Jeff Walton

Thanks for having me.

Happy to be here.

Why isn't Stretch a Ponzi?

Stretch isn't a Ponzi scheme because it is a balance sheet that is taking risk on each individual instrument that is sold for the company.

That's it.

Is that true?

I would say risk management and balance sheet structure.

Really, these are capital vehicles.

These are companies that hold capital and they're taking on risk with that capital.

Now, that capital, you're taking on risk on the balance sheet capital, right?

It's not like I'm deploying each one of my individual Bitcoin and going to go sell a derivative against the underlying Bitcoin.

I'm using my balance sheet as capital.

And I'm creating risk layers on my balance sheet.

I'm using the capital structure of my entire company to take on risk.

Now, that sounds risky to a lot of people, but the relative risk profile, when you look at the math and start to think about how this is designed, how it is structured, I think the risk profile is significantly misunderstood.

So look, we're selling a credit product.

right?

So there's an element of credit worthiness and trust.

If you came down to a situation where you don't pay a dividend, that impacts the trust, that impacts the credit profile, that impacts how the market may view your individual instrument.

So speaking for us, I mean, we're going to do everything in our power to pay the dividends.