, we did all this in the middle of a bear market, you know?
So we bought ETH until no one wanted to buy it. We were happy to buy it cheap. We bought a lot of 1500. But that was in the midst of a " bear" market, and now we are stopping. We only need another 100,000 ETH to reach 5%, okay? But we will stop there. The reason we stop is because of this schedule. We made all these purchases in a " bear" market.
Of course? So, actually, I think we helped set a lower limit for ETH. We protected ETH from falling because we bought it. But now we have completed the accumulation before the 25x growth. So if we have a hard limit of 5%, that means we will outperform ETH during the uptrend, right? Because you don't need to worry about us trying to raise capital.
We are finished. We are built to outperform Ethereum. That's what we started the company for, and I can prove that we did it because last year we launched Bitmain on June 30th, and from June 30th to December, Ethereum went up 22%. Bitmain rose 500%. 48,000 basis points ahead of results. This year, in a crypto bear market, Bitmain rose 3%, while Ethereum fell 9%.
We outperformed by 1,200 basis points in a bear market. Overall, you can see that we provided shareholders with 53,500 basis points of lead. Remember, a bull market is beginning. It will probably be very similar to 2025. There are other things we did. We bought back shares to protect shareholders . In fact, we conducted the largest buyout of cryptocurrency assets in history.
But here's what's interesting. This is Bitmain's stock price this year. As you know, we have Tom Demark working for us . We decided that our shares had become too cheap right here. On July 14, we started the buyback. We spent about a month on this, spending $350 million. You see, we helped protect the stock from falling.
And by the way, as soon as we stopped, the stock went up even more. This is exactly what buyouts are for—to protect shareholders . We also set a price benchmark for lending in Ethereum. Of course? We issued BMNP— perpetual preferred shares at $80. They immediately rose to 99 . In fact, today they cost 100.
Got it? That's the thing. This is a privileged share. It's like a bond. So what do you think? Since we issued the BMNP, long-term Treasury bonds have fallen 8%. Investment bonds fell by 6%, high-yield bonds by 3%. Our preferred shares rose 24%. We even became the best yield tool in the world. Of course?
If that doesn't convince you that bondholders like owning BMNP, then BMNR shareholders should be happy owning BMNR. And we have the lowest financing cost. BMNP yields 9.5% yield. I think it's too expensive, but as you can see, compared to Bitcoin preferred shares, which are around 12, and Solana, which are around 15.
By the way, I like both. I am a supporter of Bitcoin and Solana. Crypto is not about winner-take- all. And finally, we're going to use our scale. We have Maven. This is our staking operation. It generates a million dollars a day in staking rewards. We have Eight Co. She owns a large stake in Opening Eye.
This share has already increased in price, and it owns the token of the world. And she is underrated. And of course, we have a huge stake in Beast. And lastly, what I think is the next financial services company, but I want to leave you with the great Charlie Munger's thought that big money is not made by buying and selling, but by waiting.
He is a true master of long-term retention, understand? So, to sum up, this is the biggest crypto bull market and you are not optimistic enough. Thank you.
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