00:00 Speaker a
Galaxy Digital, Digital Asset Focus Financial Services, has helped companies such as Bitmain, Gamestop, AMC and more to create their own cryptocurrency treasury projects. And Steve Kurz, Galaxy Digital Property Manager, joins me now. Thank you for being here.
00:17 Steve Trump
Thank you very much for having me. Good morning.
00:20 Speaker a
Thus, it is clear that the strategy is the best -known UH company that also has quite a wide largest Bitcoin part in its balance sheet. Hm, is it just a situation where the trend is in price? You know, all of these companies want to do so because they see that prices are rising.
00:47 Steve Trump
You know it would be a cynical choice. I don’t think so. I think it is about 2025, it is a year of public markets and cryptocurrencies, and I think it is partly this treasury company. It is partly a company such as Galaxy and Circle in the US. UH, but when you retreat and see how much money has been deployed, that is, less than $ 20 billion to these Treasury Continuous companies. This is actually a bucket drop in US public markets. So, although eventually there may be a few of them that don’t make sense or not, you know, certain ideas that don’t go to sports, I really think um, you know, it’s a much bigger story that covers UH, you know, other ideas of UH public company, which we haven’t seen yet.
01:42 Speaker a
You know, a few years ago, the width of this type of business that does it would be unimaginable, right? Bitcoin is still there, and another cryptocurrency is still very, well, maybe you guys have thought about it, but most companies, traditional institutions companies, are still not something they will consider. And partly the reason why cryptocurrency is very volatile. Thus, it can be harder to manage your balance using very volatile assets. So when you guys are consulting these companies, what do you tell them about how to manage it?
02:22 Steve Trump
Of course. Well, one size is obviously unsuitable. And yes, you are right, in a sense we have created a galaxy at this moment, this intersection of traditional financial and cryptocurrency finances. And it is true that cryptocurrency volatility. I think it is, you know, there is a really different story to put Bitcoin in your balance, if you have a perspective on monetary policy, you know, the deficit you’ve already talked about this morning in the program. Hm, then if you really focused on one part of the ecosystem. So one of the most interesting parts of the last month was that we didn’t really see the ETH -driven cryptocurrency rally. Thus, ETH increased by more than 50%in 30 days. And this is mainly determined by the story of the arrival of ETH to Volstryt through these treasury companies. UH, it’s a very different story than Bitcoin as digital gold, UH or hedge from the system’s story. Here’s how the chain economy grows? What does Ethereum do as part of that? So, for example, our work, when we advise UH companies in Ethereum, not only helps them properly achieve Ethereum, but also how to optimize UH and generate income in the treasury, including opportunities strategies, it may include defy -based yields. This can only include a bet that actually ensures Ethereum network and offers UH yields exceeding, for example, ETF ETF.
04:07 Speaker a
Do you think Ethereum will be more dominant in the company’s balance sheets at some point for some of these reasons?
04:19 Steve Trump
Well, I’m not sure that, because Bitcoin is like that, you know, it’s such a developed UH story and really have a place in the macro property vocabulary. But I think the story of ETH begins to unlock the cryptocurrency narrative. And I think for a very long time, one of the reasons why cryptocurrency has been volatile is that the adoption is limited to Crypto Sandbox. And this construction of public markets allows cryptocurrencies to stand out from the sandbox. When we are talking about Solana or other assets ETF, you are still restricting what Solana or Ethereum or Sui or many other ecosystems were designed to make a cryptocurrency. Thus, the ability to create a company that is not so narrowly defined by the ETF rule, but can actually allow that ecosystem to grow, improve and invest. This is the dream of the second phase for many of these cryptocurrencies.
05:25 Speaker a
Steve, most companies who added it in their balance sheet are adjacent to FinTech or Crypto, right? Is there a cycle point where we see companies that have nothing to do that adds?
05:43 Steve Trump
I think so. Yes, and I think you see if you see that shift. So it started with Bitcoin and, of course, moves to other coins. You have also seen something like Reserve One will appear with a very new novel, a diverse group of coins. UH, but when you put everything together, we are more than 200 companies worldwide with cryptocurrencies in the balance sheet. These are not only state -owned companies, but also private companies. For example, we are talking to a truly normal -looking UH real estate business as one example that is very different than you know, just a company trying to grab the shell and put one property in it.