Latest / Simply Bitcoin / BREAKING: Blackrock SAYS Sovereign Wealth Funds Are Buying Bitcoin!! | EP 1391

Transcript

BREAKING: Blackrock SAYS Sovereign Wealth Funds Are Buying Bitcoin!! | EP 1391 · Simply Bitcoin

• 0:00
  No Did Larry Fink, Blackrock's CEO, just expose the truth
• 0:05
  surrounding the recent Bitcoin price crash in a new interview
• 0:10
  that just dropped recently? He made three very interesting
• 0:14
  points about who is buying Bitcoin, who is buying this
• 0:18
  Bitcoin dip, and why it happened.
• 0:21
  You guys are going to want to stay tuned because this is
• 0:24
  breaking effing news, ladies and gentlemen, and let's take a look
• 0:29
  at what Larry Fink, the CEO of the largest asset manager in the
• 0:34
  world, BlackRock, had to say about who's buying Bitcoin these
• 0:40
  days. From we're seeing more and more
• 0:43
  legitimate long only investors investing in it.
• 0:45
  There was an article about a, a foundation that endowment just
• 0:49
  bought a lot of Ibit, but I can tell you there are a number of
• 0:53
  sovereign funds that are standing by.
• 0:56
  They're adding incrementally at 1:20 at 1100, they brought, I
• 1:01
  know they bought more in the 80s.
• 1:03
  That's fine. And they're, they're
• 1:05
  establishing a longer position. And then you own it over years.
• 1:09
  This is not a trade. You own it for a purpose.
• 1:12
  So there he is with the CEO of the largest crypto exchange,
• 1:16
  Brian Armstrong, sitting right next to him, and he's getting
• 1:20
  interviewed. And he's basically saying like,
• 1:22
  look, Bitcoin is being bought by.
• 1:26
  Did I hear that correctly, Opti, or am I just imagining stuff?
• 1:29
  Yeah. Multiple sovereign wealth funds
• 1:31
  multiple. Sovereign wealth funds are
• 1:33
  buying Bitcoin now. We know a couple of them by
• 1:36
  name. My prediction is I think it's
• 1:39
  just a matter of time before the United States of America,
• 1:42
  especially with the Trump administration, announces that
• 1:45
  it is establishing A strategic Bitcoin reserve.
• 1:48
  We'll get to more of that during the news segment because the
• 1:52
  Bitcoin senator dropped a huge hint.
• 1:54
  But before we get to all of that, I do want to play this
• 1:57
  clip by Larry Fink as well. Bitcoin is an asset of fear, and
• 2:04
  when you're less fearful, like we had a trade agreement with
• 2:09
  China, you saw a shift downward. There is conversations this week
• 2:14
  that there may be some type of settlement in Ukraine.
• 2:17
  Bitcoin fell a little bit. So you own Bitcoin because
• 2:23
  you're frightened of your physical security, you own it
• 2:26
  because you're frightened of your financial security.
• 2:30
  The long term fundamental reason you own it because the
• 2:32
  debasement of financial assets because of deficits.
• 2:38
  And so to me even the movement in the last week and we've had
• 2:41
  about a 2025% drawdown and this is the third time since I bet
• 2:45
  was created our ETF. And so this is you see these
• 2:50
  shifts and it's they're actually pretty non correlated shifts.
• 2:54
  And that's and so the role. But then some people say, is
• 2:57
  that really insurance right? If you had bought it at $125,000
• 3:00
  and it's now sitting at 90 some odd $1000, you're saying if you.
• 3:03
  Bought it for a trade, you know it's a very volatile asset.
• 3:06
  You're going to have to be really good at market timing,
• 3:08
  which most people aren't. If you're buy it as a hedge
• 3:12
  against all your hope, you know, then it has a meaningful impact
• 3:18
  on a portfolio. The bigger the other big prom of
• 3:21
  Bitcoin is it is still heavily influenced by leveraged players.
• 3:27
  So Opti, I mean, a lot of confirmations to a lot of some
• 3:32
  thesis, a lot of theories that we had here at Simply Bitcoin.
• 3:37
  I'm vindicated. Could you break down what Larry
• 3:40
  Fink just just said? All right, well, first of all,
• 3:43
  you know, let's start with the first news or the first clip
• 3:46
  rather, which is something I've been kind of saying on the show.
• 3:50
  I was, I've actually been kind of saying this on a hunch the
• 3:53
  last couple of weeks, which is why I'm not convinced that we're
• 3:57
  going, you know, we're going to have a huge 7080% drawdown in a
• 4:01
  bear market. To me, if we're looking at the
• 4:03
  Bitcoin price, if you're looking at yearly candles, 2025 was the
• 4:07
  bear market. And like Nico's been saying for
• 4:09
  a while, since we didn't really get a blow off top, we probably
• 4:12
  won't be seeing, you know, a huge steep decline in a bear
• 4:16
  market. Now what I heard from that
• 4:20
  second Larry Fink clip, the first part I, I kind of
• 4:23
  fundamentally disagree. I look at Bitcoin more as like
• 4:26
  hope. You know, Bitcoin is hope.
• 4:28
  Remember, go to hope.com. Like Bitcoin isn't just an asset
• 4:32
  that you hold because you're afraid.
• 4:34
  It's also one that you hold because you think the future
• 4:36
  will be better. If you understand what's going
• 4:39
  on in the traditional financial world, you understand how Fiat
• 4:41
  money works. That is really the asset of
• 4:44
  fear, like the the traditional Fiat money.
• 4:46
  What? What do you you always say,
• 4:47
  Nico? Fiat is is the money of war.
• 4:51
  I I forget what you always say. Fiat is the money of nihilism,
• 4:54
  despair, poverty, destruction and then Bitcoin is the money of
• 4:59
  hope. Now it's really interesting to
• 5:01
  kind of add to your point, Opti, how Larry Fink is echoing that
• 5:06
  same that those same talking points, which I find quite
• 5:10
  interesting. Yeah, and then further I I
• 5:12
  didn't actually bring up the the third clip, but Larry Fink also
• 5:16
  in this speech, it's like the deal book Summit to Andrew
• 5:19
  Sorkin's kind of Andrew Ross Sorkin's It's a conference or
• 5:23
  whatever brings in all the the influencers.
• 5:26
  He also troubled tripled down on the fact that he was wrong about
• 5:30
  Bitcoin. It's actually kind of a funny
• 5:31
  clip because Andrew Andrew Ross Sorkin was like, yeah, I mean,
• 5:34
  Larry, you were saying a few years ago that Bitcoin is what
• 5:38
  was it an index of money lender or money launderers?
• 5:41
  And Larry thinks I was like, yeah, and thieves and thieves.
• 5:45
  And I was like, yo, that's actually got a kind of
• 5:48
  hilarious. So, you know, Larry Fink's been
• 5:51
  saying, look, that was a very public mistake.
• 5:54
  Or rather, you know, he was wrong, very publicly wrong about
• 5:58
  Bitcoin. And now what we're seeing is as
• 6:01
  2025 has progressed, we've all been wondering like, who is
• 6:05
  actually buying this Bitcoin? Remember, I've been covering on
• 6:08
  the show for you guys all year long, the amount of coin that's
• 6:10
  been hitting the exchange. And you, you look at all the
• 6:14
  coins, it's over hundreds of thousands of coins that hit the
• 6:17
  exchange. And it makes you wonder, OK,
• 6:19
  we've been above 100K for a very long time.
• 6:22
  You know, the timing is a little coincidental that once JP Morgan
• 6:25
  launches a Bitcoin product, once Vanguard comes into Bitcoin,
• 6:29
  those are literally the days that they're like the absolute
• 6:32
  bottoms of those little trading kind of epochs.
• 6:36
  Like they're, they're basically buying bottoms right now.
• 6:39
  You know, they launch a product, it comes out and Bitcoin bottoms
• 6:43
  out. It makes you really wonder what
• 6:44
  is going on in the market? How are they able able to kind
• 6:47
  of crash the price right when they launch these new products?
• 6:51
  You're like there is some shenanigans going on.
• 6:53
  And if you listen very closely to the very end of that clip, I
• 6:58
  think this is where I've been saying for a while, it's it's
• 7:02
  been a hunch of mine that what we're seeing in the markets is
• 7:06
  they are trying to clear leverage.
• 7:08
  I covered it yesterday on yesterday's show or was it?
• 7:11
  Yeah, it was on yesterday's show.
• 7:13
  And Larry Fink came out today and said, well, it was really
• 7:16
  after the show. I I don't think he's listening.
• 7:18
  I I think he's just kind of exposing the playbook here.
• 7:21
  He said, look, currently the Bitcoin market is being run by
• 7:26
  leveraged players. And what have they been doing?
• 7:29
  They've been like a seeking missile trying to deleverage the
• 7:33
  market. They're they're trying to
• 7:34
  liquidate all these leveraged traders.
• 7:36
  And Larry Fink literally just said the exact same thing.
• 7:39
  He's like, he didn't actually come out and be like, yeah,
• 7:42
  we're we're we're seeking the leverage here.
• 7:44
  Like we want to seek the leverage.
• 7:46
  But if you you understand how markets work, you understand
• 7:49
  that this is what they're going to do.
• 7:50
  Again, look, the starting point for all of these institutions in
• 7:55
  2025 is essentially 100K. This is their starting point.
• 7:59
  This is like their initial, you know, this is the initial jump
• 8:03
  in point for them, 100K. This is when they they basically
• 8:06
  got all the signals to go into the market.
• 8:09
  So obviously they want to get a good little discount on it.
• 8:12
  So what do they do? They try to liquidate all the
• 8:15
  leverage in the market. And Larry Fink literally just
• 8:18
  said that he's like, look, the problem with the Bitcoin market
• 8:21
  currently is it's still being run by all these leverage
• 8:24
  players. Depending on how you read that
• 8:27
  one part is like, OK, they're going to seek all the leverage
• 8:31
  in the market. Hence why I keep telling you
• 8:33
  there's a few things you should be watching.
• 8:35
  One, of course, the ETF inflows and outflows and then the
• 8:38
  leverage kind of points in the market where you're seeing a lot
• 8:42
  of longs and a lot of shorts because they want to clear all
• 8:45
  that leverage. And once all that leverage is
• 8:47
  cleared, once everyone is liquidated, once all the traders
• 8:49
  are absolutely wrecked, they have their products in place and
• 8:53
  they're going to RIP it. Hence why I keep saying I don't
• 8:56
  think this is a bear market like in the past.
• 8:59
  I fundamentally believe since the ETF was launched, it has it
• 9:03
  shifted everything in Bitcoin. Look, one thing we know for
• 9:07
  sure, retail is nowhere to be found.
• 9:10
  The only people that have been in Bitcoin for the last year,
• 9:12
  maybe even 2 are just Bitcoiners.
• 9:15
  And then the only people that are really trading these is like
• 9:19
  a very small percentage of people on the on the fringe that
• 9:22
  are trading. While I would argue, you know,
• 9:24
  small minority are are playing the accumulation game.
• 9:27
  But if you see what they're saying, they're launching
• 9:30
  Bitcoin products, they're accumulating Bitcoin, There
• 9:33
  seems to be this unlimited bid by Wall Street where they're
• 9:37
  playing like a very subtle game of acquiring Bitcoin.
• 9:40
  And Larry Fink literally said that exact same thing.
• 9:43
  He said, look, they're in this market for the long term.
• 9:46
  They're not. They're not buying into Bitcoin
• 9:49
  as a, you know, short term trade.
• 9:52
  He knows it's super volatile. They are trying to build a
• 9:55
  position, as Larry Fink said, over years.
• 9:59
  So that and play the long game here.
• 10:02
  This is what's happening, guys. I've been telling you guys this
• 10:05
  as a hunch. I've been like, I think this is
• 10:07
  what's going on. And then I see Larry Fink come
• 10:10
  out and say literally the exact same thing I've been saying.
• 10:13
  And he's got a lot more insights into who's actually buying,
• 10:16
  what's going on behind the scenes, what these new Wall
• 10:19
  Street products are going to be. And he literally said the same
• 10:23
  thing, like we're building long term positions.
• 10:26
  What's there used to be an old meme.
• 10:27
  It's like, you know, you play long term games with long term
• 10:30
  assets or something like that. I'm butchering the meme.
• 10:33
  But that's exactly what he said. And then he basically gave you
• 10:37
  guys the play. But the market is being run by
• 10:40
  leveraged players. So where should you be looking
• 10:43
  the ETF inflows and outflows? And then what's going on in the
• 10:47
  leveraged markets, which means like a a seeking, you know,
• 10:51
  destroying missile here. They're he'd seek, yeah, there
• 10:55
  you go. He'd seeking missile here they
• 10:58
  are going after the leverage traders.
• 11:01
  And we literally saw this play out a few days ago.
• 11:05
  So like, this is the game, guys. If there's sovereign wealth
• 11:10
  funds, if these institutions are just launching these new
• 11:13
  products, if Wall Street is finally able to get into
• 11:16
  Bitcoin, they want to get a good discount.
• 11:19
  They're accumulating a position over time.
• 11:22
  So they're not really impatient about buying today all at once.
• 11:26
  They're essentially doing like ADCA strategy here and they're
• 11:31
  trying to whipsaw the market by getting all the traders wrecked.
• 11:36
  It's literally playing out exactly as I've been telling you
• 11:39
  guys. Now, I'm not, you know, I'm, I'm
• 11:41
  kind of trolling a little bit about me being vindicated a
• 11:43
  little bit because really I, you know, who knows what's going on?
• 11:47
  This could be Larry Fink kind of giving a head fake to the
• 11:50
  market, but I heard him say exactly what I've been telling
• 11:54
  you guys we'll. Say this right, we have to.
• 11:56
  We have to pull up this post by Bitcoin legend Adam Back
• 12:01
  mentioned in the Satoshi white paper and the Bitcoin white
• 12:04
  paper huddle. Don't sell your Bitcoin to
• 12:07
  sovereign wealth funds, which is actually what me and Opti have
• 12:12
  been literally repeating ourselves throughout this entire
• 12:16
  year. We've been telling you guys that
• 12:18
  if you are selling your Bitcoin right now, you're probably
• 12:21
  selling it to BlackRock like this is what is this, but not a
• 12:25
  complete utter confirmation and vindication of what we've been
• 12:30
  saying. I, I completely agree with you.
• 12:32
  And when Walker came on on the show the other day, I think that
• 12:36
  this year was all about shaking retail out of their bags, out of
• 12:42
  their huddle, right? They're trying to bore you to
• 12:44
  death. They're trying to scare you with
• 12:46
  the FUD, the tether FUD was coming in.
• 12:49
  All this FUD was coming in. And again, it's, it's to create
• 12:53
  uncertainty. And with that uncertainty, you
• 12:56
  have a lot of people that are just saying, you know what?
• 12:59
  Bitcoin is boring. We're experiencing this
• 13:01
  ourselves. Like we're basically saying, and
• 13:03
  this is Andrew, Andrew Sorkin asked him.
• 13:05
  Like, look, the reality is that if you bought Bitcoin in the
• 13:08
  beginning of the year, the S&P outperformed you, gold has
• 13:13
  outperformed you, right? But I think that's just it's
• 13:17
  just a matter of time. I always use the beach ball
• 13:21
  analogy. You could put a beach ball
• 13:23
  underwater for so long, but after a while that pressure is
• 13:28
  just going to explode upwards. And that's exactly what I think
• 13:31
  is going to happen to Bitcoin sooner rather than later.
• 13:36
  Yeah, and Nico, just to add a little bit to that, like Larry
• 13:38
  Fink literally said exactly that without actually saying.
• 13:41
  It's like we're trying to shake you out of the market.
• 13:44
  Like, as I was saying it this morning, you got to think of the
• 13:47
  Wall Street. You know, we all know the man.
• 13:50
  I'm blanking. I'm blanking on the classic
• 13:52
  movie with anyways, I forget the movie, but it it's the one
• 13:57
  where, you know, greed is good. Like if you kind of look at Wall
• 14:00
  Street with this kind of angle that like, yes, you know, this
• 14:03
  is capitalism at its finest. This is greed at its, you know,
• 14:07
  most productive. They're coming into this space
• 14:11
  and they're looking at Bitcoiners, they're looking at
• 14:14
  this really tiny pond and they're a huge fish coming into
• 14:18
  this. So you don't think they're out
• 14:19
  there basically being like, dude, we're going to come into
• 14:22
  this little tiny market right now and we are going to cook
• 14:26
  everyone because they don't understand what we're doing.
• 14:29
  They think they're the big players here, but like the real
• 14:32
  sharks just got into the water right now.
• 14:35
  I think this is exactly what's been playing out all year.
• 14:37
  Obviously, I've been kind of wrong all year.
• 14:39
  I've been stupidly bullish all year long, but I think as the
• 14:43
  year progress directionally, I'm starting to get more and more on
• 14:47
  point. I'm I'm starting to see the game
• 14:49
  being played and it really just makes me think like this is
• 14:52
  exactly what's going on. They're trying to shake you out
• 14:54
  of your position. They're trying to launch
• 14:56
  products basically so that they get good starting points.
• 15:00
  They're trying to, you know, destroy all the leverage in the
• 15:03
  market. Because really in reality, when
• 15:05
  you think about it, it's like it's a new kid on the block and
• 15:08
  it's not just like a new kid on the block.
• 15:10
  It's like like, you know, the really powerful guy in suits
• 15:14
  just came on the block and he's looking at all the kids and he's
• 15:17
  like, I am going to strong arm them and I want to be the one
• 15:21
  that is able to pile on the leverage.
• 15:23
  I'm going to shake them out of their Bitcoin.
• 15:25
  Like it. It's as simple as that.
• 15:26
  Like Optia is 100% spot on like a heat seeking.
• 15:31
  We got them boys, we got them. Like a heat seeking missile
• 15:34
  acquiring its target. Yes IA 100% agree.
• 15:38
  I mean, look, we've been vindicated a lot throughout this
• 15:42
  year. You know, sometimes I have pie
• 15:44
  on my face, sometimes Opti has pie on his face.
• 15:46
  But between the two of us, we've been pretty accurate in
• 15:50
  speculating and basically coming up with theories as to why what
• 15:54
  what has been happening in the background during this historic
• 15:58
  year in Bitcoin. Because the reality is that
• 16:01
  we've had one of the best years from a regulatory perspective,
• 16:05
  from from an adoption perspective, from the, from the
• 16:11
  Tradfi perspective, but from a price action perspective, it
• 16:15
  doesn't seem to match all of the bullish news.
• 16:18
  And we could not make sense of it throughout the year.
• 16:22
  But after a while, it started to get revealed to us more and more
• 16:27
  information started to come out that the fact is that, look,
• 16:32
  here's the blunt truth, ladies and gentlemen, that you can't
• 16:35
  handle the truth. The the truth is, is that Wall
• 16:38
  Street is trying to shake you out of your bags.
• 16:40
  That's what I fundamentally believe Adam Back is saying
• 16:43
  that, I mean, Larry Fink, in an indirect way, he's saying that
• 16:47
  as well, right? So, I mean, look, at the end of
• 16:50
  the day, I'm going to stick to what I've been saying throughout
• 16:53
  this entire year, since January. If you're selling Bitcoin right
• 16:58
  now, you're selling it to a sovereign wealth fund or you're
• 17:01
  selling it to BlackRock, Like don't put yourself in that
• 17:04
  position. Don't put your family in that
• 17:07
  position. Don't get don't get bored out of
• 17:10
  your bags because essentially that's exactly what they're
• 17:13
  trying to do. Someone in the chat, Nico and
• 17:16
  Opti giving you tomorrow's news today yes, we've been telling
• 17:19
  you guys that tune into simply Bitcoin, tomorrow's Bitcoin news
• 17:22
  today. We've been spot on.
• 17:24
  We've been doing this for like a like half a decade at this point
• 17:28
  and we've been pretty accurate in with the things that we've
• 17:31
  been saying. And I think what it comes down
• 17:32
  to is just simple game theory like it's I don't think any of
• 17:35
  this is rocket science anyways, guys, we have a hell of a show
• 17:41
  lined up for you to for you guys today.
• 17:43
  We have the executive chairman of Hive digital technologies,
• 17:47
  Frank Holmes joining us later on on on today's show, they're
• 17:51
  going to be releasing a short film later today.
• 17:54
  We have a special we have a we have a one minute little tidbit
• 17:59
  of that short film. It's super high production.
• 18:02
  It's incredible. It shows their mining operations
• 18:05
  in Paraguay. It's super cool.
• 18:07
  Looking forward to that conversation.
• 18:09
  We also got news. We got numbers for you guys.
• 18:12
  It's going to be incredible show.
• 18:13
  So sit back, relax, grab some popcorn, you know, grab whatever
• 18:17
  it is that you like to, you know, your favorite beverage and
• 18:20
  sit back and relax and you know, enjoy the ride while you know
• 18:25
  Opti and I will guide you through this Bitcoin roller
• 18:29
  coaster. Anyways, ladies and gentlemen,
• 18:32
  before we get into it, I do want to give a very special shout out
• 18:35
  to our lead sponsor bitcoinwell.com.
• 18:38
  The reason we love bitcoinwell.com here, it's
• 18:41
  simply Bitcoin is it's automatic self custody.
• 18:43
  As soon as you buy Bitcoin on Bitcoin, well, as soon as the
• 18:46
  funds clear, it goes straight to yourself custody Bitcoin wallet
• 18:49
  address. They don't even leave the
• 18:52
  Bitcoin on the exchange with perfectly aligns with our ethos
• 18:55
  of the separation of money and state.
• 18:58
  You're a higher net worth individual looking to buy
• 19:00
  $50,000 with a Bitcoin or more. You have to check out Bitcoin
• 19:05
  well Infinite. This is tailored for high net
• 19:08
  worth individuals, trust, family, offices and
• 19:11
  organizations. You will have a dedicated
• 19:14
  account representative that will walk you through A-Z of buying
• 19:18
  Bitcoin and taking it into self custody.
• 19:21
  Go to bitcoinwell.com/OTC to get started.
• 19:26
  All right everybody, it's going to be an incredible show.
• 19:28
  We're going to be right back in just a bit.
• 19:32
  I want to give a shout out to our partner Hive Digital
• 19:35
  Technology. Why Hive in 2025, unstoppable
• 19:39
  growth as the first ever public miner.
• 19:42
  Hive's position to quadruple their global footprint, making
• 19:46
  them one of the world's fastest growing miners in 2025.
• 19:49
  And with elite operations that consistently top the industry in
• 19:53
  Bitcoin mine, per Exahash Hives, now headquartered in the USA.
• 19:58
  They're lean and mean. They're green and clean.
• 20:01
  And they're rewriting the playbook on sustainable Bitcoin
• 20:04
  mining. You can catch the latest buzz at
• 20:07
  Hive Digital Tech or at Hive. Digital.
• 20:10
  Tech.com I want to give a shout out to our partner Bitcoin Ben
• 20:15
  dot IO. If you're into freedom Bitcoin
• 20:18
  and building a real community, this is for you.
• 20:20
  Gain exclusive access to real world members only private clubs
• 20:25
  across the globe featuring poker nights, expert LED classes, Co
• 20:30
  working spaces, educational meetups, live events and more.
• 20:34
  Current locations include Sarasota, Nashville, Boston,
• 20:38
  Dallas, Las Vegas and Saint Louis, with new clubs launching
• 20:43
  soon in West Palm Beach, Scottsdale, Alabama and beyond,
• 20:47
  not to mention Bitcoin Bends Resorts in El Salvador.
• 20:51
  There's three of them and they're absolutely beautiful.
• 20:54
  You'll also get access to the first fully backed Bitcoin bank
• 20:59
  with Fiat ramps and savings accounts.
• 21:02
  It's called private KeyBank and you guessed it, it's based out
• 21:06
  of El Salvador. Go peer-to-peer with Bitcoin
• 21:09
  bulk buys, tap into home equity for long term Bitcoin growth and
• 21:14
  join their exclusive mining pools.
• 21:16
  If you're interested in mining, what are you waiting for?
• 21:18
  Head over to Bitcoin bend dot IO.
• 21:21
  Join today where Bitcoin meets freedom.
• 21:29
  All right everybody, we are back.
• 21:30
  At the time of recording, the Bitcoin price is $92,290.00
• 21:36
  block height 926,433 market cap 1.84 trillion, Bitcoin versus
• 21:45
  gold market cap 6.16% and the decline from all time high.
• 21:50
  If you're buying Bitcoin right now, you're getting it at a
• 21:52
  26.9% discount, so get those cheap sats while you can.
• 22:00
  Anyways, what I want to talk about today during the numbers
• 22:04
  segment is, ladies and gentlemen, next year.
• 22:08
  Too late, Powell or I don't know what Trump's nickname for him is
• 22:12
  Jerome Powell, the chairman of the Federal Reserve.
• 22:15
  His term is ending and Trump is going to be appointing someone
• 22:21
  new. And apparently, I mean, this is,
• 22:25
  this is very Trump, Trump, Trump, says the quiet part out
• 22:29
  loud. I'll let you guys hear it.
• 22:32
  Being here, it's a great group and I guess a potential Fed
• 22:37
  chair is here too. I don't know.
• 22:38
  Are we allowed to say that potential?
• 22:42
  He's a respected person that I can tell you.
• 22:45
  Thank you, Kevin. Trump, Trump, Trump is hilarious
• 22:50
  potential. Am I allowed to say that?
• 22:52
  Well, can we say that? And it's gotten the established
• 22:59
  community up in arms. They're like, Oh my God, like,
• 23:02
  you know, end of the world, etcetera, etcetera.
• 23:05
  So who is this guy? So this is Kevin Hassett.
• 23:09
  That's who Trump was referring to.
• 23:12
  He's an American economist who has been the director of the
• 23:15
  National Economic Council since 20, since 2025.
• 23:17
  He was a senior advisor and chairman of the Council of
• 23:21
  Economic Advisors from 2017 to 2019.
• 23:24
  But none of that really matters to us Bitcoiners.
• 23:27
  What really matters to us Bitcoiners is that from my
• 23:30
  sources, he was actually an advisor to Coinbase Which?
• 23:36
  Your sources love that. Go, go.
• 23:38
  From Opti's making me cry. So I mean, now you're making me
• 23:42
  down myself. No, he was.
• 23:44
  He was, he was, he was. Yeah.
• 23:46
  No, he he he totally was. I'm just, I'm just kind of
• 23:49
  trolling you. Now I have to double check.
• 23:52
  Yes, so he was. So he was an advisor to
• 23:54
  Coinbase. Opti's just making me doubtless.
• 23:57
  I I just. Thought it was funny my sources.
• 23:59
  And I mean, dude, I have to, I have to hedge myself.
• 24:03
  A little bit sometimes he was. He was.
• 24:05
  Sometimes the information you get on Twitter, you know, you
• 24:07
  don't know. Yeah, that's why he was my
• 24:09
  sources. But anyways.
• 24:10
  So the next, just to give you guys the, the just to give you
• 24:15
  guys the lay of the land, the next head of the Federal Reserve
• 24:20
  was an advisor to the largest crypto in Bitcoin exchange in
• 24:24
  the United States of America. Alright, how could you not be
• 24:28
  bullish? Obviously, Trump wants to
• 24:30
  appoint this man because he wants his agenda passed.
• 24:35
  And right now he believes, and we've been covering this
• 24:38
  throughout the year. Caitlin Long believes this as
• 24:41
  well. Senator Lummis believes this as
• 24:43
  well. Jerome Powell has been getting,
• 24:47
  he hasn't been lowering rates fast enough.
• 24:49
  He's been getting in front of Trump's agenda.
• 24:51
  He's he hasn't been facilitating Trump's agenda with his monetary
• 24:55
  policy. Now he'll say it's because, you
• 24:58
  know, excuse AB and C, but you know, I, I believe it's for
• 25:02
  different reasons. I believe it's politically
• 25:04
  motivated, but that's a whole other rabbit hole anyways.
• 25:08
  So it's not just, you know, the political establishment that's
• 25:12
  kind of reacting bad to this as well.
• 25:14
  Also check out this post by Walter Bloomberg.
• 25:18
  And he says bond investors warn Treasury over Hassett as Fed
• 25:22
  chair. You know, I always say the Flack
• 25:25
  is heaviest over the target, right?
• 25:27
  The moment that any Trump appointee or potential appointee
• 25:32
  gets picked, you always see the legacy media lose their minds
• 25:36
  and they, you know, they basically say no, this guy's
• 25:39
  dangerous, this guy's would be bad for the economy, etcetera,
• 25:43
  etcetera. You heard that.
• 25:44
  You heard that with RFK Junior, You heard that with Pete, Pete
• 25:47
  Hegseth. You heard that with, again, all
• 25:50
  of Trump's cabinet appointees. You, you always heard this FUD
• 25:56
  right beforehand, right? Pam Bondi as well.
• 26:00
  Anyways, bond investors have been have told the US Treasury
• 26:03
  they're worried that Kevin Hassett, if appointed Federal
• 26:07
  Reserve chair in 2026, would cut interest rates too aggressively
• 26:11
  to please President Trump. During November consultations
• 26:15
  with major bank asset managers and the Treasury Barring
• 26:18
  Advisory Committee, several market participants said they
• 26:22
  preferred more independent candidates such as Rick Ryder or
• 26:26
  Fed Governor Christopher Waller. Investors also expressed doubts
• 26:30
  about Hass its ability to lead a divided Fed board.
• 26:34
  Economist Claudio Schmal. I'm sorry if I pronounced that
• 26:38
  incorrectly. Noted.
• 26:38
  His success would depend on which Kevin Hassett shows up.
• 26:43
  While fund manager John Stopford said markets already view him as
• 26:48
  a Trump stooge, risking lasking damage to the Fed reserves
• 26:52
  credibility. I don't expect, I don't accept
• 26:55
  that framing. The reason I don't accept that
• 26:57
  framing is I don't think that the Fed has inherently been
• 27:00
  acting as independently as they claim they've been acting.
• 27:05
  There's been multiple in that there's been investigation by
• 27:08
  Senator Lummus with the Senate Banking Committee.
• 27:11
  There's Caitlin Long, who's currently in a lawsuit with them
• 27:14
  regarding custodia bank. I don't think the Federal
• 27:17
  Reserve acted independently and I don't think the Federal
• 27:20
  Reserve acted in a neutral fashion fashion.
• 27:24
  So this framing that, hey, the Federal Reserve, you know, the,
• 27:28
  the, the is neutral and disappointee by Trump.
• 27:32
  Trump is actually jeopardizing the neutrality of the Federal
• 27:35
  Reserve. I, I'm sorry, I don't accept
• 27:38
  that framing. And I, and I think that, you
• 27:40
  know, Trump might be over the target because of how they are
• 27:44
  reacting to it now bond investors are panicking about
• 27:47
  Kevin Hassett is actually great news for Bitcoin.
• 27:50
  They their fears tells you that the Fiat system is getting
• 27:54
  shaky. They say Hassett might cut rates
• 27:57
  to please Trump, which translates to he won't run the
• 28:01
  Fed the way Wall Street wants. And that means more money
• 28:04
  printing, more debt relief in a weaker dollar.
• 28:07
  And whenever the dollar looks weaker or more politically
• 28:10
  controlled, people look for a neutral alternative.
• 28:12
  And that's Bitcoin. They warned he might heard the
• 28:15
  Fed's credibility translation. If the Fed looks political, the
• 28:19
  whole idea of a trustworthy central bank falls apart.
• 28:23
  But again, I don't accept that. I don't accept that frightening
• 28:27
  the, the, the idea that they've been acting independently and
• 28:29
  not politically like I just, I don't accept it.
• 28:32
  That's my that's my opinion. I could be wrong here.
• 28:36
  But anyways, they prefer established names like Waller or
• 28:40
  Ryder, the safe picks that keeps the Fiat machine predictable.
• 28:44
  But Bitcoin thrives when that machine gets unpredictable
• 28:47
  Anyways, here's the take way when Wall Street loses
• 28:50
  confidence in the Fed, Bitcoin becomes a safe haven.
• 28:53
  So they are their fear of Hassett is basically a bullish
• 28:56
  signal for BTC. That's my assessment of the
• 29:00
  situation. Again, seeing the legacy media
• 29:03
  respond the way they respond tells me that you know, might
• 29:08
  might not be the best. And again, this guy is not a
• 29:10
  full believer in Kenzian economics, right?
• 29:13
  If you look into his background, he's not a full believer in, you
• 29:17
  know, the Federal Reserve System itself.
• 29:19
  Now, he'd obviously believes in central banking.
• 29:22
  But, you know, again, it's a step in the right direction.
• 29:25
  It's it's moving the Overton window.
• 29:27
  And I keep telling you guys about how important that is.
• 29:30
  Opti your thoughts on this gentleman?
• 29:34
  Yeah. Well, obviously it would be.
• 29:38
  It would be kind of interesting. Well, first of all, you know, he
• 29:42
  was at Coinbase, but so caveat this statement here, but it
• 29:45
  would be pretty interesting if a Bitcoiner is the the new Fed
• 29:49
  chair, like a Bitcoiner at the head of the Fed.
• 29:51
  Obviously Bitcoiners have been wanting to end the Fed, but at
• 29:54
  at least a good stepping stone might be a Bitcoiner at the head
• 29:57
  of the Fed though. It is going to be pretty
• 30:00
  interesting because I think Nico really hit the nail on the head
• 30:03
  again with all of the regional banks and, and all of the bond
• 30:06
  investors and essentially the people that like the status
• 30:11
  right now are saying that this is this is going to be a bad
• 30:13
  pick because he's going to basically cave to all of Trump's
• 30:16
  demands. It really shows you kind of what
• 30:19
  the I don't know Fed hierarchy believes should be done right
• 30:23
  now. Obviously they don't want to cut
• 30:25
  too much fed rates right now because they think it's probably
• 30:29
  going to explode the system. So they're trying to be a little
• 30:32
  more conservative. Obviously we know what Trump's
• 30:34
  been wanting to do. He's like, bro, free money back
• 30:37
  on the table cut rates. I, I'm basically, I want the
• 30:40
  liquidity back into the system because the economy's cooked.
• 30:44
  And so it is a very interesting fight we're seeing right now
• 30:47
  because if Trump does get this Hassett guy and Kevin Hassett,
• 30:51
  former Coinbase advisor, I think it's pretty safe to say that
• 30:56
  there won't be any more quote UN quote, independence between the
• 30:59
  Fed. And that has been the main fight
• 31:02
  we've been seeing all year. Scott Besson's been out here
• 31:05
  saying very publicly. That he doesn't really believe
• 31:09
  in the independence of the Fed. He's trolling.
• 31:12
  He says, oh, Trump, I think is going to be a great chairman.
• 31:15
  Like, yeah, even he goes on TV and he says that like in a
• 31:18
  trolling fashion. Yeah.
• 31:20
  And what's very interesting is we basically, you know, have had
• 31:24
  this myth of an independent Fed chair or head of the Fed for,
• 31:29
  you know, I, what's the math about 50 years since Nixon.
• 31:35
  So if they are able to get this guy in, of course Trump can
• 31:39
  nominate him. And it seems like this is like
• 31:41
  the leading of new Fed chair nomination.
• 31:44
  But they do have to get it approved.
• 31:46
  Now it's going to be very interesting to see if they do
• 31:48
  get him approved and if they are able to strong arm that process.
• 31:53
  It's going to go back to essentially the Treasury is in
• 31:56
  control right now. And all of this political kind
• 31:59
  of war we've been seeing from Jerome Powell kind of fighting
• 32:03
  Trump on a lot of stuff and fighting the the presidential
• 32:07
  kind of agenda. We're going to see something
• 32:09
  completely different. And they, again, they've been
• 32:12
  very vocal about what they want. They want low interest rates.
• 32:15
  They want liquidity back on the table.
• 32:17
  And so if they get this guy in, of course, you know, Powell's
• 32:20
  out basically in April. A lot of rumors saying he's
• 32:23
  going to resign. I'm pretty sure he's probably
• 32:25
  going to stick out his kind of tenure until April.
• 32:34
  OK, we're back. It's acting weird again.
• 32:39
  If they are able to get Kevin Hassett in there, they're
• 32:44
  telling you exactly what's going to happen.
• 32:46
  They're going to lower interest rates.
• 32:48
  The money printer's going to get turned on again.
• 32:50
  Guys, Q2 just ended this week. Obviously, it doesn't
• 32:54
  necessarily mean that QE is coming back on the table, but
• 32:58
  you can, you can just venture to guess that within a year, most
• 33:01
  likely QE is going to start up again.
• 33:04
  So, you know, Nico was kind of trolling me the beginning of the
• 33:08
  week, saying, and then I was like, yeah, let's devastate the
• 33:11
  middle class. I'm like, no, what I'm telling
• 33:13
  you is that's what they're doing.
• 33:15
  That's what they want to do. They want to destroy the
• 33:18
  purchasing power of the dollar. They want low interest rates.
• 33:22
  They got to turn on the money printer.
• 33:24
  They have to run this really hot.
• 33:26
  If this is literally what they have to do, they're telling you
• 33:30
  what they want to do. And now the real kind of
• 33:33
  linchpin here is if they're able to get their guy in this
• 33:37
  position, then hopefully you are are positioned in the right way,
• 33:41
  which to us is you need to be buying as much Bitcoin as
• 33:45
  possible. This now is not the time to be,
• 33:48
  you know, selling Bitcoin because you think it's going to
• 33:51
  go lower. Now's the time.
• 33:53
  If anything, maybe have some cash because there might be some
• 33:55
  really good buying opportunities, but you need to
• 33:58
  be doing what Larry Fink is saying the sovereign wealth
• 34:00
  funds are doing. They are building a long term
• 34:03
  position. This is the game being played.
• 34:06
  They're literally telling us exactly what they want to do.
• 34:10
  Now, whether they can actually follow through is probably a
• 34:13
  different story, but you know what they want to do where
• 34:15
  instead of being lost in all the signal or sorry in all the noise
• 34:19
  of what's going to happen, it's like they're pretty much putting
• 34:22
  a billboard out there is like this is what we want to do.
• 34:26
  And if we're able to make it happen, you had time to position
• 34:29
  yourself. So I've been saying this is
• 34:32
  probably what's going to happen. I don't know if it's really
• 34:35
  going to happen. I think it what I don't know
• 34:36
  what the Poly markets are are odds are right now, but they're
• 34:39
  they're climbing. So it's most likely going to
• 34:42
  happen. It would be wild to have, again,
• 34:46
  an advisor of Coinbase to be heading the Federal Reserve.
• 34:50
  This is what I mean by grassroots movement.
• 34:53
  This is what I mean by this. You know, again, it's not about
• 34:58
  like, it's just about having bitcoiners like, what is
• 35:04
  government like? What's the definition of
• 35:06
  government? The government is a
• 35:07
  representation of the people, right?
• 35:10
  So what do you do? You get Bitcoiners in
• 35:14
  government, right? And then you get bitcoiners in
• 35:16
  government and obviously they're gonna want pro Bitcoin policy.
• 35:19
  And that's exactly what happened with the Trump administration.
• 35:22
  You have the Trump family that owns a lot of Bitcoin.
• 35:25
  You have RFK Junior owns a lot of Bitcoin, Tulsi Gabbard owns a
• 35:29
  lot of Bitcoin. And now look, a potential
• 35:33
  Federal Reserve chair, this is night and day compared to
• 35:37
  Powell. Powell was basically saying that
• 35:39
  Bitcoin isn't money. I know he like walked it back a
• 35:41
  little bit and he said, look, it's kind of here to stay and
• 35:44
  and all that. He walked it back a little bit
• 35:46
  but it doesn't. It doesn't even come close to a
• 35:50
  former Coinbase advisor that owns like $1,000,000 worth of
• 35:54
  Coinbase stock. I know he has to sell it before
• 35:58
  but. I think he has to sell it.
• 35:59
  Before to again potentially be nominated as the chairman of the
• 36:05
  Federal Reserve like that's an absolute game changer when I.
• 36:08
  I like this comment by Gulag. He says Hassett is here to pump
• 36:12
  your asset. So let's go.
• 36:14
  Let's share that. Let's hope the meme stay true.
• 36:16
  All right, everybody, we're going to be right back.
• 36:17
  We're going to hit the news. And then during the culture
• 36:21
  segment, ladies and gentlemen, we have Frank Holmes in the
• 36:25
  house. Frank Holmes is the executive
• 36:28
  chairman of Hive Digital Technologies.
• 36:31
  They're going to be premiering a short film covering the their
• 36:35
  mining operations in Paraguay. And of course, we have a bunch
• 36:40
  of questions for Frank. Lots of breaking news.
• 36:42
  Again, this is the first Bitcoin miner to ever go public.
• 36:48
  Hive Digital Technologies, they've been crushing it on the
• 36:51
  NASDAQ. We're going to be right back.
• 36:53
  In just a little bit, I want to give a shout out to our partner
• 36:57
  Leaden, the leader in Bitcoin backed loans.
• 37:00
  Unlock the liquidity in your Bitcoin without having to sell
• 37:04
  your Bitcoin. They've issued $9 billion in
• 37:07
  loans to over 10,000 customers since 2018.
• 37:10
  I absolutely love these guys. Not only do I have an account
• 37:13
  with them, but I also have a loan.
• 37:15
  And what I love about them is that there are no monthly
• 37:18
  payments and you could pay back the loan at any time.
• 37:21
  As soon as you send your Bitcoin as collaborative, you'll have
• 37:24
  cash in your account within 24 hours.
• 37:27
  Over 1005 star customer reviews and they've never lost a single
• 37:31
  dollar or sat of customer money. Go to learn dot leaden dot IO
• 37:36
  slash simply today and you'll get .25% off your first loan.
• 37:42
  I want to give a shout out to our partnersat123.com.
• 37:46
  Sovereignty isn't just about your money, it's about your
• 37:48
  communications too. When the grid goes down, most
• 37:51
  people go dark. Cell towers fail and hurricanes,
• 37:54
  cyber attacks and blackouts the satellite phones.
• 37:57
  They don't rely on local infrastructure.
• 37:59
  Iridium has 77 satellites in orbit, giving you a Direct Line
• 38:03
  anywhere in the US, even offshore.
• 38:05
  If you hold your own Bitcoin keys, you should hold your own
• 38:08
  comstoosat123.com also has everything you need need to
• 38:12
  start building your Bitcoin Citadel, Starling, battery
• 38:16
  backups, Faraday bags to protect your hardware wallets, and much
• 38:19
  much more. It's a one stop shop for anyone
• 38:22
  serious about resilience and off grid independence.
• 38:25
  Stay connected, stay independent, stay sovereign.
• 38:28
  Go to sat123.com/simply today and use promo code simply to get
• 38:34
  15% off anything on the store. I want to give a shout out to
• 38:37
  our partner. Big key.
• 38:39
  If you already self custody your Bitcoin, you know the deal with
• 38:42
  hardware wallets by now. Complex setups, clumsy
• 38:45
  interfaces, and a seed phrase that can be lost, stolen or
• 38:49
  forgotten. Bit key fixes that.
• 38:51
  Bit key is a multi sig. Hardware wallet built by the
• 38:54
  team behind Square and Cash Out. It packs a cryptographic
• 38:58
  recovery system and built in inheritance feature into an
• 39:01
  intuitive, easy to use. Wallet with no seed phrase to
• 39:05
  sweat over. It's simple secure self custody
• 39:08
  without the stress time names bit key.
• 39:11
  One of the best inventions of 2024 get 20% off at bitkey dot
• 39:16
  world. That's BITKEY dot world with the
• 39:20
  code simply. All right, everybody check out
• 39:28
  the bit key go to bit key dot world today.
• 39:31
  Use promo code simply to get 15% off anything on the big.
• 39:36
  I think it's like 20% off actually.
• 39:38
  Is it literally one of the easiest hardware wallets to use
• 39:41
  on the market. It has multi sig built in, it
• 39:44
  has inheritance built in. It's built by our friends over
• 39:47
  at Square Cash App and block. Again, incredibly intuitive,
• 39:51
  very easy to use. Go to bit key dot world today
• 39:54
  and use simply to get your self a discount.
• 39:59
  All right, everybody, let's jump into today's news before our
• 40:03
  special guest arrives. Just going to start it off with
• 40:07
  this kind of connecting with what we were saying in the
• 40:10
  beginning of the show. This meme has been making the
• 40:15
  rounds. You have US Senator, Senator
• 40:18
  Cynthia Lummis hints at buying Bitcoin quote.
• 40:23
  Big things coming for Franklin. Franklin buys Bitcoin and finds
• 40:30
  financial freedom. Opti, What do you think she
• 40:33
  means by that? Well, obviously I'm speculating
• 40:37
  here, huge speculation, but I, it sounds pretty, pretty
• 40:43
  obvious. You know, Franklin, I think, AKA
• 40:46
  Ben Franklin, as in Washington, DC is going to buy Bitcoin soon.
• 40:50
  Big things coming. Now, I know Senator Lummis has
• 40:54
  been maybe overly bullish on how quickly this was going to
• 40:58
  happen, but it sounds like maybe there's some things going on
• 41:01
  behind the scenes. I mean, look, maybe, maybe I'm
• 41:04
  just so, so deep in the memes, deep in the weeds that I that it
• 41:09
  just connected to me. You know, Franklin buys Bitcoin.
• 41:12
  Why would a sitting senator say that if it wasn't about
• 41:17
  Washington DC buying Bitcoin, though?
• 41:19
  You could say maybe Franklin Templeton, but that connection
• 41:21
  to me just doesn't make sense coming from Senator Lummis.
• 41:24
  I think she's pretty clearly saying in a, you know, in a
• 41:28
  Bitcoin meme fashion that Washington DC is probably buying
• 41:32
  some Bitcoin, which, hey, from where I don't know.
• 41:36
  I know we have a quote UN quote new sovereign wealth fund.
• 41:39
  Does this mean a strategic Bitcoin reserve?
• 41:41
  You guys know me, I've been getting a little tired of the
• 41:43
  strategic Bitcoin reserve meme. I, I, I think I, I want
• 41:47
  something else. But if this happens, if they
• 41:50
  finally packed their bags again, I can't see 2026 being a bear
• 41:55
  market. So it sounds like she said D CS
• 41:57
  buying Bitcoin. I mean, yeah, and it's and also
• 42:03
  too just to kind of connect the dots, ladies and gentlemen.
• 42:06
  So here's the original post from her right.
• 42:10
  Again, big things coming from for Franklin.
• 42:13
  We've been speculating throughout this entire year.
• 42:16
  We've been saying, listen, I think the United States of
• 42:18
  America has been, you know, has, I think that they have every
• 42:24
  intention of, of buying Bitcoin, but I don't think that they are
• 42:28
  going to tell you beforehand that they are buying Bitcoin.
• 42:33
  I think that would be very, very negative for, you know, for, for
• 42:38
  their bags. Anyways, seems like our special
• 42:41
  guest is, is joining us very, very quickly, very, very soon.
• 42:46
  I, I meant I meant to say, but check out this meme that we
• 42:50
  dropped from simply Bitcoin Franklin meets Morpheus.
• 42:53
  And again, it's referencing the Matrix meme, the Morpheus memes.
• 42:57
  But what was really interesting about this meme specifically is
• 43:01
  that Caitlin long actually reposted that, right?
• 43:04
  She reposted this when she reposted our meme, she reposted
• 43:07
  our meme, which again, kind of connecting the dots with what
• 43:11
  Senator Lummus is posting, which she posted another meme
• 43:14
  regarding Franklin and buys Bitcoin and finds financial
• 43:17
  freedom. I don't know, maybe we're seeing
• 43:22
  things that are not there. Opti I, I I don't know, man, it,
• 43:24
  it, it, it all points to that. So it all points to that.
• 43:29
  So I don't know. Want to get your take?
• 43:32
  Want to get your take? I mean, look, I've been waiting
• 43:39
  for this. I think we've seen a lot of
• 43:41
  these kind of announcements. Maybe maybe I'm starting to feel
• 43:46
  a boy cried wolf a little bit here.
• 43:48
  But if they if this happens, I'm I don't think it's going to
• 43:53
  happen this year, but if she's kind of laying the groundwork
• 43:56
  for this happening next year, I think all bets are off.
• 44:00
  I think I think we're in a totally different paradigm, a
• 44:03
  new ballpark things things are going to be completely
• 44:05
  different. And it really goes into kind of
• 44:08
  the whole game theory that we've been seeing all year long that
• 44:11
  ever just just the US announcing they wanted their intent to buy
• 44:15
  Bitcoin has fundamentally shifted basically the nation
• 44:20
  state game theory around Bitcoin.
• 44:21
  Now, if this finally follow follows through, if we finally
• 44:25
  see some action, finally see some buys instead of just
• 44:27
  rhetoric, then I think all bets are off And we're all going to
• 44:32
  be looking back at 2025 and not necessarily feel so bad about
• 44:37
  the price happening. We're going to feel bad that we
• 44:39
  didn't buy more because we were expecting it to go higher.
• 44:42
  So hey, I don't know. I mean, is this is this a
• 44:46
  subtweet of what's going to happen?
• 44:47
  No idea, but I don't think so. Let's see.
• 44:51
  I mean, I think it would be an absolute.
• 44:53
  Game changer for the world, right?
• 44:57
  Again, if you have one of the most, the wealthiest and most
• 44:59
  powerful country on planet Earth announcing to the world that,
• 45:03
  hey, look, we are buying Bitcoin again, My theory, Anthony
• 45:08
  Pompliano's theory, when he went on, I think it was one of the
• 45:14
  legacy media channels. He look, he's like, look,
• 45:17
  they're buying Bitcoin. Of course you have David Sachs
• 45:21
  who's in the White House, the AI and Cryptozar.
• 45:24
  You know, he's been guiding the Trump administration.
• 45:26
  I think he's been doing a great job on that front.
• 45:30
  So I, I think it's just a matter of time.
• 45:32
  And then we went through the Poly market odds the other day
• 45:35
  and they shot up from like I think it was like 30% to 60 or
• 45:40
  70% overnight regarding a potential strategic Bitcoin
• 45:45
  reserve before the year 2027 Opti.
• 45:48
  So I would be, I'm going to maybe I'm going to go out on a
• 45:52
  limb and say that I would be surprised if the United States
• 45:57
  didn't have a strategic Bitcoin reserve by the end of Trump's
• 46:01
  term. I'd be very surprised.
• 46:03
  I would be very surprised. I don't know.
• 46:05
  I want to get your thoughts on this, Opti.
• 46:07
  Yeah, well, someone just kind of reminded me.
• 46:08
  I almost. Completely blanked on this, but
• 46:10
  Texas did just announce their strategic Bitcoin reserve, so I
• 46:14
  love Texas I mean I'm. I'm kind of mad you you.
• 46:17
  Moved me out of Texas now, but you know, I, I do love Texas.
• 46:21
  So there there is that kind of competition from the state to
• 46:24
  federal level going on. I mean, I don't know, look, I we
• 46:29
  might be reading into things here, but it does sound like
• 46:32
  Senator Lummus is saying exactly that.
• 46:35
  Speaking of Texas, ladies and gentlemen, we got a special.
• 46:39
  Guest joining us on the show today, we got Bulldog Homes AKA
• 46:44
  Frank Holmes, Executive Chairman of Hive Digital Technologies.
• 46:48
  We're gonna bring them up on the show.
• 46:50
  Frank, thanks for joining us. Great to be with y'all Frank.
• 46:54
  I think we saw each other like a couple.
• 46:56
  Weeks ago in Texas in Texas, the.
• 46:59
  Great state of. Texas So Frank Hive has been
• 47:03
  absolutely crushing it this year with its dual engine.
• 47:07
  The the the velocity at which you guys are deploying hash rate
• 47:13
  all across the world. I got a front row seat at seeing
• 47:17
  this and it was absolutely fascinating.
• 47:20
  I don't think I've told you guys the story on the show before,
• 47:23
  but now that Frank is here, we were, we were very, very lucky
• 47:26
  enough to be able to fly to Paraguay and see one of one of
• 47:32
  Hive's mining facilities. And it was one day to the other
• 47:36
  that they would literally one day the road wasn't there and
• 47:40
  the next day we would wake up and there would be a full paved
• 47:42
  Rd. Like the rate of which these
• 47:45
  mining sites were being built out was absolutely incredible.
• 47:48
  And I'll drop, I'll, I'll drop some stats for you guys in the
• 47:51
  month of October alone. The hash rate is at. 21.9 XA
• 47:57
  hashes and the amount of Bitcoin mined in October is 289 Bitcoin.
• 48:03
  Frank Holmes welcome to the show.
• 48:05
  Great to be with y'all just before ho.
• 48:07
  Ho ho comes along. Yeah, Christmas is right.
• 48:12
  Around. Christmas is right around the
• 48:15
  corner, Frank, so talk to me. What's what's been as on your
• 48:20
  mind as of late? I have some special
• 48:22
  announcements, but I'm saving them.
• 48:26
  Well, we're. We're busy, you know.
• 48:28
  Maintaining that 25 extra hash being more than 2% of the global
• 48:34
  network mention cold weather hitting Sweden and and Quebec so
• 48:41
  that our freeze came out of Texas for a couple days this
• 48:44
  week. But they're the real important
• 48:46
  parts as we're very, very focused now getting ready in
• 48:50
  position for next year's epic growth in our HPC business and
• 48:58
  that's also making new highs or daily revenues up again.
• 49:02
  So we're really happy we've got this momentum of the dual engine
• 49:06
  turbocharged process of Bitcoin scaling, then HPC scaling,
• 49:14
  whereas we're seeing some of our peers to get a valuation lift.
• 49:18
  They're all going, we're leaving Bitcoin and we're going all HPC.
• 49:23
  We're doing both incredible and that and that's what.
• 49:27
  That's the dual engine that we're talking about when we
• 49:31
  reference Hive, right? It's the HPC component of the
• 49:34
  business and then the mining component of the business.
• 49:38
  Now, Frank, you guys chose to focus specifically on Paraguay
• 49:43
  when we were touring the Itapu Dam.
• 49:46
  You were throwing so many historical facts at me.
• 49:49
  I was like writing them down in a journal.
• 49:52
  Could you tell the audience the more than 2000 people watching
• 49:56
  live between all the platforms, Why did you guys focus on
• 50:01
  Paraguay? Well, first of all, most.
• 50:04
  Important it. Had hydro energy for us and it
• 50:08
  became extremely, extremely difficult to source any size and
• 50:13
  and energy. After Putin invaded Ukraine,
• 50:17
  Sweden, Finland, Norway, everything became locked down
• 50:20
  and protective. Quebec came the same way.
• 50:23
  Ontario, Manitoba, British Columbia, they all became very,
• 50:27
  very fearful. The only place was really open
• 50:32
  was Paraguay. And I realized he was a member,
• 50:36
  the president of the country, was a member of YPOA, Young
• 50:40
  President's organization. And so I reached out and had the
• 50:43
  opportunity almost 18 / 18 months ago, flew down there to
• 50:47
  meet him, what his vision for the country was.
• 50:50
  He studied in New York, went to University of Columbia, was a
• 50:54
  rugby player. He's 47 years old, dynamic,
• 50:59
  doing everything for his economy and little funny things you
• 51:02
  learn. Each trip was most fascinating.
• 51:05
  Last one was they never had income taxes until 2009 after
• 51:12
  the credit. Oh, I.
• 51:14
  Think we lost Frank? We're bringing it back on.
• 51:18
  There we go. So just think of a.
• 51:20
  Nation a modern. Day nation and and as they're,
• 51:25
  they've always been ostracized the the Switzerland of South
• 51:29
  America, but very, very quiet. They produce feeding 60 million
• 51:35
  homes basically and they only have 66 million.
• 51:39
  So the big business has been exporting food and and I think
• 51:43
  that they're a country that has this incredible endowed natural
• 51:48
  resources of a of a, a dam that is 5 miles in length.
• 51:53
  Remember when we were down there, it, it was what, 40,000
• 51:57
  people working for 14 years 24/7 to build that?
• 52:03
  And it just produces more than 10 gigawatts of electricity. 5
• 52:08
  for Paraguay, 5 for Brazil. And Paraguay was buying it
• 52:15
  basically for a penny and selling it to Argentina.
• 52:18
  And Argentina defaulted and didn't pay.
• 52:20
  So they owe them $250 million. Malay comes into power and a
• 52:25
  year later, he gives them 100. But they're now gone from no pay
• 52:28
  to slow pay. And that really impacts a
• 52:31
  country that's massive in land size, predominantly rich, rich
• 52:35
  farmland that they need this with $250 million, a lot of
• 52:40
  money for them for running their government.
• 52:43
  And they don't have all these taxes.
• 52:46
  How they run it is basically a import tax.
• 52:49
  And I thought that was really fascinating to see how they're
• 52:53
  embracing. And they have a a young
• 52:56
  president that studied in America, is aligned with
• 53:00
  America. The country loves America is not
• 53:03
  like Maduro in Venezuela, which is a lockdown.
• 53:06
  You can't fly over the space. You still have problems now with
• 53:10
  petrol. You have yesterday the president
• 53:13
  of Mexico saying that the military's going to protect the
• 53:16
  cartel. So this is a 180 in Paraguay.
• 53:21
  So we're thrilled to be there and being part of the the cycle
• 53:27
  that we're seeing in Bitcoin and AI and a country, a country that
• 53:33
  is, is accelerating and it's growth running at 5 to 6% with
• 53:38
  very little government debt, very, very frugal and how it
• 53:42
  manages everything that we're building out substations we're
• 53:46
  building up so that they can have the footprint for Bitcoin
• 53:49
  mining. And you know, what's happening
• 53:51
  today in their embassy, the Secretary of Commerce, the
• 53:56
  Commerce Department, I believe it is Commerce, US Commerce
• 53:59
  Department is there. And there's another company that
• 54:02
  raised $150 million BC to do AI business there.
• 54:08
  And, and they have this vision of of 300 megawatts and becoming
• 54:13
  the the epicenter for Latin America.
• 54:16
  I know this is going to take a lot longer than what they're
• 54:18
  thinking, but it's important that you have Rubio goes down
• 54:23
  and he says this is a great place.
• 54:24
  Now you have the Commerce Department, you're getting VCs
• 54:28
  going to the country. There was a lot of reluctance of
• 54:31
  going to Latin America. What the Venezuela has done is
• 54:34
  start creating a stigma for the whole area of 1 bad apple, and I
• 54:40
  think that'll get cleaned up here shortly.
• 54:43
  That'll make South America. And I really think that Trump,
• 54:47
  not only a big cheerleader for Bitcoin, is recognizing the
• 54:51
  importance of South America and Central America for America and
• 54:57
  not allowing the Chinese to come in and take over all of South
• 55:01
  America. So we're witnessing A
• 55:03
  Conservative government coming into Bolivia.
• 55:06
  We're seeing these swings take place as as it's all run by
• 55:11
  narco gangs. Ecuador was just a disaster with
• 55:15
  narco gangs. And I think that one of the
• 55:18
  things is going to happen is that we're going to clean it up.
• 55:20
  So I remain so bullish on Paraguay and Bitcoin.
• 55:24
  It's just another one of those pull backs that you're going to
• 55:28
  witness and and I saw this happening in the AI both when we
• 55:33
  were in. There we go.
• 55:40
  Sorry when we were in. Texas together the.
• 55:42
  Sentiment started picking up. Oh, there's an AI bubble and,
• 55:47
  and the guys are very short. NVIDIA and, and everything about
• 55:52
  it is a as a, as a Ponzi scheme and channels a shorting
• 55:57
  strategy. There is a sort of growing
• 55:59
  sentiment of shorting on the industry and that'll just be
• 56:04
  temporary. Supposedly some of them covered
• 56:07
  their shorts and I think that this is just part of this great
• 56:12
  super cycle we're witnessing because U.S. debt made an all
• 56:16
  time money basic look up money supply.
• 56:18
  If you're looking at debt around the world, it's it's more than 3
• 56:24
  1/2 times the GDP of the world. The world's GDP is doing really
• 56:30
  well. I have an ETF called C and it
• 56:33
  really is the arteries for the movement of all commodities and
• 56:37
  manufactured goods. 80% of all goods are moved by the sea.
• 56:42
  And it's doing well even after the tariff war.
• 56:45
  I mean, has a set back and then it's the best time to buy.
• 56:48
  Bad news is good news to buy and, and it's being a true
• 56:53
  contrarian. So I just think that this is a
• 56:56
  great setup. Global rates are falling, debts
• 57:00
  are rising. This is the perfect setup that
• 57:04
  we're going to have another great year for all alternative
• 57:07
  assets. And this is Bitcoin and this is
• 57:09
  gold and this is silver. It's to recognize that the
• 57:14
  supply. Is much better to find than
• 57:20
  gold. Or silver.
• 57:22
  But gold and silver do have scarcity factors to them, and
• 57:27
  we're seeing these central banks go to the gold.
• 57:32
  Well, gold goes up like it's. Been going more than bullish.
• 57:35
  You don't have to the government to sell their gold to buy the
• 57:38
  Bitcoin. No, it's it's all about the
• 57:41
  global debt to GDP because of modern monetary theory.
• 57:46
  It bodes so well for this asset class.
• 57:50
  Frank, you said something and that got me.
• 57:52
  Extremely excited. You said super cycle.
• 57:56
  So this year has been a very unique year in Bitcoin's
• 58:00
  history, Frank. We had it, it the S&P and both
• 58:04
  gold have actually performed outperformed Bitcoin year to
• 58:09
  date. Frank, you have a very extensive
• 58:12
  history in the gold industry. What what, what's happening
• 58:16
  here? What's happening with Bitcoin?
• 58:18
  Why do you think Bitcoin performed the way it did this
• 58:21
  year and it it was outperformed by by gold?
• 58:25
  Well, I think the gold is. The big push for gold has been
• 58:30
  the de dollarization and they the arms race we're
• 58:34
  experiencing. And, and there's there's a real
• 58:37
  interesting scramble for energy and land for data centers that
• 58:42
  have their HPC tier 3 and Tier 4.
• 58:47
  There's a, there's a big global war going on, but it's not
• 58:50
  missiles. This is not like Ukraine and
• 58:53
  Russia. It's an attack of, of, of the
• 58:56
  telecom system cybersecurity attacks and and you're
• 59:00
  witnessing that we have to turn around and maintain what we're
• 59:04
  growing and doing in in the data center business.
• 59:07
  So with that war you have China weaponizing anti American
• 59:16
  dollar. The other side of that equation
• 59:19
  is Tether and Tether is shown in this growth in a tether has been
• 59:25
  the growth of of emerging markets in Latin South America,
• 59:29
  Turkey, Africa, Bulgaria. All these places have U.S.
• 59:34
  dollars in tethers stable a coin.
• 59:38
  Tethers recognize that their revenues going to drop because
• 59:41
  rates are falling U.S. dollars. So they're going long gold.
• 59:45
  They're the biggest buyers of gold.
• 59:48
  So OK, that's interesting to me from a crypto space because I'm
• 59:52
  a money manager and and, and I look for these dynamics, but
• 59:56
  China is assaulting everywhere with this, what they call one.
• 1:00:01
  They had this, I thought at first a brilliant decision
• 1:00:04
  called One Belt One Road and it was for China to.
• 1:00:12
  And and when you look at the data.
• 1:00:14
  Points. It's mind boggling.
• 1:00:16
  There's 194 countries. They've lent $2 trillion to 140
• 1:00:22
  of the countries, but they have clauses with them that you can't
• 1:00:26
  trade in U.S. dollars. They're anti U.S. dollars and
• 1:00:31
  that's affecting central bankers and they are still behind the
• 1:00:36
  curve in Bitcoin as a great sovereign asset.
• 1:00:40
  It will happen. Right now they're scrambling and
• 1:00:44
  to own gold, gold as the reserve, not the dollar, because
• 1:00:50
  China's basically has it as loan covenants.
• 1:00:54
  But it's but you're making the case that it's.
• 1:00:56
  Just a matter of time before how they figure out that that
• 1:01:01
  Bitcoin is an equivalent or even a better equivalent to gold.
• 1:01:05
  Yeah, yeah, it's, it's. But you know, the
• 1:01:08
  psychologically that we have to remember in a in zeros and ones
• 1:01:13
  make up the Internet. And when it comes to human
• 1:01:16
  beings, the tangibility of, of a, an alternative asset is very,
• 1:01:22
  very important to the big part of the population.
• 1:01:26
  And the digital world doesn't care.
• 1:01:29
  And, and that is a newer part of the digital world.
• 1:01:33
  They're the same kids that, that NVIDIA built their chips around
• 1:01:39
  for gaming and then went from playing games as kids going on
• 1:01:43
  to become coders and really launched Satoshi and, and this
• 1:01:47
  whole group, they're all gamers and, and they're the ones that
• 1:01:51
  really have pushed us forward. So we, they will embrace digital
• 1:01:56
  money much faster. So you can see the next 20
• 1:01:59
  years, this transition taking place, it's a lot of young
• 1:02:04
  speculators want to happen overnight.
• 1:02:06
  It's not going to happen overnight, but what is going to
• 1:02:09
  happen overnight is more money printing.
• 1:02:12
  And they're going to print money faster than the governments are
• 1:02:16
  growing their economies and therefore they're going to have
• 1:02:20
  currency devaluations. It's all a race to 0.
• 1:02:25
  The American dollar will be very slow and and the slowest is
• 1:02:29
  probably going to be the Swiss franc.
• 1:02:31
  The other ones will fall more quickly.
• 1:02:35
  The hedge against that, that purchasing power is, is
• 1:02:39
  definitely Bitcoin. And the other part is silver and
• 1:02:43
  gold. Look at pennies.
• 1:02:46
  Copper pennies are gone. Now this, this is the last
• 1:02:49
  production of pennies. When during COVID Nike stores
• 1:02:53
  said they ran out of everyone started hoarding pennies,
• 1:02:57
  nickels and quarters and Dimes. Now we're going to turn around
• 1:03:02
  and see. And those, those pennies today
• 1:03:04
  don't even have a penny of copper.
• 1:03:06
  They're going to stop making them, but they're going to
• 1:03:08
  become scarcity. A collector's item.
• 1:03:11
  I collected thousands of pennies that were 196364 because they
• 1:03:17
  had $0.05 worth of copper in them.
• 1:03:19
  And I bought them for a penny and I think they go to $0.25 and
• 1:03:26
  I bought silver under $5. I give them out to all my
• 1:03:30
  employee, a silver coin every year.
• 1:03:32
  Well, it's $50. I bought under 5.
• 1:03:36
  I bought thousands of silver coins because I believe in that
• 1:03:39
  scarcity element. Bitcoin is even more dynamic
• 1:03:43
  because there's cap the 21 million coins and the my wealth
• 1:03:48
  is going to turn over to young guys like you and and the wealth
• 1:03:52
  generation to my family. They're younger and that world
• 1:03:56
  embraces the digital realm much faster and easier.
• 1:04:00
  So Bitcoin will continue to have more volatility, but run.
• 1:04:04
  But we have to come back and look at the past two months.
• 1:04:07
  What happened? Well, we did see this lead up in
• 1:04:11
  China. China turn around, Hong Kong
• 1:04:15
  opens up for Bitcoin. Bitcoin exchange in China uses
• 1:04:19
  as hammer to stop it. It has a sort of negative impact
• 1:04:23
  on it and and that war is really against China.
• 1:04:27
  If you if if that's the real attack and we just have to go
• 1:04:31
  and educate other countries on the genius act why stable coins
• 1:04:35
  are important and so is paper money is important because the
• 1:04:38
  tangibility of that cash is still important.
• 1:04:42
  Countries like Nigeria try to go to 100% to stable and it was a
• 1:04:46
  disaster for them. You need to have both running in
• 1:04:50
  an economic engine and U.S. dollars are not going to go out
• 1:04:53
  of fashion. So I remain really bullish on
• 1:04:57
  this Bitcoin and I think you buy the dip.
• 1:05:00
  And the last thing I want to share with you guys for your
• 1:05:03
  listeners, Bitcoin. Is so.
• 1:05:08
  Significant Bitcoin miners because they're the ones that
• 1:05:12
  are so scrappy. They are the ones that that are
• 1:05:16
  are are very frugal that went out to the West TX where there
• 1:05:20
  is surplus energy, but flare gas and solar and wind.
• 1:05:25
  There was electricity that was as times was making the the cost
• 1:05:29
  of energy decline and it's really fasting that it was so
• 1:05:33
  cheap a couple years ago in Houston and other places because
• 1:05:37
  of all this built up. Well, they went out there and
• 1:05:41
  they found a home for and they enriched a community.
• 1:05:44
  Cleanspark has talked about where in so many communities
• 1:05:46
  they created a tax base because they had surplus stranded
• 1:05:50
  electricity and they started Bitcoin mining.
• 1:05:52
  What are we doing in Paraguay? We're building out the grid.
• 1:05:56
  We're going to be now building out a 300 station, a substation
• 1:06:02
  for megawatts of electricity and then that'll be 600 megawatts
• 1:06:06
  we're going to have. So we are part of the build out,
• 1:06:10
  the HPC race is going to go and go after the Bitcoin miners
• 1:06:16
  assets who already locked up the energy, locked up the stranded
• 1:06:20
  energy. And and I think that that's
• 1:06:23
  there's a long runway for a hive in countries like Paraguay,
• 1:06:27
  whereas in the US it will continue.
• 1:06:30
  And I think that some of these companies are going to get out
• 1:06:33
  of their Bitcoin mining and go all to high performance
• 1:06:37
  computing, which is OK. That means they'll leave and
• 1:06:40
  I'll get a bigger part of the. I love Frank.
• 1:06:47
  The, the, the HPC people will leave and you'll get a bigger
• 1:06:52
  piece of the pie. That's that's what I was
• 1:06:55
  hearing, the Bitcoin pie, the Bitcoin pie, the the Bitcoin
• 1:06:58
  pie. Frank.
• 1:07:00
  I, I, I got some news, I got some breaking news, just some
• 1:07:04
  big breaking news. And I want you to, I want you to
• 1:07:07
  talk about it. I want to get your thoughts on
• 1:07:09
  this hive to be the first Bitcoin and AI company listed in
• 1:07:16
  the Colombian Stock Exchange big breaking news air horns Frank
• 1:07:23
  Holmes, the floor is yours. Well, thank you.
• 1:07:26
  Thank you if you. Look at emerging market
• 1:07:29
  investing and I'm the Chief Investment Officer of US Global
• 1:07:33
  Investor. And every day we talk about
• 1:07:35
  global markets and compare emerging to developed markets
• 1:07:41
  and and you can see that this year with all the negative news,
• 1:07:45
  Latin America stocks have far outperformed the S&P 500.
• 1:07:50
  Incredible, isn't it? Yeah, of course.
• 1:07:53
  They've outperformed and and. And Latin America is is booming
• 1:07:58
  in many different divisions of that.
• 1:08:00
  And Malays done a great job of repositioning Argentina.
• 1:08:05
  We are seeing a government's all of a sudden leave the far
• 1:08:09
  communist left and going to conservatives.
• 1:08:12
  Not an I mean, because financial, I like to call them
• 1:08:15
  in America, financial Democrat, fiscal conservative Democrats,
• 1:08:20
  they're Democrats, but they're really fiscally financially
• 1:08:22
  conservative. And and that is the voters are
• 1:08:26
  voting those people in Venezuela's going to be
• 1:08:29
  contained, Maduro or Maduro is going to be taken out as going
• 1:08:33
  to be going to the Crowbar hotel prison.
• 1:08:38
  And and so we'll get that stability.
• 1:08:41
  And I think the vision for Latin America is huge.
• 1:08:43
  So what we've witnessed from our ETFs that are listed there that
• 1:08:48
  there are pioneer, there are like like Robin Hood apps.
• 1:08:52
  You can trade stocks, but they can only trade Latin American
• 1:08:56
  stocks and, and they can't buy Hive unless they can find a
• 1:09:01
  broker like Interactive Brokers that'll open an account.
• 1:09:05
  And there's all these young people, we get them up for ETFs.
• 1:09:08
  Sometimes it'll shock you. 500 kids come on on a, a program
• 1:09:14
  like this listening to learn about trading our Go AU Gold ETF
• 1:09:19
  that's listed in Bogota and we have Jets listed there.
• 1:09:23
  So there's this interest and Hive will be the first to be
• 1:09:28
  listed and where's our big Bitcoin growth Latin America and
• 1:09:34
  will be that hopefully that they'll be their proxy to go.
• 1:09:37
  And if they can't buy Bitcoin or they're reluctant to buy, they
• 1:09:40
  don't feel the exchange, they'll be able to use these apps like
• 1:09:44
  there's an app called Happy HPI And, and that is something that
• 1:09:50
  that they easily trade our ETFs, but they'll be able to go and
• 1:09:54
  trade Hive with that. We'll get list of Peru,
• 1:09:57
  Paraguay, we'll get listed in San Diego.
• 1:10:01
  And, and I think it's important to recognize then it'll be
• 1:10:04
  Mexico City. That's sort of the journey that
• 1:10:07
  we really help young investors that want to play in Bitcoin
• 1:10:11
  mining. They can participate with a
• 1:10:15
  Hive. Frank, I love what we were
• 1:10:17
  talking. About on and and first of all,
• 1:10:20
  that's fantastic news. Again, starting in Colombia and
• 1:10:23
  then going across the continent. And I think you know what a lot
• 1:10:28
  of people have to understand speaking as you know, first
• 1:10:31
  generation person that came from Latin America, my parents did.
• 1:10:36
  But again, the opportunities that we take for granted here in
• 1:10:40
  the West are not there, right? So you can't, you don't have the
• 1:10:46
  privilege of being able to access the, you know, the global
• 1:10:49
  financial markets, right? You, you don't, you can't just
• 1:10:52
  open a Robin Hood account. If, if you live in, in, in in
• 1:10:57
  some of these countries in Latin America, it's it's not that
• 1:10:59
  easy, right? So the fact that you guys are
• 1:11:02
  are are making, you know, really making the effort to get listed
• 1:11:06
  on the Colombian Stock Exchange with the long term goal of
• 1:11:10
  getting listed on all these stock exchanges on in multiple
• 1:11:13
  different countries in Latin America.
• 1:11:15
  I think brings a tremendous opportunity for young investors
• 1:11:20
  that do want to get exposure to one of the fastest growing
• 1:11:25
  Bitcoin mining companies that isn't fully pivoting to AI.
• 1:11:29
  You guys are sticking to your, to, to your dual engine now,
• 1:11:32
  Frank, one of the fascinating conversations that I had with
• 1:11:35
  you, I was super, super lucky to have a fireside chat with you at
• 1:11:40
  Mining Disrupt in, in Dallas, TX.
• 1:11:43
  And you, the way that you broke it down for me was that Bitcoin
• 1:11:49
  miners served as The Pioneers for the HPC, the AI revolution,
• 1:11:56
  right? They, they built out the
• 1:11:57
  infrastructure beforehand and now the AI guys are coming in
• 1:12:01
  and they're taking advantage of that infrastructure.
• 1:12:05
  And the way that you broke it down on stage was fascinating.
• 1:12:08
  Could you talk a little bit about that?
• 1:12:11
  Well, if. If you go what's called.
• 1:12:13
  Basically a a Greenfield and and you want to develop that and you
• 1:12:18
  source the energy and you bought the land.
• 1:12:22
  The permitting process depending on what state you're in or what
• 1:12:26
  province you're in Canada, it can take three to five years for
• 1:12:31
  a big mega 2030 MW project. It it just the ESG component of
• 1:12:40
  environmental is so significant like the state of New York or if
• 1:12:45
  you go to other provinces of Ontario and Manitoba.
• 1:12:50
  So that journey gets shortened the life cycle to from path to
• 1:12:56
  cash flow from billing a Tier 1 to tier three data center is is
• 1:13:01
  just take a tier one data center and you've got the electricity,
• 1:13:06
  you have the land. Now you have to spend a lot of
• 1:13:09
  money upgrading the structure of your building and much more air
• 1:13:14
  conditioning. You have to trade these, these
• 1:13:17
  tier 3, Tier 4 data centers. They have bigger pipes for
• 1:13:21
  electricity because you build a brain and you need for every 10
• 1:13:27
  megawatts, you're only going to get about 6.
• 1:13:30
  That'll really be HPC. The other 4 is using electricity
• 1:13:34
  for air conditioning and you have to have two different
• 1:13:38
  sources of Internet. You have to have a backup source
• 1:13:43
  of energy if the electricity grid goes down.
• 1:13:47
  So you have to go build something diesel or natural gas
• 1:13:51
  and then you also need to have batteries inside.
• 1:13:54
  You need this all this backup so that the the HPC never goes down
• 1:13:59
  for long. It's seconds.
• 1:14:01
  And and that is the big difference between Bitcoin
• 1:14:03
  mining. We can go down and we can
• 1:14:05
  balance the grid and come back up as though the energy is
• 1:14:08
  cheap. We can go half a day in my
• 1:14:10
  Bitcoin if it's cheap enough. You cannot do that with high
• 1:14:14
  performance computing. So that's a very big difference.
• 1:14:18
  And, and what you're seeing with the HPC, they're looking at
• 1:14:22
  these companies that have energy contracts, have the land, have
• 1:14:26
  all that cement infrastructure. When you go to try to lay some
• 1:14:29
  thick, thick cement in North Dakota, anywhere in Canada, in
• 1:14:35
  Sweden, you only have a short, a shorter number of months a year
• 1:14:40
  because it's friggin cold, it's freezing.
• 1:14:44
  And, and, and so you have to lay the cement and that that's
• 1:14:47
  another delay of moving and building.
• 1:14:50
  But if you already had that cement laying and you have the
• 1:14:53
  power coming in, wow, you just start, you got the
• 1:14:56
  infrastructure, you start building from inside and you
• 1:14:58
  build a tier 3 data center and you go from three years to nine
• 1:15:03
  months. Wow, do you so do you think?
• 1:15:06
  And, and, and Frank, do you think and I asked you this in,
• 1:15:09
  in, in Texas, do you think? No.
• 1:15:10
  And perhaps this was actually behind the scenes where I asked
• 1:15:13
  you this. Do you think that the China
• 1:15:15
  mining ban was a blessing in disguise for the American mining
• 1:15:20
  industry and the American AI industry?
• 1:15:24
  Well, I think it was more so from.
• 1:15:26
  From a blessing for people to be able to buy, what's really
• 1:15:30
  interesting to me is is how the difficulties gone up and the new
• 1:15:36
  really energy efficient chips, they're just coming out next
• 1:15:40
  year when we were talking about going from we'll go from 17 to
• 1:15:46
  12 joules on average and our goal is to get it down to under
• 1:15:51
  8 joules for the next halving. And that will allow us based our
• 1:15:55
  cost of energy to still make money.
• 1:15:59
  And I was surprised that the difficulty continues to rise.
• 1:16:03
  What that tells me is that there's many countries that are
• 1:16:07
  desperate to get Bitcoin. Russia is mining bad guys, but
• 1:16:14
  they they want they need U.S. dollars.
• 1:16:17
  It's just evident. We saw in Iran when the B2
• 1:16:22
  bombers dropped bombs and disrupted all their grid, the
• 1:16:26
  difficulty fell dramatically and then it slowly started climbing
• 1:16:30
  back. And that's probably one of the
• 1:16:32
  fastest things that came back because they need U.S. dollars.
• 1:16:36
  And, and I think that that's a really interesting dynamic, but
• 1:16:40
  I, I think that it's a bit of a wake up, wake up call for that.
• 1:16:46
  China's still the Big Bear that's out there to try to
• 1:16:52
  assault this industry. And just as much as as America
• 1:16:56
  is very deeply concerned and so is Europe now and Canada
• 1:17:01
  regarding this creeping China red bear, we have to be
• 1:17:06
  conscious of it. And so we have to prepare
• 1:17:10
  another agenda of how we don't go to war, We don't start
• 1:17:14
  throwing missiles to each other, but it's a very strong chess
• 1:17:17
  board you have to be blocking. And as long as we maintain our
• 1:17:21
  our advantages with AI and the growth of AI, then we can keep
• 1:17:27
  them at Bay. I just came back last week.
• 1:17:30
  I spent Turkey weekend in Japan. I took my my wife and daughter
• 1:17:34
  have never been and we went to Tokyo and then to Kyoto.
• 1:17:40
  Well, for me taking them I've been many times was a culture
• 1:17:44
  experience. My first time in 91, all the
• 1:17:47
  signs were only Japanese. Now they are a Japanese in
• 1:17:51
  English and, but they are very concerned about the Chinese and
• 1:17:56
  they have now the first new prime minister's a woman and
• 1:18:01
  she's very tough about protecting the, the Japanese
• 1:18:04
  culture. And they had the special visa
• 1:18:08
  that you the Chinese or government was paying for
• 1:18:10
  Chinese people basically to go there and they realized it was
• 1:18:14
  hurting their culture and which we really was, I found so
• 1:18:17
  amazing. Well, what does she say to
• 1:18:20
  China? If you attack Taiwan, you're
• 1:18:24
  going to have to deal with us and and.
• 1:18:28
  They have. Kicked China's butt and they at
• 1:18:31
  one time had all of Korea and and going up to Russia, that
• 1:18:35
  whole region of the Manchuria that they were easy to conquer
• 1:18:40
  that. And and if you look at we're so
• 1:18:42
  lovely to see the robotics by Elon Musk.
• 1:18:45
  Well, who's also wave answer robotics are the Japanese,
• 1:18:51
  especially for caring for the elderly people is where they
• 1:18:54
  really make these big advancements and people that
• 1:18:57
  have illnesses. Well, they're mobilizing and
• 1:19:01
  what happens when Toyota all of a sudden says they're going to
• 1:19:04
  start making mass weapons and they can turn on a dime.
• 1:19:09
  So I think that that that's a great part of playing this, this
• 1:19:13
  chess board that slows down China's aggressiveness under Xi
• 1:19:17
  Jinping and he can go keep buying the gold because they
• 1:19:22
  have to print a lot of money. If you look at the debt from all
• 1:19:26
  their provinces and added on with their federal debt, they're
• 1:19:29
  much more debt overall than America.
• 1:19:32
  But America gets banged around all the time of having the most
• 1:19:35
  debt per GDP. It's just not true.
• 1:19:37
  It's it's much less than the world as a global GDP and the
• 1:19:42
  debt levels. Well, MMT is not going to go
• 1:19:45
  away. But what we are seeing is that
• 1:19:48
  the spending is getting away from social stuff agenda, from
• 1:19:54
  socialism's policies. They're for national security,
• 1:19:59
  they are for better borders, they are for a better
• 1:20:03
  cybersecurity. That's where they need the AI
• 1:20:06
  for. So if you go to autonomous
• 1:20:08
  weapons, you go to autonomous cars, you want all those
• 1:20:12
  gadgets, you want those robots that are going to be.
• 1:20:16
  Washing your clothes as a good showing that that's a big push
• 1:20:19
  now to be able to buy these robots coming out next year for
• 1:20:22
  those mundane jobs. Well, you need these data
• 1:20:26
  centers. And America has over 1000 HPC
• 1:20:31
  data centers. That's double what China is.
• 1:20:34
  But China has more energy. They spent more money building
• 1:20:37
  hydro dams and they now have to run the push to to build these
• 1:20:41
  data centers. But they don't get the NVIDIA
• 1:20:42
  chips. That's why they were blocked, so
• 1:20:44
  they can't stack them. So Americans try to catch up.
• 1:20:47
  So we have an arms race for data Centers for HPC.
• 1:20:52
  What I am witnessing, it's not just America.
• 1:20:55
  When we look at the chips that were NVIDIA cells or chips say
• 1:21:00
  50% go to America, 2% go to Canada.
• 1:21:05
  Well, Canada should be at at basically 5% always 110th of
• 1:21:09
  America population wise, economics, education, all those
• 1:21:13
  factors so aligned, they have to double Europe, they're even
• 1:21:18
  less, they're only 10% of the chips are going there.
• 1:21:21
  Well, what's going to drive in those economies?
• 1:21:24
  NATO, the spending, Trump warned them, and then all of a sudden
• 1:21:29
  the spending is up to 2%. What happened to the military
• 1:21:32
  stocks in Europe? They went up 100% this year,
• 1:21:35
  100%. And now, now Trump has said 5%.
• 1:21:40
  So what happens when they go to 5%?
• 1:21:43
  The military and of all these governments need the data
• 1:21:46
  centers from hackers that are coming in and hackings and
• 1:21:50
  shutting down the Jaguar manufacturing company, shutting
• 1:21:53
  down the Heathrow airport for the weekend.
• 1:21:56
  So we're going to witness the big growth in data centers and
• 1:22:01
  we're going to witness that Bitcoin mining companies are
• 1:22:04
  going to all of a sudden get recognized for the value of
• 1:22:09
  these data centers. So what do I mean by that?
• 1:22:13
  If you look at Core Weave, when you look at any other just
• 1:22:17
  Digital Realty, these puppies trade at 15 to 20 times revenue
• 1:22:23
  per share. They trade at 24 times EBITDA.
• 1:22:28
  So if you say, OK, what is Hive's EBITDA, our EBITDA is
• 1:22:32
  going to be over $100 million. Well, therefore we should be
• 1:22:36
  trading over 2 billion. Therefore our stock should be at
• 1:22:40
  $10 right now. And I believe that's the great
• 1:22:43
  meme reversion for all the Bitcoin miners that the, that
• 1:22:47
  the value of a data center will go up incredible and and, and,
• 1:22:53
  and Frank. Also to these data centers,
• 1:22:55
  they're, they're energy hungry. How is the world how, how is the
• 1:23:01
  world prepared from an energy perspective to feed these data
• 1:23:06
  centers which are are going to require a tremendous amount of
• 1:23:10
  electricity? Well, clearly not in Europe.
• 1:23:12
  And they're gonna. Have to get with the new
• 1:23:14
  ingenuity that's happening here with nuclear.
• 1:23:16
  They're gonna have to go back and find a go to go nuclear, to
• 1:23:20
  get caught up. They're really, they're, they're
• 1:23:23
  totally stressed out with their policies, but they're going to
• 1:23:27
  do it. And they're going to create a
• 1:23:29
  military industrial complex. They're going to come out like
• 1:23:32
  the University of Texas here in San Antonio is the number one
• 1:23:35
  cybersecurity school in the country.
• 1:23:38
  It used to have started the vision 25 years ago with 100
• 1:23:41
  students and now it has 10,000. The NSA has the second largest
• 1:23:46
  office in San Antonio, 3000 employees extensively paid and
• 1:23:53
  building a huge 3,000,000 square foot data center complex here.
• 1:23:58
  We're going to see that in Europe.
• 1:24:01
  We're going to see that continue and and I remain for that were
• 1:24:05
  the value of these data centers with that spending coming back
• 1:24:09
  to that thought process. Modern monetary theory is not
• 1:24:14
  going away. That means Bitcoin will trade
• 1:24:18
  higher and and and the first big run is central banks buying the
• 1:24:24
  gold. It's the central banks that are
• 1:24:26
  really caught up at buying the gold in the battle against the
• 1:24:30
  dollar. They'll run out of that and all
• 1:24:32
  of a sudden those gold investors will say and central bankers, we
• 1:24:37
  better get another lick alternative asset.
• 1:24:39
  We got to go along Bitcoin. That's just what that's sort of
• 1:24:42
  the I look at that as the DNA of the Helix, how the Helix crosses
• 1:24:47
  over cosine sine wave and it turns.
• 1:24:50
  That's why I witnessed between the two assets, not one against
• 1:24:54
  the other there that one pulls out, then they pull back one
• 1:24:57
  pulls out, then they pull back. I I am so excited for.
• 1:25:02
  When that moment happens. I agree with you by the way,
• 1:25:05
  Frank. I think they go hand in hand and
• 1:25:09
  I think it's just a matter of time before the world realizes
• 1:25:12
  the absolute scarcity that Bitcoin has.
• 1:25:16
  Frank Hive is dropping a short film coming up at 2:30.
• 1:25:21
  We have a special one minute little tidbit that you guys are
• 1:25:24
  gonna see. Frank was talking a lot about
• 1:25:28
  their operation in Paraguay and Frank came on the show multiple
• 1:25:33
  times before I went to go visit Paraguay to see this.
• 1:25:37
  And there is no amount of words or pictures that we can show you
• 1:25:41
  guys for you guys to understand the scale of, of, of the Itapu
• 1:25:48
  Dam, which is powering the, the Hive Paraguay mining facilities
• 1:25:55
  and sites. And we, we were able to capture
• 1:25:59
  some of this so that you guys could understand what is
• 1:26:02
  happening in Paraguay, what what Hive is doing in Paraguay.
• 1:26:06
  And we got a special one minute sneak peek into the short film
• 1:26:11
  that's coming up. It's going to be releasing at
• 1:26:14
  2:30. Find it on the Hive YouTube
• 1:26:16
  channel find it on the X channel.
• 1:26:19
  You can find it on rumble as well and of course Frank Iden
• 1:26:23
  and a a a lot of the the hive team are featured in it.
• 1:26:28
  It was an amazing experience to witness.
• 1:26:30
  You guys had to get up at 4:00 in the morning to catch the.
• 1:26:33
  Sunrise coming up I mean yes, yes, I thought the footage you.
• 1:26:36
  Guys, that was stunning. Stunning.
• 1:26:38
  It was like the movie, the mission and like that is that is
• 1:26:41
  another fantastic movie to see the falls.
• 1:26:44
  I haven't seen any video that film until what you guys
• 1:26:48
  produced. That's like the equivalent to
• 1:26:51
  the mission, which is one of those movies the Vatican
• 1:26:54
  approves. So it gets the blessing.
• 1:26:56
  Thank you, Frank. And we're, we're going to be
• 1:26:58
  playing. You guys a clip of of the of the
• 1:27:03
  film in just a little bit. Opti, could you?
• 1:27:06
  Here we go. There we go.
• 1:27:08
  We're going to play it. We're going to be playing you
• 1:27:11
  guys. A clip of the film, and again,
• 1:27:14
  the full film gets released at 2:30.
• 1:27:17
  Let's check it. Out.
• 1:27:36
  Took 14 years to build. It took 40,000 workers to build.
• 1:27:44
  10 gigawatts. Of of harnessing water to make
• 1:27:48
  electricity. It's the largest hydro.
• 1:27:51
  Dam by production. In the world, it's physics and
• 1:27:55
  engineering, but there's almost like a philosophical thread to
• 1:27:58
  it all. We're using hydroelectricity,
• 1:28:01
  you know the water that flows through this hydroelectric dam
• 1:28:05
  that then gets distributed to the substation and powers are
• 1:28:10
  miners and it's water cooled through hydro cooling
• 1:28:13
  infrastructure it. All right, ladies and gentlemen.
• 1:28:17
  The full. Film catch it at 2:30.
• 1:28:20
  Follow the Hive X account, the Hive YouTube account.
• 1:28:24
  I do want to thank Hive's executive chairman, Frank
• 1:28:28
  Holmes. Frank, thank you so much for
• 1:28:29
  joining us on today's Simply Bitcoin Live.
• 1:28:32
  Thank you. Thank you.
• 1:28:33
  Look up. Appreciate it guys.
• 1:28:35
  All right, guys, if you guys. Enjoyed, enjoyed the show.
• 1:28:37
  You know what to do? Smash the like button, consider
• 1:28:39
  subscribing, all of that good stuff and we'll see you guys
• 1:28:43
  tomorrow for a brand new episode of Simply Bitcoin Live.
• 1:28:46
  Take care, everybody. Today's episode was brought to
• 1:28:52
  you by Bitcoin. Well.com, a Bitcoin only
• 1:28:55
  platform on a mission to enable financial independence.