Latest / The Paul Barron Crypto Show / SpaceX Surprises Wall Street 👀 Does Crypto Win From It?

Transcript

SpaceX Surprises Wall Street 👀 Does Crypto Win From It? · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Elon is pumping the market, and it's all because of
• 0:02
  Speaker 1: SpaceX and some other key things that are going on.
• 0:05
  Speaker 1: We'll break it all down for you guys. Let's just
• 0:06
  Speaker 1: get started. I do want to thank our sponsor, and
• 0:08
  Speaker 1: that is Robinhood, where you guys can trade all in
• 0:11
  Speaker 1: one place. If you use our link, you're going to
• 0:14
  Speaker 1: be able to get up to $ 200 in a stock reward.
• 0:17
  Speaker 1: So check it out. ETFs, crypto options, futures, and prediction
• 0:21
  Speaker 1: markets all available over on Robinhood. If you have not
• 0:25
  Speaker 1: used the most recent tool, which is Legend out there,
• 0:29
  Speaker 1: I would invite you to do that as well. It
• 0:31
  Speaker 1: is one of the better tools out there for trading
• 0:33
  Speaker 1: of all types, whether it's crypto, stocks.
• 0:36
  Speaker 2: You guys, of course, use our.
• 0:37
  Speaker 1: Link, get a little bit of juice to get into
• 0:39
  Speaker 1: the market and tell them we sent you. Okay, so
• 0:41
  Speaker 1: let's go over and take a look at some things
• 0:44
  Speaker 1: that will get into where the market is heading. One,
• 0:47
  Speaker 1: of course, has been the SEC. The OCC came in
• 0:50
  Speaker 1: and finalizes the Genius Act rule. All of this came
• 0:53
  Speaker 1: in around what we've been talking about for some time.
• 0:56
  Speaker 1: I want to show you the final rule, though. around
• 0:59
  Speaker 1: this because there's some key things here that locked in.
• 1:02
  Speaker 1: And this is in reference to specified third party payment chains.
• 1:05
  Speaker 2: And what they're talking about is yields.
• 1:08
  Speaker 1: What this simply means is that the rules still ban
• 1:10
  Speaker 1: stablecoin issuers from paying yields, but that third party is
• 1:14
  Speaker 1: still wide open. So for those of you that are
• 1:16
  Speaker 1: out there earning yields in other places, you're going to
• 1:18
  Speaker 1: be locked in. And this is kind of the situation.
• 1:21
  Speaker 1: Payments also through third party won't count as violations.
• 1:24
  Speaker 2: Another big deal.
• 1:25
  Speaker 1: And they're going to review case by case, simply meaning Hey,
• 1:27
  Speaker 1: we just trust you.
• 1:29
  Speaker 2: Go out there. Do what you're supposed to do.
• 1:31
  Speaker 1: And that is a big issue because all of this
• 1:34
  Speaker 1: now locked in because the date has now passed. The
• 1:37
  Speaker 1: SEC is now starting to lock in these rules. Most likely,
• 1:40
  Speaker 1: we'll see some more updates on this. One thing, though,
• 1:43
  Speaker 1: to remember about the banks is what Eleanor is talking about,
• 1:46
  Speaker 1: and that is that the ABA, they weren't happy with
• 1:49
  Speaker 1: the OCC's final plan here. And they get into this
• 1:53
  Speaker 1: quote right here from the ABA CEO who said, attempting
• 1:56
  Speaker 1: to address deposit flight and economic harm after it has
• 1:59
  Speaker 1: occurred is the wrong approach. What they're kind of doing
• 2:02
  Speaker 1: here is forecasting that this is going to happen. So
• 2:04
  Speaker 1: you guys tell me down in the comments, will you
• 2:07
  Speaker 1: leave a bank and go into an exchange or some
• 2:12
  Speaker 1: DeFi platform out there so you can earn rewards?
• 2:14
  Speaker 2: Just let me know down in the comments. I'm kind
• 2:16
  Speaker 2: of curious.
• 2:17
  Speaker 1: I don't think it's going to happen as much as
• 2:19
  Speaker 1: these banks say it's going to. Let me know down
• 2:22
  Speaker 1: in the comments below. Maybe we will begin to see
• 2:25
  Speaker 1: some deposit flight. I want to go to a clip
• 2:27
  Speaker 1: real quick because.
• 2:28
  Speaker 2: This is where maybe all of.
• 2:33
  Speaker 1: This issue around clarity was actually for the good. Here's
• 2:36
  Speaker 1: Michael Saylor.
• 2:37
  Speaker 3: You know, if you're a capitalist, if you want to
• 2:40
  Speaker 3: create a great economy or a great nation, what you
• 2:43
  Speaker 3: want is a bill of rights, not a bill of restrictions.
• 2:47
  Speaker 3: The best for the industry is you create magical products
• 2:50
  Speaker 3: for 100 million people that are worth trillions of dollars
• 2:52
  Speaker 3: that make them all happy and rich and delight them.
• 2:56
  Speaker 3: And then it doesn't matter who gets elected in 2029
• 2:59
  Speaker 3: because you're going to pry their magic products from their cold,
• 3:02
  Speaker 3: dead fingers.
• 3:04
  Speaker 4: All right.
• 3:04
  Speaker 2: So there you go, guys.
• 3:06
  Speaker 1: What he's saying is it's we're just as good and
• 3:08
  Speaker 1: maybe better off now that clarity is not in place.
• 3:12
  Speaker 1: And you look at all of that happening around the
• 3:14
  Speaker 1: SEC and what it looks like now in terms.
• 3:18
  Speaker 2: Of a roadmap going forward for crypto and blockchain.
• 3:20
  Speaker 1: And then you apply the jet fuel or in this case,
• 3:24
  Speaker 1: rocket fuel coming in from SpaceX. And of course, that
• 3:27
  Speaker 1: is in reference to their Q3 earnings. Revenue came up
• 3:30
  Speaker 1: 161% year over year. That's $ 14. 6 billion. That was a $ 1. 6
• 3:35
  Speaker 1: billion beat. Operating margin was 19%. This is insane on
• 3:41
  Speaker 1: the amount of performance that this company is doing. CapEx $ 19. 6 billion,
• 3:46
  Speaker 1: including the $ 16. 4 billion for superintelligence. So the question is,
• 3:53
  Speaker 1: how does this perform in the next quarter? And again, remember,
• 3:56
  Speaker 1: there's still a possibility where we could see a little
• 3:58
  Speaker 1: bit of a merger being talked. You look at the chart.
• 4:02
  Speaker 1: This is where it had bottomed out right here at
• 4:04
  Speaker 1: about $ 106. This was back in the beginning of August.
• 4:09
  Speaker 2: And here we are trading right now.
• 4:10
  Speaker 1: Up about 45%. And that's just to the current trade
• 4:14
  Speaker 1: of 160. So not a bad position. However, you could
• 4:19
  Speaker 1: have been making a play on this if you were
• 4:21
  Speaker 1: doing this overnight and and doing it in DeFi or
• 4:24
  Speaker 1: over on Hyperliquid.
• 4:25
  Speaker 2: You actually had a chance to be able to get
• 4:29
  Speaker 2: ahead of this stock move.
• 4:31
  Speaker 1: And that's one of the reasons we're going to continue
• 4:33
  Speaker 1: to see these kinds of performance, especially in tokenized stocks,
• 4:37
  Speaker 1: as you can see right there on Hyperliquid for those
• 4:39
  Speaker 1: who can trade there.
• 4:40
  Speaker 2: I want to go to a clip real quick.
• 4:42
  Speaker 1: This will get into the earnings and how and what
• 4:45
  Speaker 1: this might mean for SpaceX.
• 4:47
  Speaker 2: Here's Brad Gerstner. It was an extraordinary earnings call.
• 4:50
  Speaker 4: I mean, I think the biggest debate in the market
• 4:52
  Speaker 4: today is do we have enough capital? Do we have
• 4:55
  Speaker 4: enough manpower to build out the data centers across the
• 4:59
  Speaker 4: United States? So think about the magnitude of what he
• 5:01
  Speaker 4: announced last night. He said they're standing up 200,000 GB300s
• 5:06
  Speaker 4: per month. Just a few months ago, that was what
• 5:09
  Speaker 4: we were doing in a year. So SpaceX alone is
• 5:12
  Speaker 4: going to put up 25% of the total gigawatts going
• 5:16
  Speaker 4: up in the United States. The capital required to achieve this, right?
• 5:20
  Speaker 4: That's like $ 400 billion that's going to have to be
• 5:24
  Speaker 4: raised to pay out that compute infrastructure.
• 5:27
  Speaker 2: But it makes very clear.
• 5:28
  Speaker 4: Elon understands we're at the brink of the singularity. We're
• 5:32
  Speaker 4: entering superintelligence. And whoever has the most scale, capital, compute,
• 5:37
  Speaker 4: and data wins the game of superintelligence.
• 5:41
  Speaker 2: Okay, so I agree with Gershner there. Granted, he's talking
• 5:45
  Speaker 2: to his book, guys.
• 5:46
  Speaker 1: One thing, though, that he did say was them standing
• 5:49
  Speaker 1: up this many GPUs, that is a huge advancement in
• 5:52
  Speaker 1: terms of scale. And this affects one other category out there,
• 5:56
  Speaker 1: and that's going to be what we're seeing in the
• 5:58
  Speaker 1: neocloud space, which could include a lot of the miners
• 6:01
  Speaker 1: and other companies that are using that right now, which
• 6:03
  Speaker 1: are basically renting space out to many of these companies
• 6:06
  Speaker 1: that haven't scaled just yet. But once they're scaled, or
• 6:10
  Speaker 1: they are getting to that scale, then they're going to
• 6:13
  Speaker 1: no longer need the neoclouds. Now, the question will be,
• 6:17
  Speaker 1: does the demand continue to push against the scale? If
• 6:19
  Speaker 1: it does, then the neoclouds have a business, or maybe
• 6:22
  Speaker 1: there's some other things that could go in that direction.
• 6:24
  Speaker 2: So watch all of that.
• 6:26
  Speaker 1: Also in that same interview, they were talking about the merger,
• 6:29
  Speaker 1: and this is going to be SpaceX and Tesla. And
• 6:32
  Speaker 1: there kind of seems to be a natural fit here,
• 6:34
  Speaker 1: but let's take a look.
• 6:35
  Speaker 2: So he's going to have to raise an extraordinary amount
• 6:37
  Speaker 2: of capital at this point.
• 6:38
  Speaker 3: I mean, how does he do that?
• 6:39
  Speaker 4: SpaceX and Tesla together, I think one of the main
• 6:41
  Speaker 4: motivations behind the merger, as somebody who owns shares in
• 6:45
  Speaker 4: both companies, is they need, he wants to get scale now.
• 6:49
  Speaker 4: He wants to accelerate scale now because if you have
• 6:52
  Speaker 4: scale around capital and if you put the companies together,
• 6:54
  Speaker 4: it's easier to borrow money, right? It's easier to raise
• 6:57
  Speaker 4: money cheaper, et cetera. And you're going to need to
• 6:59
  Speaker 4: raise cheap capital to build out all this capex.
• 7:01
  Speaker 1: Okay.
• 7:02
  Speaker 2: Yeah, so I would agree with that strategy.
• 7:05
  Speaker 1: It does appear to be an opportunity and an avenue
• 7:09
  Speaker 1: for cheap capital, and that would make it go again.
• 7:12
  Speaker 1: I think also it's timing, because remember, Elon's friendly with
• 7:16
  Speaker 1: his administration, which is going to need an approval. I mean,
• 7:19
  Speaker 1: this would be the biggest merger ever in the history
• 7:22
  Speaker 1: of America. So some pretty big deals right now. Rand
• 7:25
  Speaker 1: Neuner came out and said SpaceX earnings report might have
• 7:27
  Speaker 1: just done something huge for crypto.
• 7:30
  Speaker 2: After nearly two weeks of AI.
• 7:31
  Speaker 1: Stocks getting hammered, SpaceX just delivered earnings that could change everything.
• 7:36
  Speaker 1: The bubble fears is what he's getting at, which have
• 7:38
  Speaker 1: been weighing on a lot of markets. And I think
• 7:40
  Speaker 1: that's the concern. SpaceX went out, proved the market wrong, saying, no,
• 7:45
  Speaker 1: there's actually some opportunity here. But how many more companies
• 7:48
  Speaker 1: actually could flank SpaceX in the similar performances outside of
• 7:54
  Speaker 1: maybe NVIDIA? And I think that's the question you have
• 7:57
  Speaker 1: to ask. Is it enough to continue to propel this
• 8:00
  Speaker 1: market forward? Time will tell, and so.
• 8:02
  Speaker 2: Will the charts.
• 8:03
  Speaker 1: Further into this SpaceX and Tesla merger, Brad was talking
• 8:06
  Speaker 1: about that. This means at the end of the day,
• 8:09
  Speaker 1: the shareholders have to do a full support of this.
• 8:12
  Speaker 1: And there's a couple of points within this, because remember,
• 8:14
  Speaker 1: SpaceX and Tesla both own Bitcoin. And you look at
• 8:19
  Speaker 1: it right there, SpaceX holding 18,000 Bitcoin, Tesla 11,000, basically
• 8:22
  Speaker 1: about 2.5 billion. Not a lot. in general, when you
• 8:28
  Speaker 1: look at the size of the market cap of these companies.
• 8:30
  Speaker 1: But the point is, is that they're crypto oriented. And
• 8:33
  Speaker 1: there are some advantages to that. Does it mean it's
• 8:36
  Speaker 1: going to move Bitcoin? I don't think so. But it
• 8:38
  Speaker 1: does show that there's faith in what's happening in the
• 8:41
  Speaker 1: blockchain side, which is a good positive thing going forward.
• 8:44
  Speaker 1: Because remember, a lot of these companies holding assets like
• 8:47
  Speaker 1: this on their treasury starts to lead into other companies
• 8:50
  Speaker 1: holding assets like this on their treasury. All right, one
• 8:54
  Speaker 1: thing that could spoil all of this party is going
• 8:56
  Speaker 1: to be an unlock. And it happens tomorrow on the 22nd.
• 8:59
  Speaker 1: And we get this video out here on the 21st.
• 9:00
  Speaker 1: But you got 1.3 billion SpaceX shares unlocking tomorrow. If
• 9:04
  Speaker 1: you go further into this, you'll see the unlock check
• 9:07
  Speaker 1: out here. Let me zoom up on that image right there.
• 9:11
  Speaker 1: This will be the largest one in history, even versus
• 9:13
  Speaker 1: what we saw back in the beginning of SpaceX. And
• 9:16
  Speaker 1: if you go back to the chart, let me pull
• 9:18
  Speaker 1: up the chart real quick. Here's the unlock potential. That's
• 9:21
  Speaker 1: the dive that we saw.
• 9:23
  Speaker 2: And here we are.
• 9:25
  Speaker 1: Pelting 160 again. So I don't know what you guys
• 9:28
  Speaker 1: are going to do right now. I might take a
• 9:31
  Speaker 1: little profit if I were in a SpaceX trade and
• 9:33
  Speaker 1: kind of wait and see what this unlock does. One thing, though,
• 9:36
  Speaker 1: to consider before you sell your stock, if you're going to,
• 9:38
  Speaker 1: and again, not financial advice. I don't give advice about
• 9:41
  Speaker 1: that kind of stuff.
• 9:43
  Speaker 2: JP Morgan's pointing it the other way. They're going up
• 9:46
  Speaker 2: to 500. So Who do you believe?
• 9:48
  Speaker 1: Do you look at what's happening on an unlock on
• 9:50
  Speaker 1: people who have been invested in this for a very
• 9:52
  Speaker 1: long time and they're like, finally, we're going to be
• 9:54
  Speaker 1: able to get out? Or would they say, no, I'm
• 9:57
  Speaker 1: going to hold through because this could be unlockable?
• 10:00
  Speaker 2: A new era. And I don't want to be the
• 10:02
  Speaker 2: investor that sold early. We'll see. Maybe JP Morgan is right.
• 10:07
  Speaker 2: We'll find out.
• 10:08
  Speaker 1: I want to go to another clip here, though, because
• 10:09
  Speaker 1: this will break down some things that I think are
• 10:11
  Speaker 1: very important. And that is, where is all this capital
• 10:13
  Speaker 1: going to be coming from?
• 10:14
  Speaker 2: Here's Larry Fink.
• 10:16
  Speaker 5: We're at a time now where we're finally unlocking private capital.
• 10:20
  Speaker 5: And so the competition for capital is as large as
• 10:23
  Speaker 5: I've ever seen in my professional career. If you listen
• 10:27
  Speaker 5: to the hyperscalers in the United States alone, they're talking
• 10:29
  Speaker 5: about a need for seven to nine trillion dollars to
• 10:32
  Speaker 5: build out and to ensure that the United States is
• 10:35
  Speaker 5: a leader in AI. That type of financing, that type
• 10:39
  Speaker 5: of funding on top of the financing for the federal
• 10:42
  Speaker 5: deficits is putting the term premium.
• 10:46
  Speaker 2: To be higher. Are we really that dependent? About two-thirds
• 10:50
  Speaker 2: of the U.S.
• 10:51
  Speaker 5: Economy is capital expenditures right now on technology. And if
• 10:56
  Speaker 5: we slow down the build-out of this technology, I think
• 11:00
  Speaker 5: it really does jeopardize the economy.
• 11:03
  Speaker 2: So let's be clear. For the U.S.
• 11:05
  Speaker 5: To be a leader in this technology, which we are today...
• 11:09
  Speaker 5: We also have to be the leader in the compute,
• 11:11
  Speaker 5: the inference in our own nation.
• 11:15
  Speaker 1: So Larry's saying some things I would agree with there.
• 11:17
  Speaker 1: I think we do need to be the leader. And
• 11:19
  Speaker 1: it all starts to stem toward tokenized assets. And this
• 11:23
  Speaker 1: is something that is starting to happen right now because
• 11:26
  Speaker 1: you're kind of seeing a line in the sand being drawn.
• 11:29
  Speaker 1: If you look at this right now, you've got SpaceX
• 11:32
  Speaker 1: and Tesla being held by 140,000 wallets worldwide. on tokenized assets.
• 11:37
  Speaker 1: This is up 7.9X since January over on X stocks.
• 11:43
  Speaker 1: Think about that for a second. We're just getting going.
• 11:46
  Speaker 1: You got 140,000 assets out there being held, and it's
• 11:51
  Speaker 1: likely that we're going to see a lot more stock
• 11:54
  Speaker 1: starting to pour into this. The problem is this right here.
• 11:58
  Speaker 1: You've got more and more companies now pushing back against this,
• 12:01
  Speaker 1: simply saying, we don't want to have our assets in
• 12:04
  Speaker 1: a position like this. I think they're doing a disservice
• 12:07
  Speaker 1: to their investors, but you've got Goldman Sachs, Microsoft in there,
• 12:11
  Speaker 1: Google also in there, McDonald's, and many others that have
• 12:14
  Speaker 1: been out there very vocal on this, maybe not as
• 12:16
  Speaker 1: vocal as the AMC CEO, but the point is there's
• 12:19
  Speaker 1: companies pushing back on all of this, 16 companies now
• 12:22
  Speaker 1: objecting under the new SEC's tokenized stock framework. So this
• 12:27
  Speaker 1: is going to come to a point where these companies
• 12:30
  Speaker 1: will either need to come on board. I think it's
• 12:32
  Speaker 1: just a matter of adoption now. and kind of getting
• 12:34
  Speaker 1: with the times. I understand it's old Wall Street here,
• 12:37
  Speaker 1: and I get what the reasoning is, but the point
• 12:40
  Speaker 1: is that there is a future here in tokenized assets.
• 12:43
  Speaker 1: I think Fink is dead on much of this in
• 12:46
  Speaker 1: terms of the amount of capital that's going to be
• 12:48
  Speaker 1: coming into this market off the sidelines.
• 12:51
  Speaker 2: Tokenized stocks are going to be a big part of that.
• 12:53
  Speaker 1: Last up right here, you have tokenization accelerating over 360
• 12:58
  Speaker 1: on-chain token equity products. This is up 200% year to date.
• 13:02
  Speaker 1: 10 of these products have exceeded 100 million in tokenized supply.
• 13:07
  Speaker 2: Look at that chart right there, guys.
• 13:09
  Speaker 1: This is absolutely insane, the kind of growth we're seeing.
• 13:14
  Speaker 1: And it's just getting started. So look at all the
• 13:17
  Speaker 1: assets that are out there being held. Follow the blockchains
• 13:21
  Speaker 1: that are working in these areas and just understand this
• 13:25
  Speaker 1: is where the market is going. And I think we're
• 13:27
  Speaker 1: going to start to see this impacting cryptocurrency.
• 13:30
  Speaker 2: In a very big way. We're going to cover this.
• 13:31
  Speaker 1: Don't forget, we got FOMC next week coming in, along
• 13:35
  Speaker 1: with some big news, of course, after midterms that we'll
• 13:38
  Speaker 1: be watching, because that could be another catalyst for the market.
• 13:42
  Speaker 2: So stay tuned.
• 13:50
  Speaker 1: If you like this video, hit like and subscribe, drop
• 13:52
  Speaker 1: a comment down below, and also join our free private
• 13:55
  Speaker 1: member group.
• 13:56
  Speaker 2: The link is in the description.