Nobody wants to hold their own Bitcoin anymore.

We have yet another major hack in the crypto self-custody world. This time Ledger and upwards of $86 million. We're going to talk about that and everything that happened this weekend and today in crypto news on the Daily Wolf. Let's go. What is up everybody? Welcome to the Daily Wolf on Yahoo Finance. I am your host, Scott Melker, also known as the Wolf of All Streets. Not much happening with Bitcoin price over the weekend. I think everybody knows at this point that we're just ranging in the 80s, which I view as a bullish sign. But because it's Monday, we have to keep up with the Joneses and find out what our favorite billionaire Michael Sailor is doing. And that is this. Strategy buys 250 Bitcoin, repurchases 192 million of STRC preferred stock. So, Strategy purchased that 250 Bitcoin for 21.5 million last week, averaging $86,194 per Bitcoin. You'll remember in the beginning of the show, we had an amazing meme from Space Balls. This was Michael Sailor just sucking up all the bitcoins. Mega made. You might remember also at the bottom of the bare market she went from suck to blow. But right now, uh, Michael Sailor is sucking up bitcoins again. But not that many to be honest. He funded this purchase of Bitcoin by issuing 125,183 MSTR common shares, raising 21 million net, adding $500,000 from existing cash. But separately, the bigger story obviously is purchasing the 1.93 million STRC preferred shares for 192.4 million. That is a lot more STRC once again being bought back than Bitcoin. And if they can get STRC back to $100, obviously then they can use that to buy more Bitcoin, which is the intention. Once again, this has become an extremely complex financial machine. in their balance sheet is not easy to understand and clearly they are using every lever and button that they have right now to get STRC back to 100. Much more important to them clearly than buying Bitcoin which they're doing in very small amounts. In fact, I say we could update the meme to this. There's Megab sucking up the STRC's. I don't even know what STRC's are, but it's sucking them up. There they're they're credit cards. You know, sometimes we just make memes and see what happens. So that was using their USD cash reserve that they've had already, the $4.88 billion reserve designated for dividends and interest remains unchanged. So strategy here sold some common stock to buy some Bitcoin. They use some of their cash to buy back STRC and all is well in the world, right? Of course, they bought it effectively at the top price of the week. That's kind of what they do. But they are not the only treasury company this week that is making some noise. We have this one right here. Our second story. Ever XRP treasury merger brings 473 million XRP to NASDAQ as XRPN debuts October 12th. Checks calendar today. Today. XRPN launching today. So yes, this was already trading on markets, but the big news here is that the merger is complete and we really haven't had a major treasury company launched to the public market in quite a long time. We all know that the treasury bubble popped and massively cooled. So now we'll get to see how a rapper of XRP in a specific merged company trading on public markets will perform versus XRP itself. Will this company that obviously is trying to increase XRP per share much like Strategy is trying to increase Bitcoin per share. Will this company find ways to outperform XRP using this wrapped public market vehicle? I find the timing very interesting because this is obviously arriving into a much more skeptical market than the first wave encountered. But maybe this will be a second more conservative and realistic wave of treasury company launches. very hard to know. Uh but uh we're going to see how it performs. And like I said, it did just launch today. So, treasury companies have been one way that people have looked to gain exposure to Bitcoin and other crypto assets in an institutional rapper. That's one way to quote custody or Bitcoin. Another way is obviously self-custody and that's been a absolute freaking disaster. Here you go. Ledger investigates potential wallet tampering after reports of $86 million in crypto stolen. The hardware wallet maker said it is investigating devices sold by a Southeast Asian reseller as social pulls swirl about crypto assets drained from Bitcoin, Ethereum, and Tron addresses. So, they confirmed over the weekend that there was an issue here and that it came from their third-party seller, which is an approved third party seller, which is cryptobist. B I L I S. Nobody knows how to say that. Billis Bice. Cryptoblice. I'm going with Lice. So, Bitquery is estimating 93.2 million in linked losses. There have been quite a few different estimates, all of them above 86 million. But what the crazy story here is that these devices basically were being sold by this third party and there's evidence that the physical devices were tampered with by someone at this third party. They put something in there that allowed the devices to be hacked. Holy crap, man. You guys were here obviously for the cold card hack that really shook the self-custody world uh right out of its shoes. Then we have the massive data breaches from different companies. Bits of gold and treasure had the massive one and others. So we have, you know, the physical breach on cold card. We have your data being leaked and attached to your holdings with treasure and others. And now you can't even trust that your wallet arrives without already being hacked the literal hardware for it. It is very hard right now to trust self- custody. Unfortunately, I'm not saying that you should not self custody. I just don't know how you handicap your device having something added to it uh by a third seller. Yes, you can order directly from Ledger. They say that they've had no issues, but this is crazy. We're clearly having a crisis in existential an existential crisis in custody. A lot of people will look to treasury companies, I think more specifically maybe to ETFs or even holding their coins on exchanges as this self-custody crisis sorts itself out. It is really really ugly out there in custody world and I don't love it to be quite honest. I had Hunter Horesley from Bitwise on my podcast I think a week ago Sunday on my YouTube channel and audio channels and he pointed out that since we've had that cold card hack, we've seen a ma major increase in flows into the Bitcoin ETFs, but specifically people taking advantage of the ability to sell their Bitcoin and redeem it for the ETF without a taxable transaction that's relatively new. There's a huge spike in that. So, a lot of people very factually have given up on self- custody. And not only are they giving up on self- custody and putting their coins on an exchange, which you know I can see the argument for, but actually going out of the spot asset entirely and going into the ETF institutional wrapped version. And speaking of the ETF institutional wrapped version, we have our next story. Bitcoin ETF inflows stall after $ 1.7 billion burst. Will demand return? So, I love this story because yes, they lost about 600 millionish last week after that$ 1.7 billion in demand, but some of the headlines are Bitcoin reverses losses and it was like 21 million in inflows on Friday and that was the reversal. So, I guess we'll see what happens here on Monday. But the fact is that ETF flows I don't think are very predictive of price to be quite frankly frank. I think that they are reactive. You know when we see price going up massively obviously we see these huge inflows. Sometimes at the beginning of the liquidation event you know we saw 500 million in shorts liquidated after Bitcoin went up to the high 80s before coming back to the low 80s and mid 80s. There were a few days where it was still inflows and then they follow and they bleed and then they bounce after price does. So, I'm not sure that there's much signal in the noise of ETF inflows, but still always worth reporting what happened. The bleeding uh has stopped, but that doesn't mean that the patient's ready to run a marathon here, right? Well, we we'll have to see what happens this week. Now, we have some interesting news, and I uh don't don't really relish any reason to show this guy's face on the screen, but here he is. Sam Baitman freed everybody's favorite crypto destroyer. It's like the Thanos of crypto. That the guy's name with the rings and the half the people dead guy. FDX Bitcoin Bet takes an unexpected turn as SWI group raises 900 million. The first time I read that, I thought it was the uh R&B group S SWV, Sisters with Voices. I get so weak in the knees. You guys know them. But it's S SWI group that's not affiliated with uh S SWV at all. But they raised 800 million euros which approximately $894 million to expand AI and data center projects. So this is Genesis Digital Assets formerly owned by FTX which is Bitcoin mining and tale as old as time now somebody investing in a Bitcoin miner to turn it into an AI data center because those pastures are much greener. We've seen this with almost every Bitcoin mining company. The ones that have performed the best, especially those that are publicly traded, have been those that made the early pivot to AI, realizing there was a lot more money to be made. We also have this unique scenario for Bitcoin miners where data centers are in question as to whether legislators will allow them to be built. They're obviously a political hot potato, but Bitcoin miners already exist, are already compliant, and can just do some upgrades and switch right over. Now, I found it interesting that uh it plans to repurpose US and Swedish facilities for AI workloads while selling remaining Kazakhstan stice. Very nice. I just want to say Kazakhstan so I could say something that Borat would say. Um because he's great. I think they're making another movie uh Ali G. It's going to be amazing. I'm here for it. But uh yeah, we are seeing a massive trend of Bitcoin miners making the move over to AI data centers and that is a trend that is not stopping. And speaking of trends that are definitely not stopping, we had a monster article in Barrens this weekend. The biggest change to stock trading in decades is coming to Wall Street. What do you think it is? Any guesses? It's tokenization. Everybody loves a good story about tokenization, but this is a massive publication doing effectively a TLDDR for normies on the power of tokenized assets and blockchain. So they examine the movement here toward tokenized securities and blockchainbased market infrastructure. They talked about the potential benefits which in the article include more continuous access, faster transfers, and more efficient use of collateral. Of course, they pointed out some of the obstacles that we've seen like issue objections and uncertainty over the durability of regulatory support and of course uh relatively illquid markets at the moment. But this to me just begs such an interesting question because it's one that I've been asking for so so long. If you give this article a deep read, you can see very clearly that the technology underlying our favorite coins, tokens, and market are being adopted widely by Wall Street. The question though is are they being adopted or are they being co-opted? Everything that we projected would happen is happening. You have to pinch yourself to even believe it. But the harder question is really whether the benefit of all this will reach investors and which investors will it reach. This is a question that I've been asking for a long time and frankly I do not have a clear answer for it. But when you read about the tokenization of everything and who's adopting it, you start to have serious doubts about whether the tokens that we hold are ultimately going to be where the value occurs or if they're going to find a way to make sure that with like everything with Wall Street that they capture the value and retail is left holding the bag. We've seen it with banks, right? We're arguing over whether stable coins can offer yield. And the reason is because the banks keep all of the yield and don't pass all of it on to you, almost any of it, sub 1% even if yields are over 5%. It's insane when you think about it. So what's to stop these very same kinds of institutions from making sure that the value occurs to them? And for the end of the show, we have a very important announcement from our president of the United States. I'm going to give all adult citizens in the United States of America $5,000. Democrat policies won't allow this to happen. In fact, the opposite. They're going to raise your taxes. If the Democrats win, you will have an economic depression. If the Republicans win, you will each have $5,000 in your pocket and economic success for our country like we have never ever seen before. Oh my god. So, let's see. The Door Dash grandma where he literally gives her the cash bribe is probably my favorite part of that. But how anyone can buy any of this garbage blows my mind. We're going to give everyone $5,000 from thin air, but if you don't get the $5,000, the Democrats are going to raise your taxes and print more money. What? We're doing the quiet parts out loud. I don't care who you are politically or where you stand. First of all, nobody's giving you $5,000. Second of all, buying votes is literally illegal. Third of all, that requires the very money printing that we do not believe in. If you ever wanted an advertisement for why to buy Bitcoin, watch that 33 seconds from Trump again. It's all I got for you today. I'll see you tomorrow. Peace.