Jack Mallers analyzes the US government's internal fights, the plan to weaken the dollar, and why Bitcoin's resilience is more important than ever.
Timestamp Overview
[00:00:00 - 00:05:33] Introduction & New Show Format
- The show kicks off with a Bitcoin market update, including price ($118,240), market cap ($2.35 trillion), and block height (907,619).
- Jack Mallers introduces a new format for the show that will include regular updates on his companies, Strike and 21.
- He explains this change is a direct response to audience demand for more information on the businesses he runs.
- The show will now follow a structure of Intro -> Strike Update -> 21 Update -> Main Topics -> Q&A.
[00:05:34 - 00:12:44] Strike Updates: Lending & Global Expansion
- Strike has launched “virtual accounts” for international users, allowing them to deposit funds that are held as Tether (stablecoins).
- The company has expanded its Bitcoin-backed lending services to six new countries, including Argentina, Brazil, and South Korea.
- Features of Strike’s lending product include no rehypothecation (your Bitcoin isn’t moved or reused), no credit checks, and no origination or early repayment fees.
- Jack shares a powerful customer story about a man who used a Bitcoin-backed loan from Strike to make a down payment on a house with a backyard for his son.
[00:12:44 - 00:18:20] 21 Updates: The Path to Going Public
- Jack’s company, 21 (ticker: XXI), has officially filed its S4 registration statement with the SEC to go public by merging with Canter Equity Partners.
- Due to the ongoing process with the SEC, the company is in a “quiet period,” limiting what Jack can publicly discuss about future plans.
- He emphasizes his focus is on getting the deal closed, which he believes is the best thing he can do for Bitcoin, shareholders, and the market.
- 21’s proof of reserves is public, showing a holding of over 37,229 Bitcoin, making it the third-largest corporate Bitcoin holder in the world.
[00:18:20 - 00:34:30] Our Parents Are Fighting: The Empire Cracks
- This section details the public feuds between top US financial figures, which Jack describes as “parents fighting in front of the family.”
- He highlights a sharp exchange between current Treasury Secretary Scott Bessent and former Secretary Janet Yellen, where Bessent criticized her policies and priorities.
- Bessent is quoted calling the Federal Reserve “a casino” where the house always wins and the people lose, undermining its credibility.
- The segment covers President Trump’s visit to the Federal Reserve, where he publicly questioned and embarrassed Fed Chair Jerome Powell over construction budget overruns.
[00:34:30 - 00:46:25] The Push for a Weaker Dollar
- President Trump is shown stating that a “weaker dollar” is better for the economy because a strong dollar makes it impossible to sell American products like tractors and trucks.
- Jack explains this is a sign of a major policy shift. An artificially strong dollar (due to its reserve status) has hurt US manufacturing and created a wealth gap.
- To bring jobs and manufacturing back to the US (“build America back”), the government must deliberately weaken the dollar.
- The discussion includes how countries like Russia and China are already settling trade in gold instead of US dollars, signaling a move away from the dollar system.
[00:46:25 - 00:54:53] AI, Manufacturing, and the Future of the US
- The global race to lead in Artificial Intelligence (AI) is discussed as a key challenge for the U.S.
- Unlike previous tech revolutions, AI requires immense physical hardware and data centers, forcing the US to rebuild its domestic manufacturing capabilities.
- To make this manufacturing push economically possible, the dollar must be weaker to make local labor and investment affordable.
- Major players like SoftBank, OpenAI, and Meta are pledging hundreds of billions of dollars for AI infrastructure, which will require significant financial and labor investment within the US.
[00:54:53 - 01:00:53] Bitcoin’s Strength: Slaying the Bear
- Jack analyzes a recent event where 80,000 Bitcoin (worth nearly $10 billion) were sold on the market with very little impact on the price.
- He argues this proves Bitcoin’s strength and liquidity, debunking fears that large corporate treasury sell-offs could crash the market.
- He points out that the combined holdings of most treasury companies are less than the 80,000 BTC that were just easily absorbed.
- The segment concludes by showing that while stocks are “up” in dollar terms, they are down significantly when measured against Bitcoin over the last 1, 5, and 10 years.
[01:00:53 - 01:13:00] Audience Q&A
- Jack answers questions about the global impact of the US devaluing its currency, explaining that it exports inflation and forces other countries to react.
- He addresses a question about longer-term loans on Strike, stating that while he’d love to offer them, finding capital partners for such loans is challenging.
- He confirms that Strike is launching in Australia very soon and offers an OTC (over-the-counter) desk called Strike Private for large or custom transactions.
- He discusses 21’s strategy, noting that while he can’t talk about future plans, the company’s board (including Tether and SoftBank) gives it unparalleled access to capital and expertise.
Notable Quotes
The Role of Bitcoin
Bitcoin is the only way our kids will have a better life than us. Holding it is the revolution. And holding for when they are older will make their lives better.
Strike Customer
The Federal Reserve
The Fed is the house. It's a casino. The casino doesn't lose money. The players are the ones that lose money.
Scott Bessent @SecScottBessent
Janet Yellen's China Policy
I couldn't even tell you what Secretary Yellen's China policy was aside from consuming beer and mushrooms.
Scott Bessent @SecScottBessent
Monetary Regime Change
What you are seeing is the death of an empire. What you are seeing is an active remaneuvering of capital flows, of monetary relationships, and ultimately monetary order around the world.
Jack Mallers @jackmallers
A Weaker Dollar
When you have a strong dollar, you can't sell anything. It is good for inflation. That's about it.
Donald Trump @realDonaldTrump
A Weaker Dollar
Now, it doesn't sound good, but you make a hell of a lot more money with a weaker dollar. Not a weak dollar, but a weaker dollar.
Donald Trump @realDonaldTrump
AI's Impact
AI is now doing what used to be done by first to third year associates. AI can generate a motion in an hour that might take an associate a week, and the work is better.
Andrew Yang (Quoting a Law Partner) @AndrewYang
Bitcoin Market Resilience
It's going to take orders of magnitude more than 80,000 Bitcoin to stop what's coming.
Jack Mallers @jackmallers
Questions & Answers
Question 1: Can you speak to how the impact of quantitative easing/money printing in debasing of the U.S. dollar will impact the rest of the world/countries in the Commonwealth (Australia, UK, New Zealand)?
Answer: Jack Mallers explained that the U.S. effectively exports its inflation when it debases the dollar. This impacts every country, forcing them to either let their currency strengthen against the dollar or devalue their own currency in response. He believes this global monetary instability will drive capital into neutral, hard assets like gold and Bitcoin, as they serve as escape valves for people everywhere, regardless of their local currency.
Question 2: Since Bitcoin’s price has historically been higher after any four-year period, could Strike offer four-year loans to reduce this risk, or is there a way to structure multiple one-year loans to achieve the same thing?
Answer: Jack acknowledged this is a great idea and a product he would love to offer. However, he explained that the primary challenge is finding capital partners (people with dollars) willing to finance such a long-term loan at a fixed rate. Unlike government-backed mortgages, a 30-year or even a 4-year fixed-rate loan is very difficult to structure in a rational, free-market environment. He stated that while it’s challenging, he will continue working on it. In the meantime, Strike will soon release a feature to make refinancing existing loans easier.
Question 3: When is Strike Australia launching?
Answer: Jack responded that the launch is “very soon.” He mentioned that support for the Australian dollar has already started rolling out in the latest app versions for users in Australia, and a more formal announcement with additional features, potentially including lending, will be coming in a few weeks.
Question 4: Does Strike have an OTC desk?
Answer: Yes. Jack explained that Strike offers a service called “Strike Private” for high-net-worth individuals or clients with unique, large-scale needs. It’s a white-glove, concierge service where clients can get on the phone with Jack himself or other team members to execute large trades, secure large loans, or solve complex financial problems. Interested parties can reach out via email to private@strike.me.
Question 5: What are your thoughts on MicroStrategy’s stretch offering? Would 21 adopt something similar? What alternative monetary vehicles may 21 offer that are better at optimizing Bitcoin yield?
Answer: Jack stated that due to being in a “quiet period” with the SEC, he cannot discuss future plans or potential offerings for 21. He praised Michael Saylor’s work at MicroStrategy as “trailblazing.” Regarding 21’s capabilities, he emphasized that the company’s board, which includes leadership from Tether and SoftBank, gives them an unparalleled ability to access capital and build products. He confidently stated, “we feel like there’s nothing we can’t do,” but said any official announcements will be made publicly after proper filings.
People and Organizations Mentioned
- Jack Mallers: The host of the show, CEO and founder of Strike and 21.
- Strike: A financial services company founded by Jack Mallers, offering Bitcoin services like buying, selling, and Bitcoin-backed lending.
- 21 (XXI): A company founded by Jack Mallers that holds a large Bitcoin treasury and has filed to go public on the stock market under the ticker XXI.
- SEC (Securities and Exchange Commission): The U.S. government agency that oversees securities markets. Mentioned in the context of 21’s S4 filing to go public.
- Canter Equity Partners Inc.: The company with which 21 is merging to go public.
- Janet Yellen: Former Chair of the Federal Reserve and former U.S. Treasury Secretary. Mentioned in a public dispute with Scott Bessent.
- Scott Bessent: The current U.S. Treasury Secretary in the transcript’s narrative (in reality, a prominent hedge fund manager and economic advisor to Donald Trump). He was quoted heavily criticizing the Fed and Yellen.
- Jerome Powell: The current Chair of the Federal Reserve. Mentioned for being publicly confronted and criticized by Donald Trump.
- Donald Trump: The 45th and current President of the United States in the transcript’s narrative. He was featured heavily for his criticism of the Fed and his desire for a “weaker dollar.”
- Federal Reserve (The Fed): The central bank of the United States. It was a primary subject of criticism for its policies and alleged incompetence.
- U.S. Treasury: The executive agency responsible for promoting economic prosperity and ensuring the financial security of the United States.
- Fox Business & CNBC: News channels mentioned for broadcasting interviews and reports on the political and financial events discussed.
- Ben Bernanke: Former Chair of the Federal Reserve. Mentioned briefly as a predecessor to Powell.
- President Xi: President of the People’s Republic of China. Mentioned in the context of Trump’s trade battles.
- Andrew Yang: American politician and entrepreneur. He was quoted sharing a story about AI replacing the work of junior law associates.
- SoftBank: A Japanese multinational investment holding company. Mentioned as a key partner and board member for 21 and a partner in a major AI project with OpenAI.
- OpenAI: An artificial intelligence research organization. Mentioned for its multi-billion dollar AI infrastructure project.
- Mark Zuckerberg: CEO of Meta. Mentioned for pledging hundreds of billions of dollars towards AI data centers.
- Meta: The parent company of Facebook and Instagram. Mentioned for its massive investment push into AI.
- Galaxy Digital: A digital asset and blockchain financial services firm. Mentioned for reportedly executing the sale of 80,000 Bitcoin for an early adopter.
- MicroStrategy: A business intelligence company known for its large Bitcoin treasury, led by Michael Saylor. Mentioned as a pioneer in corporate Bitcoin strategy.
- Michael Saylor (Sailor): The Executive Chairman of MicroStrategy. Referred to as “Sailor” and praised for his trailblazing work in raising capital to acquire Bitcoin.
- Tether: The company behind the USDT stablecoin. Mentioned as a key partner and board member for 21.
- Pomp (Anthony Pompliano): A well-known technology investor and Bitcoin advocate. Mentioned for a tweet about the stock market.
- Chase Bank: A major U.S. bank. Mentioned as an example of where funds from a Strike loan can be instantly withdrawn.