Latest / Simply Bitcoin / NEW REPORT EXPOSES The $71 Trillion Secret Behind Bitcoin’s Next Move | EP 1465

Transcript

NEW REPORT EXPOSES The $71 Trillion Secret Behind Bitcoin’s Next Move | EP 1465 · Simply Bitcoin

• 0:01
  A new report has dropped showing what we've all suspected during
• 0:05
  Bitcoin's six months draw down. The institutions who hold about
• 0:10
  $70 trillion of assets are quietly going all in on Bitcoin,
• 0:15
  and this dip has not scared them.
• 0:18
  Larry Fink opened the floodgates in 2023, but 2026 looks like the
• 0:23
  year that real money is about to hit Bitcoin.
• 0:28
  Let's watch this clip that was just on CNBC with I forget her
• 0:33
  name, Mackenzie Sicolos, I believe Sigalos.
• 0:37
  Sorry Mackenzie Sigalos great reporter and it really just
• 0:42
  shows how the institutional phase of.
• 0:48
  Whoa. Past institutional crypto
• 0:51
  adoption may continue picking up despite the lull in markets.
• 0:55
  That's according to a survey from EY Parthenon and Coinbase
• 0:59
  released today across 351 institutional decision makers.
• 1:03
  I caught up with EY Parthenon Managing Director Prashant Care
• 1:06
  about some of the results. So this report on institutional
• 1:10
  investors and their approach to digital assets was conducted in
• 1:13
  January, and institutions made it clear that they were focused
• 1:17
  on being disciplined during this period of volatility in digital
• 1:20
  assets. So what does a disciplined
• 1:23
  approach look like for these institutions?
• 1:25
  What asset? Classes.
• 1:26
  Are they picking? That's a great question,
• 1:29
  Mackenzie, and I appreciate you having me on today.
• 1:32
  So what we're seeing is institutions.
• 1:35
  We're really excited about digital assets and, and, and
• 1:38
  being focused and in their investment in their investment
• 1:41
  approach in 2025. As they move into 2026, it's
• 1:44
  very clear that they are interested in getting exposure
• 1:47
  to spot cryptocurrency. Now the way they're looking to
• 1:49
  get exposure is, is through ETFs or exchange traded products or
• 1:53
  regulated vehicles, which are very familiar to the
• 1:55
  institutional investor and they're very, as they look
• 1:58
  towards 2026, a big area of focus that they really
• 2:01
  highlighted was their approach towards risk and overall
• 2:03
  governance of the asset class. Now, the survey found that firms
• 2:07
  allocating more than 5% of assets under management to
• 2:10
  digital assets. Will grow to 20. 9% by the end
• 2:14
  of this year and my. Question to you is what will
• 2:16
  have the greatest? Impact on leading that adoption,
• 2:19
  is it regulation or is it some other factor that's really
• 2:21
  driving that adoption? The biggest factors behind
• 2:25
  driving more allocations towards digital assets is regulatory
• 2:28
  clarity. It's regulatory clarity
• 2:32
  specifically when asked around what areas it was around market
• 2:35
  structure and around tax treatment.
• 2:37
  So as as investors see more focus and clarity in those
• 2:40
  areas, that's going to be a signal towards allocating more.
• 2:44
  So we keep hearing this guys, we keep hearing the idea that
• 2:48
  Bitcoin needs regulatory clarity.
• 2:50
  Now it is becoming very clear, at least from this clip.
• 2:54
  And, and I'll get into the survey.
• 2:55
  I have the survey for you guys and and I'll, I'll highlight a
• 2:57
  few portions. But it's very clear that maybe
• 3:02
  from an individual perspective from a you and I just as an
• 3:05
  average spot Bitcoin holder, that might not necessarily have
• 3:10
  much effect on us or how we view Bitcoin or whether we're going
• 3:14
  to allocate more to Bitcoin. But we are seeing that from an
• 3:17
  institutional perspective from the big hedge funds, from the
• 3:21
  big banks, asset managers, this is what they've been waiting on.
• 3:25
  And when you really look into this report, it is becoming very
• 3:31
  obvious that even though we've been talking about institutions
• 3:36
  are here again, 2023 was when Larry Fink launched the Black
• 3:41
  Rock I Bid ETF 2025. We were all hearing some
• 3:46
  rumbling, some rumors that there was institutions buying Bitcoin.
• 3:50
  But I kept mentioning one thing that essentially last year at
• 3:54
  the midway point of the year is when institutions were actually
• 3:58
  allowed to allocate capital into Bitcoin and they don't move as
• 4:02
  quickly as say, you and I as an individual.
• 4:05
  And when you read this report, one of the big takeaways that I
• 4:08
  got from it was that 2025 seems to be the year that they were
• 4:14
  essentially evaluating Bitcoin. They were really doing their
• 4:17
  research, doing, you know, putting in the time to
• 4:20
  understand the value of Bitcoin, how they can actually get into
• 4:23
  Bitcoin, how much they should actually allocate to Bitcoin.
• 4:27
  And now from this report, from this survey, which I'm going to
• 4:31
  cover right now, it seems like we've definitely crossed a
• 4:36
  Rubicon where it's no longer just, Oh yeah, we might put 1%.
• 4:41
  It's really becoming, hey, we, we are going to significantly
• 4:45
  allocate into this industry, into this asset class.
• 4:48
  And going further, the talks we've been hearing from quote
• 4:51
  tokenization I think is, is going to become all of the rage,
• 4:55
  whether I love it or not. That's totally what these
• 4:58
  institutions want to do, tokenize all the things.
• 5:00
  So that's the big take away here.
• 5:03
  And let me break down this survey a little bit.
• 5:06
  I'm not going to read the whole thing.
• 5:07
  I'm just going to kind of pick and choose a little bit of the
• 5:10
  charts in it. But here is on EY Parthenon,
• 5:13
  which is essentially I, I don't know if you can call it a think
• 5:17
  tank per SE, but it, it's kind of a think tank.
• 5:20
  It it, it arms people with the insights, with the tools so that
• 5:24
  they can be quote UN quote better leaders.
• 5:26
  At least that's what their website is saying.
• 5:27
  So they're talking to the hedge funds.
• 5:29
  They're probably doing a little bit of head hunting in the sense
• 5:32
  of, hey, we're going to give you guys the insights, the tools so
• 5:35
  that when you do go to these institutions, you understand the
• 5:38
  landscape. But here is a survey we.
• 5:40
  Lost connection. Are we good?
• 5:44
  I think we're good. OK guys, hit me a one in the
• 5:46
  chat. If we're good, I I think we're
• 5:48
  good. It looks like I'm still good.
• 5:50
  All right, anyways, the survey is or rather on the website,
• 5:55
  it's Institutional investors digital Asset survey and here
• 5:59
  are the highlights. The survey reveals that
• 6:01
  institutional interest in digital assets is accelerating
• 6:04
  as markets mature and confidence in long term adoption grows,
• 6:08
  which is the kind of the big idea.
• 6:11
  No longer is Bitcoin just this nation, small asset industry.
• 6:18
  It's no longer something that you can't ignore.
• 6:21
  It's something that you have to take very seriously, which is
• 6:24
  I've been saying for, I don't know better part of the year
• 6:26
  here that this is the trend that we're seeing.
• 6:29
  Then of course regulatory progress and regulated vehicles
• 6:32
  are unlocking broader participation, bringing digital
• 6:34
  assets further into the financial mainstream, which is
• 6:37
  what I've been saying as well. We are crossing the Rubicon into
• 6:41
  mainstream adoption. For better or worse, this is
• 6:44
  where we are. Hasn't fully happened yet.
• 6:46
  Yes, we've been hearing some very big names say we're going
• 6:50
  into Bitcoin, you know, whether it's the Black Rocks, the the
• 6:53
  JJP, Morgan's of the world launching Bitcoin products,
• 6:56
  Morgan Stanley, etcetera. Literally all of the big
• 6:58
  institutions in the US and around the world, sovereign
• 7:01
  wealth funds, nation states, they are all essentially
• 7:05
  building the foundation and launching products.
• 7:08
  Again, I wouldn't recommend most of these Wall Street products,
• 7:11
  but you can see that their interest is increasing.
• 7:14
  They do want a corner of the pie, a little piece of the pie
• 7:17
  here. And now it seems like since we
• 7:20
  are getting a little bit more clarity quote UN quote from the
• 7:24
  regulations that they do feel a lot more comfortable investing
• 7:29
  into Bitcoin. And actually I was having an
• 7:31
  interesting conversation this morning with Luke, our boy Luke
• 7:34
  Mikic. And he was like, you know, it's
• 7:36
  very interesting the announcement we got from the
• 7:39
  CFTC and the SEC about how they're going to regulate
• 7:45
  Bitcoin or digital assets. And maybe they know that the
• 7:48
  Clarity Act isn't coming and we're going to talk about that a
• 7:51
  little later on the show. And maybe this is their their
• 7:54
  kind of stab at the quote clarity here for the digital
• 7:58
  asset industry, market regulations, etcetera.
• 8:02
  As you can see, the institutions have been sitting on their hand
• 8:06
  right now. They're still a little unsure of
• 8:08
  whether they should go in force into Bitcoin, but they they have
• 8:13
  to take it seriously. And I'm guessing the
• 8:15
  conversations are, look, we can't ignore this thing that
• 8:18
  much longer. We've been ignoring it forever.
• 8:20
  There's a lot of people that want it.
• 8:22
  Our customers are asking us for it.
• 8:23
  Like why are we as a as a customer?
• 8:26
  They're like, why are we missing out on all the games when you
• 8:29
  keep telling me I shouldn't invest in this, but it's
• 8:31
  actually performing better than everything else.
• 8:33
  Like you're not doing your fiduciary responsibility guy, my
• 8:36
  asset manager. You need to figure out ways so
• 8:39
  that I can get the games as well.
• 8:42
  And then the last little highlight is attention to
• 8:44
  shifting from access to application with greater focus
• 8:47
  on infrastructure tokenization and practical use cases.
• 8:51
  Now, I think that that is some corporate speak here.
• 8:54
  Essentially, they're no longer just talking about, hey, maybe
• 8:59
  we should get into this. They're talking about how do we
• 9:01
  actualize this? How do we actually make these
• 9:04
  products? How do we actually safely get
• 9:06
  into this industry without blowing our reputations up,
• 9:09
  without wrecking our customers? So again, they move very slowly.
• 9:14
  We are on, you know, speed boats here.
• 9:16
  We can do freaking, you know, laps around the Titanic, but
• 9:20
  they take a long time to make their moves.
• 9:24
  You could argue that institutions move slightly
• 9:27
  faster than governments, which isn't that fast at all.
• 9:30
  But this is what we're seeing. This is what the surveys are
• 9:33
  showing us. This is the general trend that
• 9:35
  I'm seeing from the headlines is they're they're, you know,
• 9:39
  they're, they're going through the paces.
• 9:40
  They're they're trying to figure this out.
• 9:42
  Now here is the actual survey. Again, I'm not going to read the
• 9:45
  whole thing, but I will highlight one portion, which was
• 9:49
  the kind of big sound bite from that clip on CNBC, which is that
• 9:56
  firms that have already or institutions asset man.
• 10:00
  Actually let me let me go back here a little bit so I can show
• 10:02
  you who these institutional investors were that were
• 10:08
  surveyed and this happened again mid to late January.
• 10:11
  So it is about a month or so old you could say.
• 10:16
  But I'm guessing that not much has changed.
• 10:19
  But again during mid to late January polling more than 350
• 10:23
  institutional investors globally including asset managers, asset
• 10:27
  owners, family offices, private banks, hedge funds and VC firms
• 10:32
  on their plans and sentiment towards digital asset.
• 10:35
  So, so it's obviously not an all-encompassing survey, but it
• 10:39
  is hitting a broad spectrum of the institutional capital and
• 10:43
  that's where we got that $70 trillion number from.
• 10:45
  If you look at what you consider, quote, institutions,
• 10:50
  they manage about $70 trillion. That does encompass a little
• 10:54
  more than this survey was highlighting and who they were
• 10:57
  talking to. But it's a lot of money, OK.
• 11:00
  There's a lot of money sitting on the sidelines looking at
• 11:03
  Bitcoin and and getting ready to invest in Bitcoin up their
• 11:08
  allocations from literally 0 to as high as 29%.
• 11:13
  I don't think you can fully understand how big of a
• 11:17
  portfolio allocatement of allotment.
• 11:20
  Oh wow. I can't speak of 30% is for an
• 11:23
  institution. That's a significant portion of
• 11:26
  someone's portfolio. So here is the main chart and it
• 11:31
  goes. The proportion of firms
• 11:33
  allocating more than 5% of assets under management to
• 11:36
  digital assets is expected to rise from 18% to 29% by the end
• 11:42
  of 2026. That is a huge increase.
• 11:45
  And again, if we are just taking this number of $70 trillion,
• 11:50
  obviously it's not saying the entirety of that capital is
• 11:54
  going to invest 30% of their portfolio, 30% of that 70
• 11:58
  trillion into Bitcoin. But just as a thought
• 12:01
  experiment, if that were the case, that's about $20 trillion
• 12:07
  that would flow into Bitcoin. That's about, that's basically
• 12:10
  saying that potentially the amount of capital going into
• 12:15
  Bitcoin and the end of this year is about the size of the entire
• 12:21
  gold market cap. Now that is obviously the
• 12:24
  overestimation here. Even if we go on the low side,
• 12:28
  about 1% of that 70 trillion, that's $700 billion, that's
• 12:33
  about half of the Bitcoin market cap.
• 12:35
  So if you go anywhere between what, 1 to 5 to 10%, we're
• 12:41
  talking multiples of the entire Bitcoin market cap potentially
• 12:46
  entering into Bitcoin by the end of this.
• 12:48
  Year and and and I'll and I'll add into this and this is just
• 12:51
  another angle. We were talking about this
• 12:53
  earlier on in the week, right? If you just add up stretch and
• 12:59
  Metaplanet and what they're doing, the amount of Bitcoin
• 13:02
  they're buying daily essentially is more than the amount of
• 13:06
  Bitcoin that is being actively mined on a weekly basis.
• 13:10
  And then you connect this with what Opti's talking about.
• 13:13
  Opti's become a a somewhat of a macro expert here at simply men
• 13:19
  there it it it's inevitable that there is an incoming supply
• 13:23
  shock. And I'll give you guys a little
• 13:25
  bit of inside baseball. Of course, I can't name the bank
• 13:27
  and I can't name the individual, but one of the biggest banks,
• 13:31
  conservative wealth management banks in the United States.
• 13:34
  A good friend of mine works there.
• 13:36
  He sent me a text message. It was like, I believe it was
• 13:40
  like a week ago or so and he's telling me he's like Nico.
• 13:43
  We are seriously looking into the asset and not only that, we
• 13:47
  are actually launching product based on Bitcoin.
• 13:50
  And what does that tell you that that tells you that Wall Street
• 13:55
  has an appetite for this. And I don't think the absolute
• 14:01
  scarcity component of Bitcoin has hit reality as of yet.
• 14:06
  I think people are asleep. I think the market has not woken
• 14:10
  up to that reality. Because unlike gold, right?
• 14:13
  And I'm a big fan of physical gold, by the way.
• 14:16
  I love physical gold. I love the way it feels.
• 14:19
  I've gifted a a a piece of a bar of gold to Opti at one point
• 14:23
  'cause he was crushing it, but he doesn't.
• 14:25
  Have I wear gold? I wear gold on my neck.
• 14:27
  He doesn't have it anymore. Yeah, yeah, lost it.
• 14:30
  We don't have anything. But, you know, it.
• 14:34
  It like, unlike gold, if the price of gold goes up, the
• 14:39
  amount of gold production goes along up with it because the
• 14:43
  economics of it makes sense. The interesting thing about
• 14:46
  Bitcoin, I'm going to keep reiterating this this this
• 14:49
  statement is it doesn't matter how much the price of Bitcoin
• 14:54
  goes up, the amount of Bitcoin that could be actively mined on
• 14:59
  a daily basis stays the same. And not only does it stay the
• 15:03
  same, it gets cut in half every four years.
• 15:07
  So if you kind of weave all of this at let's put all of this
• 15:11
  back together, right? You have these the the
• 15:15
  institutional kind of sentiment around Bitcoin, the amount of
• 15:20
  Bitcoin that strategy, just strategy is buying by
• 15:23
  themselves. The amount of Bitcoin that
• 15:27
  Oranje and Metaplanet and these Bitcoin treasury companies like
• 15:31
  specially the top five or whatever, they're gobbling up
• 15:36
  more of the supply that is being mined.
• 15:40
  Eventually the sellers are going to get exhausted and eventually
• 15:44
  actually, and I believe a lot of this has to do with the early
• 15:47
  Ogs. It has to do with like the
• 15:49
  people that were getting into Bitcoin sub $100, sub $1000,
• 15:53
  they had their, you know, crazy return, life changing returns.
• 15:57
  It's changed their lives and they're taking a little bit off
• 16:00
  the table. It's not to say they're selling
• 16:02
  at all, but let's say you got into Bitcoin in, you know,
• 16:06
  20/15/2013 dude, you've been at this for more than a decade, you
• 16:11
  know, and, and, and Opti and I have been at this at roughly A
• 16:14
  decade and I'm. Tired and I'm.
• 16:16
  Tired. And I'm tired.
• 16:17
  It's exhausting. The Bitcoin roller coaster and
• 16:20
  the volatility in this industry at the speed of which this
• 16:24
  industry, you know, goes. It's exhausting.
• 16:28
  Like the regulatory uncertainty now it's getting into the
• 16:31
  political conversation, right? Like it, it, it's, you know,
• 16:35
  it's a lot. It's exhausting.
• 16:36
  Listen, whoever tells you that that huddling is easy is lying
• 16:41
  to you. Huddling is emotionally and
• 16:44
  spiritually exhausting. It really, really ease.
• 16:48
  And it doesn't get easier over time.
• 16:50
  It stays, I would say, consistently hard.
• 16:53
  I think you get to a point where essentially you reach a level of
• 16:57
  Zen where you just have accepted the volatility and you know, you
• 17:02
  look at your net worth and it might be down 40 to 50%, but
• 17:06
  you've just experienced it so many times that you just kind of
• 17:09
  you like the soldier with 1000 yard stare right where like, you
• 17:14
  know, he's just seen so much things in war.
• 17:16
  It's all all Quiet on the West. Front he's just he's just used
• 17:19
  to it right We I should have pulled up that picture.
• 17:21
  I had that picture ready. He's just used to it.
• 17:24
  So eventually you just get used to the, you get used to
• 17:28
  huddling, you get used to, you know, these quiet periods in
• 17:33
  Bitcoin where there's really not a lot of action, right?
• 17:37
  But that's not to say again, that the opportunity is gone.
• 17:41
  I think we're still in the early innings, guys.
• 17:45
  You can call me out in the chat. I'm starting to feel bullish
• 17:48
  again. I'm starting to.
• 17:50
  Feel I'm starting to feel bullish again because with this
• 17:54
  latest this bear market year that we're currently enduring
• 17:57
  and we might go lower you never know I I love the fact that the
• 18:01
  uncertainty in the market is creeping back in like I love
• 18:06
  that people are starting to become somewhat disillusioned
• 18:09
  with Bitcoin. You know, the, the, the, the
• 18:12
  fact that gold outperformed Bitcoin last year, I think all
• 18:17
  of those things were a good thing because it really clears
• 18:20
  out the Taurus and the only people that remain are the true
• 18:24
  believers, right? But this cycle is different in
• 18:27
  the sense that this cycle is really the first cycle where you
• 18:31
  have institutional interest in Bitcoin and remember the supply
• 18:38
  shock, the absolute scarcity realization has not happened
• 18:44
  yet. The moment people realize that
• 18:47
  even with all the supposed not confirmed but the supposed
• 18:52
  rehypothecation, not even that is going to keep the price down.
• 18:57
  Because eventually, listen, they can rehypothecate it to such an
• 19:01
  extent that it will get to a point where if you just start
• 19:05
  adding up all the Bitcoin, you're like, wait a second,
• 19:08
  there's 42,000,000, there's 42,000,000.
• 19:11
  This doesn't make sense, right? And what's that going to cause?
• 19:14
  That's going to cause a massive, you know, withdrawal of all the
• 19:16
  exchanges because people are not going to, they're not going to
• 19:19
  have confidence. They're like, there can't be
• 19:21
  42,000,000 Bitcoin, right? So even with the re
• 19:24
  hypothecation worries, even with the paper Bitcoin worries, you
• 19:28
  still have this crazy situation where all the stars and planets
• 19:35
  are aligning to cause a massive supply shock and that will cause
• 19:40
  Bitcoin to go to new highs, right?
• 19:44
  And again, this is not in the early days of simply Bitcoin.
• 19:47
  It was just me and Opti like, like theorizing this type of
• 19:51
  stuff. And there was so many times
• 19:53
  where we had like imposter syndrome because we were like,
• 19:56
  dude, like we just, we just like created this YouTube channel.
• 19:59
  Like we don't really have like a professional media background.
• 20:02
  We're not financial journalists. But after a while, we started to
• 20:05
  realize that we were right more more often than we were wrong.
• 20:10
  And you know, what we came to realize is like, look like
• 20:14
  ultimately Bitcoin is a paradigm shift.
• 20:19
  In terms of not only invest, investment opportunity, but what
• 20:27
  the geopolitical implications are going to be for more and
• 20:32
  more of the world. Getting on a Bitcoin standard
• 20:36
  like this is a monetary black hole.
• 20:39
  This is fundamentally going to change how human beings interact
• 20:43
  with each other, how the global economy interacts.
• 20:47
  And I think it's just the early innings of this.
• 20:51
  Nothing stops this train. As Lynn Alden says, I know she's
• 20:54
  talking about money printing, but again, the money printing is
• 20:57
  going to lead to what number go up Infinity divided by 21
• 21:01
  million. And again, Satoshi knew this
• 21:03
  from the beginning, which is why in the genesis block since the
• 21:06
  very beginning, since the early days of Bitcoin, he literally
• 21:10
  put it in there. He literally said chancellor on
• 21:13
  the brink of the second bailout for banks.
• 21:15
  He fundamentally knew that governments were just going to
• 21:19
  continue to print more money, right?
• 21:22
  And eventually, guys, again, it's it's maths, it's it's not
• 21:27
  rocket science. Eventually number goes up.
• 21:30
  So take advantage of this unique opportunity that we're close.
• 21:34
  No, we are literally at the 2021 highs right now where you're
• 21:38
  getting Bitcoin at roughly a 45 to 40% discount.
• 21:42
  Take advantage to buy the dip. It could go lower, but this is
• 21:47
  already I think it it from a risk adjusted return already a
• 21:50
  great opportunity to get in and you know, get get accumulate
• 21:54
  some cheap sats. That's that that would be my
• 21:56
  piece of advice for you. Of course, not financial advice,
• 21:59
  but you know, more sovereign advice.
• 22:04
  I would say I could say it. Yeah, yeah, yeah.
• 22:06
  The SEC nods don't take training advice from a Telegram groups or
• 22:10
  YouTube videos. So I know I'm trolling.
• 22:14
  I know I'm trolling, I'm trolling.
• 22:16
  But let me let let's look at this chart a little more guys,
• 22:20
  because I think there is something to take away from
• 22:23
  this, which really leans into the idea that even though we've
• 22:27
  seen a lot of headlines and fanfare coming from the
• 22:30
  institutions, it's really been a very small portion of the quote.
• 22:36
  You know, institutions that are getting into Bitcoin, it's been
• 22:39
  very big names. The very big names did lead the
• 22:42
  chart the the charge, but again, they haven't really been
• 22:47
  allocating that much capital yet.
• 22:49
  And I think from a just like a normal layman perspective, just
• 22:54
  from an average person's perspective, the numbers we have
• 22:57
  heard of capital coming into Bitcoin, it sounds like huge
• 23:00
  numbers to us. It's you know, hundreds of
• 23:02
  millions, couple billion plus, you know, sailor bought 50
• 23:06
  billion or $40 billion of Bitcoin.
• 23:08
  It's like those are big numbers for average people, but from an
• 23:12
  institutional perspective, from someone that potentially has,
• 23:15
  you know, I don't know, 10 trillion plus dollars of assets
• 23:18
  under management, 700 billion dollars, $500 billion.
• 23:23
  It's really not that much capital in the grand scheme of
• 23:27
  things. Now this chart does show us a
• 23:30
  couple interesting things. Let me zoom in here a little
• 23:32
  bit. You can see here's a little note
• 23:35
  and it goes respondents who are not currently invested in
• 23:38
  digital assets note that they plan to allocate either, you
• 23:41
  know, less than 1%, which is 38% of the respondents or 1 to 5%,
• 23:47
  which was the bulk of the respondents at 47%.
• 23:50
  And some of them are saying 6 to 10% at, you know, 9% of the
• 23:54
  respondents. But that's just like the broad
• 23:57
  overall view here. Essentially what I take away
• 24:00
  from this little one screenshot here, which is backed up by the
• 24:05
  rest of the report, is essentially we are seeing that
• 24:08
  by the end of 2026, the institutions are going to
• 24:14
  officially be off 0, which is going to be, I think, huge for
• 24:19
  what Nico's been saying. Like, you know, maybe by October
• 24:22
  we'll get a, we'll get, you know, the run back up.
• 24:25
  That's what it looks like. It looks like 2025 was the year
• 24:29
  where they studied Bitcoin. 2026 is the year that they start
• 24:32
  getting into Bitcoin, getting significant and maybe not for
• 24:37
  them, but they get portions of their portfolio into Bitcoin.
• 24:41
  And then from there, if the price starts going up crazy in
• 24:45
  2027, like we're all kind of expecting, who knows?
• 24:48
  You know, it seems like all our models are broken.
• 24:50
  You can expect this to really start to snowball for the FOMO
• 24:54
  to kick in. But there's one thing that I do
• 24:56
  want to mention on this, especially since we are self
• 25:00
  custody Maxis here. Since we always recommend don't
• 25:04
  buy these products, you do not want to add a third party in
• 25:07
  between you and your Bitcoin keys.
• 25:10
  There is something that you'd you'd expect from institutions,
• 25:14
  but we have some data here. So here is going back a little
• 25:18
  bit. You can see that investors
• 25:20
  preference for registered vehicles for spot exposure is
• 25:23
  81%. So 81% of investors who have
• 25:26
  spot or crypto exposure through ETS and ETP over holding
• 25:31
  individual crypto assets on an exchange or wallet, which you'd
• 25:34
  kind of expect from an institution.
• 25:36
  These big institutions aren't going to be self custodying
• 25:39
  their Bitcoin, which is, you know, pro and a con.
• 25:41
  Obviously from our perspective, it's like, hey, there, there is
• 25:46
  side effects that maybe you are unwanted here.
• 25:50
  Obviously, that's why we highly recommend from individuals that
• 25:54
  you take it into your own custody.
• 25:56
  Do not trust the asset managers to hold your Bitcoin even though
• 26:00
  they're doing their best and obviously they have fiduciary
• 26:03
  responsibilities to not wreck themselves.
• 26:06
  We've seen what's happened in Bitcoin in the past and you just
• 26:09
  do not want to get in that position.
• 26:10
  Now, of course, 66% of these investors are basically just
• 26:14
  buying ETFs. So the bulk of institutions will
• 26:18
  be buying ETFs or the stretch Michael Saylor products, and
• 26:22
  then only 36% of those that were surveyed hold spot Bitcoin or
• 26:27
  spot crypto directly. So maybe you could say we got to
• 26:32
  pump those numbers up, but I think you'd highly expect that
• 26:35
  this is the case, that these institutional investors aren't
• 26:38
  going to be just holding cold. So like they're not just going
• 26:41
  to have a Ledger in the corner of BlackRock with all of their
• 26:44
  Bitcoin, They're obviously going to these custody like Coinbase.
• 26:48
  Prime, of course, but like, ultimately.
• 26:51
  Like we can we we will work on that 1 I think.
• 26:53
  We all know Brian Armstrong just keeps it all in the Ledger and
• 26:56
  in his night stands. That's that's where all the
• 26:58
  Bitcoin is custody. But no, yes, ideally, I think
• 27:01
  it's only Fidelity that custodies their Bitcoin block
• 27:04
  also custodies their Bitcoin too.
• 27:06
  The way this works is you want institutions not only to custody
• 27:09
  their Bitcoin, but you also want proof of reserves, right?
• 27:13
  Proof of reserves are super, super important because Bitcoin
• 27:18
  allows it allows a not a trust me bro model, which is how, you
• 27:25
  know, I think gold essentially has been running for the longest
• 27:29
  time. It's a trust me bro type of
• 27:31
  situation. Trust me, bro, we have this
• 27:33
  amount of gold with Bitcoin. You know, you El Salvador is
• 27:36
  really leading the charge here, leading by example.
• 27:39
  They do have, you know, a, a, a, a public reserve.
• 27:43
  Anybody could see El Salvador's reserves at any time, right?
• 27:47
  I think that should be the standard, right?
• 27:50
  Some Bitcoin companies including one of our partners LED in, they
• 27:53
  have proof of reserves, right. There's a, there's Bitcoin on
• 27:56
  ramps that again have proof of reserves.
• 27:58
  I think every financial institution that holds Bitcoin
• 28:02
  should be transparent and they should have proof of reserves
• 28:06
  ultimately. So anyhow, and I know that 21,
• 28:09
  which is one of the largest, you know, Bitcoin treasury
• 28:11
  companies, I know that Jack was talking about doing proof of
• 28:15
  reserves as well, right? So anyways, guys, it's gonna be
• 28:18
  a fantastic show. We're gonna have Bulldog Holmes,
• 28:21
  Frank Holmes, executive chairman of Hive Digital Technology,
• 28:24
  joining us later on the show. So you guys are gonna wanna stay
• 28:27
  tuned. But before that, let's get to
• 28:29
  the numbers. We have tons to cover.
• 28:30
  We're gonna be right back in just a bit.
• 28:33
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  Digitaltech.com All right everybody, we are back.
• 31:27
  At the time of recording, Bitcoin price is $69,880 sats
• 31:31
  per dollar 1100, 1400, and 3031 block height 941,453 Realized
• 31:39
  monetary inflation .83%. The market cap of Bitcoin
• 31:44
  currently sitting pretty at 1.4 trillion.
• 31:47
  Bitcoin versus gold market cap is 4.66% and the percentage
• 31:52
  issued of Bitcoin is 95.25% and declined from all time high.
• 31:58
  If you're buying Bitcoin right now, you're getting it at a
• 32:01
  44.6% discount, which sounds pretty, pretty good.
• 32:05
  Anyways, today's news story, ladies and gentlemen, latest
• 32:08
  update on the Clarity Act. It's, it's begin.
• 32:12
  It's, it's become a little bit controversial to say the least.
• 32:18
  I'm saying it nicely, but I, I am a huge fan of Senator Lummis.
• 32:23
  So I'm going to give you guys two sides of the story and I'll
• 32:25
  let let you guys decide you know where it stands.
• 32:29
  So first of all, the Clarity Act, right there was 2 pieces of
• 32:32
  legislation that were part of the Trump administration, the
• 32:35
  Genius Act, which again was a piece of legislation more so for
• 32:39
  stable coins, and then the Clarity Acts, which applied more
• 32:42
  to the Bitcoin slash crypto industry.
• 32:46
  Now, the biggest thing about the Clarity Act right now is the
• 32:50
  thing that's stopping it is that the big banks essentially don't
• 32:53
  want these stable coins or any of these exchanges to pay yield
• 32:59
  or interest or dividends in terms of if people are holding
• 33:03
  USDC, you know, on Coinbase or any of these exchanges.
• 33:07
  The big banks don't want the exchanges to pay interest for
• 33:11
  that. Because again, most banks,
• 33:14
  whether it's well, whether it's one of the big one of the big
• 33:17
  banks, they don't really pay interest on your deposits.
• 33:20
  Like it's laughable if they do pay interest, right?
• 33:22
  So they, they don't want that competition.
• 33:24
  They don't want people taking out deposits out of the bank.
• 33:27
  They see it as a threat. So again, they're, they're kind
• 33:30
  of playing this, this political game.
• 33:32
  So anyways, here's the latest update on the Clarity Act.
• 33:35
  Again, I think it's above 50% in terms of it, the probability of
• 33:38
  it passing. Senator Lummis says clear rules,
• 33:41
  clear regulations, clear jurisdiction.
• 33:44
  That's what clarity's about. It's time to get digital asset
• 33:47
  market structure across the finish line.
• 33:48
  And here is one of the latest clips from from Senator Lummis
• 33:53
  where she is talking about the latest on the Clarity Act.
• 33:58
  Arduous. Patients building process, but
• 34:01
  we're going to mark it up in April.
• 34:04
  We're going to mark it up after the Easter recess.
• 34:07
  We've accomplished so much since Labor Day by being patient, by
• 34:12
  working with the different stakeholders and the people who
• 34:14
  have to vote on this. So I just want to assure you we
• 34:16
  really are going to get it out of the Banking Committee in
• 34:19
  April, and then we'll begin to match it up with the product
• 34:23
  that came out of the Ag Committee, which is the
• 34:24
  commodities portion of the bill. We're also going to have to deal
• 34:27
  with an ethics issue that the Banking Committee does not have
• 34:30
  jurisdiction over, and it has to do with elected officials
• 34:34
  involvement with digital assets. But once we put those pieces
• 34:36
  together, I think we'll be able to get some time on the floor.
• 34:39
  Thankfully, Senator Thune has been very generous with giving
• 34:43
  us enough lead time, enough rope to try to.
• 34:46
  Corral all of the different parties and get a good bill on
• 34:50
  the floor that will have bipartisan support that we can
• 34:52
  get more than 60 votes on. What a amazing experience.
• 34:59
  So first of all, shout out to the Bitcoin senator.
• 35:02
  She's done such a fantastic job. Now the risk I would say on all
• 35:07
  this is to get those 60 votes, there is going to be some type
• 35:13
  of compromises. And the question on everybody's
• 35:16
  minds is what are those compromises are?
• 35:19
  Is it better right now in the current status quo than, you
• 35:24
  know, what they're proposing with the Clarity Act?
• 35:26
  You know, where is it going to position Bitcoiners?
• 35:28
  Is it really going to help Bitcoiners?
• 35:30
  Because ultimately, unfortunately, what's happening
• 35:33
  is that Bitcoin and crypto are getting, you know, basically
• 35:37
  bunched into one with the Clarity Act, you know, and it is
• 35:41
  what it is. You know, that's, you know,
• 35:43
  that's the way kind of DC works in terms of legislation.
• 35:46
  And you know, people don't really see the differences
• 35:48
  between the Bitcoin industry and the crypto industry.
• 35:51
  So let's take a look at Lola Leets that's done an incredible
• 35:55
  job kind of doing a deep dive into the Clarity Act as it
• 35:59
  stands now. And let's take a look at it,
• 36:02
  right? Because the question that I want
• 36:04
  to ask you guys is, is it better just to keep the status quo or
• 36:10
  do we have to force this piece of legislation over the finish
• 36:15
  line, which actually could be harmful for our industry down
• 36:19
  the line, right? That's the big question, right?
• 36:21
  Because I think that's what a a lot of us were caught by
• 36:24
  surprise. You know, we had Trump elected,
• 36:27
  you know, we had an executive order that established A
• 36:29
  strategic Bitcoin reserve. We got Ross Albrecht freed, you
• 36:32
  know, all of these fantastic things.
• 36:34
  And we all were over the moon. We're like, guys, we won.
• 36:38
  But when it came to the legislative process, executives
• 36:41
  or executive orders are fragile because as soon as the next
• 36:45
  president gets elected, they can reverse all of those executive
• 36:49
  orders. If you really want something
• 36:51
  enshrined into law, it has to go through the legislative process.
• 36:56
  And going through the House is relatively easy because you just
• 36:59
  need a a majority. But going through the Senate,
• 37:02
  that's where you need a filibuster proof vote, which
• 37:06
  means you need at least 60 votes for that piece of legislation to
• 37:10
  to go through, which means you need something that is
• 37:14
  bipartisan, right? And the reason I'm bringing that
• 37:17
  up is, unfortunately, it is what it is right now.
• 37:22
  There's two political parties and one political party in
• 37:26
  particular is not necessarily completely pro crypto and pro
• 37:31
  Bitcoin, right? Again, it's not monolithic,
• 37:34
  right? The Genius Act did get across
• 37:36
  the line. Senator Lummus is saying that,
• 37:38
  you know, she's very confident that in April the Clarity Act is
• 37:41
  going to get across the line. But what were the compromises?
• 37:45
  What were the compromises that were made to get senators from
• 37:50
  the other side of the aisle to go along and vote for the bill?
• 37:54
  That's the big question. So no more delay.
• 37:56
  Let's go jump straight into the Lola leads post.
• 38:00
  So this is by the rage. I believe that's her outlet,
• 38:02
  right? Numerous accounts are amplifying
• 38:05
  talks from the digital chambers DC Blockchain summit.
• 38:08
  That's the clip that I just played for you guys in which
• 38:11
  Congress people promised to get the clarity act across the line
• 38:14
  between end of the week and end of the year.
• 38:17
  While largely sold as a positive to the industry, the latest
• 38:21
  market structure draft has proven to toe a dangerous line
• 38:25
  that could enable increase surveillance and the effective
• 38:29
  criminalization of privacy with stablecoin yield as as what I've
• 38:34
  been telling you guys with stablecoin yield as the number
• 38:37
  one point of discussion, the cryptocurrency industry will
• 38:40
  likely have to make concessions in its protections of D5 for
• 38:45
  clarity to have a chance of passing the Democrats who
• 38:48
  current continue to view illicit finance a red line, by the way,
• 38:53
  I think that's a that's a that's a distraction, to be honest with
• 38:56
  you. I think they just want to CBDCI
• 38:58
  mean Elizabeth Warren has said as such, and she's the head of
• 39:02
  the Senate Banking Committee for the Democrats.
• 39:05
  Several stand alone bills have since been introduced in
• 39:08
  Congress to protect developers, such as the Blockchain
• 39:12
  Regulatory Certainty Act and the Promoting Innovation and
• 39:16
  Blockchain Development Act, which offers safer pathways to
• 39:20
  safeguard development. So I mean, this is where we
• 39:24
  stand. You know, I, I think that this
• 39:27
  bill got Co opted first. There was a lot of pressure from
• 39:31
  the banking industry. Also, it sucks because why
• 39:35
  couldn't you just pass a stand alone bill that says, you know,
• 39:39
  protect the right to self custody on the federal level?
• 39:41
  The way that, you know, current, the current legislation
• 39:44
  legislative process works is they're grouping all of these
• 39:48
  things into one ginormous bill, right?
• 39:51
  I mean, even Trump's bill, like his, his bill for the presidency
• 39:55
  was called the big beautiful bill.
• 39:57
  That's how DC works right now, now, right, You don't pass just
• 39:59
  one bill at a time. You put all of these things
• 40:02
  together. And as a bitcoiner, it's quite
• 40:04
  frustrating because you know, I look, I love what stable coins
• 40:08
  have done, like what Tether has done for the global South and
• 40:11
  allowing the global S to essentially get access to U.S.
• 40:15
  dollars, right, has been a game changer for people's lives.
• 40:19
  And then I eventually I think that's going to lead to Bitcoin,
• 40:22
  right? So I'm a fan of what stable
• 40:24
  coins have done for the world. Not so much of a fan of of Defy,
• 40:30
  but the point I'm trying to make is this is a defy bill, a crypto
• 40:34
  bill, a stable coin bill and a Bitcoin bill all put into one.
• 40:38
  And you have to make concessions, you know, on
• 40:41
  certain things where if it was just a protect the right to self
• 40:45
  custody bill, I don't think you would have had to make
• 40:47
  concessions. But anyways, so that's how it
• 40:50
  currently stands with the Clarity Act.
• 40:52
  Personally, I'm at this point where you know it because it's
• 40:57
  taken so long, because they've dragged, dragged their feet the
• 41:01
  way they've had they've, they've had, I'm feeling like I don't
• 41:07
  know if this will cause more harm than good is where I'm
• 41:10
  currently at. Again, I'm not a political
• 41:13
  expert. You know, I, I do read a lot
• 41:16
  about politics and you know, the Clarity Act and a lot of these
• 41:19
  things, but I have this bad feeling.
• 41:22
  I have this bad feeling about it.
• 41:24
  But at the same time, I'm a little bit divided because I do
• 41:27
  trust Senator Lummis, like I do trust her, right?
• 41:30
  Like I know she's a bitcoiner, right?
• 41:32
  So anyway, and I know, and, and she's a, she's a professional.
• 41:35
  This is what she does, right? So anyways, we'll, we'll see
• 41:38
  what the outcome is. We'll be covering this in April
• 41:41
  and we'll be on top of it. Obviously the Trump
• 41:44
  administration is really putting their, you know, they're,
• 41:47
  they're really putting support behind this.
• 41:50
  Scott Besson has gone out publicly and I'll put his
• 41:54
  support behind the the Clarity Act.
• 41:57
  The way that the Trump administration is approaching it
• 41:59
  is they're basically saying, listen, if we don't do this,
• 42:03
  other countries will, which is a good thing.
• 42:05
  But again, all goes back to the same question.
• 42:09
  Is this bill going to cause more harm than good?
• 42:13
  I'll leave it in your guys's hands.
• 42:15
  Let me know what you guys think in the comments.
• 42:16
  Opti, real quick before we move on to the next segment.
• 42:19
  Yeah, I, I wish we covered the official Lola Leech tweet from
• 42:24
  her personal count. And she's like, don't pass the
• 42:27
  clarity Act, which look, I, I've had the same gut feeling that
• 42:31
  Nico does. I at this point, from everything
• 42:34
  I've heard, I, I'm of two, I have two things that that's kind
• 42:38
  of going along in my mind. I'd like 1, I think this might
• 42:42
  not be so good for us as Bitcoiners.
• 42:44
  It might be good for the quote UN quote crypto industry at
• 42:48
  large. And then two, you know, shout
• 42:51
  out to Senator Lummis. She has, you know, put up a
• 42:54
  fight. She's done the good fight.
• 42:56
  She's totally a Bitcoiner. She not only is a Bitcoiner, but
• 42:59
  she has very prominent Bitcoiners in her family.
• 43:02
  Like she is a Bitcoiner. She's doing the best she can,
• 43:05
  You know, it's this is no knock. She's giving, she's, she's doing
• 43:09
  the best she can with the card, she's been dealt 100%.
• 43:11
  Staffers are amazing. The Central Palmers team, like
• 43:14
  they've been fantastic. So 100%, I just, I'm not so
• 43:18
  hopeful on her timeline. That's just kind of kind of
• 43:22
  where I'm at. I hope it does and I hope it's
• 43:24
  beneficial. Absolutely.
• 43:26
  All right, ladies and gentlemen, after the break, we got Frank
• 43:29
  Holmes joining us, executive chairman of Hive Digital
• 43:33
  Technologies. We're super excited to have him
• 43:35
  on the show. We're gonna talk about so many
• 43:37
  things. I'm looking forward to it.
• 43:39
  You guys loved it when he came on the show last time.
• 43:42
  So anyways, we're gonna be right back after the break.
• 43:46
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  code simply. All right, everybody, we are
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  It's incredibly easy to use. Ladies and gentlemen, before
• 46:55
  Frank Holmes joins us, I'm going to go back and forth with Opti.
• 46:58
  Opti, let's go back to the Clarity Act conversation.
• 47:03
  So do you want to pull up that post by Lola?
• 47:07
  Is it appropriate? Yeah, yeah.
• 47:09
  No, it's appropriate. Give me a second guys.
• 47:12
  Let me let me find this too. So, yeah, because it it is, it
• 47:14
  is very important specifically. And again, we know most of our
• 47:17
  audience is, is based in the US, but from a legislative process,
• 47:22
  you guys have to think about it from this angle, right?
• 47:26
  Anything that gets passed in the US, other countries will follow
• 47:31
  from a legislative, from, from, from, from, from, from a
• 47:35
  legislative process. Like why am I saying this?
• 47:39
  Because of the the kind of the game theory aspects of all this,
• 47:44
  right. So like fundamentally, like if
• 47:45
  the United States becomes super pro Bitcoin and you have a lot
• 47:49
  of entrepreneurs essentially leaving, you know, Europe and
• 47:53
  leaving Asia to come to the United States to set up, you
• 47:55
  know, Bitcoin businesses here, which is the reason the Trump
• 47:58
  administration is putting so much weight behind passing this
• 48:02
  bill. That's essentially, you know,
• 48:07
  why they want to do it, right? Of course, the Bitcoiners
• 48:11
  naturally so are hesitant about it, which is, you know, why
• 48:14
  they're saying, you know, don't pass clarity.
• 48:16
  Tell your friend, I I can't say that.
• 48:18
  I can't say that myself. I'll leave it to the experts, of
• 48:22
  course, like, you know, like Senator Lummus.
• 48:25
  Anyways, we have the one, the only the legendary Executive
• 48:30
  Chairman of Hive Digital Technologies, Frank Holmes
• 48:34
  joining us today. How you doing, Frank?
• 48:37
  I'm great, look at my blue hat on to go with my blue blazer.
• 48:40
  So I've got my swag on like you have.
• 48:43
  I may not be good looking, but I'm looking good.
• 48:47
  Frank Holmes in the house. So, Frank, great to see you.
• 48:52
  I heard you guys were just at a fantastic conference in in
• 48:57
  California. Could you tell us a little bit
• 49:00
  about that? Because I was chatting with you
• 49:02
  and Aiden and it seemed like it was very, very exciting.
• 49:08
  I I think that Jensen's taking the level of education,
• 49:12
  entertainment to another level besides the innovation, the
• 49:16
  technology, because a lot of times Silicon Valley will have
• 49:20
  an innovation, but they really don't embrace everyone.
• 49:22
  So it's really well thought out. And I think he's taken the page
• 49:26
  from Warren Buffett. Now I've been to Buffett's event
• 49:29
  and that was a very similar. You take over a hockey arena and
• 49:34
  they would have Charlie Munger and, and Warren Buffett up on
• 49:37
  stage and the board would be in the front row.
• 49:39
  Bill Gates would be there and everyone would be taking notes,
• 49:44
  and you would see all these young kids with their computers
• 49:47
  typing away, listening to what Warren Buffett was saying and
• 49:52
  Charlie Munger. Then you would walk through a
• 49:54
  tunnel into a huge convention room and they sold you ice cream
• 50:00
  because he owns Dairy Queen. And then they had GEICO
• 50:03
  insurance to sell you insurance. And then they had a huge jewelry
• 50:07
  stand they own because he didn't believe in gold as owning gold.
• 50:11
  He believed in selling gold jewelry.
• 50:13
  So he owned the gold jewelry. And it's so funny because the
• 50:16
  big story was that Bill Gates bought his engagement ring for
• 50:20
  his wife from this jeweler. There's and a multi carat
• 50:23
  special rah rah rah and and now you go to Jensen and Jensen Hung
• 50:29
  basically has a sharks hockey arena taken over and the whole
• 50:36
  floor is for investment people and media people.
• 50:39
  So you would have the right to go on the floor close or if you
• 50:43
  were an analyst, you would be upfront and a few other
• 50:47
  diplomats and Michael Dell would be in the front row that this
• 50:51
  VIP location they had. But most of it was really unique
• 50:56
  that all the buyers, all the subscribers, all the data
• 51:00
  centers, anyone that are users of the GPU chips, they would
• 51:05
  fill up all the other stands right up to the Nosebleed seats
• 51:08
  were sold out. That that's that's in that's
• 51:12
  crazy and I I can't even and. It used to be 20,000, then it's
• 51:16
  25,035, it's 50,000 people come, but only 25,000 I think, or
• 51:23
  18,000 get into the arena, maybe walking around trying to see if
• 51:28
  they could find a seat. But it was a great experience.
• 51:31
  He he's a master of cadence, of storytelling.
• 51:35
  And he said it all started with gaming.
• 51:39
  Yeah, it's true. It's true, right.
• 51:41
  With the with the graphics card, Yeah.
• 51:43
  So did the Bitcoin ecosystem. It was gamers.
• 51:46
  I know this really really well from Ethereum.
• 51:49
  Etherium network had 30 million kids around the world running up
• 51:53
  the electrical bill, their parents while they went to
• 51:55
  sleep, and they were using their NVIDIA chips to see if they can
• 51:57
  mine one Etherium coin a year and if they were able to get 2
• 52:02
  out, they got a new computer. No, I mean it, it's it the
• 52:07
  amount of GPU demands, you know, for, you know, the, the, the,
• 52:12
  the LLMS is, you know, it's continuing to, to to scale at A,
• 52:18
  at a what I call a hot hockey skit, a hockey hockey stick type
• 52:22
  of level, right, Just going like this, right?
• 52:24
  It's going literally parabolic. Now, Frank, I, I do also want to
• 52:29
  talk about Paraguay. Some very exciting news that you
• 52:31
  were sending me over the weekend over WhatsApp.
• 52:34
  What's going, what's going, what's going over down in
• 52:38
  Paraguay? Well, I've got to come back to
• 52:41
  the storytelling. So for you at the conference, we
• 52:44
  had the privilege of being with all of the senior people from
• 52:49
  NVIDIA and that was just, you know, it's just thank you to to
• 52:53
  see these thought leaders and the distribution.
• 52:56
  So the person that's in charge of all Latin America, he's in
• 52:59
  Sao Paulo having breakfast with him and basically the commander
• 53:05
  of Canada. And what NVIDIA has done is that
• 53:09
  they've created a vertical, it's called and the vertical is
• 53:13
  sovereignty, sovereign data centers.
• 53:16
  So the data centers in Canada, the government policies are very
• 53:19
  caught up with having Canadian data Centers for Canadians.
• 53:23
  The same thing is happening in Sweden.
• 53:26
  The same thing is happening in many other countries, and same
• 53:30
  thing with Paraguay. So it does sort of fit in that
• 53:33
  we had to go see who's in charge of all the distribution and
• 53:38
  support in in Latin America. Then we had to go and meet the
• 53:42
  new vertical person in charge for sovereign data centers.
• 53:47
  And so you have many government senior ministers that were
• 53:50
  showing up to this conference because they want to know how
• 53:54
  they're going to be positioned in this run to use AI to improve
• 53:59
  security, national security. That one thing these government
• 54:03
  ministers don't do is come out and say how they're going to be
• 54:05
  able to get rid of a lot of fat in their organizations and
• 54:10
  streamline regulations. I would love to see that.
• 54:12
  I think Elon Mustard that in America and the backlash was
• 54:16
  huge, but it basically showed a lot of wasted money.
• 54:21
  And I really believe that you could do that with all the
• 54:24
  securities laws. You could upload and run them
• 54:26
  through for any redundancies or conflict and streamline things.
• 54:30
  And that's what AI is doing. And, and what's happening in
• 54:35
  Paraguay is that they've come out and it's really important
• 54:38
  that the ambassador who's in Washington, DC has been a big
• 54:43
  catalyst for this for President Pena is to create something to
• 54:47
  compete with Texas, to compete in America.
• 54:50
  And So what they've come out with is a 15 year stable
• 54:56
  electrical contract that something like 4 cents a
• 54:59
  kilowatt. So you have the stability for 15
• 55:03
  years of hydroelectricity is extremely attractive to a
• 55:07
  hyperscaler and it's a very, very attractive to us and we're
• 55:11
  the biggest player there. So we've come up with the
• 55:14
  invention of a creation of a Tier 1A new design that's going
• 55:19
  to allow you to go to Tier 3 to build what they want to call,
• 55:23
  which is really important to NVIDIA AI Factory, really
• 55:28
  important. Nico, they because they
• 55:31
  explained to me and it was a young guy from Italian Swiss
• 55:36
  that was explaining that that data centers used to report to
• 55:40
  the CFO that was an expense line item.
• 55:43
  And all CF OS are trying to cut costs, cut costs, streamline cut
• 55:46
  costs. But now when you have the
• 55:49
  concept of AI factory, it's reported to the CEO of the bank
• 55:53
  or the country of the company or the country and it is about
• 55:57
  generating economic output. So if the paradigm shift is
• 56:01
  really been well articulated, they're calling it the AI
• 56:05
  factory. And who's building in Abilene,
• 56:08
  TX is, is AAI Gigafactory and, and, and so where will these
• 56:12
  gigafactories go? So in the journey of Paraguay is
• 56:18
  you realize that Paraguay doesn't have a lot of the
• 56:21
  infrastructure that's necessary at this stage, but they will
• 56:25
  develop it. And one of the things like dark
• 56:27
  fiber and what fiber do they have?
• 56:30
  So we're testing this and we're partnered with Tegel to take
• 56:34
  some bird chips and to have a professor at at Columbia
• 56:38
  University, where President Pena's old alma mater is.
• 56:42
  And, and so that person is doing research on large language
• 56:47
  models and we wanted to try to figure out what is the latency
• 56:51
  5000 miles. That's roughly the distance
• 56:54
  between Asuncion and New York City, a Columbia University.
• 56:59
  And it'll take a month of, of every day looking at the data,
• 57:03
  what they're going to be doing. So it's very exciting beta test
• 57:07
  because before you start to go and scale a Tier 3 Gigafactory
• 57:12
  or AI factory, you want to make sure that you're going to be
• 57:15
  able to sell that that those electrons and the capacity to
• 57:20
  use those GPU chips to professors in America.
• 57:24
  Incredible. Would you call this Frank the
• 57:27
  first AI cluster in Paraguay and you guys are have?
• 57:31
  A central role in you look at my team says that's what it is and
• 57:36
  I'm going to go. With my that's what it is.
• 57:38
  I. I am not a data scientist or a
• 57:42
  I'm just a quiet fund manager that's built a reputation of
• 57:47
  alternative asset classes from gold to Bitcoin.
• 57:50
  You're a very humble man, Frank. So I I could say I could say
• 57:54
  Hive is playing a instrumental role in rolling out the first AI
• 58:00
  cluster in Paraguay. That's true.
• 58:03
  Boom awesome Frank. Also very exciting news.
• 58:06
  When I read this I was like Hive in robotics.
• 58:09
  What's going on? Breaking news from, you know,
• 58:12
  from the headlines and the, the, the, the press releases that you
• 58:15
  guys were releasing over the last couple weeks.
• 58:18
  Hive and AMC robotics partner to advance AI robotics
• 58:23
  infrastructure. So you guys are not only, you
• 58:26
  know, you know, powering AI for education in New York City, but
• 58:31
  also robotics. Can you tell me a little bit
• 58:33
  more about that as well? Clearly robotics is going to be
• 58:36
  and making these humanoids is where Elon Musk talks about his
• 58:41
  great vision. Then he'll sell more humanoids
• 58:44
  than he will sell Tesla vehicles.
• 58:46
  And, and so with an aging population, these humanoids are
• 58:51
  going to be so important for taking care of people.
• 58:55
  And, and so it'll become, if you have the economics, you're going
• 58:59
  to get a humanoid to help around the house.
• 59:03
  And we've had them. When you think of the robotics
• 59:05
  of cleaning the carpeting, do you have one of those machines
• 59:07
  that go around Bang, Bang, Bang, Bang?
• 59:10
  And. So, so we have one at our house
• 59:14
  and, and I think something scares the dogs and does
• 59:16
  everything, but it does pick up a lot of dust unless you force
• 59:21
  people to take off their shoes when they walk in the house.
• 59:23
  So the, the the concept of robotic vacuum cleaners, they've
• 59:27
  been around for a bit and you know that this is not brand new,
• 59:31
  but take it to another level of a humanoid.
• 59:33
  They can balance and pick you up if you're sick.
• 59:36
  They can literally so strong and their balancing factor this is
• 59:39
  coming and, and that and that concept.
• 59:43
  So the, the company that partnered with is I didn't met
• 59:47
  in Hong Kong and, and so that's, and they are, are using about
• 59:51
  $1,000,000 a month in, in these GPU chips.
• 59:54
  They have to go rent them for what they're doing and what
• 59:57
  their original business was dogs like, you know, pet dogs, but
• 1:00:01
  the dogs are security dogs and they have additional sensors.
• 1:00:05
  They have sound sensors, light sensors and cameras all over
• 1:00:10
  them and they move around as a a security lot.
• 1:00:14
  They will move internally at we're seeing now to Miami
• 1:00:18
  airport. You've seen them, The robotic
• 1:00:21
  wheelchairs. Yep.
• 1:00:24
  Robotic wheelchairs and and you see in Austin delivering food
• 1:00:28
  all over are not guys on bicycles are going to knock you
• 1:00:31
  over. They're going along on the road
• 1:00:33
  on the sidewalk is beep beep beep is a robotic Uber delivery
• 1:00:38
  service. So autonomous vehicles,
• 1:00:41
  autonomous world needs these data centers, they need access
• 1:00:45
  to these GPU's besides their own simpler GPU's that are inside of
• 1:00:50
  them. They really need the advanced
• 1:00:52
  ones to navigate through from as autonomous sensor machine.
• 1:00:57
  And it's really important they have so many sensors on them,
• 1:01:00
  Nicole. They have, like I said, sensors
• 1:01:03
  for sound, but sensors for for various types of light
• 1:01:06
  functioning a day and night and and then they have the ability
• 1:01:10
  to respond to you and information and how strong is
• 1:01:14
  the batteries. So this is going to become a big
• 1:01:17
  boom having security like this. And and so we think it's a
• 1:01:22
  great, it has the potential for us for $1,000,000 a month using
• 1:01:28
  our servers. And so we're at 35 million
• 1:01:31
  pushing to go to 100 million here.
• 1:01:33
  This is just another add on that we have, we'll get that final
• 1:01:37
  agreement signed, but it's really important that we want to
• 1:01:40
  know what end user and autonomous, autonomous vehicles.
• 1:01:45
  I would love to have a way go. I mean that would be a
• 1:01:47
  phenomenal to build the data Centers for them.
• 1:01:50
  And, and I know that like they're in San Jose and they're
• 1:01:53
  in San Francisco, but they won't take you to the airport.
• 1:01:56
  They they have a very closed area in Austin, Miami and San
• 1:02:00
  Antonio. It's not the autonomous data
• 1:02:04
  collection is not there. They go up and down every little
• 1:02:07
  Rd. to take information day and night.
• 1:02:09
  And it'll take time, the data building, but all that data
• 1:02:13
  building, all of that is really have to they need our HPCAI
• 1:02:18
  factories. That's what they need.
• 1:02:20
  So we want to know early. Come and use buzz.
• 1:02:25
  Hive's buzz. It's buzzing.
• 1:02:28
  Absolutely. So Frank, I have, I have, I have
• 1:02:31
  to be seeing this roll out is, is is fascinating because it
• 1:02:35
  it's, it's you guys were were essentially uniquely positioned,
• 1:02:39
  you know, starting from the Bitcoin mining space, you know,
• 1:02:43
  building out all of this infrastructure to really catch
• 1:02:47
  this new wave of this, I would say HPC demand.
• 1:02:52
  And what surprised these are Irish energy, they, they have
• 1:02:57
  some revenue, but as a percentage for Bitcoin revenue,
• 1:03:00
  it's very small. And and I think that this year
• 1:03:05
  we'll outpace him in scaling our HPCAI revenue versus you look at
• 1:03:10
  the ratio with Bitcoin mining, even though we're going to
• 1:03:14
  expand our footprint by 1010 Exahash in Paraguay, I think
• 1:03:20
  there's other exciting parts is this HPC and sovereign data
• 1:03:24
  center. Yeah, absolutely.
• 1:03:29
  We have a Frank, we have a, we have a special guest from from
• 1:03:33
  Hive also seems like he's he's on the on the show.
• 1:03:36
  You want to bring him up? His name is is Darcy.
• 1:03:39
  Great, great. Great.
• 1:03:40
  Because you were talking earlier, Nico, regarding the
• 1:03:43
  conference that was taking place in DC and, and, and I was
• 1:03:47
  listening to it. So I immediately asked Holly see
• 1:03:49
  if he could get Darcy to come on and to talk about questions you
• 1:03:54
  have regarding. He just came back fresh from DC
• 1:03:57
  and he can answer any questions you may have and thoughts that
• 1:04:00
  you were discussing. I love this.
• 1:04:02
  All right, this this has become a forum.
• 1:04:04
  I'm I'm I'm into it. OK, so Darcy, obviously as
• 1:04:08
  Bitcoiners, you know, we have a a bit of a concern regarding the
• 1:04:12
  Clarity Act. What's in the Clarity Act?
• 1:04:14
  A lot of things got bunched in together.
• 1:04:17
  Of course, we're big fans of Senator Lummis, you know, love
• 1:04:20
  her staffers, interviewed Senator Lummis a couple times.
• 1:04:23
  She's fantastic. So I have full faith in her and
• 1:04:26
  her ability. And of course, this is her
• 1:04:28
  career. This is what she does.
• 1:04:31
  What? What do you know?
• 1:04:32
  What is the latest on the Clarity Act?
• 1:04:35
  Do or do any parts of the bill concern you at all?
• 1:04:38
  Do any parts of the bill you know Should?
• 1:04:40
  Should any parts of the bill concern the industry as a whole?
• 1:04:44
  No, no, Nico, I don't think so. I there was a lot of talk in DC
• 1:04:49
  over the last couple days and it was around the Clarity Act.
• 1:04:51
  Everyone's happy. The Genius Act is there.
• 1:04:54
  It's given us some framework and clarity was the topic between
• 1:04:58
  that and energy for data centers.
• 1:05:00
  And they had people that were talking from the Republicans.
• 1:05:04
  They had Democrats, everybody seemed to be talking about how
• 1:05:08
  important it was to make sure that we get the Clarity Act
• 1:05:11
  done. However, they also acknowledged
• 1:05:13
  there's a couple speed bumps that need to be dealt with.
• 1:05:15
  The one that continues to come up is the rewards, whatever you
• 1:05:20
  want to call it, coming out of the stable coins.
• 1:05:22
  That seems to be a bit of a stumbling block that they know
• 1:05:25
  that they can get through, which is going to take some time.
• 1:05:28
  And they were also mentioning this isn't the only stumbling
• 1:05:31
  block. There's other things as, as we
• 1:05:34
  know within the the US process, when they put these things
• 1:05:38
  through, there's always that the other things that aren't really
• 1:05:41
  part of the core that you don't hear about, but everybody seems
• 1:05:46
  ready to push it forward. I think it's great for the
• 1:05:49
  industry and, and once they can get this done, I think it's just
• 1:05:53
  going to help overall, you know what, what we're trying to do in
• 1:05:58
  the United States, making it a Center for cryptocurrency, a
• 1:06:03
  centre for blockchain. And you know, the discussions
• 1:06:07
  that took place and the involvement that that they had
• 1:06:11
  from the different senators on both sides of the aisle coming
• 1:06:15
  in and talking openly to the community about what's going on.
• 1:06:19
  It was an incredible conference. Frank and I went last year and
• 1:06:22
  we divided and conquered. Frank was in on the West Coast,
• 1:06:26
  it's GTC, and I flew across from from West to east to get down
• 1:06:33
  there and it was well worth it. They were great conversations
• 1:06:35
  that took place and it's just a great community.
• 1:06:38
  And having it there in DC, they can bring those politicians in
• 1:06:42
  for a couple hours, do their speeches, they get to sit
• 1:06:45
  around, listen to some stuff, and then they can go back to the
• 1:06:48
  Hill and do what they need to do.
• 1:06:50
  So I completely agree with you. And this was the Trump
• 1:06:53
  administration's philosophy as well, right?
• 1:06:55
  Which is if we if the United States does not take a
• 1:06:58
  leadership role in Bitcoin and AI, another country will do it.
• 1:07:04
  My I can, I did to this Nico, I'm a little older than you 2
• 1:07:08
  guys and, and so I have some connect the dots going back to
• 1:07:14
  coming in the capital markets in 1978.
• 1:07:17
  So in that journey is was the big push was money market funds
• 1:07:23
  for mutual funds and mutual funds were predominantly equity.
• 1:07:27
  And when all of a sudden they got in the money market fund
• 1:07:30
  game and they could pay you monthly yields and like annual
• 1:07:35
  interest rates rate to 20%. Banks were not allowed to pay
• 1:07:38
  20%. So mutual funds came out and all
• 1:07:41
  of a sudden billions of dollars left banks and went into mutual
• 1:07:45
  funds, but didn't really hurt their lending, but it made them
• 1:07:48
  more attractive. They had to make more benefits
• 1:07:51
  for you and it created real competition.
• 1:07:54
  And, and, and so you're seeing that the bank lobbying and
• 1:07:57
  Elizabeth Warren, she's anti crypto.
• 1:08:00
  So she gets support from the bank lobbying group.
• 1:08:03
  They do not want rewards. They they they do not want
• 1:08:06
  rewards as really form over substances, interest on, on the
• 1:08:10
  money funds. And but that was money funds
• 1:08:14
  that that grew the mutual fund then grew the whole ecosystem.
• 1:08:18
  There was more money to go into equity and then the bailout, the
• 1:08:22
  S&L, then it became a real another crisis as they were
• 1:08:26
  allowed to all of a sudden pay these huge interest rates and
• 1:08:29
  they were insured. So all this money that was in
• 1:08:32
  mutual funds and money market funds left there and went over
• 1:08:36
  into S&L companies because they could get 18% coupons insured.
• 1:08:43
  And so you're seeing this whole idea that the bait really from
• 1:08:46
  my experience is the bait is paying interest or rewards on
• 1:08:51
  treasury bills is extremely valuable.
• 1:08:54
  And and the stable coins getting that privilege would all of a
• 1:08:59
  sudden make the crypto ecosystem explode.
• 1:09:03
  And the banks are trying to stop that because they do not want to
• 1:09:06
  lose depositors. That's really the, for me, my
• 1:09:09
  experience now. I wasn't there with Darcy and
• 1:09:12
  Darcy got so much more color besides that.
• 1:09:15
  But I'm trying to relate to your audience.
• 1:09:17
  This is my mutual fund ETF experience.
• 1:09:21
  Yeah. And that's one of the, and I
• 1:09:24
  appreciate that, Frank. And that's one of the things
• 1:09:26
  that we've been covering for quite a while now.
• 1:09:29
  And we've been trying to simplify it for our audience,
• 1:09:31
  which is, you know, if you open a traditional bank account, you
• 1:09:34
  know, you're not, you're not getting any money, you're not
• 1:09:37
  getting any interest rate or you are getting an interest rate,
• 1:09:40
  but it's like .000 something percent.
• 1:09:43
  Then they charge, charge you a monthly maintenance fee if you
• 1:09:45
  don't have a minimum balance. And they feel threatened, right,
• 1:09:48
  when Coinbase is basically saying, hey, listen, if you
• 1:09:52
  leave 10,000, you know, dollars of equivalent of USDC on
• 1:09:56
  Coinbase, we're going to give you a 3 1/2% yield or reward in
• 1:10:01
  Bitcoin. And of course they see that as
• 1:10:04
  people are going to take money out of the banks and leave in on
• 1:10:07
  some of these platforms. And I would say that's a good
• 1:10:09
  thing. That's competition.
• 1:10:10
  You would want to see that in in the free market.
• 1:10:13
  I think that was to take place. Bitcoin goes to a quarter
• 1:10:16
  million, yeah. Why?
• 1:10:18
  That's very exciting. Equity funds, if you take a look
• 1:10:21
  in the 90s with the Internet being unleashed and then there
• 1:10:26
  was Y2K fears planes will follow the sky and so everyone had a
• 1:10:31
  elevator stuck in elevators. All this fear stuff had a huge
• 1:10:34
  technology boom with the Internet being unleashed and and
• 1:10:39
  where do a lot of that equity go?
• 1:10:40
  Go growth funds come from money market funds.
• 1:10:43
  So what do you think? What happens if all of a sudden
• 1:10:45
  these stable coins become really important as a portfolio
• 1:10:48
  diversification? I know I have the money of the
• 1:10:51
  reach. I'm getting a coupon on it.
• 1:10:53
  It may be modest, but I'm getting some yield.
• 1:10:56
  Then it makes it very competitive against Tether.
• 1:10:59
  And that's another sense of burn because Tether keeps all those
• 1:11:02
  rewards. That's why Tether is the most
• 1:11:04
  profitable company in the world when you have 500 and some odd
• 1:11:09
  million wallets and you have $200 billion and you keep all
• 1:11:13
  that interest, it's quite significant for 200 employees.
• 1:11:17
  And and So what would that do? Well, that would wake up a lot
• 1:11:22
  of investors that would say I'm getting a I'm not going to money
• 1:11:25
  market fund. I'm in a stable coin and now I
• 1:11:27
  want to go into Bitcoin and you would just see a seamlessly
• 1:11:30
  happen. The only I share this with this,
• 1:11:33
  it's my hypothesis because I saw this happen with mutual funds
• 1:11:38
  and money market funds that all of a sudden made it seamless to
• 1:11:41
  switch over into equity funds. And, and I saw the competition.
• 1:11:46
  I had the high shielding money market fund back in 9192.
• 1:11:50
  And, and when a Schwab all of a sudden realized that was their
• 1:11:52
  game, they started offering money market fund yields that
• 1:11:56
  were also very high so that they wouldn't lose the money.
• 1:11:59
  So you would trade stocks and go not into my money market fund,
• 1:12:02
  but into theirs. So the idea of a money market
• 1:12:06
  fund or a stable coin paying rewards would be the biggest
• 1:12:10
  boom to all the Bitcoin fans out there.
• 1:12:14
  So, so, so this clarity Act is instrumental, is instrumental
• 1:12:18
  for it to pass for, you know, for Bitcoin really to reach
• 1:12:22
  these new highs. Now, Darcy, I do have a question
• 1:12:25
  for you. The, you know, how was the I, I,
• 1:12:29
  I truly believe that it's so important that Bitcoin for at
• 1:12:32
  least on a, on a legislative level is bipartisan, right?
• 1:12:36
  Because if not, you're going to have these crazy swings between,
• 1:12:39
  you know, the, the, the political elections.
• 1:12:43
  Did you see a lot of bipartisanship at that event?
• 1:12:46
  Did you have senators from the other side of the aisle?
• 1:12:49
  Because as I mentioned in the beginning of the show, and, and,
• 1:12:52
  and, and I was talking to Senator, Senator Lummis about
• 1:12:56
  this. I think it was last early last
• 1:12:57
  year. You know, Elizabeth Warren does
• 1:13:00
  sit on the Senate Banking Committee for the Democrats,
• 1:13:03
  right, which was, that's a, that's an influential position
• 1:13:06
  to say the least. So was there bipartisanship?
• 1:13:09
  Did you see a lot of Democratic senators that were willing to
• 1:13:13
  reach across the aisle and get behind the Clarity Act so it can
• 1:13:17
  get across the finish line? Yeah, I, I totally got that
• 1:13:20
  feeling from being at the at the conference and a lot of them
• 1:13:23
  were talking about this isn't bipartisan, it should be non
• 1:13:26
  partisan. You know, the party side
• 1:13:28
  shouldn't shouldn't make a difference.
• 1:13:30
  And on both sides there was support.
• 1:13:34
  They know that this needs to move forward.
• 1:13:36
  There are those people like Elizabeth Warren that, you know,
• 1:13:39
  will not want it to happen. But the communication and what
• 1:13:43
  they were saying is we want this to happen.
• 1:13:46
  It's the best for the country to be able to strengthen itself,
• 1:13:50
  make sure that they can keep up with what's happening in, in
• 1:13:53
  other countries. And, you know, it's, it's
• 1:13:57
  something that shouldn't, you shouldn't be looking at the, the
• 1:13:59
  colour of the pin or the colour of the tie that they're, that
• 1:14:02
  they're wearing and which side of the, the aisle they're,
• 1:14:05
  they're on. So it was very much that we're
• 1:14:08
  working together. We're going to work to get this
• 1:14:10
  done. There's a lot of hoops that need
• 1:14:12
  to be jumped through, but to make America stronger and to be
• 1:14:17
  the centre of Bitcoin, the centre for data centres, the
• 1:14:23
  centre for blockchain, this is something that they need to to
• 1:14:27
  pass. So there wasn't, I didn't hear
• 1:14:30
  anybody coming in and saying This is why it shouldn't happen.
• 1:14:34
  There would be people on, on fireside chats, on panels from
• 1:14:38
  both sides talking, you know, saying the right thing.
• 1:14:41
  And I truly felt that they weren't just putting on a show.
• 1:14:45
  They really did feel that it needed to happen.
• 1:14:47
  And they're getting a lot more educated in it.
• 1:14:50
  Why, why I think that's that the big thing sort of like what
• 1:14:52
  Frank was talking about is if we can get this through and that
• 1:14:56
  you can have stable coins that have some rewards along with it.
• 1:15:01
  The, the thing that I always talk about for the eight years
• 1:15:04
  that I've been in this industry is education and becoming more
• 1:15:09
  mainstream. We had huge mainstream when we
• 1:15:11
  had the Bitcoin ETFs, the other ETFs that come out.
• 1:15:14
  This is taking it to another level in terms of the adoption
• 1:15:18
  that we're going to be able to see within the industry and it's
• 1:15:22
  going to release the chains from the, the explosion that we're
• 1:15:26
  hoping to see. And we feel there's going to see
• 1:15:29
  when America can have this, this clarity Act through and really
• 1:15:32
  strengthen it. And, and to your point that you
• 1:15:36
  don't want this to be swinging back and forth depending on who
• 1:15:38
  controls the house, who controls the White House, It just needs
• 1:15:43
  to be done. Everybody has to be happy with
• 1:15:45
  it to be able to move forward and that everybody knows what
• 1:15:49
  the rules and regulations are moving forward.
• 1:15:52
  A fantastic and we got a question in the chat by the way
• 1:15:55
  and I do want to answer it. I'll be at Bitcoin Vegas 2026.
• 1:15:59
  Will Hive be there? Yes, Frank, we'll be there
• 1:16:01
  simply. We'll be at Bitcoin 2026 in
• 1:16:05
  Vegas, Frank, if people. Be hacked for you because
• 1:16:09
  everyone knows that this relates to green using green energy to
• 1:16:13
  mine Bitcoin and so we remain very very bullish on it.
• 1:16:19
  But I want to share with your, your viewers that one of the
• 1:16:23
  things that has happened in the past six months has been China
• 1:16:27
  increasing its Bitcoin operations and what the
• 1:16:31
  rumblings are. And an item was recently coming
• 1:16:34
  back from Hong Kong that all this trickle, all this banging
• 1:16:38
  took place October the 1010, they like to call it on the 10th
• 1:16:42
  of October when Binance blew up and derivatives and algos and
• 1:16:46
  highly leveraged play. And, but I did some other data
• 1:16:50
  and you can see that on the weekend, countries like Russia,
• 1:16:54
  Iran and China are 30% now of the global network hashing.
• 1:17:01
  So that means they're out of 450 Bitcoin a day.
• 1:17:05
  We all compete for they're getting 30% of those coins and
• 1:17:09
  they bang them out on the weekend.
• 1:17:11
  So you can see the mathematically down on Friday
• 1:17:15
  and usually to get a turn on on Monday, Tuesday.
• 1:17:19
  Why are they doing that? They're not sending missiles
• 1:17:22
  here. They're sending.
• 1:17:24
  They're trying to put stress on all the people that bought
• 1:17:27
  Bitcoin and bought it so that so they can influence the
• 1:17:32
  elections. This is a gubernatorial year,
• 1:17:35
  Republicans versus Democrats and anyone that bought Bitcoin at
• 1:17:39
  $100,000, they're down money now.
• 1:17:43
  So they can blame Trump. And it's a really interesting
• 1:17:46
  psychological warfare. It's financial.
• 1:17:49
  Here's the wallet. But that is what's been taking
• 1:17:51
  place. Looking at they want U.S.
• 1:17:55
  dollars, but the same time China's doing things to try to
• 1:17:58
  stop the use of dollars. But now what's happened out of
• 1:18:02
  Venezuela, as you know so well, Nico, is that the oil is not
• 1:18:06
  Chinese one anymore. It's in U.S. dollars and the
• 1:18:10
  proceeds that are going into a trust to rebuild that country.
• 1:18:14
  And I think in this and and Iran and the straits of Ramaz, the
• 1:18:19
  same thing is going to happen that they want that oil because
• 1:18:23
  China's buying, selling missiles to get Bitcoin, using Bitcoin
• 1:18:27
  also. And they're selling missiles and
• 1:18:29
  buying oil at a 20% discount. They're buying it from Russia at
• 1:18:33
  20% discount. Oil is the biggest dollar value
• 1:18:37
  commodity traded in the world world on a daily basis that
• 1:18:41
  still runs this world. And and so you're seeing this
• 1:18:45
  push by Xi Jinping against the US dollar, weaponizing the
• 1:18:50
  bricks, weaponizing the United Nations not to use the US
• 1:18:55
  dollar. And now especially the oil trade
• 1:18:58
  business, which is the biggest is now being pushed back.
• 1:19:01
  So this is bit of a, a global scene that you're seeing, like
• 1:19:05
  we're witnessing that Bitcoin really is a global phenomena.
• 1:19:09
  And it does tell you that the cost of, of electricity is
• 1:19:13
  really key to where Bitcoin trades on.
• 1:19:15
  And as electricity becomes more scarce, Bitcoin will trade
• 1:19:19
  higher. So all of a sudden government
• 1:19:21
  sponsored cheap electricity coming out of Russia and out of
• 1:19:25
  Iran and out of China. It's just influencing because
• 1:19:29
  they can mine it and down to the cost of $40,000.
• 1:19:32
  So they don't care. They just want to give every,
• 1:19:35
  all of your listeners pain. They want to give me pain.
• 1:19:38
  They want to give Darcy pain because that's how they fight.
• 1:19:43
  And so this is the sort of war you don't realize that Bitcoin
• 1:19:47
  has become part of this geopolitical war.
• 1:19:49
  That's why because it's so decentralized, it's a phenomenal
• 1:19:54
  digital wealth transfer mechanism.
• 1:19:57
  Yeah, Frank Opti had a question. We were talking before the show.
• 1:20:01
  Opti, you want to jump in here? It was.
• 1:20:03
  It was regarding the Middle East and the and the situation over
• 1:20:06
  there. Yeah, I mean, I think everyone
• 1:20:08
  that's been watching and hey, what's up, Frank?
• 1:20:10
  Hey, Darcy, we've seen last time you came on the show, Frank, you
• 1:20:14
  gave great macro geopolitical overview for everyone and a lot.
• 1:20:20
  Yeah, everyone. Everyone was losing their minds.
• 1:20:24
  Yeah, and like this. Is fantastic and a lot has
• 1:20:26
  changed. Literally in the last week.
• 1:20:28
  So I was wondering what, what is your view on this potential oil
• 1:20:32
  shock, You know, the closing of the Strait of Hormuz, what we're
• 1:20:35
  seeing in liquid natural gas right now, Like there's a lot of
• 1:20:39
  uncertainty in the world right now in regards to oil prices and
• 1:20:43
  energy. And of course you are a Bitcoin
• 1:20:46
  miner. Bitcoin mining of course turned
• 1:20:49
  energy into Bitcoin. And So what is your view
• 1:20:51
  currently? Like what what do you think is
• 1:20:53
  going on? And is it being over hyped or is
• 1:20:57
  it being under hyped currently? Well, I, I would look at the
• 1:21:01
  bond market 1st and, and the only concern I had this morning
• 1:21:04
  in our research meeting is that the two year, the five year
• 1:21:10
  where the five year is always used against dividend paying
• 1:21:12
  stocks. The 10 year is about any
• 1:21:14
  infrastructure project management and if you go for a
• 1:21:17
  project loan, it's always based on a 10 year cost of capital.
• 1:21:21
  So when all three go above their fifty day moving average or the
• 1:21:25
  10 week moving average, that means there's another stress and
• 1:21:30
  the bond market is a magnitude much more than 10 times the
• 1:21:34
  equity market. So we are seeing that stress of
• 1:21:38
  interest rates rising, not falling.
• 1:21:42
  And I think beyond the back of that is this, this exercise of
• 1:21:46
  stopping Iran is about a trillion, it's going to cost a
• 1:21:49
  trillion dollars. So that means it's going to be
• 1:21:51
  debt funding. That means it's going to put
• 1:21:53
  pressure on the dollar and that's going to be good for
• 1:21:56
  Bitcoin and gold down the road. But right now, short term, we
• 1:22:01
  were witnessing that Iran, not only in January that they killed
• 1:22:05
  estimates up to 30,000 of their own citizens for protesting,
• 1:22:10
  which is so tragic that they don't care about their own
• 1:22:13
  people. These are fanatics.
• 1:22:16
  At the same time, they had so many missiles that they hit 15
• 1:22:20
  countries at one time. I think we put a dent in by
• 1:22:24
  maybe 90% of them. So I, I think that we're going
• 1:22:29
  to end this thing by the probably the end of March, going
• 1:22:31
  into April enough to slow them down from what they were doing.
• 1:22:36
  But it we that we've not seen that regime change.
• 1:22:39
  If you're not going to get a regime change, then I think
• 1:22:41
  what's the game is to say, OK, let's get control of the straits
• 1:22:46
  and, and the US to protect it and other countries now of
• 1:22:49
  Europe that we're denouncing what America and Israel were
• 1:22:52
  doing are now saying, no, we'll be part of it and we'll come in
• 1:22:55
  the straits and we'll also help to protect the flow of oil.
• 1:22:59
  And China, by the way, you're going to have to pay full rate.
• 1:23:02
  You're not going to be sending missiles into Iran to be able to
• 1:23:05
  with with with ghost ships that are not claimed and buy the oil
• 1:23:08
  at 20% discount and hide what the what's going on in the world
• 1:23:12
  and and same thing happening with Russia.
• 1:23:15
  So I think that that's probably the positive and will come out
• 1:23:18
  of it. But the debt loads is not going
• 1:23:21
  to change in modern monetary theory by the G20 countries is
• 1:23:26
  not going to change in my opinion.
• 1:23:29
  And so they're going to continue to print the money.
• 1:23:31
  And that's always the real key idea and the concept of owning
• 1:23:36
  Bitcoin. The scarcity of 21 million coins
• 1:23:39
  is because this money printing will impact it.
• 1:23:42
  But what does impact it short term?
• 1:23:44
  If someone gets access to cheap electricity, then they have
• 1:23:47
  margins. Now, if I'm a Bitcoin miner and
• 1:23:51
  I was able to get 2 cent electricity, I'd have big
• 1:23:54
  margins today and will allow me to hold more Bitcoin.
• 1:23:57
  That's all. That's what it would do.
• 1:23:59
  But if I'm evil China and Russia and Iran, I just want to
• 1:24:04
  suppress it. So I'm basically passing on and
• 1:24:07
  knocking out 30% of the daily production all gets bundled in
• 1:24:11
  one of the weekends to blow it out.
• 1:24:13
  So I think that's what we're wrestling with.
• 1:24:15
  And, and hopefully it it, I do think it'll get resolved here.
• 1:24:20
  The big score if you're in the capital markets will be look at
• 1:24:24
  jet fuel and jet fuel has gone parabolic and, and, and you can
• 1:24:29
  see when it went above the 10 day, then the 50 day.
• 1:24:32
  What happened to the airlines like America, American Airlines,
• 1:24:34
  which are unhedged and united, but especially American, those
• 1:24:38
  stocks go down. So you have what they you know,
• 1:24:40
  the cake economy they call. We can see these stocks, petrol
• 1:24:44
  jet fuels, up and down comes these stocks.
• 1:24:47
  And soon as that jet fuel starts to come down with peace, then
• 1:24:51
  you'll see the airline stocks soar and you will see Bitcoin
• 1:24:56
  soar. I love it.
• 1:24:59
  Does that help give you a color or?
• 1:25:01
  Absolutely. That was that was fantastic.
• 1:25:04
  That was great. Anyways, gentlemen, thank you
• 1:25:08
  guys so much for joining us. Before I close it up, Frank, we
• 1:25:12
  got asked this question three times on Rumble.
• 1:25:14
  By the way, someone asked, will Hive be selling the vests at
• 1:25:22
  Vegas 2026? I got asked three times.
• 1:25:27
  Figure out the cost of the shipping and we'll make it for
• 1:25:30
  affordable for you. Because the vests are so popular
• 1:25:32
  when it's cool weather, even even in the summer, you need
• 1:25:36
  them in Sweden. And so they're they're very
• 1:25:40
  popular. But we have, we have the hats
• 1:25:44
  for shareholders and viewers. So we're we're very happy.
• 1:25:49
  Our swag is, is clearly identifies us as being the green
• 1:25:53
  Bitcoin miner. So that's really interesting to
• 1:25:56
  see how people identify with us. Absolutely.
• 1:25:59
  We saw someone in the chat saying that they have two Hive
• 1:26:02
  hats in different colors. You got, you got to get it.
• 1:26:04
  You got to get all of the. Different colors.
• 1:26:06
  We. We.
• 1:26:06
  Have we've? Got we've got the Harvard color.
• 1:26:10
  They go to Harvard every year and we have the khaki color.
• 1:26:14
  Let me see here, let me see. This is for wearing the khaki
• 1:26:17
  pants. And we've got khaki here.
• 1:26:20
  And then we have over here is Darcy.
• 1:26:21
  I don't know what color Darcy has.
• 1:26:23
  You have the white one, Darcy, the white one, yes.
• 1:26:26
  Now the, the, the women love the white one.
• 1:26:29
  That's that's the hot, that's the real hot commodity.
• 1:26:32
  We have them on a table. The the white one's gone first.
• 1:26:36
  They're gone and and who takes them?
• 1:26:39
  A guy that's late for dinner for his girlfriend.
• 1:26:42
  Or. Pick it up.
• 1:26:44
  So I love the fact that I've get that you're identifying Bitcoin
• 1:26:48
  miners sourcing green energy with the Gucci bee.
• 1:26:52
  And by the way, this Gucci bee, as I get teased for, it's really
• 1:26:55
  comes from the Vatican. The the the Vatican has their
• 1:26:59
  own beehives and and they make their own honey because they're
• 1:27:04
  always worried about someone trying to poison the Cardinals
• 1:27:07
  of the Pope I. Did not know that.
• 1:27:09
  So if you're next time in Rome, you can turn around and see the
• 1:27:13
  shield. You can see in Florence the
• 1:27:15
  Medicis, and they all have their different family names, but they
• 1:27:19
  do have the high. They do have this type of bee at
• 1:27:23
  the Vatican. I love it that, that, that is
• 1:27:26
  very cool that that's I, I, I didn't know that.
• 1:27:30
  That was very, very interesting. That's fascinating.
• 1:27:32
  I'm gonna look that up after this.
• 1:27:33
  There are probably a couple of YouTube videos on it.
• 1:27:36
  Anyways, guys, yes, Hive will be at Bitcoin 2026.
• 1:27:41
  Frank Holmes, of course, will be walking the floor.
• 1:27:43
  You guys can see him or maybe we'll have him at the Simply
• 1:27:46
  Bitcoin podcast booth. We'll be doing some interviews
• 1:27:49
  on the floor as well. And Darcy, thank you so much.
• 1:27:52
  This was a surprise. I love that you came on the show
• 1:27:54
  this fantastic. And.
• 1:27:55
  Absolutely. It's the way we pivot.
• 1:27:58
  And provided provided clarity on the Clarity Act, which I love.
• 1:28:02
  That was fantastic. That was great.
• 1:28:04
  Let's hope it gets passed. Let's hope it gets passed.
• 1:28:06
  This this this session. I mean, you're, you're Frank
• 1:28:09
  said 250. You guys heard it, $250,000
• 1:28:12
  Bitcoin potentially if the Clarity Act gets passed.
• 1:28:14
  I mean, I, I'm, I'm liking the sound of that.
• 1:28:16
  What do you think, Opti? I like number go up.
• 1:28:19
  I like. I like number.
• 1:28:20
  Go up. Anyways, for the thousands of
• 1:28:22
  people watching across YouTube, Rumble X Noster smash that like
• 1:28:26
  button, go give these gentlemen a follow Bulldog homes on
• 1:28:29
  Twitter. Go check out Hive
• 1:28:30
  digitaltechnologies.com. They'll be at the Bitcoin
• 1:28:33
  conference. Anyways, gentlemen, thank you
• 1:28:35
  guys so much for joining us on Simply Bitcoin Live.
• 1:28:38
  We appreciate it. Take care of y'all.
• 1:28:40
  Take care. Guys, before we wrap up the
• 1:28:43
  show, I do want to give a shout out to our sponsor as well.
• 1:28:46
  Of course, the Bitcoin conference simply Bitcoin will
• 1:28:50
  be there. Bitcoin 2026.
• 1:28:53
  You guys want to get your tickets now before the prices go
• 1:28:56
  up. All you got to do is scan the QR
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  code on your screen and you can use promo code Simply again,
• 1:29:03
  promo code simply to get 20% off your tickets to Bitcoin 2026 in
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  Las Vegas, NV at the Venetian Hotel April 27th through the
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  29th. You're not going to want to miss
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  it. This is what I call the Bitcoin
• 1:29:20
  Super Bowl weekend. Of course, the Simply Bitcoin
• 1:29:23
  crew will be there. We hope to see you guys in Las
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  Vegas, NV at Bitcoin 2026. Get your tickets now before the
• 1:29:31
  prices go up and the prices do will go up.
• 1:29:35
  I mean I think there's a ticker that shows you when the price is
• 1:29:37
  about to go up anyways guys, if you guys enjoyed the show, you
• 1:29:40
  know what to do smash that like button consider subscribing to
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• 1:29:52
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• 1:29:55
  of you guys. So we really appreciate you guys
• 1:29:57
  tuning in every single day of the week.
• 1:30:00
  Thank you guys so much. Like I said, we wouldn't be here
• 1:30:02
  without you and and go enjoy the weekend, go outside, get some
• 1:30:07
  sun, touch some grass, eat some steak, enjoy the family.
• 1:30:11
  And of course, we'll be back on Monday for a brand new episode
• 1:30:14
  of Simply Bitcoin Live. Today's episode was brought to
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