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00:00It speaks to the broader question out there right now, and thank you so much for joining us about after these collapses where crypto companies go to bank, is that still possible in the US? Well, look, regulators have certainly made it more difficult for of native companies to get access to banking. There are other regional banks that are stepping in selectively to fill the void. But the system is much less supportive than it used to be, and many are on the sidelines just waiting to see what happens. The fears around finance are also not helping, and many users are likely moving coins off the exchange and into cold storage was probably explains the lower volume these days. Well, speaking of things, moving is the end result of this just moving off shore. Is that something that digital is pursuing? Well, it's funny you ask. We actually that our entire fleet used to be in China. And we decided to move our entire fleet from China to the United States because we felt that it was just too much jurisdictional risk to stay in China and ask we're moving our fleet midway through. China announced a ban on bitcoin mining. So we just accelerated that entire movement of the fleet into the United States, into the United States, which we felt was a safer place. So we continue to see that the pattern continues. You know, China had a go on bitcoin. Nothing happened. Bitcoin is not something you can destroy. It's a decentralized asset. Banning an entire industry does nothing to Bitcoin. It has no effect. I mean, but we are looking at other jurisdictions now, other countries. And we have to part of our jurisdictional diversification to diversify our risk forces us to look at other countries. Is it possible to get to know jurisdiction? Because it seems like that's what financial is trying to do. And it feels like that's where Bitcoin really belongs, but it doesn't seem possible with all of these governments working together. Look, we're pro regulation, but we want regulation to be well communicated and it can't just be simply carried out by enforcement on ambiguous rules. Bitcoin mining, for example, comprises a point two percent of global energy use and over 60 percent of that is sustainable. But politicians are unfairly painting the entire industry as some sort of dirty energy and are threatening these unwieldy taxes and outright bans. Forcing bitcoin mining out of the United States would simply transport the industry elsewhere. And it would just decrease the US's ability to pollute to be a powerhouse in this new industry. That's not going away. Well, you know, a lot of times people are terrified of things they can't understand. Sam, let me ask you about the price action we've seen, because it's been pretty impressive. You know, even after the collapse of RTX, even with the threat right now, although it's only a civil threat, we want to remind our viewers to buy an ounce, not a criminal threat. Nonetheless, it's not a great look. We still have Bitcoin trading at twenty seven thousand dollars. Is that because of low liquidity? I mean, somebody still has to lift the offer. How do you explain the price action? Yeah. Well, the loss of Silver Gate's exchange network and signatures Signet has certainly reduced the liquidity as market makers use these banks for 24/7 settlement. So there is a technical reason for the volume. However, there is also a logical reason why bitcoin is going up, and that's because Satoshi is thesis about the financial system having too much control and just can censor transactions and just having as you could see, banks are falling apart again. That happened in 2008. That is exactly when Satoshi invented bitcoin because he saw that the financial system had way too many holes and there he wanted to create a system where it was completely decentralized and foolproof. Bitcoin is a fail proof system. And so he invented that in the last banking crisis. And here we are again, another banking crisis. You'll see Bitcoin going up. Eventually, Bitcoin will be seen by a lot of people as digital gold. It's the ultimate way to hedge against macro bets, inflation and this sort of thing that's happening today. Well, and just like gold, it has to be mined. So one final question on Bitcoin miners, many of which we have seen come into pretty serious financial trouble. All right. Is the Bitcoin mining industry through the worst of it? What challenges do you still face? I agree with you. A lot of our peers, unfortunately, drank their their own Kool-Aid and and levered up and took on debt on their balance sheet while Bitcoin was going up through the roof. I think past fifty thousand people were really getting greedy. We did not we did no such thing. We have a very healthy, pristine balance sheet. We have over sixty five dollars on the balance sheet. We have absolutely no debt, but digital has no leverage, no capital commitments. So we ran a pretty conservative and tight ship and we're even in the business of potentially even lending to people in the industry who need the money because we have such a great balance sheet. Having said that, this is a lesson to be learned in the future for there will be another bull run. And you know, the industry needs to to run a business and run a business means you can't just hope on the direction of Bitcoin. You've got to run your business regardless of the direction of where bitcoin is going. All right, so what we do.

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You Can't Destroy Bitcoin, Says Incoming Bit Digital CEO

Bit Digital incoming CEO Sam Tabar talks about the impact of the banking crisis on crypto and he talks about China banning Bitcoin mining and crypto trading. He's on "Bloomberg Crypto." (Source: Bloomberg)

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