Zak's Traders Cafe sat down with Paul Mathieson, CEO of Amazing AI, to unpack a fresh take on corporate crypto exposure — a strategy Paul describes not just as "Bitcoin treasury 2.0" but as crypto treasury 3.0.
After a turbulent few months for London-listed companies that rushed to add Bitcoin to their balance sheets, Paul and I discussed why the old model is breaking down and how his team plans to approach things differently: more sophisticated, more diversified, and better protected.
Why the Bitcoin Treasury 1.0 model is fading
Earlier this year many companies followed a simple playbook: raise equity, buy Bitcoin, and hold it on the balance sheet. That headline-friendly approach produced big share price moves in May–July, but many of those gains have since evaporated — some names are down as much as 80% from their peaks. Investors and markets reacted; hype cooled. As Paul put it, the straightforward buy-and-hold crypto treasury is "pretty simple" and increasingly seen as outdated.
The problem with buy-and-hold
- Heavy dilution: companies raising repeatedly to buy more crypto.
- Binary exposure: full directional risk to a single asset like Bitcoin.
- Market expectation vs operational reality: investors began pricing in the flaws once the euphoria passed.
Introducing Crypto Treasury 3.0: a different philosophy
Paul argues Amazing AI is moving beyond the one-dimensional treasury model by combining derivatives expertise, diversification across crypto assets, active risk management, and a profitable underlying business to fund the strategy. As Paul told me:
"I don't think it's just crypto treasury 2.0. I think it's actually 3.0. We are going beyond the basic to diversify... and more importantly managing the exposure, not just sitting there." — Paul Mathieson
Key pillars of the approach:
Derivatives-based exposure: using long-dated options and futures to gain leveraged crypto exposure while defining downside risk.
Diversification: exposure spread across multiple crypto assets rather than a single-asset bet.
Active management: protective hedges and re-protection on the way up to lock in gains.
Revenue backing: a core U.S. lending business generating strong cash flows to fund option premiums and operations.
Opportunistic M&A: potential acquisitions of failed "crypto 1.0" players to consolidate and repurpose assets.
How the derivatives strategy works — plain English
Paul drew on decades of funds management and investment banking experience to adopt option structures that can deliver asymmetric returns. The approach is not simply selling covered calls (income-focused), but more like a strangle strategy combined with targeted protection.
Strangle-like positions: buying combinations of calls and puts to profit from large moves either up or down. The structure benefits from volatility and large directional moves.
Defined downside: losses are limited to the premiums paid for options, rather than the full exposure of owning the underlying crypto outright.
Leverage potential: relatively small cash outlay on options can create very large notional exposure (Paul discussed scenarios of up to 100x notional exposure in upside cases), while premium cost caps the downside.
Paul emphasised that the firm is comfortable paying option premiums because Amazing AI has a core business able to generate predictable revenue. That changes the math: instead of raising equity constantly to buy more crypto, small capital raises can create sizable market exposure via derivatives.
Backtest results and credibility
Paul shared that he backtested his strategy over two decades and, in his words, it "never lost money" and averaged around 500% returns historically, with larger gains on upside moves. He also said the approach underpins the holdings of long-term shareholders in the company today.
While past performance and backtests are not guarantees, the claim signals the firm has applied a rigorous, experience-led framework rather than relying on speculation alone.
Differences from covered-call or simple buy-and-hold strategies
When I asked whether the approach is similar to covered-call income strategies, Paul was clear: it's materially different. Covered calls generate income by selling upside, moderating upside participation in exchange for premiums. Amazing AI’s method is designed to benefit from significant directional moves while protecting capital via paid protection.
- Covered call = sell upside to earn premium, capped upside.
- Strangle/option approach = pay premium for asymmetric exposure and defined loss, large upside potential if volatility or direction materialises.
Operational advantages: less dilution, more optionality
One of the practical benefits Paul highlighted is capital efficiency. Because option premiums are significantly smaller than buying the underlying outright, Amazing AI can achieve large crypto exposures from comparatively modest raises. Paul also noted he remains the major shareholder and is not interested in frequent dilution, aligning management incentives with long-term shareholders.
Additional operational levers include:
- Using revenues from a U.S. lending arm (quoted rate: 59.9% on loans) to fund premium payments and operations.
- Rolling and re-protecting positions as markets move to lock in gains and manage risk.
- Purchasing distressed "crypto 1.0" assets or companies and converting their strategy to the new model.
Risk considerations and why diversification matters
Paul stressed that while he believes in crypto, prudent risk management matters. He mentioned edge-case risks — for example, quantum attacks or specific vulnerabilities in mining — as reasons to diversify beyond Bitcoin alone. The goal is to construct a portfolio where only a subset of holdings needs to perform for the strategy to succeed.
In short: rather than bet everything on a single outcome (Bitcoin to infinity or to zero), the approach seeks multiple asymmetric bets and defined downside exposure.
What to watch next
Over the coming months investors should watch how Amazing AI implements the strategy: the mix of option structures used, the degree of leverage taken, how the company re-protects gains as markets rise, and whether opportunistic acquisitions materialise. Also worth monitoring will be capital raises and how management balances funding the strategy with shareholder dilution.
Conclusion
The landscape for corporate crypto treasuries has shifted. Simple buy-and-hold has shown vulnerabilities in a choppy market. Amazing AI’s approach, as explained by Paul Mathieson, blends derivatives expertise, diversification, active hedging, and an operating business that helps fund premiums — an attempt to deliver asymmetric upside while capping downside.
If you’re interested in corporate crypto strategies or the evolving ways companies are gaining exposure to digital assets, this is a model worth watching: it’s about turning raw crypto exposure into a more manageable, capital-efficient, and actively managed program.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
