The Bitcoin Crash is about to Get MUCH Worse.

Well, folks, the real test is coming up

for Bitcoin, and it has everything to do

with the newbie suits who are now in

Bitcoin, like this guy. We'll talk about

this shyer in just a moment who's

talking about potentially paperhanding

Bitcoin at Van. We'll talk about that.

But we have to understand there are

going to be a lot of implications to

actually public reporting companies. And

I have a list of them we're going to go

through because if Bitcoin stays this

low or worse falls even lower, we're

going to have some really nasty earnings

coming up. And so what I did is I went

to bitcoin treasuries.net

and I downloaded the current holdings in

Bitcoin of every various company here

like Tesla or GameStop or Strategy or

Square now known as Block or whatever.

And I also I I put this all on a

spreadsheet and the reason I did this

first of all is because when we look at

the IBS shares trust when you know got

into their Bitcoin ETF we have not had a

drop this severe ever in the history of

Bitcoin ETFs. We're down 31%. Right? We

did have a 17%ish 19-ish% decline over

here in January to February of 2025. So

earlier this year, you know, as we were

getting ready to get liberated, but this

is the biggest drop yet that a lot of

these public recording reporting

companies and ETFs are going to have for

Bitcoin. And so they're going to have to

explain to their shareholders why all of

a sudden their net income is getting

smashed. And knowing that along with

doing a fundamental analysis, I I know

this seems like it's out of left field

on GameStop. Just a couple days ago, we

were doing a fundamental analysis on

GameStop and we're like, "Oh, cool. They

had $169 million of net income. That's

great. uh $28 million of that, by the

way, of that net income was from Bitcoin

gains, right? So, we were looking at

GameStop's fundamentally in the alpha

report and we're like, "Hey, you know,

Bitcoin actually helped GameStop

earnings." I always like to parse that

out. And I'm like, "Yeah, but even if I

take that $28 million out, you know,

Bitcoin, uh, you know, only helped a

fraction for GameStop's net income.

Their net income was actually doing

pretty well here. here. I mean, you're

at over $130 million of net income on

like collectibles and earnings are going

up at GameStop. Like, this is cool. And

they've got, you know, over $4 billion

of free cash after they pay their bills.

And not trying to shill it. You know, I

don't own any GameStop, but I'll tell

you, I was looking at it fundamentally.

I'm like, huh, what what could go wrong,

right? Well, that combined with what I

know is going on here with IBIT, the

largest drop for a lot of these public

entities that they've ever experienced

holding Bitcoin. I realized, oh my gosh,

these companies are going to have to

report Bitcoin losses as losses on their

Q4 financial statements if they end up

going, you know, if if Bitcoin doesn't

recover. Now, all of this could be a

non-issue if Bitcoin recovers. And so, I

put the spreadsheet together to see what

the kind of risks are, which we'll go

through that in just a moment. But I

want you to see where the rules of this

are. So this is a KPMG

uh PDF. It basically explains how to

account for crypto on your financial

statements to be compliant with SEC

rules and GAAP accounting requirements.

So basically what they say is if the

carrying amount of an intangible asset

exceeds its fair value, the entity shall

recognize an impairment loss in an

amount equal to that excess. Okay? So in

English, if you bought Bitcoin for

$100,000 and now it's worth $85,000,

you're going to have to show a $15,000

loss. Okay? So we have to basically mark

to market our Bitcoin. This is going to

create a little bit of a problem for a

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connect. This is going to create a

little bit of a problem for a lot of

companies. So, what I did is I made this

spreadsheet and I put GameStop in here

because that's what kind of got me

thinking about all this. I put GameStop

in here and I go, "Okay, cool. They had

they had net income of $169 million. But

wait, I have to take out the Bitcoin

income that they previously had. So, if

I take that out, they have $141 million

of income outside of Bitcoin gains. All

right. Well, their loss since the last

quarter ended, September 30th, is equal

to about $28,000

per coin. Great. What does that work out

to if they own 4700

Bitcoin? Well, it works out to $131

million, which means 94% of GameStop's

net income for the fourth quarter,

assuming income stays roughly stable,

has been evaporated because of Bitcoin

losses. Now, hodlers know this. They're

not going to care about this, but a lot

of people might not understand why all

of a sudden debt income at a lot of

these companies is going to plummet.

Look, I did Square as well. Square,

they're going to see 53% of their net

income evaporate. Tesla could see 23% of

their net income decline uh and

disappear just because of the Bitcoin

impairment. Now, of course, people are

expected to add that back in, but again,

are the suits smart enough to put two

and two together? And this is where I

get nervous that maybe they're not, and

then they start papering. Why? Well,

because of this little Vanette guy.

You'll see in just a moment here.

Coinbase, 94% of their net income is at

stake. For Bullish, which just went

public and is absolutely getting reamed,

they had net income of 18 million from

like, you know, they're I mean,

honestly, part of that is probably

because of Bitcoin gains in the last

quarter. So, they're basically losing

money, but they're just from holding

Bitcoin, $24,000 Bitcoin, they're about

to lose $680 million, which is, you

know, 3,688% of their net income. Micro

Strategy showed net income of 2.7

billion. Well, they're about to show a

loss of $18 billion. Again, if Bitcoin

stays under 85,000, it's at 84,000 right

now. So, best case scenario, this just

recovers, right? And this doesn't end up

becoming a larger issue. But all of

these companies, a lot of them, they're

part of indices. Like Tesla's a mag

seven, right? So Tesla sells off,

Coinbase, which is obviously part of our

indices as well, you know, GameStop to

some extent, whatever. Like all these

companies, these are going to have a

weight on our indices as well. Block.

But anyway, let's listen uh to this guy

and listen to him sort of panic about

what I think is mostly nonsense. And

these are the kind of people that

potentially are going to make allocation

decisions and then start dumping Bitcoin

because they got egg on their face

because you had a volatile quarter. Like

Bitcoin is almost designed to be

volatile. I don't think they get that.

So, welcome to volatility. But anyway,

here we go.

>> There's something else going on within

the Bitcoin community that kind of non

crypto people need to know about and

that is ultimately Van has been around

before Bitcoin. We will walk away from

Bitcoin if we think the thesis is

fundamentally broken. We don't.

>> First of all, nothing in this quarter

has fundamentally changed the thesis of

Bitcoin. Okay. The point of Bitcoin is

that there are no earnings and that it

is a way to diversify into a limited

supply digital asset with no borders.

Okay? It's not really designed. Can it

function as a payment system? Sure. But

I see it more as a digital store value.

Now, I don't own any Bitcoin because

right now, and this is not to be anti-

Bitcoin. It's just to say I'm anti this

financial engineering that's happening

that I think is propping up artificially

the value of Bitcoin. Like, I think a

lot of these suits need to get flushed

out. Frankly, I think Michael Sailor and

his financial engineering props up the

value of Bitcoin artificially. Like, I

actually think the premise of Bitcoin,

when you read the Bitcoin white paper,

like this is brilliant. But again, I

don't own any because I think these very

paperhanders who are in it for the wrong

reasons need to get flushed out. Like I

actually think it would be a wonderful

thing to see these people get flushed

out because the reason I think a lot of

them got into Bitcoin is for the wrong

reasons. And you'll see here in this

interview this person, oh well, you

know, people are worried that blockchain

is public. Bro, no flying SH9T. Where

have you been? Do you not understand

blockchain at all? Like yes, you can

also tornado cash your Bitcoin or the

other forms of tornado cash. That's more

of the colloquial now known version of

it until tornado cash kind of got

replaced. But anyway, like you should

know that there are ways to make your

transactions private by washing them

through other wallets. This is old news,

but the fact that this guy is saying,

"Hey, you know, we've been around longer

than Bitcoin, and if we just, you know,

the fundamental thesis is gone, we'll

just walk away from Bitcoin." To me, it

says these people are in it for the

wrong reason. You know why they're

actually in it? Because when it's going

up, all their clients are calling going,

"Hey, why don't you own more Bitcoin? I

guess we got to get exposed to Bitcoin."

And they go in, they basically go in

because it's going up, driving it to go

up more. And then when it starts going

down and it has to show up on Gap

Financials, they're like, "Oh my gosh,

this sucks. Well, maybe the thesis has

changed. Well, uh, we'll just sell it."

Yeah. Like this is the test that's

coming up for Bitcoin is these morons

have to get out

>> right now. But you always have to look

at the underlying technology and the

crypto, sorry, the Bitcoin community has

been asking itself about is there enough

encryption in Bitcoin because quantum

computing is coming. Oh my gosh, quantum

computing is decades away. Annealing

quantum computing just because quantum

computing stocks are going up ain't

going to do anything for quantum, you

know, for for crypto encryption.

Frankly, I think that Bitcoin will just

adapt to new encryption standards as we

actually get closer in decades to, you

know, quantum real quantum computing,

not this annealing garbage. Uh, but this

has been a risk since before you bought,

dummy.

>> And so, and then secondly, is there

enough privacy in Bitcoin? And so, a lot

of Bitcoin OGs or maxis have been

looking at Zcash. And Zcash,

>> what's that?

>> Zcash has is a token. It's sort of

related to Bitcoin with a

>> I can't even keep listening to this guy

because he's just such a freaking

But I think the point that you have to

consider here and even Chris Whan is

talking about it which I think he's he's

right about this. I thought about this

while I was looking at GameStop

fundamentals, but other suits are

starting to talk about this as well.

Just listen to this. year end is going

to be very interesting because a lot of

public companies that have put their toe

in the water on these various crypto

tokens are going to want to get out

because otherwise they're going to have

to report some big big losses. They may

have to report the losses anyway. Um

it's not good when you have something

move 30% in a month.

>> Yeah.

>> Right. It's basically in English like

these suits that were previously

bragging about how great Bitcoin is are

now looking for dumbass reasons to sell

it. That's what's happening here. Van

like, oh well well I I you know I guess

Zcash is more popular now and and I

guess Bitcoin has encryption risk. I'm

like this has been argued for years. The

only reason you don't know about that is

because you bought it for the wrong

reasons. You bought it because it was

going up and now it's going down and now

you're looking for all the old reasons

to paper. This is why I don't own

Bitcoin because I think these people

pumped it up for the wrong damn reasons.

That's like it's it's been ponzied up.

Okay, fundamentally to its core, these

people need to be gone. All right, sorry

for the emotion here, but let's be

clear. If Bitcoin doesn't recover,

Bitcoin's going to be in for a big test

because these companies are going to

have to report some big old losses. Now,

I realize Tesla has been around longer

and and Tesla has had Bitcoin volatility

longer, but now you're coming at the end

of a catalyst cycle for Tesla with stock

comp and otherwise. And at a time of

significantly slowing sales,

Bitcoin being down is going to suck for

companies on this list. Now, in

fairness, they could create a great

buying opportunity. So, I'm looking at

this list for buying opportunities. Let

me know what you think in the comments

down below.

>> Why not advertise [music] these things

that you told us here? I feel like

nobody else knows about this.

>> We'll we'll try a little advertising and

see how it goes.

>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Pra there, financial analyst and

YouTuber. Meet Kevin. Always great to

get your take.