K33 CEO Torbjørn Bull Jenssen shares deep insights on Bitcoin as money, the rise of Bitcoin treasury companies in the Nordics, and how K33's innovative Bitcoin Treasury Strategy powers its brokerage and lending ventures.
Torbjørn Bull Jenssen starts by clarifying the nature of money and Bitcoin’s role as an emerging form of money. He explains that money is a tool to communicate and store value, much like language conveys information. Bitcoin, though not yet widely used as money, fulfills many functions of money today, including value storage and payments in specific contexts. He envisions Bitcoin potentially becoming a global reserve currency or the "Bitcoin standard," where it may serve directly as money rather than a unit of account like gold in the past. This future promises a trustless financial foundation amid global geopolitical uncertainties.
The CEO discusses the surge of Bitcoin treasury companies, particularly in Nordic countries, where firms allocate significant parts of their treasury into Bitcoin. K33 itself pursues a Bitcoin accumulation strategy, aiming for 1,000 BTC, motivated by Bitcoin’s long-term appreciation potential and its role as an inflation hedge. Jenssen points out the difference between diversified portfolios that include Bitcoin and treasury companies holding mostly Bitcoin, highlighting the latter’s opportunity to build business models such as structured finance and Bitcoin-collateralized lending. These companies currently operate in a hype-driven market but need to develop sustainable operational models to maintain premium valuations long term.
K33 leverages its Bitcoin treasury to underpin an operational business model centered on brokerage and lending. By holding Bitcoin as collateral, K33 enhances liquidity provision and reduces market risk exposure in its matched principal trading model. This approach improves margins and enables the company to offer seamless market access to clients across multiple trading venues. Additionally, K33 explores Bitcoin-collateralized lending in partnership with banks, addressing regulatory and risk challenges, and potentially unlocking substantial new revenue streams. A strong Bitcoin balance sheet provides downside protection, allowing K33 to focus on growth without undue risk to its core business.
Jenssen emphasizes that the Bitcoin treasury trend is creating a collaborative ecosystem in the Nordic region. K33 works closely with other treasury companies like Goobit and H100, sharing learnings and building industry best practices. The goal is not competition but mutual growth, forming a robust sector that can support Bitcoin adoption in corporate finance. Institutional adoption, clearer regulatory frameworks like MiCA, and cooperation among banks position the region for accelerated crypto integration in corporate treasuries in the near future.
For traditional corporations with cash reserves, Jenssen advises considering Bitcoin exposure to diversify portfolios and hedge against inflation and currency risks. As the ecosystem matures, legal, accounting, and auditing standards around Bitcoin are becoming clearer, making it easier for industrial companies to integrate Bitcoin strategically. He highlights Bitcoin’s uncorrelated nature with traditional assets and its scenario-based value as a global reserve or inflation hedge as reasons for inclusion, albeit with prudent allocation given its current volatility.
Torbjørn Bull Jenssen acknowledges the strategic window available for Bitcoin treasury companies to build strong balance sheets and develop financial products before market premiums normalize. K33 aims to utilize this opportunity by combining Bitcoin accumulation with operational fintech services, positioning itself as a leader in digital asset wealth management in Europe. The company’s roadmap includes incremental Bitcoin purchases, partnership development, and exploration of new product offerings fueled by its Bitcoin treasury strategy. Jenssen sees 2025 and beyond as pivotal years for Bitcoin becoming an integral part of corporate finance and global monetary systems.
Timestamps for the video:
00:25 Introduction to the topic of Treasury strategies
02:17 Will Bitcoin be the standard?
05:14 The US left the gold standard
06:09 The search for a new trustless form of money
06:56 What´s to gain with a treasury strategy
09:12 New business models
10:40 Bitcoin premium
11:45 Window of opportunity
13:20 Bitcoin yield
14:14 The K33 position
16:28 Operational synergies
19:20 Broker vs exchange
20:28 Bitcoin collateral for lending
22:46 Lending opportunities
24:35 Onboarding of banks
27:00 Growing Bitcoin ecosystem
28:11 K33 sweet spot
29:50 Regular corporations
33:51 Future ownership
