Jack Mallers Steps Down As CEO As Bitcoin Company $XXI Crashes 91%

[00:00:00]the second largest publicly traded Bitcoin holder, their CEO, just stepped down today. What's going on, guys? It's Ricky. This is still something that I'm learning more about. I don't even necessarily want to talk bad about this guy. I really don't know much about him.

[00:00:17]I'm just going to share what it is that I do know. As many of you guys might be familiar with, I'm not pro Bitcoin. I do not care for Bitcoin. Never have and never will. With that being said, I believe in your right to buy Bitcoin.

[00:00:31]With that being said, I don't understand the point of these companies. So, when I looked into XXI, I mean, this is their stock performance.

[00:00:43]It's a publicly traded company and it's supposed to act as a Bitcoin treasury, but all this company does is it buys Bitcoin and it bought it at such a terrible time. It bought it towards the middle to the end of last year. And if you pay pay attention to Bitcoin, when you look at where we were from the middle to end of last year, literally like the worst time, right? That's around 80 to about $100,000 and then now it's down 40 to 50%.

[00:01:16]But I still don't get it. This company doesn't do anything. It buys Bitcoin and then people want to invest into it, but it I Why wouldn't you just buy a Bitcoin ETF? Like why would you buy 21 Capital and it calls itself a Bitcoin? It's the whole like Michael Sailor thing all over again. To just catch you up to speed, this guy's name is Jack Melers.

[00:01:46]He seems like a young guy. He's pretty trendy. seen him before where he would make like it would it would be posted everywhere by all these like large crypto um Twitter accounts. They're like, "Oh, he just bought millions of dollars worth of Bitcoin. Oh, look at this really young guy buying so much Bitcoin. Yep, he's leading the revolution." It's so funny like how his own community is turning on him when they first glorified him. Again, I'm not justifying anything it is that this guy's done. I don't know him. I don't care for him. It's just I want to show how just it's all about advantages. That's all crypto is. That whole community is if what you are doing is an advantage to them, they'll support you. As long as you begin to be a disadvantage to them, they'll start scolding you. But nothing changed. He bought Bitcoin while everyone else was behind Bitcoin. Unfortunately, he bought too much Bitcoin at elevated levels.

[00:02:49]Literally, the most simple thing that you can do is not overextend yourself at overbought levels. Now, his stock, right, this is from the middle to late 2025, his stock from the highs that it made, which I don't even know why it was trading so high. Again, it's just hype.

[00:03:06]Hype and momentum can be a very powerful thing for short periods of time, but eventually fundamentals will matter.

[00:03:14]This stock is down 91%.

[00:03:18]Yikes. So, Jack Malers has stepped down as CEO of 21, what is it? 21 Capital. Yeah, 21 Capital. Even though just around the IPO, he said that he wanted to remain CEO until the rest until his death, which again, I do remember seeing that interview. But yeah, it obviously seems like there's different plans. To my understanding, I wanted to share the reason why. It says that Jack Morers um is stepping down a CEO from 21 Capital to focus on strike. Supposedly him and his board couldn't agree where they wanted to take 21 Capital. So because of that he decided to just completely step away. So there was supposed to be the idea of a three-way merger and now that's pretty much dead. Morers serving Bitcoiners has always been the mission and that doesn't change. Strike is where I carry it forward. So, it seems like he also owns another company called Strike.

[00:04:15]Why is there another company that does the same thing that he also owned?

[00:04:20]I I don't get that. This guy bothers me because this is just insane. I have no information other than what is public from my initial reaction from Jack Meer stepping down SEO of XXI is that it will end up being good for Strike and XXI. I'm one of the largest shareholders of Strike and I am a big fan of whoever that is and the team at Tether. These guys are all net positive for Bitcoin and the millions of Bitcoiners around the world. People will get caught up in the drama and the rumors, whatever. This is all noise.

[00:04:56]Um, very few people have done more from Bitcoin than Polo, Jack, Strike, and Tether. I trust that they are making the right decisions for Bitcoin for themselves and for their businesses.

[00:05:09]This still uh there is still a lot of work uh to get done by everyone on the team. Bitcoin, what have they done that's net positive?

[00:05:28]These guys are all net positives for Bitcoin. Their investors are down 91%.

[00:05:38]21 Capital their total cost basis for their 43,500 bitcoins the second largest Bitcoin treasury company in the world supposedly that's public 3.69 billion.

[00:05:53]Their Bitcoin current value is 2.9 billion. So they've lost a little bit under a billion dollars in value of their Bitcoin. On top of that, for their current investors, their show shareholders, they've lost 91% of their value in about one one year.

[00:06:17]How is that net positive for who?

[00:06:22]It seems like you're just trying to show face, save face.

[00:06:26]I don't get it. Now, obviously, Jack Malers is getting a bunch of backlash when it comes down to this. And this is him responding to someone that pretty much said, "I never agreed with what it is that you were doing." Yes. Um Oh, he's pretty much saying uh it highlighted his idea of his compensation. So supposedly Jack Mers had compensation of $600,000 per year, annual bonus up to $700,000 and then he had uh total reported compensation which comes down to equity and option grants up to $140 million. To my understanding, Jack Melers acknowledged that he couldn't agree where they wanted to take the company.

[00:07:06]So, what he thought to do was to walk away and his options are going to expire, which pretty much means that he's not going to exercise the right uh to own them or to exercise them. So, therefore, they become worthless. Um, another company, shareholders of Mark Mossbacked British Bitcoin Treasury Company, Satuma Technology, Sats, have voted to sell all of their remaining Bitcoin, 688 uh 668 Bitcoin, return capital to shareholders, and shut down the company.

[00:07:50]If I understand this correctly, uh their investors are have lost about 80% of their investment.

[00:08:05]Let's look into their financials.

[00:08:09]This company loses $260 million a year. That's how much it cost them to run this business. that doesn't generate any revenue.

[00:08:24]When we click on the pro research again, no revenue at this point. It was down 83%.

[00:08:37]No revenue.

[00:08:40]No revenue.

[00:08:43]Yep. They hold a lot of Bitcoin. They bought it at elevated levels. The company is unprofitable and revenue forecast still stands at zero.

[00:08:56]The company pays no dividends and offer shareholders no income return while the stock continues to decline.

[00:09:07]Technical analysis across both moving average and technical indicators is uniformly bearish with overall sell summary suggesting continued near-term down pressure.

[00:09:19]What's bullish about this company? The stock trades at a price per book ratio of about 54 with a book value of $9.93 versus the current price of $5.34 suggesting that shareholders are materally undervalued retail relative to the net assets that they carry. Well, I I I get that their Bitcoin holdings technically, right? And their near-term obligations supposedly they have enough cash reserves to be able to sustain themselves.

[00:09:57]Am I the only one that just does not understand why? Like I don't feel like I have to love Bitcoin to like just still even if I did love Bitcoin, which I don't, why would you ever invest into a publicly traded company that burns through $260 million a year?

[00:10:26]So what?

[00:10:29]Why can't you just buy Bitcoin or buy an actual Bitcoin ETF that's one for one?

[00:10:34]That's not leverage. Why is the entire community just a cesspool of leverage?

[00:10:41]Why I'm It's so sad.

[00:10:56]Investors are down 91%.

[00:10:59]Think about that. I mean, I have no skin in this. That's why it's like I don't care for this guy. Like, I have nothing against them. I didn't lose a penny, right?

[00:11:10]Young guy, but now he's going to focus on strike. So, what? Now he's going to buy Bitcoin with another company and try to raise capital there. What's the What's the goal there? You just hope to buy Bitcoin low enough that when it rallies, you can maybe gather more investors to then use their capital to buy more Bitcoin.

[00:11:31]It's just a Ponzi scheme, isn't it?

[00:11:37]Am I like someone in the comment section, please?

[00:11:42]Maybe I'm just not smart enough to understand the technicality behind this.

[00:11:52]Is this this is supposed to trade as a leverage proxy of Bitcoin?

[00:11:59]But it doesn't do anything.

[00:12:03]So what was he doing for the past year other than bag holding Bitcoin and using investors capital to buy Bitcoin and then Bitcoin's not going up. So then they for they can't do anything. They're just they're sitting ducks. I mean, they're just like Bitcoin investors, but they went public and they just gathered enough money and enough attention to encourage, I guess, a bunch of people to buy into their hype. And then when hype fades, reality sinks in. Bitcoin's price action has been bearish for the past year. and then everything falls apart.

[00:12:54]Okay.

[00:12:58]I wish Bitcoin investors and Bitcoin enthusiasts were as right as they were passionate.

[00:13:10]Where's like all all the like technology the implementation of Bitcoin? Where was all that energy back in 2017 1820 2017?

[00:13:28]At least that was talked about a little bit more. Oh, we're going to implement this here. This technology is going to be used. It's not used, guys.

[00:13:37]Nearly 10 years later, there's no implementation.

[00:13:41]There's no adoption. It's just a speculative tradable asset.

[00:13:48]There's nothing wrong with that, but you can't call it the future when it doesn't do anything.

[00:13:58]Sad. Sad to see that investors fell for I still don't know how they sold themselves to investors. We buy Bitcoin.

[00:14:11]Invest into us. But they could buy Bitcoin. But no, you should invest into us so we can buy Bitcoin.

[00:14:20]and we're going to trade at a leverage proxy of Bitcoin, but then when it's down, we're also going to trade as a leverage proxy of Bitcoin. Okay. Um, yeah, unfortunate news. Tesla, Alphabet, real companies reporting real earnings tomorrow. I do plan to live stream it.

[00:14:37]Again, I'm just a lot of people like to focus on these speculative markets. Um, I view them as entertainment. I know that people can make money. I believe the people making money from crypto or Bitcoin are those that know how to actually trade it. I don't believe anyone's actually investing into Bitcoin uh and holding it long-term at these levels that are really making a difference. It's just that's all it's become a tradable speculative asset. Also, obviously the people that bought in at like sub a thousand and you know they bought a lot of course they're early adopters, early investors, but they're not the people now, right? The people hyping it, shoving it down your throat that you need to accept us. It's it's so sad to see, right? Um we'll just focus on our blue chip companies and um I know it's not maybe as entertaining, but guess what? They're also not down 91% in one year. Uh so I guess you have that, right? So I'll do my part in keeping you guys up to date. Again, be careful at elevated levels, right? Just like we're seeing right now with some maybe memory chip companies, semiconductors. Just be careful at elevated levels. You don't have to be afraid to be invested. Just don't use leverage. I think that's the biggest thing that we've learned in the past recent year is again reminding beginners, hey, be careful at elevated levels. Markets can pull back and if they do, they can sell off pretty hard.

[00:16:07]Just make sure that you can tolerate it.

[00:16:08]That's all right. Um, have enough capital on the sidelines that it almost maybe excites you when markets pull on back. I promise you, if you're leverage, it's not going to excite you. So, I'll do my part in keeping you guys up to date. I hope to see you for our live sessions tomorrow. Please don't forget to subscribe to the channel and like always, let's make sure that we end the year on a green hub.