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Congratulations. We are at the start of a crypto bull market. And uh if I had to give it a date, I'm going to say it was August. But you might be doubting if it's a cryptobull market because people think it's fragile. But that's exactly what happens at the start of a bull. So let me walk you through my presentation.
So first, we are having a full-blown cryptobull market. There are too many signs that have happened that only happen in a bull market. Um, so let me start. The first is we have institutional backing. I mean, it's not just Franklin saying a bull market is starting. It's Fidelity, Black Rockck, all the major players.
I've never seen this in the past three cycles of crypto winters. Never seen institutions declare this. We also have a technical argument. Bitcoin is above its 200 day moving average. That happened on August 19th. Also on August 19th, Ethereum had a golden cross. But see, the last time Bitcoin crossed above its 200 day.
That was August of last year, April of last year. But since 2010, Bitcoin averages 80% positivity over the next six months. 200% gains. Ethereum averages 290%. Okay, now you can see this on a chart because I can make it simple. These are the other crosses above the 200 day. Out of the last nine crosses, eight were bull market starts.
We also have positive ETF flows. You don't have positive flows into crypto in a bare market. Only in bull markets. Only in bull markets for equities do you have positive flows. And then we have proof positive because crypto in the third quarter of this year June to September was the best performing macro asset by a country mile.
The AI stocks were down in the quarter. [snorts] We had very terrible financial conditions. We had a hawkish Fed, surging oil, global bond yields going up, and tight financial conditions, yet crypto outperformed. That's what happens in a bull market. Crypto is ignoring the fact that basically the Fed's been hostile.
And lastly, uh it's from coming from Tom Demar. He is the ex one of our exclusive advisors for timing. He's saved Bitmine at least hund00 million this year. he is worth his money in gold and he says we are confident Ethereum will continue to trade higher. He thinks Ethereum should easily break 3,000 in the next few weeks.
And lastly, I know it's a bull because the four-year cycle bottomed. So if you set your clock, the bottom was October 5th. So we are two days past the bottom for crypto. So in short, it's all in the math. uh we are in a bull market. But here's the thing. This may be the biggest bull market uh we've ever seen.
Okay? So, I'm going to give you four reasons that this bull market is different than other bull markets. Okay? So, as Joe Luben says, you're not bullish enough. Okay. The first is there's a big institutional story around tokenization [snorts] in the bull market of 2016 2017 that was about ICOs. It was a retail story.
2029 or 2019 to 2021 that was an NFT boom but that was a retail boom. Of course some new tech and great tech came out of that. Last year, we had a stable coin boom that was cut short by that October 10th auto deleveraging event that wiped a lot of people out and started a huge crypto winter. But here we are.
We have an institutional wave coming. Black Rockck asset managers beyond Black Rockck want to tokenize everything on blockchains. Vlad Tennvive of Robin Hood, who I think is going to end up being a top 10 financial institution within a decade, says we are at the beginning of a super cycle. Everything running on traditional financial rails will be tokenized.
That's a massive wave. How big is that wave? Well, crypto, remember, is a $2 trillion market. There's $200 trillion of liquid assets outside of crypto today, growing by 7 trillion a year. If you ever wonder if there's money to be building data centers, there's 7 trillion of new money every year. Just the top three markets alone is 160 trillion that can go into crypto.
Remember, the ratio is 1 to 37. A trillion dollars going into crypto would turn it into a $37 trillion market. And of course, a lot of this is happening on Ethereum. BlackRock, JP Morgan, Robin Hood, they're building on Ethereum. Ethereum of course has a massive community. The number of developers today is equal to the entire rest of the community combined.
So it's a massive wave. The second difference in this bull market [snorts] is there's a huge wealth transfer taking place. I don't think people have talked about this enough, but Vlad says it's a 100red trillion over the next 10 years. We can see this. This is from the IRS. In the last cryptobull market, okay, there was $400 billion of inherited wealth.
In the next cycle, it's probably close to one and a half to two trillion. This is a baby boomer or older passing away. It's inherited by a millennial. That allocation goes from bonds to equities and crypto. Massive, massive inflows. A lot of it's going to come out of private equity and private debt, at least 12 trillion.
So consider that a massive buying power. And of course, I think this is explaining why we're having a huge, huge outperformance. I mean, staggering outperformance. The third thing that's happening this cycle that [snorts] didn't happen in past cycles are the digital asset treasuries. You're wondering what role can they play?
Well, foremost the DATs are the friend of crypto in a bull market. Okay, in this bare market, people wondered, dots make sense? By the way, Bitmine is a digital asset treasury. And that's because in this bare market, only four digital asset treasuries are trading above their net asset value. However, including Bitmine.
But in this next bull market, I think all these debts are going to recover and they're going to start buying crypto. In a bull market, that means they're going to support the underlying blockchain. Why is that? Well, because they take out supply. [clears throat] The Ethereum DATs own 7% of crypto supply today.
Bitcoin owns the Bitcoin Dats own 6 and a half%. The Salana Dats 3%. But look at Hyperlid. I mean, it's been a very successful chain and project, but part of it is the Hyperlquid Dat owns 14% of the supply. When you take out supply, take it out of the market, and then you have a bull market, guess what?
The price is going to go up a lot more. And the Ethereum Dats own the largest of the big three, 7% of the supply. that's that's not, you know, in the last bull market that didn't exist. That's why if you think about what's the upside for ETH, I think you're underestimating how much it can move. And lastly, there's a new story.
You can see it out in this conference in the exhibitors. Crypto is an important downstream AI story. So AI is of course a mega trend but everyone thinks it's just about semis and memory and bottlenecks but that's not true. As the semis and the memory have corrected the downstream stocks have outperformed mag 7 software and crypto uh A16Z Mark and there I know your next panel has someone from A16Z they consider Agentic Payments the grand unification of AI and crypto because AI agents are going to carry money they might carry a Visa card in their wallet But most likely they're going to carry a crypto wallet.
And we know nonhumans are becoming the dominant source of traffic. In fact, today they're also the largest consumers of crypto uh compute tokens in AI is other agents. And we have to be careful because agents can now bypass capture. We can't even tell who's who. So we going to need to keep humans in the loop.
This is where crypto and finality and smart contracts and enforcement all come into play. So again, [clears throat] I don't think you're bullish enough. This is the biggest crypto cycle ahead. And I I just want to emphasize that. So whatever you thought your upside would be or if you're doubtful we're in a cycle because you've sat through the last 12 months and it's been pretty tough.
We can see it here. This conference has so much crypto energy. That was also true of KBW last week and it's a big change from what we've been experiencing. So the last point I want to make is let's say that you're bullish on ETH and I think you should be you should be bullish on the L1's. I had dinner uh in Taiwan recently with some of the people I met 10 years ago when I first started researching Bitcoin.
So imagine 10 years ago, Bitcoin was under a thousand and Bitcoin's now 80,000 today. So these venture capitalists, when I had dinner with them, I expected them to be like living in private jets because at a minimum, if Bitcoin was an 80 times return, their ventures could have been a 100red or a thousand times.
But here's what they said. They said that their venture returns have been okay, but they wish they just bought Bitcoin. Okay? And that's what I'm telling you now. You want to have the maximum exposure to Bitcoin and Ethereum and even Salana in this cycle. I think the L1's are going to capture a lot of the value.
But there is a way to outperform the L1, which is buying the digital asset treasury. and Bit Mine is positioned to outperform this cycle. I want to make that point really clear. So, uh here's three ways we're doing it. The first is Bitmine maintains the maximum exposure to Ethereum in this bull market cycle.
Okay, here's Ethereum's price. It's been consolidating for five years. You know, the longer the base, the bigger the breakout. The last time Ethereum consolidated, it had a 227x and then the the prior time to that 54x. I think given tokenization, AI, everything I talked about, the DATs, and the wealth transfer, it's a 25x minimum.
Okay. Well, what does that mean for Bitmine share price? the co the stock is currently 26 and Bitmine is 90% correlated to Ethereum. Well, if Ethereum gets to 22,000, which I think is a low target, Bitmine share price goes from 26 to 300 to 500. That's a massive move. Uh if Ethereum gets to 62,000, Bitmine share price is 1,200 to 1500.
But you can see we're really focused on making sure Bit share price has maximum exposure to Ethereum. Okay. The second thing is we wanted to get to 5% of the supply. That's a hard cap. We're not going to be accumulating past 5%. Okay? Because people don't want to think we're diluting shareholders, which we have not been.
Okay? Because in our first year, look at all we of what we've accomplished. Bitmine's only been around for 15 months and already we we've broken ground, created a lot of firsts, but let me walk you through a few of them. The first is we reached 6 million ETH. That's 4.9% of the supply. I want to focus your eyes on the bottom.
Bit mine has also been added to the Russell 1000 index. That's the US large cap index. There's only six crypto stocks in the Russell 1000. We're the only Ethereum play. That means when large institutions and hedge funds say they want to get crypto exposure, there's only one stock they're going to buy, which is Bitmine.
But we said we have a 5% hard cap. We're not going to own more than 5% of Ethereum. That's something that Vitalic kind of asked us to do to stop at five. Justin Drake, the foundation, we're going to stop at 5%. So where do we sit relative to that 5%. Well, this is our accumulation of ETH over the past 15 months.
Okay. And you can see we're currently at 6 million. That took us a little over a year. We thought this would take five years. It took us a little over a year. More importantly, we did this all in the middle of a bare market. Okay. So, we bought ETH while no one wanted to buy it. We were glad to buy it cheaply.
We bought a lot at 1500, but it's in a middle of a bare market. And now we're going to stop. We only need to get another 100,000 ETH to get to 5%. Okay? But we're going to stop there. The reason we're going to stop there is this chart. We did all this buying in a bare market. Okay. So, in fact, I kind of think we helped set a floor for ETH.
We protected the downside for ETH because we were buying. But now we're done stacking in front of a 25x move. So, if we have a 5% hard cap, that means we're going to outperform ETH on the way up, right? Because you don't have to worry about us trying to raise capital. We're done. Now, we're designed to outperform Ethereum.
That's what we started the company to do. And I can show you that we've done that because last year we started Bit Mine on June 30th. In the from June 30th to December, Ethereum was up 22%. Bit mine gained 500%. 48,000 basis points of outperformance. This year in a crypto bare market, Bitmine is up 3% while Ethereum is down 9%.
We outperformed by,200 basis points in a bare market. And in total, you can see we delivered for shareholders 40 or 53,500 basis points of outperformance. Now, keep in mind there's a bull market starting. It's probably going to look a lot more like 2025. There's other things we've done. We bought back stock to protect shareholders.
In fact, we did the largest crypto buyback ever in history. But here's what's interesting. This is Bitine share price this year. As you know, we employ Tom Demar. We decided our stock got too cheap right here. July [snorts] 14th, we commenced our buybacks. We did it for about a month, spent $350 million.
You can see we helped protect the stock on the downside. And as soon as we stopped, by the way, the stock went up even more. That's what buybacks are supposed to do, protect shareholders. We also set a benchmark price for Ethereum credit. Okay. We issued BMNP, a perpetual preferred at $80. It's gone straight to 99.
In fact, today it's at 100. Okay, here's the thing. It's a preferred stock. It's like a bond. Well, guess what? In this from the time we issued BMNP, long-term treasuries fell 8%. Investment grade bonds fell six, high yield bonds fell three. Our preferred went up 24%. We are even the best performing bond in the world.
Okay, if that doesn't tell you that if bond holders like owning BMNP, BMR shareholders should be happy owning BMR. And we have the lowest cost of funding. BMnP yields 9 and a half%. I think that's too high. But as you can see, compared to Bitcoin preferred which are around 12 and Salana preferred which are around 15.
By the way, I like both of them. I'm a fan of Bitcoin and Salana. Crypto is not a winner take only all. And lastly, we're going to leverage our scale. We have Maven. It's our staking operation. It's generating a million dollars a day in staking rewards. We have 8o. It owns a big stake in opening eye.
That stake has already jumped in value and it owns the world token and it's undervalued. And of course, we have a huge stake in beast. And lastly, which I think is the next financial services company. But what I want to just leave you with is the big money is not in the buying and the selling, but in the waiting from the great Charlie Mer.
He is the original huddle. Okay. So, just to conclude, this is the biggest crypto bull market and you're not bullish enough.
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