WEBVTT - ServiceNow's $3B AI Bet, Crypto Slumps Post Crypto Reserve Announcement 0:00:02.520 --> 0:00:09.119 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.160 --> 0:00:14.880 where innovation, money and power collide in Silicon Valley and beyond. 0:00:15.320 --> 0:00:44.879 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:34.880 --> 0:00:37.479 Live from New York and Caroline Hyde and. 0:00:37.440 --> 0:00:40.680 I'm Jackie Devalas in Washington. This is Bloomberg Technology. 0:00:40.760 --> 0:00:43.840 Coming up Service Now makes a nearly three billion dollar 0:00:43.920 --> 0:00:47.080 AI bet in a move to buy startup Moveworks plus 0:00:47.120 --> 0:00:50.080 Crypto synks further with bitcoin's sub eighty thousand dollars is 0:00:50.159 --> 0:00:54.120 Tariff war tensions drown out Trump's pro crypto announcements, while 0:00:54.120 --> 0:00:57.800 President Trump says he's negotiating with four different possible buys 0:00:57.800 --> 0:01:01.080 for TikTok's US business and a deal could come soon. 0:01:01.640 --> 0:01:04.880 But first we highlight the market sell off. We are 0:01:05.000 --> 0:01:10.640 unwinding that AI trade once again when growth enthusiasm becomes fear. 0:01:10.640 --> 0:01:12.320 We're down by three point three percent, and then as 0:01:12.319 --> 0:01:14.720 that one hundred having its worst dase it's December the eighteenth. 0:01:14.800 --> 0:01:17.800 We are the lowest in September twenty twenty four, the 0:01:17.880 --> 0:01:20.120 mag seven sinks in particular, we're looking. 0:01:19.880 --> 0:01:21.520 At five point four percent drop. 0:01:21.720 --> 0:01:24.160 Apple now sub three and a half trillion dollars you're 0:01:24.200 --> 0:01:27.280 looking at in video well below three trillion. We're about 0:01:27.280 --> 0:01:30.000 two point six trillion dollars in terms of market capitalization. 0:01:30.240 --> 0:01:33.560 We'll find another five point six percent as we think about. 0:01:33.319 --> 0:01:34.960 What tariffs and what. 0:01:34.840 --> 0:01:38.280 Overall geopolitical tensions mean for this AI trade that we 0:01:38.280 --> 0:01:40.319 were so long at the beginning of this year. 0:01:40.480 --> 0:01:41.920 Move on and even look at TSMC. 0:01:42.080 --> 0:01:44.959 They come out with good numbers analysts like the pace 0:01:45.000 --> 0:01:47.000 of growth in excess of forty percent from the month 0:01:47.000 --> 0:01:49.200 of February in terms of sales. All eyes on whether 0:01:49.240 --> 0:01:51.480 they can live up to their own internal guidance for. 0:01:51.480 --> 0:01:52.720 Their fiscal first quarter. 0:01:52.920 --> 0:01:55.920 But the AI demand still clearly there when it comes 0:01:55.960 --> 0:01:57.920 to the making of chips, but it is. 0:01:57.960 --> 0:02:00.640 Drag lower by sentiment. Let's get to that sentiment. 0:02:00.720 --> 0:02:03.760 Grude Meg's ron Vastelica is here and boy are we 0:02:03.880 --> 0:02:05.559 continuing these drivations in the market. 0:02:06.680 --> 0:02:07.400 Yeah. Absolutely. 0:02:07.440 --> 0:02:09.560 It does seem like there's just no end insight for 0:02:09.680 --> 0:02:12.040 all of this selling. You've had major names that were 0:02:12.120 --> 0:02:14.520 kind of seen as maybe a safety trade in the market. 0:02:14.720 --> 0:02:15.840 They're all breaking down. 0:02:16.200 --> 0:02:19.440 Major indexes have fallen under major support levels, key stocks 0:02:19.440 --> 0:02:23.239 have fallen under support levels. There's been hundreds of billions 0:02:23.240 --> 0:02:25.639 of dollars of value just completely wiped off. It's been 0:02:25.680 --> 0:02:27.720 a very broad based weakness here. 0:02:28.960 --> 0:02:30.920 Rian, How broad based is that? 0:02:31.000 --> 0:02:33.959 Because last week we saw chips really taking a hit. 0:02:34.480 --> 0:02:37.280 Is what we're seeing today just really a dragdown of 0:02:37.360 --> 0:02:39.360 a couple of the big names that have a high 0:02:39.360 --> 0:02:42.680 concentration in that Nasdaq one hundred index. Or is there 0:02:42.760 --> 0:02:45.040 broader fears here that we're just not seeing yet? 0:02:46.080 --> 0:02:47.919 Well, I do think just the breath of the selling 0:02:47.960 --> 0:02:50.320 does speak to just the broadness of the fears out there. 0:02:50.320 --> 0:02:52.560 If we are going into some kind of economic contraction 0:02:52.639 --> 0:02:55.960 or just broader weakness when you do have potential terrorists 0:02:55.960 --> 0:02:58.680 and escalation and geopolitical tensions, that's going to weigh on 0:02:58.720 --> 0:03:01.440 the market. It's pretty broadly. But because tech has done 0:03:01.480 --> 0:03:03.959 so well for so long, this is a natural place 0:03:04.000 --> 0:03:06.320 for people to be taking their profits first. 0:03:07.520 --> 0:03:10.240 Any hints of buying the dip just seems to be 0:03:10.320 --> 0:03:12.200 completely waight. I mean, the key question for the market 0:03:12.320 --> 0:03:15.280 is thus far Trump says he's not listening to the markets, 0:03:15.520 --> 0:03:17.520 But is there a point at which he starts to. 0:03:19.120 --> 0:03:19.320 Wow? 0:03:19.400 --> 0:03:21.360 I don't know about that, but at a certain point, 0:03:21.480 --> 0:03:23.120 you know, you do have a lot of people remain 0:03:23.280 --> 0:03:26.200 very positive about the long term potential of the big 0:03:26.240 --> 0:03:29.640 tech stocks, even the AI stocks. It is very possible 0:03:29.639 --> 0:03:31.239 at some point where people will come in and think, 0:03:31.320 --> 0:03:33.640 you know what, these names have really gotten beaten down. 0:03:33.680 --> 0:03:35.320 A lot of them are at multiples that they haven't 0:03:35.320 --> 0:03:37.280 been trading at in you know, a couple of years 0:03:37.360 --> 0:03:40.640 or even longer at all. Speaks to like an environment 0:03:40.680 --> 0:03:42.720 where maybe people start to get a little bit more positive, 0:03:42.720 --> 0:03:44.520 start to nibble in at the bottom. But there's so 0:03:44.600 --> 0:03:47.240 much uncertainty just in the broader economy right now. It's 0:03:47.600 --> 0:03:49.480 hard to know when that's going to happen. But certainly 0:03:49.480 --> 0:03:51.120 if we did see a rebound from here, I don't 0:03:51.120 --> 0:03:53.080 think that would be too surprising because it's not like 0:03:53.080 --> 0:03:55.280 the fundamentals have really changed all that dramatically. 0:03:56.480 --> 0:03:59.120 That's Bloomberg's Ryan glas Stelaca. Thanks so much for joining 0:03:59.240 --> 0:03:59.880 us late. 0:04:00.200 --> 0:04:00.600 Today. 0:04:00.760 --> 0:04:04.000 President Donald Trump is set to meet with CEOs of 0:04:04.120 --> 0:04:09.240 major tech companies, including IBM, Intel, Qualcom, and HP. 0:04:09.960 --> 0:04:11.160 The meeting comes as the. 0:04:11.080 --> 0:04:15.600 White House considers policy changes, including tariffs and stricter export 0:04:15.760 --> 0:04:20.160 rules that could impact the tech industry's global supply chains 0:04:20.160 --> 0:04:24.000 and operations. Bloomberg's Mike Shepherd joins us now. 0:04:23.839 --> 0:04:26.599 To discuss more. Mike, what are the stakes of this 0:04:26.720 --> 0:04:27.400 meeting today? 0:04:27.560 --> 0:04:30.240 Well, we are seeing the stakes of this meeting play 0:04:30.279 --> 0:04:32.360 out in the market right now. We're seeing the kind 0:04:32.400 --> 0:04:37.440 of uncertainty that is gripping investors as really a reflection 0:04:37.560 --> 0:04:41.320 of what these companies are also going through, because the terriffs, 0:04:41.480 --> 0:04:46.040 whether they're imposed or not, are throwing an element of 0:04:46.160 --> 0:04:49.279 what happens next for them and their supply chains, and 0:04:49.360 --> 0:04:52.279 also what happens to costs that they may have to bear, 0:04:52.520 --> 0:04:55.760 and also markets that they may be trying to sell too, 0:04:56.160 --> 0:04:59.400 not only consumers when you think about endpoint buyers, but 0:04:59.520 --> 0:05:03.840 also folks other companies that may be looking to make 0:05:03.880 --> 0:05:07.240 some acquisitions along the way for their own supply chain. 0:05:07.320 --> 0:05:09.880 So there will be a lot to say at this 0:05:10.000 --> 0:05:13.080 It's unclear whether there will be some big reveal or 0:05:13.160 --> 0:05:16.440 announcement from the president. It is not signaling that way 0:05:16.480 --> 0:05:19.520 when we think about the TSMC announcement from a week 0:05:19.560 --> 0:05:23.599 ago or the big Softgate soft Bank announcement on Stargate 0:05:23.680 --> 0:05:27.520 with open Ai Oracle. This doesn't have quite that vibe 0:05:27.560 --> 0:05:29.800 right now. But we'll have to see what the President says, 0:05:29.839 --> 0:05:32.080 for now the meeting is closed to press, but maybe 0:05:32.080 --> 0:05:33.040 they will open it up. 0:05:33.480 --> 0:05:35.400 That's a great point that you bring up with Stargate, 0:05:35.440 --> 0:05:38.640 because then it was kind of a slashier meeting that was, 0:05:38.960 --> 0:05:41.720 you know, we were getting some nuggets beforehand. 0:05:41.800 --> 0:05:43.480 What does it mean that these. 0:05:43.320 --> 0:05:47.240 Are American companies, you know, as we heard from TSMC 0:05:47.360 --> 0:05:50.320 last week, are they looking more for guidance or is 0:05:50.360 --> 0:05:51.880 Trump looking something from them? 0:05:52.200 --> 0:05:52.400 Well? 0:05:52.440 --> 0:05:55.839 Trump is always looking for something from his counterparties. He 0:05:55.960 --> 0:05:59.040 wants some sign that they plan to invest, they plan 0:05:59.160 --> 0:06:02.480 to expand they plan to do more with their domestic presence. 0:06:02.880 --> 0:06:05.000 And yet the way the market is heading right now 0:06:05.040 --> 0:06:07.720 and all of this uncertainty, it is not an environment 0:06:07.800 --> 0:06:10.880 in which companies and businesses are more inclined to make 0:06:10.920 --> 0:06:13.880 those kinds of big spending, big investment decisions. 0:06:14.080 --> 0:06:16.800 What's hitting the most mic is it tariffs? Is it 0:06:16.880 --> 0:06:19.160 a potential repeal of the Chip sacks? What is going 0:06:19.200 --> 0:06:22.039 to be that top question to President Trump these CEOs. 0:06:23.120 --> 0:06:26.479 That's a great question, Caro, because the tariffs really have 0:06:27.160 --> 0:06:31.520 taken precedence over almost anything else. And his discomfort with 0:06:31.640 --> 0:06:35.200 the Chips Act, which he expressed during his address to 0:06:35.279 --> 0:06:38.920 Congress last week. Wawmakers quickly shot that down. They don't 0:06:38.920 --> 0:06:41.320 seem to be too inclined to cut off that picket 0:06:41.360 --> 0:06:44.520 of money. There wasn't a bipartisan support to get through. 0:06:44.600 --> 0:06:47.479 But the tariffs are really the thing out there that 0:06:47.600 --> 0:06:51.120 is sowing this kind of uncertainty about what the impact 0:06:51.160 --> 0:06:55.320 on supply chains would be. Remember, the President has imposed 0:06:55.360 --> 0:06:58.479 tariffs on Canada and Mexico and later put them in 0:06:58.520 --> 0:07:02.640 abeyance for an Now, our two largest trading partners here 0:07:02.680 --> 0:07:06.159 in the US, and then there's the world's second largest economy, China, 0:07:06.279 --> 0:07:09.720 that is the third largest US trading partner. Those tariffs 0:07:09.760 --> 0:07:12.520 of up to twenty percent of most products coming in 0:07:12.560 --> 0:07:15.640 from China really have an impact and start to have 0:07:15.720 --> 0:07:16.400 a bite. 0:07:16.560 --> 0:07:19.400 Mike Shepard, we thank you for that breakdown. Now, amid 0:07:19.480 --> 0:07:22.440 these tariffs and market jitters, deals are actually still getting done. 0:07:22.600 --> 0:07:25.320 Service Now has agreed to buy artificial intelligence firm move 0:07:25.360 --> 0:07:27.680 Works for two point eight billion dollars as part of 0:07:27.680 --> 0:07:31.160 its push into AI tools that can complete tasks without 0:07:31.240 --> 0:07:32.040 human supervision. 0:07:32.240 --> 0:07:33.720 From mex Bodiford joins. 0:07:33.600 --> 0:07:37.320 US now AGENTKI here again but not organically grown over 0:07:37.360 --> 0:07:38.040 at Service Now. 0:07:38.200 --> 0:07:41.680 Yeah, exactly every single software company is chasing this price 0:07:41.760 --> 0:07:44.800 of AGENTICAI. You know, I had to get a new laptop, 0:07:44.880 --> 0:07:47.000 you know, through work. And the idea is for a 0:07:47.040 --> 0:07:49.160 company service now is that when I type it in, 0:07:49.680 --> 0:07:52.760 it automatically routes almost everything. It makes a decision that 0:07:52.840 --> 0:07:55.400 says is this user permission for this? Is there a 0:07:55.440 --> 0:07:56.960 business case? What will it cost? 0:07:57.080 --> 0:07:57.320 Cool? 0:07:57.680 --> 0:08:00.640 The idea is ultimately that customers don't need as many 0:08:00.680 --> 0:08:04.800 people to you know, do in house tasks. Service Now's 0:08:04.840 --> 0:08:09.160 real core market is that it services and so move works. 0:08:09.360 --> 0:08:11.560 You know, it is a pretty clear play to be 0:08:11.560 --> 0:08:13.480 able to double down on that market and inject some 0:08:13.600 --> 0:08:14.400 AI into it. 0:08:15.720 --> 0:08:17.040 Berdy Move Forwards. 0:08:16.720 --> 0:08:18.840 Has been around for quite a while, even though we've 0:08:18.840 --> 0:08:22.200 been hearing about these customer service AI agents more as 0:08:22.240 --> 0:08:25.000 of late. It was less valued in twenty twenty one, 0:08:25.400 --> 0:08:27.920 and as we've seen in the broader start of market, 0:08:28.040 --> 0:08:29.760 it's really hard to raise money. 0:08:29.600 --> 0:08:31.240 Especially if you're later stage. 0:08:31.520 --> 0:08:33.560 Did Service Now get a good deal here? 0:08:34.440 --> 0:08:36.719 It's a pretty good outcome. And as you said, it's 0:08:36.720 --> 0:08:39.320 been a tough market for VC backed companies right We've 0:08:39.320 --> 0:08:42.720 seen a lot of companies selling at below previous valuations. 0:08:43.200 --> 0:08:45.000 So I mean two point one to three. That's a 0:08:45.000 --> 0:08:47.520 pretty large deal. I think it's pretty successful for everybody. 0:08:47.600 --> 0:08:49.559 And with Service Now, it's funny because you know they're 0:08:49.640 --> 0:08:52.880 CEO Bill McDermott, at a reputation for huge deals at SAP. 0:08:53.480 --> 0:08:55.480 He came in at Service Now and said, you know, 0:08:55.520 --> 0:08:57.760 these days are behind me. We're going for organic growth. 0:08:58.559 --> 0:09:01.360 But it seems like today the ugates may be opening, right. 0:09:01.360 --> 0:09:02.920 I mean, I think there's scent lights in the message 0:09:02.920 --> 0:09:05.160 that Service Now might be kind of ready to be 0:09:05.240 --> 0:09:06.079 a big acquirer. 0:09:07.480 --> 0:09:10.280 It doesn't seem as though the market is that jubilant. 0:09:10.320 --> 0:09:12.560 I mean, the market is down across the board. The 0:09:12.600 --> 0:09:15.200 Service Now is down by more than six percent, which 0:09:15.240 --> 0:09:17.200 is more than the slump. And then as that one hundred, 0:09:17.400 --> 0:09:19.640 our investors just a little bit nervy about these sorts 0:09:19.679 --> 0:09:22.360 of big outgoings and a time where Service Now has 0:09:22.400 --> 0:09:25.160 a lot of government exposure, for example, in terms of contracts. 0:09:25.320 --> 0:09:27.880 The big question for SaaS companies is how quick are 0:09:27.880 --> 0:09:31.320 you turning the AI moment into revenue for Service Now. 0:09:31.360 --> 0:09:33.360 In the most recent earnings they kind of showed that 0:09:33.440 --> 0:09:38.240 we are still prioritizing adoption rather than revenue. Spending three 0:09:38.280 --> 0:09:41.880 billion dollars to you know, essentially buy sooner revenue recognition. 0:09:42.240 --> 0:09:43.600 That could be a sign of weakness. 0:09:43.679 --> 0:09:45.640 Certainly, Ready Ford. 0:09:45.640 --> 0:09:48.200 Who was front running the official announcement with a scoop 0:09:48.240 --> 0:09:51.200 over the weekend brilliant, thank you now coming up. Bitcoin 0:09:51.320 --> 0:09:54.960 slump continues despite President Trump's pro crypto agenda. More on 0:09:55.000 --> 0:09:57.400 the bitcoin space in a moment, but shares of Tesla 0:09:57.440 --> 0:09:59.640 is where we focus in on after bitcoin is off 0:09:59.800 --> 0:10:02.160 to be it's percent check out what this magnificent seven 0:10:02.240 --> 0:10:04.120 name is currently down by eight. 0:10:03.920 --> 0:10:04.800 Point six percent. 0:10:04.880 --> 0:10:07.400 It's leading in terms of the sell off we're seeing 0:10:07.679 --> 0:10:10.559 from a points perspective. Apple and Vidia also contributing. We're 0:10:10.559 --> 0:10:11.360 worrying about China. 0:10:11.400 --> 0:10:12.240 We're worrying about. 0:10:12.040 --> 0:10:15.120 Sales slump over there, but more broadly worried about valuations 0:10:15.160 --> 0:10:18.160 for a company that's ubs is saying perhaps the AI 0:10:18.200 --> 0:10:20.120 trade is a little bit too long a term for 0:10:20.160 --> 0:10:22.800 this particular one in the here and now they downgrade 0:10:22.960 --> 0:10:24.959 their view on sales for the first quarter. This is 0:10:25.000 --> 0:10:40.320 boombog technology. Bitcoin slide continues. It's now below eighty thousand 0:10:40.360 --> 0:10:43.000 dollars for the first time since November. Now the asset 0:10:43.040 --> 0:10:45.760 class is consumed by macro concerns rather than the slew 0:10:45.800 --> 0:10:48.000 of pro crypto rhetoric that we got from President Trump's 0:10:48.000 --> 0:10:49.240 crypto summit on Friday. 0:10:49.559 --> 0:10:51.640 From all let's break it all down with Shnani base icon. 0:10:51.920 --> 0:10:54.720 Maybe there's this underwhelmed feeling from the crypto summit, but 0:10:54.760 --> 0:10:56.480 it is macro front and center in terms of the 0:10:56.520 --> 0:10:57.559 sell off on crypto. 0:10:57.400 --> 0:10:59.920 Right first and foremost, the risky appetite is pretty tough 0:11:00.040 --> 0:11:02.680 out there, and you have a fairly high correlation still 0:11:02.920 --> 0:11:06.000 for bitcoin two stocks. So if you're selling off risk assets, 0:11:06.000 --> 0:11:09.439 you're certainly not buying bitcoin today. I think what's remarkable 0:11:09.480 --> 0:11:12.080 is not even just today's decline, and you are now 0:11:12.400 --> 0:11:15.800 flirting with that eighty thousand dollars level. We have dropped 0:11:15.800 --> 0:11:18.600 below it, but it's trying to kind of keep that mark. 0:11:19.040 --> 0:11:21.800 You have bitcoin down more than twenty five percent since 0:11:21.840 --> 0:11:24.280 the highs that we saw, So if you bought bitcoin 0:11:24.320 --> 0:11:26.240 at one hundred and ten dollars, one hundred and ten 0:11:26.280 --> 0:11:29.760 thousand dollars nearly you're feeling that pain. Today on a 0:11:29.840 --> 0:11:32.920 seven day basis, bitcoin is down more than eleven percent, 0:11:33.080 --> 0:11:36.600 So too is a theoreum. But one thing that's important 0:11:36.640 --> 0:11:40.400 about all this is also that strategic Bitcoin Reserve that 0:11:40.480 --> 0:11:43.120 the White House had been talking about. It's not the 0:11:43.160 --> 0:11:46.160 idea here that they'll be buying more crypto assets. They 0:11:46.200 --> 0:11:50.600 would be taking assets from what is already forfeited. 0:11:49.960 --> 0:11:51.480 Right from what they have seized. 0:11:51.600 --> 0:11:54.160 So if you're not buying from the US government, then 0:11:54.240 --> 0:11:58.640 it remains that bitcoin needs that extra marginal buyers story 0:11:58.640 --> 0:12:01.280 here at a time where as we've been talking about risk, 0:12:01.360 --> 0:12:02.440 appetite is quite low. 0:12:03.720 --> 0:12:07.600 Shanali cryptos almost synonymous with volatility. Depending on where you sit, 0:12:08.040 --> 0:12:12.400 how much of these swings are actually unprecedented, How does 0:12:12.440 --> 0:12:15.120 it compare to what we've seen in the past. 0:12:15.360 --> 0:12:17.840 Well, think about it this way, Jackie, on one hand, 0:12:18.280 --> 0:12:21.760 is on it is very something. It's something that big 0:12:21.760 --> 0:12:24.200 investors who have been in bitcoin a long time have 0:12:24.679 --> 0:12:27.559 bared before. You have the billionaires in the crypto industry 0:12:27.760 --> 0:12:30.400 pretty used to losing a billion or a few in 0:12:30.520 --> 0:12:33.360 a single year. But if you're a retail buyer who 0:12:33.400 --> 0:12:35.760 have maybe got in at the end of last year 0:12:36.080 --> 0:12:38.320 when the prices were still high through the form of 0:12:38.320 --> 0:12:41.319 an ATF, it is tougher to bear now if you're 0:12:41.360 --> 0:12:43.319 thinking about the look ahead as well. There are a 0:12:43.360 --> 0:12:45.360 lot of meme coins and a lot of alt coins 0:12:45.360 --> 0:12:48.760 that people have bought into in addition to Bitcoin, even 0:12:48.960 --> 0:12:52.000 more of a drop than Bitcoin today is for example, 0:12:52.160 --> 0:12:54.400 Doge and many of you might notice that over the 0:12:54.400 --> 0:12:57.400 weekend there was a lot of criticism around DOGE and 0:12:57.440 --> 0:13:00.080 the plans for it, both by judges as well as 0:13:00.080 --> 0:13:02.920 members of the administration, according to different reports that were 0:13:02.960 --> 0:13:05.400 out there. So it's not just Bitcoin, it is the 0:13:05.440 --> 0:13:06.319 all kinds. 0:13:06.040 --> 0:13:06.679 Outside of it. 0:13:06.960 --> 0:13:10.640 They saw this big rally when President Trump initially had 0:13:10.760 --> 0:13:15.520 hinted that Salona Cardano XRP could be considered for this reserve, 0:13:15.760 --> 0:13:18.760 but they were not in that executive order necessarily for 0:13:18.920 --> 0:13:23.320 purchase for this strategic Bitcoin reserve so now or crypto 0:13:23.400 --> 0:13:26.120 asset reserve. So you do see pain there as well 0:13:26.120 --> 0:13:29.920 because the government's plans are somewhat unclear even after that 0:13:29.960 --> 0:13:34.000 big White House summit on Friday, Jackie. 0:13:33.480 --> 0:13:36.120 That's Bloomberg Shanali base I thanks so much for joining us. 0:13:36.280 --> 0:13:38.920 We caught up with White House, AI and cryptos are 0:13:39.080 --> 0:13:42.040 David Sachs ahead of the Crypto summit on Friday. Here's 0:13:42.080 --> 0:13:43.600 what he had to say about the creation of the 0:13:43.600 --> 0:13:44.400 bitcoin reserve. 0:13:45.280 --> 0:13:47.719 The reason why we need a bitcoin reserve is that 0:13:47.760 --> 0:13:50.480 the federal government already owns some In the past, the 0:13:50.520 --> 0:13:53.280 strategy has been simply to sell it, you know, in 0:13:53.320 --> 0:13:56.400 an ad hoc way, almost willy nilly, and that cost 0:13:56.720 --> 0:14:00.120 American taxpayer something like seventeen billion dollars in lost value. 0:14:00.360 --> 0:14:01.920 So we want to have a long term strategy to 0:14:01.960 --> 0:14:03.280 maximize the value these holdings. 0:14:04.960 --> 0:14:08.040 For more on the crypto landscape, Stacy Rowland, zero one 0:14:08.160 --> 0:14:12.760 Strategies founder joins a snow Stacy, why did this crypto 0:14:12.840 --> 0:14:15.600 summit fall slap because hopes were pretty high? 0:14:15.920 --> 0:14:19.800 Well, I think it's important to realize that unlike markets 0:14:19.960 --> 0:14:24.880 that react instantaneously, policy making is requires patients. 0:14:25.160 --> 0:14:26.320 It's a slow process. 0:14:26.720 --> 0:14:31.520 So, yes, the ball started rolling on Friday with the 0:14:31.640 --> 0:14:35.320 president's call for the creation of a strategic reserve and 0:14:35.960 --> 0:14:39.280 digital assets stockpile. There's a lot of details, as we've 0:14:39.280 --> 0:14:41.240 been discussing, a lot of details still need to be 0:14:41.280 --> 0:14:44.080 filled in, and there's still a role for Congress to play. 0:14:44.600 --> 0:14:47.240 Stacy, with the work that you've done with the government 0:14:47.240 --> 0:14:49.480 relations that you built with Advisory, what you've been doing 0:14:49.480 --> 0:14:51.760 two companies trying to assettain what the government might do. 0:14:52.560 --> 0:14:56.120 Is that consistency enough? Because I think the fact that 0:14:56.360 --> 0:14:56.920 you're saying. 0:14:56.720 --> 0:14:57.280 It's day one. 0:14:57.320 --> 0:14:59.640 It takes a while to really digest what a strategic 0:14:59.680 --> 0:15:01.920 b QUES reserve means. But the lead up to the 0:15:01.920 --> 0:15:05.640 strategic strategic reserve was long, and many had anticipated that 0:15:05.760 --> 0:15:07.720 would be buying that maybe wouldn't. 0:15:07.360 --> 0:15:08.000 Just be bitcoin. 0:15:08.240 --> 0:15:11.120 We were allowed to get over enthusiastic about what the 0:15:11.120 --> 0:15:12.000 announcement would be. 0:15:13.760 --> 0:15:15.040 Uh, well, it's a. 0:15:15.040 --> 0:15:20.240 Great question, and I think essentially more conversations will have 0:15:20.280 --> 0:15:23.760 to happen, right Congress will have to be involved. Uh, 0:15:23.840 --> 0:15:27.920 these are these are long discussions. I do think looking 0:15:28.000 --> 0:15:29.760 at the details, one thing that I think is really 0:15:29.800 --> 0:15:33.200 interesting is, you know, the part that the public was 0:15:33.240 --> 0:15:37.520 able to see. There were interesting comments made, especially by 0:15:37.520 --> 0:15:41.840 the Treasury Secretary where he suggested that, uh, the Treasury 0:15:41.920 --> 0:15:44.040 was going to be playing a role in assessing the 0:15:44.080 --> 0:15:47.040 tax code and looking at risk waiting. And I thought 0:15:47.040 --> 0:15:50.400 that was a really interesting hint. I'm very interested to 0:15:50.440 --> 0:15:53.400 see what Treasury does working with the OCC and the 0:15:53.400 --> 0:15:56.000 I R s uh in you know, he what the 0:15:56.040 --> 0:15:59.960 Secretary had promised was, uh, you know, looking at applicable 0:16:00.360 --> 0:16:05.680 regulations and amending or rescinding as necessary. I'm interested in 0:16:05.760 --> 0:16:10.800 seeing whether he is limiting those comments just to the 0:16:10.880 --> 0:16:13.760 strategic reserve or whether he was suggesting something broader and 0:16:13.760 --> 0:16:14.520 there's more to come. 0:16:14.720 --> 0:16:17.640 When you served within the Accessory Department and you was 0:16:17.680 --> 0:16:19.640 in staff of the Office of Tax Policy, so you're 0:16:19.680 --> 0:16:22.320 someone who should know about these tax perspectives. And thanks Jack, 0:16:22.360 --> 0:16:24.080 you for holding on for this moment. But Stacey, I 0:16:24.120 --> 0:16:26.440 am interested in what it means in terms of the 0:16:26.440 --> 0:16:29.080 future of on ramps. Here we talked about stable coins 0:16:29.080 --> 0:16:32.520 getting some sort of regulatory clarity. That's something that investors want, 0:16:32.560 --> 0:16:34.080 not just tax clarity too. 0:16:35.400 --> 0:16:38.800 Yeah, that's exactly right. There are calls for clarity across 0:16:38.800 --> 0:16:44.280 the board. Those are largely in Congress's perview. And this 0:16:44.360 --> 0:16:47.000 week in Congress, if we can take a quick shift 0:16:47.040 --> 0:16:48.560 to look at what's going on on the other side 0:16:48.560 --> 0:16:51.960 of Pennsylvania Avenue, there will be this week we're going 0:16:52.000 --> 0:16:56.680 to have action on stable coins and on information reporting 0:16:56.920 --> 0:16:58.720 in taxes. So we're going to see. 0:16:58.720 --> 0:17:00.480 It's a very busy week in these. 0:17:00.320 --> 0:17:03.440 Areas, both coming out of the White House reactions to 0:17:03.480 --> 0:17:06.280 that and actual you know, policymaking on the Hill. 0:17:06.640 --> 0:17:08.480 You mentioned that Congress is going to have to be involved. 0:17:08.520 --> 0:17:11.399 What kind of bipartisanship do we see around crypto. 0:17:11.200 --> 0:17:14.439 Yeah, increasing right, And I think it's important for people 0:17:14.480 --> 0:17:17.639 to realize, especially in the work that I do, that 0:17:17.720 --> 0:17:20.879 every Congress is different, right. And so last year we 0:17:20.960 --> 0:17:24.879 did see a shift over the years for this issue 0:17:24.920 --> 0:17:26.480 to be sort of increasingly partisan. 0:17:27.200 --> 0:17:28.040 But a lot of. 0:17:27.920 --> 0:17:31.040 That was largely to do with the political realities. You 0:17:31.080 --> 0:17:35.440 had the Biden administration that was signaling you know, skepticism, right, 0:17:35.880 --> 0:17:39.400 some would say hostility to some areas of digital assets, 0:17:39.640 --> 0:17:44.800 and the heading into a contentious election year, Democrats were 0:17:44.840 --> 0:17:49.560 going to you know, defer to their party leader. Now 0:17:49.920 --> 0:17:53.400 political wins have shifted, right, we have a Republican controlled Congress. 0:17:53.440 --> 0:17:57.560 Clearly policymaking will be happening in this space and that 0:17:57.760 --> 0:18:02.000 middle that that you know opper coortunity for bipartisanship is 0:18:02.200 --> 0:18:03.800 much broader than it ever has been. 0:18:04.240 --> 0:18:07.200 That's Stacey Rand of zero one Strategies. Thank you so 0:18:07.320 --> 0:18:21.960 much for joining us. 0:18:16.000 --> 0:18:17.960 Time now for talking tech first s up shares of 0:18:17.960 --> 0:18:21.439 Redfin surging today. Rocket Companies has announced a deal to 0:18:21.480 --> 0:18:23.600 buy the real estate listening site for one point seventy 0:18:23.600 --> 0:18:25.800 five billion dollars, paying twelve and a half dollars a 0:18:25.840 --> 0:18:28.960 share in an all stock transaction. Rocket CEO b Oun 0:18:29.000 --> 0:18:31.680 Krishna join Bloomberg Open Interest have this to say about 0:18:31.680 --> 0:18:31.960 the deal. 0:18:32.600 --> 0:18:35.879 We're very excited about this deal. Two of the biggest 0:18:35.880 --> 0:18:39.120 growth opportunities for Rocket that we've talked about are really 0:18:39.160 --> 0:18:42.840 growing in purchase and AI, and by bringing together the 0:18:42.920 --> 0:18:46.480 leading home search website with the leading mortgage finance company, 0:18:47.000 --> 0:18:48.480 we expect to accomplish both. 0:18:49.440 --> 0:18:51.719 US deliver Room it's set to exit from its Hong 0:18:51.800 --> 0:18:54.600 Kong business due to wheat sales and mounting competition. Now, 0:18:54.640 --> 0:18:57.040 the London based delivery company will sell some of its 0:18:57.080 --> 0:19:00.480 assets to rival food Panta, with other assets at the 0:19:00.520 --> 0:19:03.520 delivery app will remain active in Hong Kong until April. 0:19:03.520 --> 0:19:07.200 The seventh and self driving startup Wave says it's near 0:19:07.240 --> 0:19:10.080 a commercial debut with major automakers to launch his driver 0:19:10.119 --> 0:19:11.119 assistance system in the. 0:19:11.200 --> 0:19:12.280 US and in Germany. 0:19:12.400 --> 0:19:12.560 Now. 0:19:12.560 --> 0:19:15.400 The startup is back by SoftBank and Video, Microsoft and Uba, 0:19:15.520 --> 0:19:18.720 also saying that it's AI software can adapt to US 0:19:18.840 --> 0:19:22.800 driving behavior's faster at Wave did not have them mentioned 0:19:22.880 --> 0:19:24.840 a timeline for release or the name of the car 0:19:24.880 --> 0:19:25.520 makers involved. 0:19:25.560 --> 0:19:28.400 Jackie for more on a Wave. 0:19:28.480 --> 0:19:31.720