Latest / Simply Bitcoin / BREAKING: The 3 Things NEEDED For $5M Bitcoin Are FINALLY HERE | EP 1168

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BREAKING: The 3 Things NEEDED For $5M Bitcoin Are FINALLY HERE | EP 1168 · Simply Bitcoin

0:00
Yo, what just happened yesterday completely changes everything
0:04
for Bitcoin in 2025 and potentially confirms the path to
0:09
$5,000,000 Bitcoin. While everybody was distracted
0:14
waiting for Trump's executive order, something far more
0:19
quietly happened in the background.
0:21
And what are those three things? Because three things needed to
0:25
happen. Three things needed to happen,
0:27
according to Saylor, for Bitcoin to reach $5,000,000 per Bitcoin.
0:32
First thing was the approval of the Spot Bitcoin ETF which
0:36
happened in January of 2024. Thing #2 was the change in the
0:41
Fasby accounting rules which happened in December of 2024 and
0:48
yesterday with the repeal of SAB 1/21, it opens the road.
0:54
It clears the way for banks to custody Bitcoin, which Michael
0:59
Saylor said was necessary in order for Bitcoin to reach these
1:04
new heights. So very, very exciting news
1:08
overall. And guys, we have an incredibly
1:10
special guest joining us today. We have Frank Holmes.
1:14
Frank Holmes is the executive chair of Hive Digital
1:19
Technologies and my legendary Co host who's always optimistic
1:24
optimist fields joining us in the house today.
1:27
Guys, it's been a crazy, crazy week with the inauguration of
1:32
Trump, the first pro Bitcoin president in the White House and
1:38
yesterday an order came through that I think we were we've been
1:41
all we all have been waiting for and of course that is the repeal
1:46
of SAB 121. Here are some of the details.
1:49
The Security and Exchange Commission has canceled a
1:52
controversial rule that financial firms holding crypto
1:57
to record them as liabilities on their balance sheet.
2:00
Here is Hester Pierce. Hester Pierce is the SEC
2:04
commissioner and she says bye bye SAB 121.
2:08
It's not been fun. The SEC published SAB 121 in
2:13
March of 2022, which asked financial firms holding crypto
2:17
on behalf of customers to report the assets as a liability on
2:21
their balance sheet. The crypto industry pushed back
2:25
on the measure, saying it would make holding crypto
2:27
administratively more difficult. Senator Cynthia Lummis The
2:32
Bitcoin senator added that SAB 1/21 was quote was disastrous
2:37
for the banking industry and only stunted American innovation
2:41
and advancement of digital assets.
2:44
Quote I am I am thrilled to see it repealed and get the SEC back
2:49
on track to fulfilling its intended mission.
2:52
She added Here is Eric Weiss. Eric Weiss is the person who
2:56
orange peeled Michael Saylor and he said can't be in overstated
3:00
how important this is. You'll soon be able to borrow
3:05
against your Bitcoin and get paid interest on it.
3:10
So the three things that Sailor said needed to happen in order
3:13
for Bitcoin to hit $5,000,000 per coin have happened.
3:17
SAB 121 has been repealed. I believe the new order is
3:21
called SAB 1/22. So, I mean, we've been talking
3:25
about this for months now. It's finally happened.
3:28
And I want to get Frank's opinion on this.
3:30
Frank, were you overwhelmed, underwhelmed about the recent
3:37
executive order coming out of the Trump administration?
3:41
Frank. I'm very overwhelmed with it.
3:44
It's it's so positive and constructive.
3:45
And maybe the bank lobbyists won't be writing all these
3:49
draconian rules for the banking industry to attack the crypto
3:53
ecosystem. And that's what's going on.
3:56
You can see that in the past many times, often that when
4:00
Jimmy Dimon was being interviewed, it was all a staged
4:03
phenomena that took place and, and those rules all of a sudden
4:08
change that the banks can make money from it.
4:12
And, and I think it's really key like Mark to market for holding
4:17
Bitcoin. Now the banks, I think this next
4:21
12 months you're going to see many changes in regulations that
4:25
facilitate the growth and the innovative juices of the Bitcoin
4:29
network to prosper and grow. Absolutely, 100% I I completely
4:34
agree with that. Opti, what's your take on this?
4:37
We've been covering this for months now.
4:39
It finally happened. Do you think $5,000,000 Bitcoin
4:44
is around the corner? Opti?
4:45
What are your thoughts? Well, you know, I'm not going to
4:48
say $5,000,000 Bitcoin 2025, but this is the road map to
4:52
$5,000,000 Bitcoin. So we'll tentatively say by next
4:56
cycle, you know, next cycle high.
4:57
I think we can, we can say, but no, really going into the SAB
5:04
121 stuff, I think this was huge.
5:06
Obviously a lot of Bitcoin and we'll cover it later today.
5:08
A lot of Bitcoiners felt a little disappointed with the
5:11
executive order around the strategic Bitcoin stockpile, but
5:14
I think this is probably the bigger news that really opens up
5:18
a lot of capital coming into Bitcoin.
5:20
Obviously here it's simply Bitcoin.
5:22
We don't really recommend you guys take your Bitcoin to the
5:25
banks. It's this is kind of seeming
5:26
like the Bitcoin or the banks want your Bitcoin, but this does
5:29
open up a lot of capital. And I mean there has I've, I've
5:33
been kind of trolling a little bit on on not only just Twitter,
5:36
but with friends. It seems like a lot of people
5:37
don't really want to custody their own Bitcoin.
5:40
And this is 1 one of those things where now since banks are
5:44
being allowed to go into Bitcoin, there is that
5:46
regulatory clarity now that, hey, they can hold your Bitcoin.
5:50
It seems like a lot of normally capital will end up with the
5:53
banks that want to, you know, custody your Bitcoin.
5:56
But what Eric Weitz was saying, I think is another huge thing
6:00
that now you can loan your Bitcoin.
6:02
As we've been talking about on the show, as a lot of bitcoiners
6:05
been saying around Twitter for a long time, Bitcoin is the
6:08
pristine collateral. So now that we're opening this
6:11
stuff up and it's seeming like Bitcoin is totally being
6:14
financialized and we're seeing that the tradfy world is looking
6:18
at Bitcoin as a legitimate thing to hold.
6:21
It's obviously going to open up a lot of capital.
6:23
And as we say all the time, this is obviously very good for
6:26
number going up. But for everyone out there, all
6:29
of all of our audience and all of our friends, we highly
6:33
recommend that you, you know, buy that Bitcoin and take it
6:35
into self custody. This is how we ensure the
6:37
revolution here of Bitcoin and it doesn't get captured.
6:40
But this is huge. This is obviously huge because
6:43
now it opens up the door for a lot of companies to add Bitcoin
6:47
to their balance sheet. And we've all seen what happened
6:50
with MicroStrategy, what Michael Saylor has been doing.
6:52
We've seen similar scientific and a lot of other companies
6:55
follow suit with adding Bitcoin to their balance sheet.
6:57
And now it's becoming a very easy thing for them.
7:01
It's no longer going to hurt, you know, their stock
7:03
performance is no longer going to scare the shareholders out
7:06
there. They can add Bitcoin to the
7:07
balance sheet and not mark it down as a liability and just add
7:10
it as, you know, an asset on their balance sheet.
7:12
And so on paper, it makes everything look a lot prettier
7:15
for people that want to hold Bitcoin.
7:17
So there's going to open up a lot of capital coming into
7:19
Bitcoin. I think this is super bullish.
7:22
Obviously there's a lot of stuff going on right now in the
7:24
Bitcoin space, but repealing SAB 121, I think is one of the huge,
7:30
huge wins that we got this week. Obviously, freeing Ross was the
7:33
other huge win for the Bitcoin and libertarian space.
7:37
But this is this is very good. And I mean, yesterday, Nico, we
7:40
were kind of talking about whether SAB 1/21 was going to be
7:43
one of these executive orders. I guess it wasn't actually an
7:46
executive order, but we did get it by the end of the day.
7:48
So I don't know, maybe once you're a Bitcoiner, you can
7:51
predict things a little easier, even if you have a 65 IQ like I
7:54
do. So hey, hey, you know, we, we,
7:57
we get to see a lot of things on the horizon.
7:59
And man, it's, it's what's the, what's the meme?
8:02
Nico? You're going to win so hard.
8:03
You're going to get tired of winning.
8:04
I I think this is where we are, man.
8:06
We are winning extremely hard right now.
8:08
Absolutely. And you did name drop.
8:10
You didn't. I'd just like to add that it's
8:13
there's many positive unexpected consequences that the crossover
8:18
is my vintage and my vintage all of a sudden feels much more
8:21
comfortable of going through a known stockbroker to go and buy
8:27
an ETF that has Bitcoin in it. And I'm spending $1000 a month
8:31
at Robin Hood. I'm really buying Satoshi's, but
8:34
I'm buying and, and that big crossover is going to take place
8:38
and then it will fuel other people that are more
8:40
sophisticated, that are more feeling safe are going to come
8:43
in and buy their Bitcoin directly and take it off and put
8:47
it in cold storage, which which you're just recommending.
8:50
But I think this is opens it up because the banks will lend to
8:54
the brokers. But if they have a Bitcoin on
8:56
their balance sheet, not Microsoft stock, if they're
9:00
doing securities lending, all of a sudden make a liability,
9:03
that's all going away. So it lends itself also for the
9:06
growth of the ETETF ecosystem if there's any margin accounts.
9:13
Absolutely. And then Opti, you did mention a
9:16
bunch of public companies that hold Bitcoin on their balance
9:20
sheet. Well, we do have the Executive
9:23
Chairman of Hive, which is one of those public companies that
9:27
holds 2805 Bitcoin. You guys are currently huddling
9:33
that right now. And Frank, another thing that I
9:37
wanted to ask you is part of this executive order was the
9:42
focus on AI. And I know that Hive, you guys
9:45
have been focusing on AI. The last time you came on the
9:48
show, we spent like 5 to 10 minutes talking about that.
9:51
So what are the implications of this executive order?
9:54
Is it going to help Hive? What's your perspective?
9:57
No, it's going to help Hive, but it's going to create a lot of
10:00
other disruptions. What what's taking place now is
10:03
the value of your energy is very key because you need stable
10:08
energy to build a data Center for AI and, and what's happened
10:13
after core? We went after core scientific
10:16
and core scientific wasn't taken over.
10:18
They partnered and there's a reset button on the valuation of
10:22
core scientific. Well, you've got now hedge funds
10:26
are coming out and buying big positions, 10% a riot and
10:31
telling them to take their energy and repurpose for HPC,
10:34
not Bitcoin mining. So we're seeing the tectonic
10:38
plate shift and and how it will outcome will be, I don't know.
10:43
I can't tell you exactly, but I do see the value of that energy
10:47
has gone up dramatically and and the push like today India talked
10:53
about a 11 GW source of electricity to build a high
10:57
performance campus of data centers.
11:00
These are monstrous, monstrous numbers for your listeners.
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One Bitcoin, one MW of energy for Bitcoin mining is 1,000,000,
11:10
$10 simple and easy to think about it.
11:13
If you're going to do HBC, it's 10 million with before you
11:18
bought any chips those those we just bought some NVIDIA H2
11:24
hundreds you're talking $70,000 a chip you're not talking 7000,
11:29
you're not talking 700. It's another level.
11:32
So you got to have this huge infrastructure build and you're
11:35
going to have on top of that these these GPU chips bought.
11:39
There is a big push for data centers becoming sovereign
11:43
assets basically like water is so, so important.
11:47
These data centers are going to become so important, but a task
11:50
to that is a source of energy. Beautiful, beautiful.
11:54
It's it's exciting times. Now you, you mentioned, you
11:58
mentioned Frank and I want to educate our audience.
12:00
You mentioned HCP, is that correct?
12:03
I did as the acronym for High Performance Computing and
12:08
hyperscalers, they're called so AWS or Core Weave, which is
12:12
bought into Core Scientific and Core Weave is supposed to be
12:16
going public later this year. It's gone from a billion dollar
12:20
valuation to $20 billion evaluation.
12:24
If you look at Elon Musk's AI unit that last year bought 3 and
12:30
a billion dollars worth of H1 hundreds and fast tracked, I
12:34
think it just outside of Nashville, his data center which
12:37
which Jensen said is epic of how fast he built it.
12:41
This is all evolving. Very quickly, but it's all in
12:44
the back. What to me is most interesting.
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It's Bitcoin miners. They're the 1st to go to these
12:49
centers. They're the 1st to take stranded
12:52
energy. And.
12:53
Reconvert it, they're the 1st to turn around and balance the
12:56
grid. I know High was the first in the
12:57
world to do this in Sweden and rights did it in Texas.
13:02
So we can see that that the significance of innovation are
13:06
the Bitcoin miners. That that's incredible and and
13:10
why do you think Bitcoin miners were the first ones to to
13:14
really, you know, go to these places and find the stranded
13:19
energy use the stranded Why why was it that Bitcoin miners were
13:22
leading the charge on this Frank?
13:25
Because they're so focused on efficiency of energy from the
13:29
chip that you buy, every new chip now is coming out to be
13:32
much more efficient. That is, they collect the call,
13:35
how many joules are you consuming of electricity?
13:38
And it used to be 35 joules and then it's now 27 joules, and
13:42
then it's 21 joules. You see all the mining companies
13:45
are now posting how many joules they're consuming of these new
13:49
terahash units they're buying. So it's really interesting how
13:53
efficient you have to be to survive and and the biggest part
13:58
is your cost of electricity. So they were able to find strand
14:02
electricity for two cents that was going nowhere as being
14:06
wasted. And in would come a Bitcoin
14:08
miner and they could take older equipment and get their capital
14:11
return. The most efficient people on
14:14
getting that cash flow return invested capital I've seen have
14:17
been get Bitcoin miners. That's beautiful.
14:21
That's beautiful. Yeah.
14:21
Bitcoin. Bitcoin essentially comes in and
14:25
it gives value to otherwise stranded energy or wasted
14:28
energy. I don't know if that's the
14:30
correct term, but Bitcoin gives in there, the stranded energy
14:33
pockets. Bitcoin miners could go there
14:36
and turn that stranded energy or isolated energy into sweet,
14:40
sweet satoshis. And I think there's going to be
14:42
worldwide implications for just that.
14:44
I can share this, what we're doing in Paraguay.
14:47
Paraguay has all these power lines coming from the biggest
14:50
damage in the Western Hemisphere and and, and it's stranded.
14:54
So they can't really use it domestically that they give it
14:58
back to Brazil, they give it to sell it to Argentina.
15:01
They always have slow pay or no pay with all respect and the
15:04
other countries. So all we have to go and build
15:07
the substation. Oh, that's only $8 million.
15:10
So these power lines are huge. You can never put your hair
15:14
dryer into them or your toaster in the morning explode.
15:17
So you have to create step downs of these big pipes of
15:21
electricity. Well, eight million, 10 million
15:24
substations and then Transformers to do that.
15:27
So now it is Hive and it's been other companies have gone in to
15:32
build this that now you can light up the local community
15:35
because that electricity has a surplus that can go into schools
15:39
and buildings and et cetera. So I I know first hand what
15:43
these benefits are when we come in.
15:46
Beautiful, beautiful. All right guys, we're going to
15:48
be right back. We're going to hit the numbers.
15:49
But before we do that, guys, there's 1600 of you guys
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watching live between all the platforms, 600 watching live
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just on YouTube alone. Help us break 200 likes within
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the 1st 25 minutes of the show. So if you guys are enjoying the
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show so far, make sure to smash that like button.
16:08
You guys are listening to simply Bitcoin live with Nico Opti and
16:12
Frank Holmes, executive chairman of Hive Digital Technologies.
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Bitcoin price is 100 and 6660 block height 880,670.
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Sixty one sats per dollar under 1938 Market cap 2.11 trillion
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Bitcoin versus gold market cap 10.97% Percentage issued 94.35%
19:26
Decline from all time high -2.3% realized monetary inflation
19:31
1.05%. In the grand scheme of things,
19:35
the party is just of us getting started.
19:36
Anyways, I have a clip for you guys of Mark Moss at the Bitcoin
19:40
MENA conference explaining why $1 million Bitcoin is bearish.
19:45
It's about a 2 minute clip. I'm going to play it and then
19:48
we're going to talk about it. Let's check it out.
19:50
Now imagine a world where your money gets stronger every year.
19:54
Imagine a world where your money buys you more goods and services
19:57
of the future instead of less. A world where actually we're
20:00
seeing innovation thrive and again, life getting easier and
20:04
not harder. Now under this Bitcoin standard,
20:07
we can actually start to see the reality of AI and robotics and
20:12
energy all. All working together to reduce
20:15
the cost and expand access, creating massive amounts of
20:19
abundance. Now this isn't a Bitcoin
20:20
denominated world as Jeff Booth laid out earlier, this cannot
20:24
happen in a Fiat world. The systems are incompatible.
20:29
The only way we achieve this is with Bitcoin.
20:31
And of course everybody wants this.
20:34
Now in this phase, the maturity phase, I'm predicting, again
20:37
using what the Congressional Budget Office has shown us
20:41
through 2054, that the money and printing continues.
20:44
Global store of assets have gone from 3.5 quadrillion dollars to
20:49
8.5 quadrillion dollars, which sounds absolutely crazy, but
20:54
again, my parents bought a home for $40,000.
20:57
I mean, that's how crazy this world is Now.
20:59
Money is still there, bonds are still there, real estate,
21:02
equities, collectibles, gold, all of those things are there.
21:05
Bitcoin is now slowed down to about a 20% ARR.
21:09
We're not talking crazy numbers. We're not talking to 4000% ARR.
21:13
And Bitcoin has gone from a 289 trillion to now at 1.8
21:16
quadrillion dollar asset class. Divide that by the 21 million
21:21
and we are talking $85 million per Bitcoin.
21:26
And again, this doesn't mean the dollar is worthless.
21:29
This doesn't mean that dollars are no longer here.
21:32
This just means that Bitcoin has captured value from all the
21:36
other asset classes. Bitcoin is now the second
21:38
largest asset in the world behind real estate.
21:42
And yes, it's pulled a lot of value from real estate, but we
21:45
still, you know, turns out need places to live, still need
21:48
warehouses for our stuff, buildings to meet in.
21:51
Turns out we still need real estate, but it has pulled value
21:54
from real estate as well as every other asset that's out
21:57
there. It's become the denominator, and
22:00
at this point, the world has decided that we should no longer
22:05
use the denominator of Fiat currency.
22:08
And at this point, Bitcoin has reached its full and final
22:11
stage, which is stage five and has become the global unit of
22:15
account. At this point, you no longer
22:18
measure your wealth in Fiat. You measure your wealth in
22:20
Bitcoin, and at this point, one Bitcoin.
22:27
Wow. I mean, I thought Michael
22:30
Saylor's predictions of $13 million per coin.
22:33
Mark Moss is saying, what did he say, 85,000,000?
22:37
That's insanity. That's insanity.
22:40
I can't comprehend it, but I forget where I saw this from and
22:44
I was speaking to a friend and it oh, it was, I was speaking to
22:47
American Huddle yesterday and he basically said like Nico, I
22:51
remember the first time I bought Bitcoin it was like $200 per
22:55
coin and we could have never in our wildest dreams have imagined
23:02
100,000 imagine $200 a 100,000. And if you and I remember when I
23:08
got in, it was roughly 6 to $700.00 per Bitcoin.
23:12
And never in my wildest dreams that I think 100,000 was
23:16
possible. In fact, I thought I was late,
23:18
right? So if you apply that same logic
23:21
heading into the future, I mean, yeah, today, right now where we
23:25
are in this moment, I think $1 million is like, Oh my God,
23:29
we're looking, we're looking at that.
23:30
And we're like, that's crazy. We're we're looking at $10
23:33
million maybe and in a couple decades.
23:35
And we're like, that's absolutely insane.
23:37
That's impossible. But all you have to do is look
23:39
at the past and realize that we've been here before.
23:44
So, Frank, are these predictions, because I guess
23:47
that's what they are. Are they, are they overly
23:49
bullish? Are you optimistic about Bitcoin
23:53
heading into the future? Is $10 million Bitcoin possible
23:57
in the next 1020 years? Frank, what's your opinion?
24:01
You know, who would have guessed Bitcoin around 15 years ago?
24:05
20 years ago there was no Bitcoin.
24:07
And how did you forecast that Bitcoin that where it's going to
24:11
go? So you don't know between now
24:13
and then to make a linear line that far out.
24:17
And it's it's great for enthusiasm and optimism, but I
24:22
think on a more realistic basis, what would make Bitcoin worth
24:26
$1,000,000? And that would mean a Satoshi's
24:30
trading at 1 cent only right now you can turn around and buy
24:35
fractions of $1000 of total ETF and $1000 going to give you
24:41
close to 1,000,000 Satoshi's. I I think that that is very
24:46
digestible and and that is still pushing almost tenfold on your
24:51
money and I think that can happen over the next couple of
24:54
years. That's more realistic than that.
24:59
It's going to be bigger than the whole real estate world.
25:02
I think that when you go that path it's going to push.
25:06
This past week by Fink from BlackRock was tokenized now
25:10
bonds and stocks. So what happens then if you put
25:15
that into the equation, if you tokenize real estate basically
25:18
around a Bitcoin, the way ordinals were created, that
25:23
would be that dimension that would take that because if
25:26
everything, if real estate was all tokenized to the Bitcoin
25:30
network, the contracts, the securities, then you can, you
25:36
can create a number like that, but the same Bitcoin singularly
25:40
is going to do that. That's that's just a wonderful
25:44
dream. Yeah, and and the do you agree
25:47
with the? Do you agree with the aspect of
25:51
Bitcoin would take the monetary premium away from real estate?
25:55
Do you agree with that theory? No, I, I.
25:58
Think we're going to see the success of tokenization of of
26:04
these other assets and, and, and I think that that's what's
26:08
really important that securities to be tokenized.
26:13
A classic would be what happened with with the Trump meme coin.
26:18
What people I try to explain in in in the Stock Exchange world,
26:22
it would be impossible. To get all.
26:25
Those other exchanges to get a hyperlink into the Solana
26:30
network because that's where it was launched at less than $0.20
26:35
and. Three days later.
26:37
It it had reached $75. No penny stock has ever done
26:41
that. Well, big reason why is that all
26:44
the other exchanges were calling their workers at 3:00 in the
26:48
morning to start coding to create the hyperlink.
26:51
So therefore we can put on our platform the Trump meme coin.
26:57
That's an unregulated space of getting that coding.
27:00
You couldn't do that. So you have to think of that.
27:05
It was so successful and so volatile.
27:07
And as we saw more spokes going into that network, the more the
27:13
Trump coin went up. And and so this lends itself
27:18
what happens if you create not just a main coin, but if you
27:22
tokenize all the buildings and how fast could the exchanges
27:26
around the world all of a sudden be able to hyperlink into that
27:31
or to be protectionism, protectionism or with that
27:34
hyperlink? This is the.
27:36
Great Gray area because the Bitcoin network is over 20,000
27:40
active players around the world with 195 central banks.
27:46
But really there's only A10 really strong stock exchanges
27:50
that have robust activity. So what, how would that be?
27:55
I think the stock exchanges could probably grow
27:58
dramatically. I think the commodity exchanges
28:00
would be tokenized can grow dramatically.
28:03
And I think the idea of of speculating and trading around
28:06
the world can grow dramatically on that Bitcoin network, which
28:11
is going to be if, if bitcoins going $1,000,000, by that time
28:15
there's going to be 35,000 nodes around the world.
28:21
Yeah, and and that's a really good point too, Frank, because
28:24
I, I, I never thought about it that way because like the way
28:26
that like a lot of these stocks, right, right.
28:28
Right now the way they function, it's all analog.
28:30
The markets also close. They're not 24 hour markets.
28:33
I think that's going to change as well.
28:35
And it's only available to U.S. citizens.
28:38
Imagine if you know, if you're if you're, if you're someone in
28:42
in another country, you're able to trade the US markets, you're
28:46
able to kind of exchange those, you're not able to do that and
28:49
in its current form. So I think that's a really good
28:51
point. Opti.
28:52
What's your take on this? Do you think Mark is overly
28:55
bullish, overly bearish? What's your take, Opti?
29:00
Well, I mean, you know, 85,000,000 per Bitcoin sounds
29:03
ridiculous, like it really, but it really reminds me of what you
29:08
just said about American Huddle. And I'm remembered of what he
29:11
said a long time ago. You know, he bought Bitcoin.
29:14
I think when he was tweeting about it.
29:16
He said, I got in around a couple $100 A and now Bitcoin
29:20
fluctuates by a couple $100, you know, a second at this point and
29:25
getting into Bitcoin around the one to 10K area.
29:29
You know, when Bitcoin does fluctuate in these numbers, you
29:31
kind of you kind of like build an immunity to it.
29:34
You're kind of just unfazed by it.
29:36
So do I think that it's a possibility that we start to,
29:40
you know, go into these God candles, Omega candles and the
29:43
Bitcoin price fluctuates by 1020 fifty $100,000 per day movement.
29:49
I think it's it's fully, fully a possibility, especially when
29:51
Bitcoin does get into seven figures.
29:54
But as of now, you know, I am trying to be conservative here.
29:57
I am as bullish as Mark is in the long term.
30:01
But I think as a Bitcoin, it's like, let's get to like half a
30:04
million a coin and then maybe a million a coin before we start
30:07
talking about $85 million per coin.
30:10
But like Frank was saying, you know, if Bitcoin does get to
30:13
dollar SAT parity, that's 100 million per coin.
30:16
So it's not out of the realm possibility.
30:19
Obviously we don't have a time frame here, but looking at
30:22
Mark's time frame, that was 2050.
30:24
So you know, 25 years from now, is it a possibility?
30:28
I mean, I would be a bear if I didn't say that.
30:31
I think there's a possibility it could happen.
30:33
So I will stay on the optimistically bull tarted side
30:38
of this bet and say yes it is possible.
30:41
I absolutely love that. All right, guys, we're going to
30:43
be right back. We're, we're going to be talking
30:46
about Trump's executive order called Strengthening American
30:50
Leadership and Digital Financial Technology with Opti and Frank
30:54
Holmes, Executive Chairman of Hive Digital Technologies and
30:58
during the Culture segment. But we have some announcements
31:02
coming out of Hive, some very, very exciting announcements.
31:06
So really, really looking forward to that.
31:08
Guys, there's, there's already 2300 of you guys watching live
31:13
between all platforms. So guys, make sure to smash that
31:16
like button only on YouTube alone, 744 live viewers.
31:21
Holy cow. So guys, smash that like button.
31:24
Help us break 300 likes. We're already at almost 250
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31:32
You guys are listening to Simply Bitcoin Live.
31:34
We will be right back. I want to give a very special
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devices. All right everybody.
33:49
So let's talk about Trump's executive order that was
33:54
released yesterday. It pertains to the digital
33:57
assets industry. It mentions mining and I'm going
34:01
to read some of the highlights and we'll we'll talk about it.
34:04
So it goes on to say by the authority vested in me as
34:08
President by the Constitution, the laws of the United States of
34:11
America, in order to promote United States leadership and
34:13
digital assets and financial technology while protecting
34:16
economic liberty. It is hereby ordered as follows.
34:20
The digital asset industry plays a crucial role in innovation and
34:23
economic development in the United States, as well as our
34:25
nation's international leadership.
34:27
It is therefore the policy of my administration to support the
34:30
responsible growth and use of digital assets, blockchain
34:34
technology and related technologies across all sectors
34:37
of the economy, including by the first one.
34:40
Protecting and promoting the ability of individual citizens
34:43
and private sector entities alike to access and use for a
34:47
lawful purposes open blockchain networks without persecution,
34:51
including the ability to develop and deploy software to to
34:55
participate in mining and validating, to transact with
34:59
other persons without unlawful censorship and maintain self
35:03
custody of digital assets. I mean Opti the rest of these
35:08
they're cool, but I really, really like this first one man
35:11
self custody and the executive order the the right to mine and
35:17
validate and to transact without fear of persecution or
35:22
censorship. It also specific specifically
35:25
mentioned mentions that they're taking measures to protect
35:28
Americans from the risks of central bank digital currencies
35:32
which threaten the stability of the financial system, individual
35:36
privacy and the sovereignty of the United States, including by
35:40
prohibiting the establishment issuance, circulations and a use
35:44
of a CBDC within the jurisdiction of the United
35:48
States. Now what's really interesting
35:50
about this and Opta, you mentioned this to me in earlier
35:53
on is that it looks like the European Union took the other
35:56
route and they double down on the digital euro, which is the
36:01
European Central Bank digital currency.
36:03
Now I want to take advantage of the fact that we got Frank
36:06
Holmes in the House, and I want to ask Frank about this specific
36:11
passage. Frank, how do you feel about in
36:15
the first digital assets executive order coming out of
36:19
the White House, mining is named.
36:23
How do you feel about that? I feel thrilled.
36:26
I, I, I'm very thrilled. And we have moved the head
36:30
office of HIVE from Vancouver to San Antonio, TX.
36:36
So we have moved to the US, where I feel that the company's
36:39
head office is now safer from overreaching, vilifying a toxic
36:45
and take easily through the the big banking and the the and and
36:50
the politicians that are that are behind what was the previous
36:54
couple of I guess I've got to be so polite, how I say it,
37:00
regulatory regimes. Yeah.
37:04
And and and that's a that's, did you guys do that on purpose
37:08
because of the of the incoming Trump administration?
37:11
Like you saw it and you said, OK, now it's safer to move to
37:15
the great state of Texas. We all know how the local Texas
37:19
government feels about Bitcoin mining.
37:21
They want to make Texas the Bitcoin capital of the world.
37:25
So this was on purpose based on the election of Trump and of
37:29
course, the local regulatory environment in the state of
37:32
Texas. Is that correct, Frank?
37:34
Absolutely. You know when I first.
37:37
Trying to launch a Bitcoin ETF was 2017 and that led me to Co
37:42
found the creation of Hive to being the first crypto mining
37:45
company and holding our coins at that time was we became a proxy
37:51
for particular baby boomers that were reluctant to go with these
37:55
exchanges to buy Bitcoin. They used Hive as his proxy.
38:00
Yeah, yeah. And let me ask you something
38:03
else, Frank as well. You, you tried to launch the
38:07
first Bitcoin ETF in 2017. You were so you were, you was a
38:13
surprise that it took so long 2017 to 2024.
38:18
Well. I was surprised it took so long,
38:20
but there's just so much politics behind any government
38:24
political party that believes in centralization of everything
38:28
versus decentralization just created more difficulty and and
38:33
and that's what we had a witness and overreaching.
38:39
I saw this in Canada after high one public where the stock the
38:44
the the regulatory SEC equivalent that has the
38:48
accounting board reporting to it.
38:50
So they weaponized the accounting board and the
38:53
accounting board went after every audit firm that did an
38:56
audit on any mining company. So if you had a big 6-7 audit
39:01
firm, they were told unequivocally in Canada in 2018,
39:05
nineteen, that they were not allowed to audit firms.
39:10
And this impacted limited partnerships, not being able to
39:14
get audited. If you had a fund, if you're
39:16
creating a fund, how are you going to get auditors?
39:18
And if you look at in the US, all the big Bitcoin miners, they
39:22
don't have the Big 4 audit firms.
39:25
So why was that? So you see that it was, it was
39:28
one of those mechanisms of weaponization.
39:31
It did hit the media in Canada on their biggest financial
39:35
publication in 2019 era, didn't hit the Wall Street Journal.
39:42
So you can see that the news and information really is on
39:46
decentralized platforms like this.
39:49
This is where people get their insights now.
39:52
Yeah, I 100% agree with that. I think the, the era of of I
39:56
call it the, the legacy media is really, really being replaced by
40:02
independent media. And and you see this across the
40:05
board. People are getting their
40:06
information on X, they're getting their information on
40:09
YouTube, they're getting their information on Rumble and it it
40:13
allows. What I call the the circumvent
40:17
the circumvention of the gatekeepers of information.
40:20
It allows peer-to-peer communication like what we're
40:22
doing right now. And I think it's going to be a
40:25
much better world for it because it allows free and open
40:29
discussion. Opti, what's your take on this?
40:32
The give. You my experiences I found is
40:36
always being on the CNBC's and the Bloomberg's around the world
40:40
going into the Bitcoin realm. There was pressure on them about
40:43
me talking and doing an interview like this and and then
40:47
it became for anything under a billion dollar market cap, there
40:51
could be manipulation. So what does that do?
40:54
That really affects the formation of capital for a new
40:58
idea, a new technology, a new biotechnology, a new crypto
41:02
mining company that so where investors have to go, they have
41:05
to go to mediums like yourself and get the insights of a new
41:10
coin or a new mining company or views and perspectives of the
41:15
industry. Yeah 100% it's it's it's a it's
41:19
a it's a it's a brave new world and it's it's really it's really
41:23
exciting. I'm I'm I'm I'm and especially
41:25
if someone who's who's focused on on media guys, 2500 live
41:31
viewers right now between YouTube rumble and X number
41:34
keeps going up almost 800 live viewers on YouTube.
41:38
Holy cow, we broke 300 likes. Let's move up that target 400
41:42
likes within the 1st 50 minutes of the show.
41:46
So if you guys guys are enjoying Simply Bitcoin Live, I'm here
41:49
Nico. I'm here with my Co host,
41:51
Optimus Fields and our special guest today, Frank Holmes,
41:55
Executive Chairman of Hive Digital Technologies.
41:58
Hive was the first publicly traded Bitcoin mining company.
42:02
Opti. What's your take on Trump's
42:04
executive order, specifically on the right to self custody, which
42:10
I think was awesome, and the central bank digital currencies.
42:16
Yeah. So obviously when this dropped
42:19
like a lot of Bitcoiners out there, it did feel kind of like
42:23
a rug pull, you know, not one mention of Bitcoin.
42:25
So this is this was all the noise on Twitter, right.
42:28
But when you kind of look into it and not trying to spin this
42:31
in a positive way, a lot of the things that were in this
42:34
executive order were actually, I would say really good,
42:36
especially what you just mentioned, You know, the right
42:39
to transact mine hold, you know, the right to self custody, the
42:46
right to develop software and of course in the very act nuking
42:50
ACBDC coming out of the federal government.
42:53
Also, one thing that is very interesting in regards to this
42:56
executive order is that when they named this watch group,
42:59
that's kind of the, you know, the the organization or the
43:03
administration of the group that's going to push this
43:06
strategic Bitcoin reserve or stockpile or whatever you want
43:08
to call it. They specifically, I think
43:12
omitted at adding the Federal Reserve or the FDIC to this
43:16
group, which I think is huge. I think that is like the really
43:20
big signal here considering what we've seen the Fed do, the FDIC
43:23
do. And shout out to Caitlin Long
43:25
for pointing this out on Twitter.
43:27
They're the ones that have been actively fighting the Bitcoin
43:29
administration or sorry, the Bitcoin network the last couple
43:32
of years. And, and now they're completely
43:34
excluded from even having any oversight over this, you know,
43:38
strategic Bitcoin stockpile or strategic digital asset
43:42
stockpile. Now, I know a lot of bitcoiners
43:44
out there are kind of saying right now, I think the new meme
43:47
is if it's not a Bitcoin only stockpile, then there should be
43:51
no stockpile. Now, I, I mean, I obviously fall
43:54
into that sentiment, but when you really kind of look into it,
43:57
Bitcoin's the only thing that is actually going to give people
44:00
Peace of Mind moving forward. So I think, you know, obviously
44:03
it's going to have Bitcoin, it's going to mainly be Bitcoin.
44:06
And let's not forget, there's still, there was a time frame
44:08
there. I think it said 180 days to
44:10
basically implement this and make this happen.
44:13
So Bitcoiners have about 6 months to not only educate the
44:16
federal government, but interact and communicate with the watch
44:20
group and show them that, yeah, this should mainly be Bitcoin.
44:24
And shouts out to our boy Nolan. I love Nolan.
44:26
I was watching his show this morning and he was making an
44:29
interesting point in regards to the strategic stockpile that
44:33
what this opens up is going to be Bitcoin bonds in the future.
44:37
And we saw what El Salvador did with their Bitcoin bond product.
44:40
And this is really the huge wind falling after this.
44:44
So on the surface level, yes, you know, it feels feels like we
44:48
got rug pulled. Bitcoin wasn't mentioned once in
44:50
this Bitcoin is really mad. Bitcoin Maxis are, you know,
44:54
getting upset about it. And I, I am totally on that,
44:56
that sentiment as well. But I think when you kind of
44:59
look into it and going a little further, there is a lot of good
45:02
stuff that did come out of this proposal that I think is a good
45:06
first step. And now we're also going to see
45:08
the dominoes fall around the world.
45:10
Other countries are going to have to follow suit.
45:12
And hey, you know, if other countries want to add something
45:16
that's not Bitcoin to their stockpile, well, that's not
45:19
going to give them the Peace of Mind that Bitcoin will.
45:22
And so bitcoins obviously going to lead.
45:23
Bitcoin is the superior digital asset.
45:26
Of course, there's no second best.
45:28
So you know, as we've said before, the best way to become a
45:31
Bitcoin maxi is usually by going through your shit coin phase.
45:35
Did we expect that a nation state wasn't also going to go
45:38
through it? Obviously El Salvador is the
45:40
exception here with Buchelli, but I think this is a good first
45:43
step. And as the Bitcoin community or,
45:46
you know, people involved in Bitcoin, I think it's very
45:48
important for us to continue to communicate with them and, and
45:50
open this dialogue with them. And now they've obviously
45:52
followed through on their promises.
45:54
And so we'll see what actually happens in six months in regards
45:57
to this. But now we have something
45:59
official. So hey, you know, Bitcoin, as
46:01
Nico's been saying, we are in the room now and it's upon us
46:05
Bitcoiners to continue to educate them and show them that
46:07
Bitcoin is the only thing that matters and Bitcoin is the way
46:10
and all roads lead to Bitcoin. So a lot of good things in this
46:13
proposal, this executive order, obviously it's not perfect, but
46:16
we have time to I think correct the ship and I think it's going
46:20
to be very interesting to see what actually happens.
46:22
Absolutely. Yeah, guys, historical,
46:24
historical moment. I think in American history, the
46:28
first Bitcoin president signed the first executive order
46:32
relating to the industry. The name of the executive order
46:35
is strengthening American leadership and digital financial
46:38
technology. And here's is a clip of Trump
46:42
actually signing it. Come out, there's nobody like
46:46
this guy. They said.
46:47
How did you get David Sacks? How did you do that?
46:50
And he's he's doing it for the country more than anything else.
46:58
All right, ladies and gentlemen, we are going to talk all things
47:01
Hive. We're going to hit the culture
47:03
segment. Almost at 3000 live viewers and
47:06
about to We just broke 800 live viewers on YouTube.
47:09
Holy cow, guys, smash the like button.
47:11
Help us break 400 likes by the end of the show.
47:15
So we'll be right back. We're going to hit the culture
47:17
segment. I want to give a shout out to
47:20
our sponsor Hive Digital Technologies.
47:23
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47:55
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48:09
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48:38
Alright everybody, we have Frank Holmes in the house today,
48:41
Executive Chairman of Hive Digital Technologies, and we're
48:45
going to talk about all things Hive.
48:47
So I have a couple things that I want to talk about.
48:49
First, this Twitter thread. Santiago Pena became the first
48:55
Paraguayan president to attend AUS presidential inauguration.
49:00
This, of course, this happened a couple days ago.
49:02
Why is Hive choosing to expand its global footprint in
49:05
Paraguay? the US and Paraguay share a long
49:08
history of cooperation. It goes on to say the US and
49:11
Paraguay share a rich history dating back to the 19th century
49:16
when President Rutherford Hayes resolved a key border dispute in
49:20
Paraguay's favor. His decision made him a national
49:23
hero with a province named in his honor.
49:26
I did not know that his enduring legacy lives on as we continue
49:30
to strengthen our ties today. Paraguay is home to abundant low
49:35
cost renewable energy thanks to its vast hydroelectric
49:38
resources. In fact, a paragraph produces
49:41
100% renewable electricity, making it one of the greenest
49:45
energy producers in the world. By expanding Hives operations
49:49
there, they can help put this clean energy to work by powering
49:53
the Bitcoin network and it's sustainable, responsible way.
49:57
Aligning with our mission to drive innovation without
50:00
compromising the planet. Here is the picture of the dam.
50:03
Frank, what is the name of that beautiful, beautiful dam that
50:06
we're looking at right now? And, and and what's interesting,
50:10
it's almost 5 miles long. That's that's.
50:13
Insane. They need to do A5 case race
50:16
there. But coming back, I want to share
50:20
with you. You mentioned earlier, I think
50:21
it's really important to understand what Trump did in his
50:24
first four years. He appointed a lot of federal
50:28
judges who were constitutional judges.
50:32
Now, why is that important? Because constitutional judges
50:36
are very strong in private property rights and common law,
50:40
which we live under is the strongest in private property
50:44
rights, which really led to human rights.
50:47
And that whole start with the Magna Carta almost 800 and some
50:52
odd years ago. So it's really important to
50:54
recognize that that a lot of battles when they get to the
50:57
federal court system, if they'll swing left or right is how
51:01
strong is the judge a constitutional judge.
51:06
And now with control of the Senate and Congress and the
51:10
openings for any new federal judges will be also, I believe
51:14
strong constitutional judges, which the president appoints,
51:18
the Senate approves. And and that's really key for
51:22
the long term because the President Trump has fallen in
51:25
love with this idea of Bitcoin because it is private property
51:29
rights and it is creates individual liberty.
51:33
It's something that's portable that protects you outside of
51:36
oppressive anywhere and when you're in Argentina, it's been
51:40
oppressed since 2002. Now the new leaders do an
51:43
incredible job, but still you can't open AUS bank account.
51:47
But that's been a huge win for tether because everyone in South
51:51
America keeps their U.S. dollars outside of the banking system,
51:54
fear of confiscation of their U.S. dollars now into tether.
51:58
So I I really think with this, the the order that's been pushed
52:02
through is profound. It's significant and we will
52:06
see. Besides talking about Bitcoin
52:08
going up exponentially, I think we'll see the evolution and
52:12
innovation grow exponentially. Absolutely.
52:15
And and speaking about the, the, the, the, the, you know, the
52:19
importance of, of judges right place in the right places.
52:23
The Supreme Court ruled recently on the, I believe the name of
52:27
the case was the Chevron Doctrine, and it took away
52:30
essentially the power of federal agencies to regulate and gave
52:34
that power back to the legislative branch of
52:37
government, which is where it was supposed to be in the 1st
52:40
place. So yes, I I, I I, I completely
52:43
agree with Frank. Having the right judges is
52:46
incredibly, incredibly important.
52:49
What's your take on Go? Ahead, friend, the rule of law,
52:52
the whole concept is what is the rule of law?
52:55
And when you go to other countries, before we went to
52:57
Paraguay, it was very important for me to be able to go meet the
53:01
president, to understand the, the, the, the strengths and,
53:05
and, and risks of that country and learning that how much they
53:09
love America, how they're connected.
53:12
And, and the president, he studied in America, he studied
53:16
in New York, he worked for World Bank and, and knows everyone in
53:20
central banks and has a Greek rating for his country.
53:24
So he was much faster to embrace it.
53:27
They're also connected to Taiwan.
53:30
They've not broken off like Panama left to go to China and
53:36
other countries have dropped Taiwan.
53:38
He's pro Israel. So he's very unique and very
53:42
aligned with America and the interests.
53:45
Absolutely. And here's a picture of you and
53:47
the president. The president's name is Santiago
53:49
Pena. And you, you were, we were
53:53
talking about this before we went on air, Frank.
53:55
He is the first Paraguayan president to receive an
53:59
invitation to the US presidential inauguration.
54:04
And Mexico didn't. Canada didn't.
54:07
Colombia didn't, Chile didn't. Anyone that's got left way, way
54:13
left, which is centralized control of the economy and
54:18
society. Those types of leadership were
54:21
not invited. Yeah, it's, it's, it's the, the
54:25
world is moving away from that the the centralism, Mark Moss
54:29
calls it peak centralization. And I think we're heading into a
54:33
decentralized future now. Frank, another thing that I want
54:37
to talk to you about as well is another one of the thread posts,
54:41
the announcements, it goes on to say as data centers increasingly
54:45
become a national security priority, the formation of our
54:48
Global Strategy Advisory Committee marks a significant
54:52
step forward in Hive's mission to responsibility responsibly
54:57
expand its global footprint. Hive Digital Technologies
55:01
welcomes Lieutenant General John R Evans.
55:04
I want to specify he's retired Lieutenant General to Global
55:08
Strategy Advisory Committee. So Frank, what was the logic
55:11
behind this? Here is a picture of the retired
55:14
general. And why did you guys feel like
55:17
this was important to make this move?
55:20
Well, especially when you're functioning in five different
55:23
countries and nine time zones, you start to realize there's
55:27
different geopolitical places where you want to be and not to
55:30
be and, and what's taking place in Paraguay, what the benefits
55:36
of our US Bitcoin mining? We help the government because
55:40
we help their utility get U.S. dollar every month.
55:43
That's a big benefit to their local economy at the same time
55:48
for our shareholders. And so in that journey, you
55:51
realize that there's lots of stress and I've called it the
55:55
new red Cold War, and that's China and Russia and China and
56:00
Russia. What's China's done in Panama,
56:03
what China's done in Greenland? I mean, China now has three Ice
56:08
Breakers saying the Arctic is theirs and they wanted to build
56:12
a military base in Greenland. the US government reached out to
56:15
Denmark to stop this. They try to do rare earth
56:18
mining, strategic minerals in Greenland.
56:20
So the politics of the world is changed quickly.
56:23
Cybersecurity has changed quickly.
56:26
Cybersecurity needs data centers.
56:28
Cybersecurity needs the latest of AI development to protect
56:32
against hacking, and most of the hacks are coming out of China
56:36
and Russia. So John was in charge of all of
56:39
North America. His three star Army general, he,
56:43
he was a helicopter pilot, like flying Apaches.
56:48
He was in Desert Storm, Afghanistan, Iraq.
56:51
So not only being a major soldier, he's been at the same
56:55
time running thousands of of workers and have to deal with
56:59
cybersecurity, homeland issues right up from the Arctic Circle
57:03
down to Central America. Now South America is a different
57:08
leader, but we want to tap into him.
57:11
He lives in San Antonio. He is, he is 10 minutes from my
57:17
my home, easy to get to connect and to give us an overview of
57:22
our strategies when we're saying we're going to go into this
57:25
country. What do you see?
57:27
We're in northern Sweden. We're in a town called Boden.
57:31
In that town is a military town. San Antonio's a military city in
57:37
that town. Since Putin invaded Ukraine,
57:41
it's now been activated. And Sweden is part of NATO.
57:44
And it's nothing. But you hear cannons and guns
57:46
going off all day long. And training data centers are
57:49
becoming more and more important.
57:51
So I want to make sure that HIVE had a second view of of of
57:56
strategy in that cyber security. He's an expert on that space.
58:01
Incredible. And I think that's a, that's a,
58:03
it's a very, very, very strategic, very smart good move
58:07
as you guys expand globally. Now, Frank, I wanted to ask you
58:11
about this and I want to educate the, the audience in the
58:13
process, right is the importance.
58:16
You mentioned this earlier, you said that data centers are going
58:20
to continue to increase from, from right now where we are
58:25
today. And also energy use or energy
58:28
demand is going to continue to increase from these from these
58:31
data centers as AI continues to be used.
58:34
Could you talk a little bit about that, about the potential
58:37
heading into the future as massive data centers get built
58:42
out? I believe there was a, a, a
58:43
Trump press conference that was focusing on just this.
58:47
Frank, what is your opinion? What is the future of data
58:49
centers? What is the future of energy
58:51
consumption, Frank? So now you have a talk first of
58:55
$100 billion going into this this sector for H high
59:01
performance computing data centers which are going to buy a
59:04
lot of NVIDIA chips. Then it gets up to 200 billion,
59:09
then it pushes 500 billion. That's bigger than many
59:12
countries GDPS and this is a significant number.
59:16
Now to go and do that, you have to have electricity.
59:20
So this is going to be a big spend for get this electricity.
59:24
But what we do know is that wind power and solar power is not
59:29
consistent. Hydro is nuclear.
59:33
So small nuclear plants we believe that micronuclear is
59:38
going to grow especially last year after you saw AWS spend 650
59:43
million to get access to a GW of a nuclear energy.
59:47
That was the all attack on nuclear energy sort of went
59:51
away. All the Ng OS attacking nuclear
59:54
went away. And then I think that we're
59:56
seeing a new power structure that power is very important.
1:00:00
Then we see when we talked at the earlier in the show Core
1:00:03
Weave and Core Scientific and the value of Core Scientific, it
1:00:07
was went through bankruptcy and it's $0.50 and then goes to $15
1:00:11
very, very quickly because they have this excess energy and then
1:00:16
we have. Activist shareholders going
1:00:19
after riot about their surplus energy.
1:00:22
This should be used for high performance computing.
1:00:24
So this amount of money to go into data centers is is very
1:00:29
important for the future for AI. But they need energy.
1:00:34
Yeah, absolutely. And, and do you think and, and
1:00:37
do you think it, do you think that's going to be built out?
1:00:40
And you know, because because you and I both know this, Frank,
1:00:42
like there's some, I don't want to be specific and I want to be
1:00:46
inclusive in my messaging. Like there are some political
1:00:52
viewpoints, how do I say it? There's some political
1:00:54
viewpoints that aren't exactly very friendly to the roll out of
1:00:59
of energy that I would say they're anti energy.
1:01:02
Do you think do you think the the world's energy meet needs in
1:01:07
the future are going to be able to be met?
1:01:11
Yeah, I think there's going to be many shifts and, and, and I
1:01:14
do know now if you have brand new land and and you get an
1:01:18
energy contract still, the permitting process can take you
1:01:21
years before you have your data center.
1:01:24
So that's a big spend. What land was worth in one
1:01:28
facility we looked at was worth $200,000 an acre is now 2
1:01:32
million. Why?
1:01:33
Because they have the energy contracts for that area and the
1:01:38
permitting in place. So you can go do that.
1:01:40
So you see this exponential growth in the value of the land
1:01:44
just because of the permitting everything for the energy.
1:01:48
Well that's too long for many companies and that's quite
1:01:51
expensive to start. So what's the least expensive?
1:01:54
A lot of Bitcoin miners and Bitcoin miners like mentioning
1:01:57
Riot etcetera and other companies repositioning.
1:02:01
We saw that with Terra Wolf turn around and reposition their
1:02:04
company for the AI and the value of that.
1:02:07
We have done it early because we're mining Etherium with our
1:02:11
GPU chips that went away and we started the AI on these on these
1:02:15
platforms we call bare metal platforms and and it's working
1:02:19
out well. I think we're now doing about
1:02:21
$7,000,000 of of free cash flow away.
1:02:25
I look at the model for it because it's the same team
1:02:28
that's generating this, but we will convert and some of our
1:02:32
data centers now like in Boden, we have 7 megawatts and in
1:02:38
Maine, on the border of Maine in Canada, in New Brunswick, we're
1:02:43
looking at 20 megawatts of converting that to HPC because
1:02:47
we have the energy contracts. But what's really important is
1:02:50
that we have the, the construction, we already have
1:02:53
the platforms in place, We have the buildings in place.
1:02:57
It's, it's, it's the additional construction that's necessary is
1:03:01
so expensive and the, the duplicity of everything you have
1:03:04
to do, the duplication, sorry, of everything you have to do.
1:03:08
So that process is much faster. You don't have to wait three
1:03:11
years. You can do that in nine months.
1:03:14
And so that's where the value of the Bitcoin miners that have
1:03:18
steady energy contracts have as new valuation put on them.
1:03:24
Gotcha. And, and Frank, as we move into
1:03:28
what I think all of us are expecting is going to be a great
1:03:32
Bitcoin bull market, of course, the the increasing adoption of
1:03:37
AI. What are you most looking
1:03:40
forward to for the next five years in regards to, in regards
1:03:45
to Hive digital technologies? What should people be paying
1:03:48
attention to? What should what should the what
1:03:51
should the things that what should be the clues?
1:03:53
What should be what should what should be some things that they
1:03:55
are excited about? Well, Paraguay is classic that
1:03:59
it's going to take us from 6 to about 15 exohash.
1:04:03
We will double our footprint from from expanding and we're
1:04:05
under construction now to build our data center by the summer.
1:04:09
And by having new machines coming in every month, we're
1:04:13
upgrading our suite so they're more energy efficient.
1:04:16
The older machines get set aside, they'll be able to go off
1:04:19
to a Paraguay, the more efficient energy machines
1:04:23
they'll be deployed and that will take us up to about 15
1:04:26
exahash in the summer. And we're seeing other
1:04:30
opportunities come to us. So we're very excited about that
1:04:33
due diligence process of these other opportunities.
1:04:36
And now that we're moving the taxes etcetera, we're going to
1:04:39
look at our back door here. And and because that's where
1:04:43
some of the other companies have had spectacular growth has been
1:04:45
in Texas. And now with the new regime
1:04:49
that's taking place in Washington and Governor Abbott
1:04:53
being so pro the industry, we feel that that not only Texas,
1:04:58
but Paraguay, we think that we can get up.
1:05:02
We can double again from going from 6 to 15 that we can get up
1:05:07
to say 25. And that's, that's our goal and
1:05:12
it's a, it's a big, big spend on the HPC.
1:05:16
We feel that we can get up to 100 million in revenue right
1:05:20
now. It's baked in to do 20 million,
1:05:23
but that's very high profit. The margins on Bitcoin mining
1:05:26
are not as juicy as HPC are, but we know what the paybacks are.
1:05:32
So we always focus. Can we get a 35% CAGR?
1:05:36
What does that mean that we've used the rule of 72?
1:05:39
Can I get my money back within two years?
1:05:42
And and that's always the minimum discipline that I want a
1:05:46
35% CAGR non borrowed, just straight capital and that's that
1:05:51
is a good benefit for the shareholders.
1:05:53
It's hard to get that in the stock market on a consistent
1:05:56
year and year old basis, but we see that in these other
1:05:59
facilities that we we're building out in.
1:06:02
Yeah, I mean 35%, I mean what a good return in the stock
1:06:05
market's 8%, right, maybe 8 to 10%.
1:06:08
So 35%, Yeah, it's more than that's like a two or three X.
1:06:13
Also the jump from six EXA hashes and people in the chat,
1:06:18
Opti, could you pull up that chat someone was with a with a
1:06:22
mind exploding emoji. The jump from a six XA hash to
1:06:26
15 XA hash is a huge jump. So that's incredibly exciting.
1:06:30
Guys. You can find the ticker on
1:06:32
NASDAQ HIVE. You're listening to Frank
1:06:36
Holmes, the executive chairman of Hive Digital Technologies.
1:06:41
I'm your host for today, Nico Moran.
1:06:43
You want a hat? Right hand to to Nathan, Nathan
1:06:47
Fox. You can put his his e-mail up
1:06:49
there. We'll get you some swag.
1:06:51
The people call it the Gucci Bee and, and, and so just send it to
1:06:57
Nathan fast and we'll make sure that he gets your contact
1:07:01
information to mail you off a hat.
1:07:04
Absolutely. We're going to put it down in
1:07:06
the ticker below. Nathan, I apologize for the
1:07:08
flood of emails incoming like happened last time.
1:07:13
Nathan's e-mail is down below, Nathan at Hive Digital
1:07:16
Technologies. Hive will send you the hat that
1:07:20
Opti and Frank are wearing right now.
1:07:23
So you guys could see the e-mail on the screen right now.
1:07:26
And I also put it in the video slash podcast description.
1:07:29
I want to thank our guests today, Frank, for joining us.
1:07:33
Frank, it's been an honor like always.
1:07:34
Thank you so much for joining us on Simply Bitcoin Live.
1:07:37
We're almost on the verge of breaking 3000 live viewers
1:07:40
almost broke 800 on YouTube. So I want to thank the entire
1:07:43
audience for watching. I'm your host for today, Nico,
1:07:46
my legendary Co host Octopus Fields and again our guests for
1:07:49
today. Frank.
1:07:50
Guys, we're simply Bitcoin live and we'll be back on Monday for
1:07:52
a brand new episode. Have an amazing weekend
1:07:54
everybody, Take care. Today's episode was brought to
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