Our initial flagship product is a high-performance Bitcoin-denominated fund focused on leveraged long strategies around Bitcoin and Short Altcoins.

The reason we are launching this initiative is to help expedite the move from a fiat-based financial system towards a Bitcoin-centered economy, which we believe to be the primary sustainable solution to solving many of the world’s deeper-seeded problems like energy, inflation, security and censorship.

As Bitcoiners are apt to say, ”Fix the money, fix the world”. Let’s dive in…

Part 1

In The Long Run: “There is no Second-Best”

As Bitcoin matures as an asset, a growing divergence is taking place in investors' minds between Bitcoin (a non-sovereign store of value) and other "crypto assets."

In December 2017, during the height of the Ethereum-fueled ICO mania, John Pfeffer made a compelling case for Bitcoin in "An (Institutional) Investor's Take on Cryptoassets" (link). While we won't dissect his argument here, his thesis has proven correct over seven years later as illustrated in the chart below.

If Bitcoin is a speculative attack on the U.S dollar, then alternative crytpoassets can be considered to be speculative attacks on Bitcoin.

Our mission is to accelerate the Bitcoin-focused future, while simultaneously stopping speculative attacks that distract the investing public from focusing on Bitcoin and harm them financially by taking advantage of their greed and desire to ‘find the next bitcoin’.

But as Michael Saylor famously said….”There is no second best crypto-asset” (link)

In the long-term, every crypto-asset trends to 0% returns against bitcoin.

The Problem: Generating Yield on BTC, in Bull & Bear Markets

As the Bitcoin asset class matures and it’s potential price appreciation declines, the desire for it to produce yield will only increase.

For Bitcoin holders, the historical returns of 50%+ and forecasted to be 40% annualized over the next few years going forward is an attractive alternative to nearly any investment in terms of risk-reward. But for those that don’t want to sell their bitcoin to get liquidity and trigger taxable events or are a bit further out on the risk-taking spectrum, a new set of challenges present themselves:

1. Loaning out your bitcoin in a bear market can be difficult as attractive lending yields from the bull market (2-3% apr) shrink or dry up completely and comes with custodial risk.
2. Selling your bitcoin will trigger a taxable event, which could be a substantial amount, depending on how long you have held the bitcoin and your tax jurisdiction.
3. Taking a loan against your bitcoin for USDT/USDC to pay for expenses other other investments denominated in USD requires a typical 10% APR, which you need to pay back over time and comes with custodial risk.

Our Solution: A Long/Short Fund, funded by Bitcoin-backed Loans, using the Bitcoin price as the Hurdle Rate

By denominating our fund in Bitcoin (BTC) terms, we benchmark our hurdle rate against the best performing asset of the last decade. A high bar to be sure, but one that we think will appeal to investors who are already Bitcoin believers, both from an ideological but also financial perspective.

Generating yield denominated in bitcoin is difficult, but not impossible. We believe that the key to un-locking superior returns to BTC lies in defending bitcoin against the ‘zombie attack’ of the tens of thousands of other “blockchain” based coins that are competing, if not directly with bitcoin’s use-case as a store of value, for at least the mindshare and share of investment dollars from investors. When you denominate an asset in bitcoin terms, it gives you a true sense for the ‘cost of capital’ to invest in that asset, and as you can see in the charts below, few previously desirable assets like the S&P 500 or the Housing Market can meet this hurdle rate.

The past cycle (2017-2022): VC funded “Tech-Alts” aka “Zombie-Chains”

In well-functioning and mature markets like the U.S. stock market, it's rare to find billion-dollar "zombie" companies maintaining their value without producing goods or services the market actually wants.

The blockchain industry's nascent state allows these capital misallocations to persist for years and new ones pop up frequently. Seemingly each day a new coin is created out of thin air and reaches a $1B+ valuation within days or weeks.

Known as "zombie blockchains," these networks maintain their massive valuations even after years of having minimal developer activity, few active wallet addresses, little transaction demand, or all three.

Their only sustaining value stems from intangible qualities, their history of surviving multiple crypto cycles, and dedicated supporters who actively promote their preferred networks.

Suki Yang, CEO of Solana trading platform xBot, told Unchained that "cryptocurrencies, arguably, are the most successful and the only asset class that really capitalizes on intangible values."

These intangible elements — community, culture, shared beliefs about token value, and perceived network engagement — significantly influence crypto zombie valuations.

Forbes recently identified 20 blockchains as zombies, citing their billion-dollar-plus valuations "despite the fact that they are unproven and have little utility other than for speculative crypto trading."

Together, these 20 blockchains hold a collective market capitalization exceeding $100 billion — about 4.7% of the total cryptocurrency market cap of $2.4 trillion.

Forbes specifically named the following networks as crypto zombies: XRP (XRP), Cardano (ADA), Bitcoin Cash (BCH), Litecoin (LTC), Internet Computer (ICP), Ethereum Classic (ETC), Stellar (XLM), Kaspa (KAS), Fantom (FTM), Algorand (ALGO), Flow (FLOW), MultiversX (EGLD), Bitcoin SV (BSV), Mina (MINA), Tezos (XTZ), Theta (THETA), and EOS (EOS). The list goes on…

Because there is still such a high market capitalization ($100 billion+) of zombie chains, this presents an excellent shorting opportunity today in 2025.

The current cycle (2023-2026): Late-Stage Financial Nihilism Lead by Memecoins

In response to the VC-funded tech-alt/zombie-chains—whose insider-only rounds were dumped at the peak of the market in 2021/22—retail investors who served as exit liquidity retreated from the market, only returning recently, even though many still hold their bags from the previous cycle.

Today in 2025, we're experiencing excitement similar to the ICO wave of 2017-19, but now centered on Memecoins and AI-related coins. These coins emerged to satisfy retail investors seeking ground-floor opportunities with life-changing return potential (100x+ returns) and hopes of finding "the next Bitcoin"—all without the risk of insiders using them as exit liquidity.

Unfortunately for retail investors, even though Memecoins and AI coins are "fair launched"—meaning the initial sale is open to everyone without insider allocations or vesting—the vast majority are classic pump and dump schemes, run by insiders and pumped via KOL’s.

The main platform for launching these coins is tellingly named pump.fun. For investors, the outcome is predictable: 99% of coins launched there will crash to zero once they 'graduate' to the mainnet and begin trading on DEXs like Jupiter, where market makers using Meteora or Orca provide initial liquidity.

The rotation from tech-alts to memecoins & bitcoin

Our strategy for the final leg of this bull market in 2025/26 comprises three main components:

1. Leveraged Long Bitcoin - We maintain approximately 90% of our balance sheet in spot BTC, using it as collateral to borrow alternative coins for our short "tech-alt" positions. The proceeds from altcoin sales are reinvested to increase our Bitcoin holdings and recycled into collateral, gradually building a leveraged long bitcoin position.
2. Short Altcoins - We create short positions in altcoins by taking out loans denominated in these currencies to fund BTC buybacks and other trading positions. We'll also establish leveraged short positions through perpetual futures contracts on select concentrated positions.
3. Short Memecoins - Though select memecoins may briefly outperform Bitcoin, we focus primarily on short positions since 99.9% of memecoins are worthless and will ultimately decline against Bitcoin.

The Future Cycle (2026 & Beyond): The Next Bear Market & The Coming Bitcoin "Supercycle"

As we enter what many anticipate will be the beginning of a bear market for the crypto industry in late 2025 or early 2026, we will position ourselves according to the following assumptions:

1. While altcoins and memecoins will never completely disappear, their value will consistently decline relative to Bitcoin.
2. Bitcoin's market cap will reach approximately $8T, surpassing gold's market cap at a price around $500k per BTC. While this could certainly happen during 2025/2026, we believe it's more likely to occur in the beginning of the 2027/28 bull run, potentially reaching $1M per BTC or higher.
3. During the 2025/26 deleveraging cycle, we'll be well-positioned to capitalize on falling altcoin and memecoin prices through perpetual futures contracts.
4. Once alt-coin prices have declined and our investment thesis has played out during the bottom of the bear market we’ll open up the fund for for the first round of withdrawals.

The Bitcoin Powerlaw model forecasts $150k-$500k per Bitcoin by the end of 2025. $1M by 2030 and $10M per Bitcoin by sometime in 2040. Source

The Bitcoin Quantile Model forecasts $157k-$346k per Bitcoin by the end of 2025. $200k-$1M by 2030 and $2.4M to $5.4M per Bitcoin sometime by 2040 (source)

We believe that the power law is a historically reliable and reasonably conservative model for predicting the price appreciation of bitcoin over the coming years. However, we also believe that there are some positive black-swan events lurking on the near-term horizon, which could accelerate the Bitcoin adoption curve dramatically (like a U.S Strategic Bitcoin Reserve) and lay the foundation for a Bitcoin “SuperCycle”, the likes of which we haven’t seen before.