WEBVTT

1
00:00:00.080 --> 00:00:03.359
<v Speaker 1>It's a big super cycle and I think that quantum

2
00:00:03.439 --> 00:00:07.240
<v Speaker 1>will come along. I think it's very very premature, it's

3
00:00:07.280 --> 00:00:10.080
<v Speaker 1>extremely expensive to what it's going to do.

4
00:00:15.439 --> 00:00:18.399
<v Speaker 2>This episode is brought to you by bitco, the trusted

5
00:00:18.480 --> 00:00:23.039
<v Speaker 2>infrastructure behind the digital asset economy. If you're serious about crypto,

6
00:00:23.280 --> 00:00:26.640
<v Speaker 2>whether you're an investor, institution, or building in this space,

7
00:00:26.839 --> 00:00:30.879
<v Speaker 2>you already know security, compliance, and execution are everything. And

8
00:00:30.960 --> 00:00:34.320
<v Speaker 2>that's exactly what bitco delivers. With over a decade of

9
00:00:34.359 --> 00:00:38.840
<v Speaker 2>experience and fifty five hundred plus institutional clients across one

10
00:00:38.920 --> 00:00:42.520
<v Speaker 2>hundred plus countries, bitco provides a full suite of services

11
00:00:42.679 --> 00:00:48.240
<v Speaker 2>including qualified custody, trading, staking, financing, and stable cooin infrastructure,

12
00:00:48.520 --> 00:00:51.399
<v Speaker 2>all in one platform. Let's break it down, want to

13
00:00:51.479 --> 00:00:55.840
<v Speaker 2>launch crypto services fast? Bitgo's crypto as a service lets banks,

14
00:00:55.920 --> 00:00:58.880
<v Speaker 2>FinTechs and platforms go live in as little as a

15
00:00:58.920 --> 00:01:03.119
<v Speaker 2>couple of months without dealing with complex licensing or infrastructure.

16
00:01:03.520 --> 00:01:06.120
<v Speaker 2>If you're looking to launch a stable coin, bidgo offers

17
00:01:06.159 --> 00:01:09.719
<v Speaker 2>a complete stable coin as a service platform, from reserves

18
00:01:09.760 --> 00:01:13.760
<v Speaker 2>and smart contracts to compliance, built to align with the

19
00:01:13.799 --> 00:01:17.120
<v Speaker 2>new US regulatory framework. That is the genius at want

20
00:01:17.159 --> 00:01:20.599
<v Speaker 2>to earn rewards on your crypto. Bitco runs one of

21
00:01:20.680 --> 00:01:25.079
<v Speaker 2>the largest institutional staking platforms, with tens of billions staked

22
00:01:25.159 --> 00:01:29.400
<v Speaker 2>across fifty plus networks, all while your assets stays securely

23
00:01:29.560 --> 00:01:34.239
<v Speaker 2>in qualified custody. Need deep liquidity and execution, Their trading

24
00:01:34.319 --> 00:01:38.799
<v Speaker 2>platform aggregates liquidity across thirty plus venues, giving you better

25
00:01:38.840 --> 00:01:42.439
<v Speaker 2>pricing and the ability to trade directly from custody. No

26
00:01:42.560 --> 00:01:46.239
<v Speaker 2>pre funding required for approved clients. And if you need capital,

27
00:01:46.359 --> 00:01:50.680
<v Speaker 2>bitgo offers crypto backed financing so you can unlock liquidity

28
00:01:50.719 --> 00:01:53.799
<v Speaker 2>without selling your assets. So here's the bottom line. Bitco

29
00:01:53.920 --> 00:01:57.920
<v Speaker 2>is one of the first federally chartered digital asset infrastructure companies,

30
00:01:58.120 --> 00:02:02.879
<v Speaker 2>offering regulated, insured city and a platform build for institutions

31
00:02:03.079 --> 00:02:06.599
<v Speaker 2>but accessible to for thinking players across the space. So

32
00:02:06.640 --> 00:02:09.919
<v Speaker 2>whether you're scaling a fintech, managing a fund, or building

33
00:02:09.960 --> 00:02:13.000
<v Speaker 2>the future of finance, bitco gives you all the tools

34
00:02:13.080 --> 00:02:16.599
<v Speaker 2>that you need to do this securely, compliantly, and at scale.

35
00:02:16.800 --> 00:02:19.400
<v Speaker 2>So learn more at bitgo dot com and see why

36
00:02:19.439 --> 00:02:23.360
<v Speaker 2>the biggest players in crypto trust Bitgo. Hey, folks, welcome

37
00:02:23.400 --> 00:02:26.280
<v Speaker 2>into the Thinking Crypto podcast. I'm your host Tony Edward,

38
00:02:26.479 --> 00:02:28.400
<v Speaker 2>and join me. Today is Frank Holmes, who is the

39
00:02:28.479 --> 00:02:32.560
<v Speaker 2>co founder of High Blockchain Technologies, the CEO and CIO

40
00:02:32.680 --> 00:02:35.680
<v Speaker 2>of Macro Global Investors. This is not Frank's first time

41
00:02:35.719 --> 00:02:38.000
<v Speaker 2>on the pod. Frank, it's great to see you again.

42
00:02:38.240 --> 00:02:40.879
<v Speaker 3>That's great to be with you, especially when we get

43
00:02:41.039 --> 00:02:45.360
<v Speaker 3>a relief bitcoin rally, we get a relief enter in

44
00:02:45.400 --> 00:02:48.719
<v Speaker 3>the Straits hormage and we get a nice rally and Bitcoin.

45
00:02:49.120 --> 00:02:52.439
<v Speaker 2>Absolutely, you know, Bitcoin trading around seventy three thousand dollars.

46
00:02:52.960 --> 00:02:55.800
<v Speaker 2>So do you expect this really f rally to continue, Frank.

47
00:02:56.240 --> 00:02:59.360
<v Speaker 1>Well, you know, when we look at previous downdrops from

48
00:02:59.680 --> 00:03:03.919
<v Speaker 1>designsters like October the tenth that took place with different

49
00:03:03.919 --> 00:03:08.919
<v Speaker 1>nexts with an Algo blowout, and that really capitulated nineteen

50
00:03:08.919 --> 00:03:15.560
<v Speaker 1>billion dollars of selling a Tolaro damage the spooks markets. Historically,

51
00:03:15.639 --> 00:03:18.080
<v Speaker 1>when we've see these things, they fall up to eighty percent.

52
00:03:18.639 --> 00:03:22.000
<v Speaker 1>So this one's like fifty two percent. And I think

53
00:03:22.039 --> 00:03:24.759
<v Speaker 1>that the bottom is here. And I think a big

54
00:03:24.800 --> 00:03:28.360
<v Speaker 1>part is the growth of ETFs in the past year,

55
00:03:28.879 --> 00:03:32.680
<v Speaker 1>so rebuffers that type of decline that all of a

56
00:03:32.719 --> 00:03:36.599
<v Speaker 1>sudden people become bottom fissures, they come out, they look

57
00:03:36.639 --> 00:03:40.840
<v Speaker 1>for bottoms they think it's bottom. Whereas before we had

58
00:03:40.879 --> 00:03:46.199
<v Speaker 1>a very small bitcoin ecosystem and now has grown dramatically.

59
00:03:47.879 --> 00:03:50.719
<v Speaker 2>Absolutely, And an example would be like the black Rock

60
00:03:50.759 --> 00:03:54.439
<v Speaker 2>Bitcoin ETF the IBIT. Even though there have been small outflows,

61
00:03:54.479 --> 00:03:58.039
<v Speaker 2>you know, doing this downturn, the majority of the holdings

62
00:03:58.120 --> 00:04:01.719
<v Speaker 2>is still their frank right, just sitting there, unlike anything

63
00:04:01.759 --> 00:04:03.360
<v Speaker 2>we've seen in the past bear markets.

64
00:04:03.639 --> 00:04:07.840
<v Speaker 1>Yes, and it's absorbed. When you look at Russia, China,

65
00:04:08.120 --> 00:04:12.240
<v Speaker 1>China mining again, but that's probably for the government and Iran.

66
00:04:12.479 --> 00:04:15.960
<v Speaker 1>The collections. The three were grued about thirty percent of

67
00:04:16.000 --> 00:04:20.319
<v Speaker 1>the world's Bitcoin mining hashing Power Index, so they are

68
00:04:20.360 --> 00:04:23.120
<v Speaker 1>blowing out all to get us dollars that are bitcoin,

69
00:04:23.480 --> 00:04:26.480
<v Speaker 1>and that really sort of accelerated. I think some of

70
00:04:26.560 --> 00:04:30.160
<v Speaker 1>us declined, but it was well absorbed, this supply coming

71
00:04:30.199 --> 00:04:31.439
<v Speaker 1>from these three countries.

72
00:04:33.079 --> 00:04:37.040
<v Speaker 2>Yeah, and it's we know, there's almost I guess now

73
00:04:37.040 --> 00:04:39.560
<v Speaker 2>it's less than one million bitcoin left to be mined.

74
00:04:40.360 --> 00:04:43.720
<v Speaker 2>Just recently they hit that one million number mark, but

75
00:04:44.000 --> 00:04:47.600
<v Speaker 2>folks have been mining since then, including high and we

76
00:04:47.680 --> 00:04:50.000
<v Speaker 2>have another one hundred years, which is you know, when

77
00:04:50.040 --> 00:04:51.959
<v Speaker 2>you try to think about it, it's kind of crazy, but

78
00:04:52.000 --> 00:04:54.600
<v Speaker 2>that's how the algorithm is programmed, So do you believe

79
00:04:54.600 --> 00:04:57.480
<v Speaker 2>there's going to be more competition to mine bitcoin from

80
00:04:57.560 --> 00:04:59.959
<v Speaker 2>nation states and even energy companies and things like that.

81
00:05:00.920 --> 00:05:07.399
<v Speaker 1>I think the global network, a decentralized network, is very significant,

82
00:05:07.959 --> 00:05:13.399
<v Speaker 1>especially in a turmoil world. And we're seeing this in Iran.

83
00:05:13.639 --> 00:05:15.680
<v Speaker 1>You know, this is a classic where they had a

84
00:05:15.759 --> 00:05:19.279
<v Speaker 1>central command, but they broke out into thirty two different

85
00:05:20.360 --> 00:05:24.000
<v Speaker 1>areas bases around the country, so that the central command

86
00:05:24.040 --> 00:05:26.480
<v Speaker 1>got killed. That the other ones can all of a

87
00:05:26.519 --> 00:05:29.800
<v Speaker 1>sudden operate at their own will, and that's made up

88
00:05:29.839 --> 00:05:34.319
<v Speaker 1>more challenging even taking out the central core. So you

89
00:05:34.360 --> 00:05:37.319
<v Speaker 1>can see that in war, and you can see that

90
00:05:37.439 --> 00:05:41.360
<v Speaker 1>the importance of the bitcoin network is so global, so

91
00:05:41.560 --> 00:05:46.399
<v Speaker 1>decentralized that it's like watching those Star Star Trek movies

92
00:05:46.480 --> 00:05:50.240
<v Speaker 1>where the force shield gets hit and it bends in

93
00:05:50.360 --> 00:05:52.839
<v Speaker 1>and it comes right back out. It bends in, it

94
00:05:52.839 --> 00:05:55.319
<v Speaker 1>comes right back out. So I think that that's what

95
00:05:55.319 --> 00:05:58.120
<v Speaker 1>we're living with in the bitcoin ecosystem. And I think

96
00:05:58.160 --> 00:06:01.560
<v Speaker 1>that all these data centers that are focused as Tier

97
00:06:01.639 --> 00:06:05.399
<v Speaker 1>one data centers in the ecosystem, they will want to

98
00:06:05.439 --> 00:06:09.040
<v Speaker 1>become very important for moving capital around the world.

99
00:06:10.639 --> 00:06:14.279
<v Speaker 2>Absolutely, And the next bitcoint having is in April twenty

100
00:06:14.319 --> 00:06:16.800
<v Speaker 2>twenty eight. Is it too really to answer this question,

101
00:06:16.800 --> 00:06:19.800
<v Speaker 2>but I'm curious how high is preparing for that and

102
00:06:19.839 --> 00:06:21.439
<v Speaker 2>as the difficulty increases, and.

103
00:06:21.399 --> 00:06:25.240
<v Speaker 1>So well, it's an ongoing question because when we look

104
00:06:25.279 --> 00:06:30.040
<v Speaker 1>at ACY chips, they do have a declining value, and

105
00:06:30.079 --> 00:06:34.399
<v Speaker 1>the only way to resuscitate an old chip is to

106
00:06:34.439 --> 00:06:37.720
<v Speaker 1>get cheap electricity, and usually you have to get government

107
00:06:37.800 --> 00:06:42.680
<v Speaker 1>subsidized electricity to get that cheap two cent electricity. So

108
00:06:43.120 --> 00:06:49.959
<v Speaker 1>bitcoin itself, you have to always be investing in new technology.

109
00:06:51.720 --> 00:06:55.240
<v Speaker 1>We don't like this binge buying. We're always buying and

110
00:06:55.480 --> 00:06:58.839
<v Speaker 1>upgrading our chips. So that's been our strategy. And I

111
00:06:58.879 --> 00:07:03.279
<v Speaker 1>think I've learned this in South Texas fracking. So you

112
00:07:03.319 --> 00:07:06.360
<v Speaker 1>can hit a well and you get one thousand barrels

113
00:07:06.399 --> 00:07:09.480
<v Speaker 1>a day, but a year later it's only one hundred.

114
00:07:09.879 --> 00:07:13.279
<v Speaker 1>So you have to maintain that consumes drilling to maintain

115
00:07:13.360 --> 00:07:17.920
<v Speaker 1>that thousand barrels a day and to maintain your efficiency.

116
00:07:18.360 --> 00:07:21.639
<v Speaker 1>Where what we witness was really incredible that the ACY

117
00:07:21.800 --> 00:07:25.759
<v Speaker 1>chips were originally almost like three hundred jewels per second

118
00:07:25.800 --> 00:07:30.199
<v Speaker 1>consumption of electricity and now they're pushing ten and eleven.

119
00:07:30.639 --> 00:07:33.759
<v Speaker 1>So you've seen Moore's law basically show up in the

120
00:07:33.839 --> 00:07:37.240
<v Speaker 1>acy chips and so will they get down to five

121
00:07:37.319 --> 00:07:41.079
<v Speaker 1>or six jewels per second. So what we've been doing

122
00:07:41.120 --> 00:07:43.639
<v Speaker 1>is buying some of the new ones that have very

123
00:07:43.720 --> 00:07:48.040
<v Speaker 1>low consumption of electricity. And during this past quarter it

124
00:07:48.040 --> 00:07:50.639
<v Speaker 1>has been really difficult. If you'd notice that most of

125
00:07:50.680 --> 00:07:53.360
<v Speaker 1>the bitcoin miners have stopped giving it their monthly production

126
00:07:54.519 --> 00:07:58.079
<v Speaker 1>because we had a freeze in North America, we had

127
00:07:58.079 --> 00:08:01.240
<v Speaker 1>a heat wave in the southern hemisphere, so we had

128
00:08:01.279 --> 00:08:04.360
<v Speaker 1>all these sort of outages, and you also had the

129
00:08:04.439 --> 00:08:08.319
<v Speaker 1>difficulty rising. And so what we found we had to

130
00:08:08.360 --> 00:08:12.519
<v Speaker 1>do was retool our firmware so that we could become

131
00:08:12.800 --> 00:08:17.519
<v Speaker 1>or energy efficient because hot does function over nine time zones,

132
00:08:18.040 --> 00:08:22.920
<v Speaker 1>five languages, and three continents. So we still drive every

133
00:08:23.000 --> 00:08:26.639
<v Speaker 1>day to meet are we being efficient? Every morning we

134
00:08:26.759 --> 00:08:30.519
<v Speaker 1>meet around the world to make sure what machines are

135
00:08:30.519 --> 00:08:33.559
<v Speaker 1>plugged and plugged out and when is the delivery of

136
00:08:33.639 --> 00:08:37.480
<v Speaker 1>one hundred new name machines coming in.

137
00:08:38.080 --> 00:08:41.279
<v Speaker 2>Pardon the interruption. Hi, I'm Tony. I'm the host of

138
00:08:41.279 --> 00:08:43.759
<v Speaker 2>the Thinking Crypto podcast. I wanted to ask you if

139
00:08:43.799 --> 00:08:46.200
<v Speaker 2>you can please support the podcast by hitting the like

140
00:08:46.240 --> 00:08:48.759
<v Speaker 2>button subscribing. If you haven't as yet. You can leave

141
00:08:48.799 --> 00:08:50.919
<v Speaker 2>a comment below as well, and if you're listening on

142
00:08:50.960 --> 00:08:54.000
<v Speaker 2>a podcast platform such as Spotify, Apple or wherever you

143
00:08:54.000 --> 00:08:57.000
<v Speaker 2>get your podcasts, please be sure to follow and hit

144
00:08:57.039 --> 00:08:59.120
<v Speaker 2>the five star rating. I'll let you get back to

145
00:08:59.159 --> 00:09:02.759
<v Speaker 2>the content. Thank you so much, And are you leveraging

146
00:09:02.799 --> 00:09:05.720
<v Speaker 2>AI in any way during the mining process?

147
00:09:06.080 --> 00:09:08.200
<v Speaker 1>You know, when we first launched Hime, being the first

148
00:09:08.200 --> 00:09:12.360
<v Speaker 1>cryptal mining company, it was really originally GPU chips were

149
00:09:12.480 --> 00:09:16.399
<v Speaker 1>using from AMD and we were mining ethereum and at

150
00:09:16.440 --> 00:09:19.559
<v Speaker 1>one time we became six percent of that network. So

151
00:09:19.960 --> 00:09:23.960
<v Speaker 1>we understood GPU chips are much more like driving a

152
00:09:24.080 --> 00:09:29.120
<v Speaker 1>Lamborghini Ferrari than a AC chip is like a Bronco

153
00:09:29.240 --> 00:09:33.600
<v Speaker 1>or a jeep in the difficulty. So we became quite

154
00:09:33.639 --> 00:09:36.360
<v Speaker 1>skilled on it, and in twenty two we start to

155
00:09:36.360 --> 00:09:41.600
<v Speaker 1>pivot away to buy Nvidia chips to mine ethereum antil

156
00:09:41.600 --> 00:09:44.559
<v Speaker 1>Etherorum went away and we started going into AI. So

157
00:09:44.799 --> 00:09:48.120
<v Speaker 1>in fact we're the first to really go into AI.

158
00:09:48.759 --> 00:09:51.639
<v Speaker 1>And now we have a run rate pushing about three

159
00:09:51.679 --> 00:09:55.200
<v Speaker 1>million a month and we see that that will scale

160
00:09:55.519 --> 00:09:59.960
<v Speaker 1>another five hundred five fold this year. On the transfer

161
00:10:01.080 --> 00:10:03.840
<v Speaker 1>and the other big learning curve has been a tier

162
00:10:03.879 --> 00:10:07.600
<v Speaker 1>one data center cash about a million dollars of megawat

163
00:10:08.159 --> 00:10:11.320
<v Speaker 1>with your ACIC machines in them. When you go to

164
00:10:11.559 --> 00:10:15.639
<v Speaker 1>Tier three, which Video likes to call an AI factory,

165
00:10:15.759 --> 00:10:19.480
<v Speaker 1>which I totally agree with this concept, you're talking about

166
00:10:19.639 --> 00:10:24.360
<v Speaker 1>thirty three million dollars per megawat. It's thirty three times

167
00:10:24.360 --> 00:10:27.000
<v Speaker 1>more expensive. So some of the companies say they're jumping

168
00:10:27.039 --> 00:10:29.799
<v Speaker 1>into it and they're partnering with hyperscalers to go use

169
00:10:29.840 --> 00:10:33.320
<v Speaker 1>a repurpose their their centers. I think that's great. What

170
00:10:33.360 --> 00:10:35.399
<v Speaker 1>I'm going to share with you is that it's much

171
00:10:35.480 --> 00:10:39.759
<v Speaker 1>more difficult to build those Tier three data centers. Just

172
00:10:39.840 --> 00:10:44.000
<v Speaker 1>the air conditioning is forty percent of the electricity, and

173
00:10:44.039 --> 00:10:47.039
<v Speaker 1>there's a big backlog of fifty weeks to get a

174
00:10:47.039 --> 00:10:50.440
<v Speaker 1>lot of the HVAC equipment. So it's not so fast

175
00:10:50.480 --> 00:10:53.360
<v Speaker 1>like getting an adminery showing up at the door, and

176
00:10:53.440 --> 00:10:57.000
<v Speaker 1>it takes us six hours to unwrap the plastic cug

177
00:10:57.039 --> 00:11:02.200
<v Speaker 1>it in and as mining, when we get a chip

178
00:11:02.480 --> 00:11:06.720
<v Speaker 1>that's GPU chip, it takes us six weeks to get

179
00:11:06.720 --> 00:11:10.279
<v Speaker 1>it working. It's so sensitive. It's like, like I said earlier,

180
00:11:10.480 --> 00:11:14.879
<v Speaker 1>a Lamborghini or Bugatti going over a bumpy road and

181
00:11:14.919 --> 00:11:17.759
<v Speaker 1>you need a wheel alignment right away. The GPU chips

182
00:11:17.840 --> 00:11:21.200
<v Speaker 1>are much more air conditioning consumed because you're built of

183
00:11:21.240 --> 00:11:25.960
<v Speaker 1>brain and the costs for overall running them. So we

184
00:11:26.639 --> 00:11:28.679
<v Speaker 1>know what we're doing in that end of it, and

185
00:11:28.720 --> 00:11:31.519
<v Speaker 1>we're really excited about what we've been able to show

186
00:11:32.279 --> 00:11:36.720
<v Speaker 1>that Tier win data centers transform into Tier three data

187
00:11:36.720 --> 00:11:40.320
<v Speaker 1>centers faster than starting from scratch for a Tier three

188
00:11:40.399 --> 00:11:43.720
<v Speaker 1>data center. And that's what we've seen in America, and

189
00:11:43.759 --> 00:11:46.320
<v Speaker 1>we've seen this in Canada, and we've seen in Abilene,

190
00:11:46.399 --> 00:11:52.799
<v Speaker 1>Texas where they were sourcing classic bitcoin minors, sourcing surplus electricity,

191
00:11:52.879 --> 00:11:57.360
<v Speaker 1>can some power from solar, from wind and flare gas.

192
00:11:58.000 --> 00:12:02.200
<v Speaker 1>Now it's a five hundred billion dollars spend for chat

193
00:12:02.320 --> 00:12:07.559
<v Speaker 1>GPT because they secure the energy and the land. So

194
00:12:07.840 --> 00:12:11.399
<v Speaker 1>if you're in the data center business and you're in

195
00:12:11.440 --> 00:12:15.559
<v Speaker 1>the AI factory building, you have to go in source electricity,

196
00:12:15.879 --> 00:12:19.799
<v Speaker 1>then the land. And who did it first? Bitcoin miners.

197
00:12:20.480 --> 00:12:23.600
<v Speaker 1>So bookliners are all of a sudden going through a

198
00:12:23.720 --> 00:12:29.759
<v Speaker 1>new generational leap of going into the AI infrastructure buildout,

199
00:12:30.159 --> 00:12:34.039
<v Speaker 1>in particular these concept of AI factories. The reason why

200
00:12:34.080 --> 00:12:38.679
<v Speaker 1>I say that is that most data centers report it

201
00:12:38.720 --> 00:12:43.399
<v Speaker 1>to the CFO, and the CFO always wants to drive

202
00:12:43.440 --> 00:12:49.600
<v Speaker 1>down costs. Today you're seeing that the AI factors report

203
00:12:49.720 --> 00:12:53.360
<v Speaker 1>the CEO, who wants to use it to drive revenue

204
00:12:53.840 --> 00:12:57.879
<v Speaker 1>and to drive cash flow. So the mindset is totally different.

205
00:12:58.320 --> 00:13:02.480
<v Speaker 1>And so that's what HIVES basically has been. This twin

206
00:13:02.600 --> 00:13:06.720
<v Speaker 1>engines to monetize the same megawatch through different cycles. A

207
00:13:06.919 --> 00:13:11.200
<v Speaker 1>six produce institutional great horsepower. And that's the other part

208
00:13:11.240 --> 00:13:15.360
<v Speaker 1>we found is that we don't have an ATM machine

209
00:13:15.399 --> 00:13:19.399
<v Speaker 1>and a data center spinning out little gold bitcoins. It's

210
00:13:19.480 --> 00:13:23.440
<v Speaker 1>just like, I can't believe sometimes these government agencies think this.

211
00:13:24.240 --> 00:13:29.559
<v Speaker 1>We sell hashing power to Foundry, which is SOCKS one

212
00:13:29.600 --> 00:13:33.799
<v Speaker 1>and two compliant in America, and they then pay us

213
00:13:34.279 --> 00:13:39.519
<v Speaker 1>in uncirculated or virgin bitcoin. When it comes to AI,

214
00:13:40.120 --> 00:13:45.159
<v Speaker 1>we sell our computational power to users that run their

215
00:13:45.159 --> 00:13:48.960
<v Speaker 1>big language, large language models and they pay us in

216
00:13:49.120 --> 00:13:53.720
<v Speaker 1>US dollars. There's really no that none of that data

217
00:13:53.759 --> 00:13:56.919
<v Speaker 1>or bitcoin is in our data center or in our

218
00:13:56.960 --> 00:14:02.360
<v Speaker 1>wallet near our facility. It's always done in the cyber world.

219
00:14:03.279 --> 00:14:06.720
<v Speaker 2>It's very fascinating, Frank to your point, bitcoin miners rate

220
00:14:06.720 --> 00:14:09.960
<v Speaker 2>of pioneers in having this dual model if you want

221
00:14:09.960 --> 00:14:12.440
<v Speaker 2>to call that right, the bitcoin mining operation side of

222
00:14:12.440 --> 00:14:15.320
<v Speaker 2>the business and now AI data SAT center support a

223
00:14:15.440 --> 00:14:20.159
<v Speaker 2>type of side of the business. Is the model moving forward,

224
00:14:20.240 --> 00:14:22.399
<v Speaker 2>you know, as AI is becoming more prominent, obviously is

225
00:14:22.440 --> 00:14:23.879
<v Speaker 2>part of our economy and so forth.

226
00:14:24.279 --> 00:14:26.519
<v Speaker 1>Oh, there's no doubt. And then and the other part

227
00:14:26.519 --> 00:14:29.320
<v Speaker 1>I share with you a lot of government policy makers

228
00:14:29.320 --> 00:14:33.600
<v Speaker 1>and agencies they think that this streaming is free. They

229
00:14:33.639 --> 00:14:37.759
<v Speaker 1>think that Netflix is free, YouTube is free. It just

230
00:14:37.879 --> 00:14:42.919
<v Speaker 1>doesn't happen without data centers. And what we're also witnessing

231
00:14:43.519 --> 00:14:48.279
<v Speaker 1>is the huge spend in military for sovereign security by

232
00:14:48.399 --> 00:14:51.399
<v Speaker 1>nation by nation. So when you look at the NATO

233
00:14:51.600 --> 00:14:54.320
<v Speaker 1>spend in the past few years, and you take a

234
00:14:54.360 --> 00:14:57.799
<v Speaker 1>look at America that when they went in under Royal

235
00:14:57.919 --> 00:15:03.039
<v Speaker 1>Reagan to go after Noriega in Panama, twenty three American

236
00:15:03.080 --> 00:15:10.840
<v Speaker 1>soldiers were killed going after Maduro, not one. Why is that, Well,

237
00:15:10.960 --> 00:15:15.159
<v Speaker 1>it's about AI, and it's about the synchronization of AI

238
00:15:15.519 --> 00:15:19.320
<v Speaker 1>with a satellite, with an aircraft carrier, with an F fifteen,

239
00:15:20.159 --> 00:15:24.639
<v Speaker 1>with a helicopter, and with special forces and soldiers. I

240
00:15:24.679 --> 00:15:27.279
<v Speaker 1>was reading that they were able to find that one

241
00:15:27.320 --> 00:15:30.720
<v Speaker 1>of the pilots that was lost in Iran last week

242
00:15:31.159 --> 00:15:35.840
<v Speaker 1>they can detect a heartbeat forty miles away. That's AI

243
00:15:36.840 --> 00:15:40.279
<v Speaker 1>and so we just have to recognize that it's going

244
00:15:40.320 --> 00:15:44.120
<v Speaker 1>to be a game changer for MRI for looking for cancer.

245
00:15:44.200 --> 00:15:47.399
<v Speaker 1>It's going to help us lived longer how they analyzed

246
00:15:47.440 --> 00:15:52.759
<v Speaker 1>blood tests. In addition to national security issues at concerns,

247
00:15:52.799 --> 00:15:57.240
<v Speaker 1>it's really significant game changer. So I feel excited that

248
00:15:57.360 --> 00:16:00.960
<v Speaker 1>we're helping humanity when we think of what we're building

249
00:16:01.000 --> 00:16:05.519
<v Speaker 1>out and transforming bitcoin data centers, not all of them,

250
00:16:05.759 --> 00:16:09.960
<v Speaker 1>but several of our data centers into sovereign data centers.

251
00:16:09.960 --> 00:16:14.519
<v Speaker 1>Of particular in Canada on the border of Maine and Brunswick,

252
00:16:15.440 --> 00:16:20.200
<v Speaker 1>it's seventy megawatts will become fifty megawatts of high performance compute.

253
00:16:20.320 --> 00:16:24.279
<v Speaker 1>And then in Toronto we have other assets which work

254
00:16:24.440 --> 00:16:27.600
<v Speaker 1>in the transformation. And then northern Sweden we're going through

255
00:16:27.679 --> 00:16:32.120
<v Speaker 1>another transformation of a bitcoin mining facility to go into

256
00:16:32.559 --> 00:16:34.039
<v Speaker 1>high performance compute.

257
00:16:35.120 --> 00:16:38.320
<v Speaker 2>And I read on hives website some major news items

258
00:16:38.320 --> 00:16:41.360
<v Speaker 2>I think some of you alluded to. Just recently. We're

259
00:16:41.440 --> 00:16:45.240
<v Speaker 2>high reaches at AI coll milestone in Paraguay and the

260
00:16:45.279 --> 00:16:49.120
<v Speaker 2>expansion of the data center footprint in British Columbia, AMC

261
00:16:49.320 --> 00:16:53.000
<v Speaker 2>Robots and Hive Announcer collaboration to advanced EI driven robotics

262
00:16:53.039 --> 00:16:55.600
<v Speaker 2>compute infrastructure. Do you guys are doing a lot?

263
00:16:56.000 --> 00:16:58.039
<v Speaker 1>We are, And when you look at a simple small

264
00:16:58.120 --> 00:17:01.360
<v Speaker 1>new NASDAC company, I think they were spending a million

265
00:17:01.399 --> 00:17:06.319
<v Speaker 1>dollars a month on accessing those types of Nvidia chips

266
00:17:06.319 --> 00:17:10.200
<v Speaker 1>we talked about. So for us to go and get

267
00:17:10.200 --> 00:17:12.920
<v Speaker 1>that business directly, you know, we have built it up

268
00:17:13.319 --> 00:17:17.519
<v Speaker 1>to about ten thousand customers in eighty countries are renting

269
00:17:17.839 --> 00:17:22.759
<v Speaker 1>our power. You call that compute power. Because we take

270
00:17:22.799 --> 00:17:26.480
<v Speaker 1>electrons and run them through these GPU chips and someone's

271
00:17:26.519 --> 00:17:30.240
<v Speaker 1>renting that. It's really quite significant. So I'm really thrilled

272
00:17:30.359 --> 00:17:34.400
<v Speaker 1>that high business. I mentioned earlier a dual engine digital

273
00:17:34.480 --> 00:17:39.480
<v Speaker 1>infrastructure platform which is converting low cost clean power into

274
00:17:39.519 --> 00:17:44.400
<v Speaker 1>two institutional products r GIN bitcoin from sok to one

275
00:17:44.440 --> 00:17:49.160
<v Speaker 1>and two US audited pool and then contracting with our

276
00:17:49.200 --> 00:17:52.640
<v Speaker 1>GPU chips for our compute how are sold in dollars

277
00:17:52.640 --> 00:17:56.160
<v Speaker 1>and multi year terms. Sometimes people will rent for a

278
00:17:56.240 --> 00:17:58.680
<v Speaker 1>week from us and other times they can rent for

279
00:17:58.720 --> 00:18:02.240
<v Speaker 1>a year. Are very excited. And what we partner with

280
00:18:02.400 --> 00:18:05.319
<v Speaker 1>in Canada in particular is Bell Canada, which is the

281
00:18:05.440 --> 00:18:09.720
<v Speaker 1>largest telecom and they've done an incredible one eighty pivot

282
00:18:10.160 --> 00:18:14.039
<v Speaker 1>into these this concept of AI factories from having a

283
00:18:14.160 --> 00:18:18.519
<v Speaker 1>data center expense so now generating revenue. And so we're

284
00:18:18.599 --> 00:18:22.440
<v Speaker 1>a their strategic partner in Canada in this conversion and

285
00:18:22.480 --> 00:18:25.200
<v Speaker 1>we're using some of their data centers as fast as

286
00:18:25.200 --> 00:18:28.279
<v Speaker 1>they're up. We're putting in our GPW chips to get

287
00:18:28.279 --> 00:18:30.519
<v Speaker 1>a running and generate compute.

288
00:18:30.200 --> 00:18:33.240
<v Speaker 2>Pal Frank, There's been a lot of talks about quantum

289
00:18:33.319 --> 00:18:37.079
<v Speaker 2>computing is a threat to bigwoin bitcoin mining and potentially

290
00:18:37.240 --> 00:18:39.920
<v Speaker 2>to the AI side of the business as well. Is

291
00:18:39.960 --> 00:18:42.519
<v Speaker 2>this simply a narrative? You know, maybe short sellers are

292
00:18:42.640 --> 00:18:45.000
<v Speaker 2>pushing this narrative because they you know, they want prices

293
00:18:45.039 --> 00:18:47.839
<v Speaker 2>they go down, of course. Or is there a little

294
00:18:47.839 --> 00:18:50.400
<v Speaker 2>bit of a threat and companies like yours, like Huys

295
00:18:50.480 --> 00:18:54.720
<v Speaker 2>will eventually upgrade the equipment to have quantum resistant technology

296
00:18:54.759 --> 00:18:55.440
<v Speaker 2>and things like that.

297
00:18:55.920 --> 00:18:58.720
<v Speaker 1>I think it's early to say we jump into a

298
00:18:58.839 --> 00:19:03.559
<v Speaker 1>quant that tech knowlogies very early. It's it's evolving quickly.

299
00:19:05.359 --> 00:19:09.119
<v Speaker 1>It's just the same as saying that AI is all

300
00:19:09.160 --> 00:19:12.440
<v Speaker 1>the negative narratives so often is always negative negative. When

301
00:19:12.440 --> 00:19:15.240
<v Speaker 1>I watch all the guys shorting the stalks and coming

302
00:19:15.240 --> 00:19:19.839
<v Speaker 1>out on CNBC, why it's a bubble, uh, not recognizing

303
00:19:19.920 --> 00:19:23.039
<v Speaker 1>that that anthropic comes out with a run rate of

304
00:19:23.079 --> 00:19:27.279
<v Speaker 1>thirty billion dollars. Uh. You know, that's an incredible growth.

305
00:19:27.359 --> 00:19:30.200
<v Speaker 1>And we look at chat GPT, how fast it grew

306
00:19:30.240 --> 00:19:35.079
<v Speaker 1>to a biggion dollars a month in revenue. So it's

307
00:19:35.119 --> 00:19:39.599
<v Speaker 1>it's a big super cycle. And I think that quantum

308
00:19:39.680 --> 00:19:43.440
<v Speaker 1>will come along. I think it's very very premature. It's

309
00:19:43.519 --> 00:19:48.839
<v Speaker 1>extremely expensive to do what it's going to do. But

310
00:19:48.960 --> 00:19:52.359
<v Speaker 1>I think what if you think about VideA in particular,

311
00:19:52.880 --> 00:19:56.880
<v Speaker 1>and Vidia was a gaming company. It made ships for gamers,

312
00:19:57.359 --> 00:20:00.680
<v Speaker 1>and their real inflection point was two thousand and ten

313
00:20:01.119 --> 00:20:05.440
<v Speaker 1>when they started focusing on taking those GPU chips for AI.

314
00:20:07.079 --> 00:20:10.680
<v Speaker 1>And so now where are we today. We're twenty twenty six,

315
00:20:11.319 --> 00:20:15.400
<v Speaker 1>so we're talking about sixteen years later. So when we

316
00:20:15.440 --> 00:20:19.079
<v Speaker 1>talk about quantum, it's like it's going to be tomorrow. Well,

317
00:20:19.119 --> 00:20:22.440
<v Speaker 1>it's just not true. It's a long way off. And

318
00:20:22.640 --> 00:20:26.319
<v Speaker 1>how things will evolve. How to show far shown has

319
00:20:26.359 --> 00:20:30.519
<v Speaker 1>been able to go through two havings, Pivot, have the

320
00:20:30.599 --> 00:20:35.680
<v Speaker 1>first AI platform where we're generating high barger revue ourselves

321
00:20:35.759 --> 00:20:38.640
<v Speaker 1>and now we're scaling that business. Like last year we

322
00:20:38.759 --> 00:20:43.319
<v Speaker 1>scaled our bitcoin four hundred percent of revenue and cash flow,

323
00:20:43.680 --> 00:20:46.960
<v Speaker 1>and now we're going to scale the HPC business. We're

324
00:20:47.000 --> 00:20:51.200
<v Speaker 1>in a nice position for growth. Yeah.

325
00:20:51.200 --> 00:20:54.480
<v Speaker 2>Absolutely. And I've been telling a lot of people I

326
00:20:54.519 --> 00:20:58.160
<v Speaker 2>feel like this is just narrators being pushed. You know where,

327
00:20:58.160 --> 00:21:01.119
<v Speaker 2>what was this narrative before our bitcoin went to one

328
00:21:01.160 --> 00:21:03.400
<v Speaker 2>twenty six last year? All of a sudden the price

329
00:21:03.440 --> 00:21:05.839
<v Speaker 2>starts going down, and they're in this. They're pushing this

330
00:21:05.960 --> 00:21:08.160
<v Speaker 2>quantum narrative very strongly.

331
00:21:09.359 --> 00:21:14.359
<v Speaker 1>Yes, it's always looking for something negative. And AI has been,

332
00:21:14.519 --> 00:21:16.440
<v Speaker 1>like I said, has been around for hedge funds that

333
00:21:16.440 --> 00:21:18.240
<v Speaker 1>have been using it for a long time. The number

334
00:21:18.279 --> 00:21:22.240
<v Speaker 1>one profest performing heads front the world mathematician was using

335
00:21:22.640 --> 00:21:27.720
<v Speaker 1>uh these GPU chips built Jim Simmons for renaissance technology,

336
00:21:27.799 --> 00:21:30.920
<v Speaker 1>and no one's ever come close to his returns of

337
00:21:30.920 --> 00:21:35.000
<v Speaker 1>what he did generated for investors. So I think that

338
00:21:35.000 --> 00:21:38.599
<v Speaker 1>that the evolution for everyone to grasp us the fact

339
00:21:38.599 --> 00:21:40.720
<v Speaker 1>that we got open chat a few years back, and

340
00:21:40.759 --> 00:21:42.880
<v Speaker 1>that was the wake up call to wow, this is

341
00:21:43.000 --> 00:21:45.839
<v Speaker 1>quite incredible. And I use all four of them. I

342
00:21:45.960 --> 00:21:51.559
<v Speaker 1>use Perplexity, I use rock, I use clode UH and

343
00:21:51.599 --> 00:21:54.920
<v Speaker 1>I use shot GPT and they're all different. They all

344
00:21:54.920 --> 00:21:59.680
<v Speaker 1>give you different information and nuances. And the biggest thing

345
00:21:59.720 --> 00:22:01.680
<v Speaker 1>I shoul share with the listeners you really have to

346
00:22:01.720 --> 00:22:05.240
<v Speaker 1>dig down with the quality of your prompt, the depth

347
00:22:05.319 --> 00:22:08.079
<v Speaker 1>and breadth of your plant. And I sometimes find myself

348
00:22:08.079 --> 00:22:10.799
<v Speaker 1>writing an essay of two hundred and fifty words in

349
00:22:10.839 --> 00:22:13.799
<v Speaker 1>a prompt so that I can get great data coming

350
00:22:13.920 --> 00:22:17.559
<v Speaker 1>out of it. And then I was reading that a

351
00:22:17.640 --> 00:22:20.720
<v Speaker 1>person that created a claw, which was really highlighted by

352
00:22:20.839 --> 00:22:24.039
<v Speaker 1>Jensen at his big conference a couple of weeks back,

353
00:22:25.160 --> 00:22:30.200
<v Speaker 1>was a basically self taught coder from Vienna, and he

354
00:22:30.400 --> 00:22:33.559
<v Speaker 1>changes the whole world that you don't have to know

355
00:22:33.920 --> 00:22:37.880
<v Speaker 1>how to code these five languages. You have to know

356
00:22:37.920 --> 00:22:41.880
<v Speaker 1>how to write a language that is English Spanish. Usually

357
00:22:41.920 --> 00:22:45.640
<v Speaker 1>got to be able to type in a great prompt

358
00:22:45.920 --> 00:22:48.480
<v Speaker 1>and it will then turn around and start in that

359
00:22:48.599 --> 00:22:52.079
<v Speaker 1>language you want. If you want it in Python, it

360
00:22:52.079 --> 00:22:54.440
<v Speaker 1>will all of a sudden create a whole compliance system,

361
00:22:54.640 --> 00:22:58.359
<v Speaker 1>the whole sales and marketing system for you in Python.

362
00:22:59.200 --> 00:23:01.480
<v Speaker 1>But before you had to go hire a three hundred

363
00:23:01.480 --> 00:23:05.319
<v Speaker 1>thousand dollars Python coder. Now you and I can do it.

364
00:23:06.400 --> 00:23:07.960
<v Speaker 1>That the game changer.

365
00:23:09.519 --> 00:23:12.440
<v Speaker 2>Yeah, it's it's incredible the amount of power you have

366
00:23:12.519 --> 00:23:16.799
<v Speaker 2>at your fingertips with these AI programs and so forth.

367
00:23:17.359 --> 00:23:19.519
<v Speaker 1>Yeah, so it's very, very exciting to be part of

368
00:23:19.559 --> 00:23:23.799
<v Speaker 1>this change for humanity. The infrastructure that we're putting in

369
00:23:23.880 --> 00:23:24.680
<v Speaker 1>around the world.

370
00:23:25.960 --> 00:23:29.960
<v Speaker 2>Absolutely. Frank, here in the United States, we are trying

371
00:23:30.000 --> 00:23:33.920
<v Speaker 2>to get crypto legislation passed. It's being held up a bit.

372
00:23:34.039 --> 00:23:36.799
<v Speaker 2>You know, the banks are fighting back on stable coin yield,

373
00:23:36.960 --> 00:23:40.039
<v Speaker 2>but it seems like we're going to get something potentially

374
00:23:40.079 --> 00:23:42.880
<v Speaker 2>this year. What impact that you think this has on

375
00:23:43.000 --> 00:23:45.880
<v Speaker 2>the adoption of bitcoin and the growth of the bitcoin

376
00:23:45.960 --> 00:23:48.920
<v Speaker 2>mining industry that you know, we have the kind of

377
00:23:48.920 --> 00:23:51.680
<v Speaker 2>the guardrails in place, and not necessarily a bigcoin needs

378
00:23:51.960 --> 00:23:54.920
<v Speaker 2>much of that, but rather to allow more capital innovation

379
00:23:55.200 --> 00:23:55.519
<v Speaker 2>to have.

380
00:23:56.039 --> 00:24:00.000
<v Speaker 1>Well, there's a tension between what is a micro phenomenon

381
00:24:00.759 --> 00:24:03.880
<v Speaker 1>and what is micro. So when I talk about micro's

382
00:24:03.920 --> 00:24:07.599
<v Speaker 1>specifically your question in America, but if you are in

383
00:24:07.640 --> 00:24:12.480
<v Speaker 1>the Beltway in DC, you have to wrestle with China

384
00:24:12.839 --> 00:24:17.640
<v Speaker 1>has weaponized gold as an alternative acid class and to

385
00:24:17.880 --> 00:24:21.640
<v Speaker 1>de dollarize and get petrol dollars to be converted into

386
00:24:22.599 --> 00:24:25.839
<v Speaker 1>Chinese wand as they buy more gold to say we're legitimate.

387
00:24:26.519 --> 00:24:29.519
<v Speaker 1>There's this big battle. And what you've seen now is

388
00:24:29.559 --> 00:24:34.880
<v Speaker 1>that Chinese have invested are loaned seventy five percent of

389
00:24:34.960 --> 00:24:39.240
<v Speaker 1>the United Nations countries. There's one hundred and ninety three

390
00:24:39.279 --> 00:24:43.119
<v Speaker 1>countries in the United Nations. They have invested in one

391
00:24:43.240 --> 00:24:46.400
<v Speaker 1>hundred and fifty of them. So their tentacles are into

392
00:24:46.559 --> 00:24:50.960
<v Speaker 1>don't trade in dollars. So all comes to this incredible

393
00:24:50.960 --> 00:24:54.559
<v Speaker 1>company called Teather that shows you that people in emerging

394
00:24:54.680 --> 00:24:57.480
<v Speaker 1>markets they want to own US dollars. And it's a

395
00:24:57.519 --> 00:25:00.839
<v Speaker 1>stable coin system. No America is to own it, No

396
00:25:00.920 --> 00:25:04.240
<v Speaker 1>Europeans own it, but it grows to a population of

397
00:25:04.240 --> 00:25:09.279
<v Speaker 1>about four hundred million wallets, it trades that it's the

398
00:25:09.279 --> 00:25:13.920
<v Speaker 1>most profitable group of software coders you can think of.

399
00:25:14.039 --> 00:25:17.279
<v Speaker 1>I mean that we're talking thirteen bigion dollars of profits

400
00:25:17.279 --> 00:25:20.480
<v Speaker 1>for the one hundred and seventy five employees is really

401
00:25:20.559 --> 00:25:24.079
<v Speaker 1>quite amazing. And what I think Washington is looking to

402
00:25:24.119 --> 00:25:28.400
<v Speaker 1>try to do is to embrace this technology, to embrace

403
00:25:28.440 --> 00:25:31.240
<v Speaker 1>the stable coin because they want the rest of the

404
00:25:31.279 --> 00:25:34.599
<v Speaker 1>world to own US dollars because it helps fund all

405
00:25:34.640 --> 00:25:38.079
<v Speaker 1>the deficits and it helps fund liquidity around the world,

406
00:25:38.640 --> 00:25:41.480
<v Speaker 1>and so we are going with some of the big

407
00:25:41.519 --> 00:25:44.920
<v Speaker 1>money center banks trying to stop this because they're worried

408
00:25:44.960 --> 00:25:48.039
<v Speaker 1>about money market funds would leave the banks and then

409
00:25:48.079 --> 00:25:51.240
<v Speaker 1>go to go to this stable coin paying rewards or

410
00:25:51.279 --> 00:25:56.240
<v Speaker 1>a coupon, and that's your battle that's going to take place.

411
00:25:56.319 --> 00:26:00.960
<v Speaker 1>But I think the macro dynamic is probably more significant

412
00:26:01.279 --> 00:26:04.200
<v Speaker 1>of pushing back the banks of saying you know what,

413
00:26:04.279 --> 00:26:08.279
<v Speaker 1>we're going to pit because strangely enough, the Chinese came

414
00:26:08.279 --> 00:26:11.559
<v Speaker 1>out with their stable coin and their PEG rewards. They're

415
00:26:11.559 --> 00:26:15.839
<v Speaker 1>doing everything to undermine the global network of trading in

416
00:26:16.000 --> 00:26:21.119
<v Speaker 1>US dollars. And so that is the macro thesis where

417
00:26:21.559 --> 00:26:25.400
<v Speaker 1>Teather shows it works. They also have a very successful

418
00:26:25.480 --> 00:26:31.680
<v Speaker 1>gold stable coin. It's really profound how much as grown

419
00:26:31.759 --> 00:26:35.000
<v Speaker 1>and significance. Then, so I think the US government wants

420
00:26:35.079 --> 00:26:37.559
<v Speaker 1>to have their stable coin and to be able to

421
00:26:37.599 --> 00:26:41.960
<v Speaker 1>pay those title rewards, and that means that US dollar

422
00:26:42.160 --> 00:26:46.359
<v Speaker 1>is able to continue to be the dominant keep rates lower.

423
00:26:48.240 --> 00:26:51.880
<v Speaker 1>Some people believe that masks inflation. If we go to

424
00:26:51.920 --> 00:26:56.759
<v Speaker 1>the basket. Inflation came out this past week. If you

425
00:26:56.880 --> 00:27:02.079
<v Speaker 1>looked at the basket in nineteen eighty, some economists are

426
00:27:02.079 --> 00:27:05.839
<v Speaker 1>saying inflation is nine percent, it's not three point sapat,

427
00:27:06.400 --> 00:27:09.200
<v Speaker 1>so you have a negative real rate of return. So

428
00:27:09.359 --> 00:27:12.359
<v Speaker 1>I think that this debate goes back and forth, and

429
00:27:12.480 --> 00:27:16.000
<v Speaker 1>goal bumps like to jump on and bitcoin fanatics like

430
00:27:16.000 --> 00:27:18.519
<v Speaker 1>to go jump on the same part because they really

431
00:27:18.559 --> 00:27:22.599
<v Speaker 1>don't like the government deficit. But what's different is that

432
00:27:22.640 --> 00:27:29.799
<v Speaker 1>the US dollar is global and bitcoin is global, and

433
00:27:30.240 --> 00:27:33.279
<v Speaker 1>as we get more tethers or US comes with their

434
00:27:33.319 --> 00:27:37.240
<v Speaker 1>own and more stable coins with US dollars, then it

435
00:27:37.279 --> 00:27:41.079
<v Speaker 1>becomes the centralized like bitcoin, and it creates us that

436
00:27:41.160 --> 00:27:44.000
<v Speaker 1>either you buy this stable coin with US dollars or

437
00:27:44.079 --> 00:27:47.400
<v Speaker 1>better liquidity and stability. And if you want to move

438
00:27:47.480 --> 00:27:49.799
<v Speaker 1>other assets that you want to have the ultimate of

439
00:27:49.880 --> 00:27:54.000
<v Speaker 1>scarcity is bitcoin, then you go on bitcoin. So bitcoin

440
00:27:54.039 --> 00:27:59.839
<v Speaker 1>will become wealth preservation like goal is, and trade will

441
00:27:59.839 --> 00:28:04.640
<v Speaker 1>be come stable coins. And I think we're witnessing is

442
00:28:04.720 --> 00:28:08.519
<v Speaker 1>coming back. Is the big money center banks want to

443
00:28:08.559 --> 00:28:10.920
<v Speaker 1>slow it down so they can run as fast as

444
00:28:10.920 --> 00:28:13.519
<v Speaker 1>they can to get their own stable coins out there.

445
00:28:14.880 --> 00:28:17.160
<v Speaker 2>Yeah. I think I've been telling a lot of people

446
00:28:17.319 --> 00:28:20.480
<v Speaker 2>about that. Look, their need incumbents and they feel threatened

447
00:28:20.559 --> 00:28:23.799
<v Speaker 2>right disruptive technologies at their doorstep, But many of them

448
00:28:23.799 --> 00:28:25.759
<v Speaker 2>have talked about launching their own stable coins, and to

449
00:28:25.839 --> 00:28:29.240
<v Speaker 2>your point, the geopolitical landscape, the US is trying to

450
00:28:29.240 --> 00:28:32.680
<v Speaker 2>push US duller stable coins across the globe. So I

451
00:28:32.960 --> 00:28:37.240
<v Speaker 2>think that, you know, factor that catalyst outweighs what the

452
00:28:37.279 --> 00:28:39.319
<v Speaker 2>banks are trying to do as far as slowing things down.

453
00:28:40.119 --> 00:28:42.599
<v Speaker 1>Yes, freak.

454
00:28:42.759 --> 00:28:45.119
<v Speaker 2>You know here in the United States we've got some

455
00:28:45.359 --> 00:28:48.319
<v Speaker 2>level of a strategic bigcoin reserve. We're still ironing out

456
00:28:48.319 --> 00:28:51.240
<v Speaker 2>a few details, and some other countries across the globe

457
00:28:51.279 --> 00:28:52.640
<v Speaker 2>have also started doing this.

458
00:28:52.960 --> 00:28:55.839
<v Speaker 1>Do you feel that that's going to further grow?

459
00:28:55.960 --> 00:28:57.599
<v Speaker 2>You know, more countries is going to look to establish

460
00:28:57.599 --> 00:29:00.680
<v Speaker 2>a bigcoin reserve, you know kind of they have their

461
00:29:01.000 --> 00:29:03.160
<v Speaker 2>gold reserves at their central banks and things like that.

462
00:29:03.960 --> 00:29:08.480
<v Speaker 1>I think it will accelerate if the Republican Party wins

463
00:29:09.319 --> 00:29:13.119
<v Speaker 1>the next big election that you need the sort of

464
00:29:13.160 --> 00:29:16.359
<v Speaker 1>an eight year run to get the rest of the

465
00:29:16.400 --> 00:29:20.599
<v Speaker 1>countries really buying into it. I think the most technology

466
00:29:20.640 --> 00:29:25.160
<v Speaker 1>advanced leaders in the world will take a look at

467
00:29:25.200 --> 00:29:29.599
<v Speaker 1>having that. And so if they do catch illegal trades

468
00:29:29.640 --> 00:29:32.759
<v Speaker 1>and they confiscate that wallet, they're not going to really

469
00:29:32.799 --> 00:29:34.960
<v Speaker 1>sell it right away. They're going to start building a reserve.

470
00:29:35.400 --> 00:29:39.079
<v Speaker 1>I think that that will be the first step, because

471
00:29:39.119 --> 00:29:44.119
<v Speaker 1>what often you know, they go confiscate cars and these

472
00:29:44.119 --> 00:29:46.880
<v Speaker 1>things where they arrest are Narco and they took away

473
00:29:46.880 --> 00:29:49.720
<v Speaker 1>all of his toys and they have a big auction

474
00:29:49.920 --> 00:29:51.960
<v Speaker 1>and the real estate and Texas they're going to have

475
00:29:51.960 --> 00:29:54.400
<v Speaker 1>a big auction. Well, I think that you don't have

476
00:29:54.440 --> 00:29:57.039
<v Speaker 1>to worry about the auction to get those dollars. You

477
00:29:57.160 --> 00:30:00.880
<v Speaker 1>just turn around and convert those stable coins from one

478
00:30:00.880 --> 00:30:04.839
<v Speaker 1>controlled entity into the government's stockpile and they start to

479
00:30:04.920 --> 00:30:07.880
<v Speaker 1>collect it that way. I think that that will be

480
00:30:09.559 --> 00:30:13.279
<v Speaker 1>a journey that will be easily adopted by countries. Then

481
00:30:13.680 --> 00:30:16.519
<v Speaker 1>you will take a look at it as being like goal.

482
00:30:19.039 --> 00:30:22.519
<v Speaker 2>Yeah, And I often have to remind myself like bitcoin

483
00:30:22.680 --> 00:30:25.160
<v Speaker 2>is still a teenager for just sixteen years in and

484
00:30:25.319 --> 00:30:27.400
<v Speaker 2>sometimes you want things to go faster, but it does

485
00:30:27.440 --> 00:30:29.720
<v Speaker 2>take time. In governments, they don't move very fast.

486
00:30:30.519 --> 00:30:33.000
<v Speaker 1>Yes, And I can share with you in our experience

487
00:30:33.039 --> 00:30:37.880
<v Speaker 1>in Sweden with government agencies and in Canada, like I

488
00:30:37.960 --> 00:30:41.119
<v Speaker 1>mentioned earlier, they think you have this ATM machine in

489
00:30:41.160 --> 00:30:44.720
<v Speaker 1>your data center and it's just not so. And you're

490
00:30:44.799 --> 00:30:49.720
<v Speaker 1>selling a compute power one is harsh power and is

491
00:30:50.160 --> 00:30:57.079
<v Speaker 1>recognizing that and it's also recognizing that countries like Sweden

492
00:30:57.200 --> 00:31:01.519
<v Speaker 1>and Canada they never they really would after their fintech business.

493
00:31:02.119 --> 00:31:06.599
<v Speaker 1>And bitcoin is a critical spoke in the fintech ecosystem

494
00:31:07.640 --> 00:31:10.640
<v Speaker 1>and it's recognized as stable coins is another spoke in

495
00:31:10.680 --> 00:31:15.000
<v Speaker 1>that wheel. And when we talk to Canadian banks, oh,

496
00:31:15.160 --> 00:31:16.839
<v Speaker 1>we would like to do your data center business, but

497
00:31:16.880 --> 00:31:19.000
<v Speaker 1>you'll have to go to New York City because that's

498
00:31:19.000 --> 00:31:22.839
<v Speaker 1>where fintech analysts are, that's where the fintech conferences are.

499
00:31:23.160 --> 00:31:26.440
<v Speaker 1>And in Sweden they go after their biggest unicorn as

500
00:31:26.440 --> 00:31:32.799
<v Speaker 1>a fintech company with all these incredible overreaching that they're

501
00:31:32.839 --> 00:31:37.200
<v Speaker 1>not doing their aml KYC correct, which is just nonsense

502
00:31:37.240 --> 00:31:41.400
<v Speaker 1>because it's all automated, it's all with AI and so

503
00:31:41.720 --> 00:31:45.440
<v Speaker 1>it's just the banks in those countries are oligopoly. So

504
00:31:45.599 --> 00:31:49.440
<v Speaker 1>Canada has five banks and they blocked out they controlled

505
00:31:49.519 --> 00:31:52.920
<v Speaker 1>ninety four percent of all savings and investing, so they

506
00:31:53.039 --> 00:31:58.160
<v Speaker 1>basically block out adoption, innovation, and the same thing happens

507
00:31:58.200 --> 00:32:02.599
<v Speaker 1>in countries in Europe. It's predominantly we always think of America,

508
00:32:02.640 --> 00:32:05.759
<v Speaker 1>it's it's banking. No, it's the beer business. The beer

509
00:32:05.799 --> 00:32:08.759
<v Speaker 1>business in America is an oligopoly. There's only a few

510
00:32:08.880 --> 00:32:11.160
<v Speaker 1>real brewers. You know, you take a look at how

511
00:32:11.240 --> 00:32:14.720
<v Speaker 1>much they control all the network. The banking in most

512
00:32:14.799 --> 00:32:20.000
<v Speaker 1>other countries is an oligopoly, and there's so there's this protectionism,

513
00:32:20.559 --> 00:32:24.720
<v Speaker 1>and I think with America it's not. I think we have.

514
00:32:25.200 --> 00:32:28.279
<v Speaker 1>When I first moved here thirty five years ago, there

515
00:32:28.359 --> 00:32:32.680
<v Speaker 1>was like fourteen thousand banks, and now they're down to

516
00:32:32.960 --> 00:32:37.200
<v Speaker 1>seven thousand. But still there's many state charters and many

517
00:32:37.319 --> 00:32:42.559
<v Speaker 1>federal charters. So it's a it's more decentralized, dynamic ecosystem

518
00:32:42.599 --> 00:32:45.440
<v Speaker 1>in America, and so I think it will come through

519
00:32:45.680 --> 00:32:49.880
<v Speaker 1>and America will show that leadership with other countries over

520
00:32:49.920 --> 00:32:53.680
<v Speaker 1>the next six to eight years. Yeah.

521
00:32:53.759 --> 00:32:57.160
<v Speaker 2>Great, great insights there, Frank, you guys are doing a

522
00:32:57.200 --> 00:32:59.640
<v Speaker 2>lot and we covered a lot. But anything else that's

523
00:32:59.680 --> 00:33:02.599
<v Speaker 2>on your roadmap that you want to highlight, Yeah.

524
00:33:02.480 --> 00:33:05.119
<v Speaker 1>I think it's just treaty for people to be thankful

525
00:33:05.160 --> 00:33:10.039
<v Speaker 1>and grateful that we have this incredible country that that

526
00:33:10.640 --> 00:33:15.039
<v Speaker 1>rewards innovation. Everyone wants to have the story their kids

527
00:33:15.039 --> 00:33:19.200
<v Speaker 1>in America that Steve jobs in the garage in Ben's Apple.

528
00:33:19.640 --> 00:33:24.200
<v Speaker 1>That sort of dream is very much instilled, and we

529
00:33:24.359 --> 00:33:28.119
<v Speaker 1>see that not so in other countries because we function

530
00:33:28.200 --> 00:33:30.640
<v Speaker 1>these other countries. So we are trying to do as

531
00:33:30.720 --> 00:33:34.640
<v Speaker 1>much as possible in education and Paraguay, and we started

532
00:33:34.640 --> 00:33:38.359
<v Speaker 1>with kids schools, so every kid's school within one kilometer

533
00:33:38.799 --> 00:33:42.000
<v Speaker 1>is getting new air condition because it's very hot there,

534
00:33:43.039 --> 00:33:48.839
<v Speaker 1>and they're getting new lighting, new chalkboards, new bathrooms, everything

535
00:33:48.880 --> 00:33:52.599
<v Speaker 1>new and starlink. We're bringing in starlink for the for

536
00:33:52.640 --> 00:33:56.240
<v Speaker 1>the principals and teachers so that they have Wi Fi

537
00:33:56.440 --> 00:34:01.680
<v Speaker 1>in those schools. Wherever they're here are our facilities. So

538
00:34:02.000 --> 00:34:05.400
<v Speaker 1>we're doing everything to try to instill that American dream

539
00:34:05.839 --> 00:34:08.320
<v Speaker 1>and the same thing. You know, you go to northern Sweden,

540
00:34:09.440 --> 00:34:13.639
<v Speaker 1>the big thing is hockey. Everything is hockey. It's interesting,

541
00:34:13.679 --> 00:34:17.119
<v Speaker 1>but still the idea that you could be another Steve Jobs,

542
00:34:17.400 --> 00:34:20.639
<v Speaker 1>it's not totally there. They're going to relate to, well,

543
00:34:20.639 --> 00:34:23.639
<v Speaker 1>maybe I could be Spotify or maybe I could be

544
00:34:23.719 --> 00:34:28.840
<v Speaker 1>a gamer, but that idea of inspiring that is something

545
00:34:28.880 --> 00:34:32.800
<v Speaker 1>that we feel pretty good about what Hive does. Wherever

546
00:34:32.840 --> 00:34:33.960
<v Speaker 1>we put a data center.

547
00:34:35.360 --> 00:34:38.000
<v Speaker 2>I love it, Frank, that's amazing. I love the work

548
00:34:38.000 --> 00:34:40.239
<v Speaker 2>that you guys are doing there and helping folks in

549
00:34:40.239 --> 00:34:40.960
<v Speaker 2>these countries.

550
00:34:41.920 --> 00:34:42.239
<v Speaker 1>Frank.

551
00:34:42.400 --> 00:34:44.639
<v Speaker 2>Always a pleasure, and I'm sure we're going to do

552
00:34:44.679 --> 00:34:47.440
<v Speaker 2>another episode later this year, and now looking forward to

553
00:34:47.480 --> 00:34:50.079
<v Speaker 2>seeing you maybe at another conference here. But thank you

554
00:34:50.119 --> 00:34:50.920
<v Speaker 2>so much for joining me.

555
00:34:51.119 --> 00:34:53.519
<v Speaker 1>Well, thank you and buy the dip in Hotal.

556
00:34:54.079 --> 00:34:58.119
<v Speaker 2>Absolutely, thank you so much for tuning in. Please hit

557
00:34:58.159 --> 00:35:00.360
<v Speaker 2>the like button subscribe if you have any as yet.

558
00:35:00.440 --> 00:35:03.320
<v Speaker 2>If you're listening on a podcast platform such as Spotify

559
00:35:03.360 --> 00:35:06.039
<v Speaker 2>or Apple, please follow and leave a five star rating.

560
00:35:06.400 --> 00:35:07.159
<v Speaker 2>Thank you so much