WEBVTT - Crypto.com CEO Kris Marszalek Talks Crypto Treasury

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Let's stick with the digital currency space and bringing Chris Marslik.

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<v Speaker 2>He's the CEO of crypto dot com, which last week

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<v Speaker 2>announced the partnership with Trump Media and a blank check

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<v Speaker 2>vehicle to launch a new crypto treasury business. It's focus

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<v Speaker 2>buying up crypto dot COM's own token, known as Chronos

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<v Speaker 2>or Crow. I think, Chris, it's one of those stories

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<v Speaker 2>where we start with the basics. Where did the idea

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<v Speaker 2>come from to do this of a Kronos treasury company?

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<v Speaker 2>Where did it originate?

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<v Speaker 3>I think it's a little bit of a trend by

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<v Speaker 3>now and pioneered by micro seller of micro Strategy, and

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<v Speaker 3>I think every single blockchain from the top, say twenty

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<v Speaker 3>will have a leading treasury company that will be focusing

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<v Speaker 3>on driving demand for it and acquiring as much as

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<v Speaker 3>physically possible. And we thought that with Trump Media to

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<v Speaker 3>do so, it's just the perfect match.

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<v Speaker 2>So there are a number of initiatives between Crypto dot

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<v Speaker 2>com and Trump Media or the broader Trump family. Where

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<v Speaker 2>did that relationship start, Who did you first meet and

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<v Speaker 2>how long have you held those relationships?

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<v Speaker 3>So I think it dates back a couple of years.

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<v Speaker 3>And you know, we always look forward to working with

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<v Speaker 3>people who are procrypto, who want to help drive this

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<v Speaker 3>industry forward. And I think it has to be said

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<v Speaker 3>that both the current administration and specifically Trum Media Technology

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<v Speaker 3>Group has probably done it out in this space. We've

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<v Speaker 3>helped them execute on their bid contrast strategy with a

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<v Speaker 3>multi billion dollar a bit coin purchase. We help them

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<v Speaker 3>consider coins, so we provide infrastructure, and this new play

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<v Speaker 3>on cr is just an extension of the relationship.

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<v Speaker 1>Extension of a relationship that broads out to ETFs, that

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<v Speaker 1>brought out to payments, a subscription creation, but it also

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<v Speaker 1>broads out the conversation that people are having about more

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<v Speaker 1>broadly benefits to the Trump's broader family when it comes

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<v Speaker 1>to crypto, Chris, when you're having those conversations with friends

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<v Speaker 1>with family, how do you talk about whether or not

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<v Speaker 1>there might be any conflicts of interest? Which I will

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<v Speaker 1>reiterate the family and indeed spoke to you for the

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<v Speaker 1>administration would say there are none.

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<v Speaker 3>And you know you have to agree with their statement

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<v Speaker 3>because everything is held in Briad trusts and this is

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<v Speaker 3>a published company that operates independently and we are still

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<v Speaker 3>a privately held company, but we love partnering with people

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<v Speaker 3>who want to really take this industry forward. So I

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<v Speaker 3>think people need to understand that the administration has a

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<v Speaker 3>certain agenda which places cryptocurrency industry at the very center

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<v Speaker 3>of it, with setting out a very ambitious role for

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<v Speaker 3>America in this space, and anything we can do to help,

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<v Speaker 3>we'll do, so we'll support it.

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<v Speaker 1>What's interesting is you say you're still privately held, what

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<v Speaker 1>are the plans of crypto dot com? More broadly, we're

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<v Speaker 1>just hearing of IPOs of Gemini, and they're like, would

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<v Speaker 1>you ever think of an ipo? Would you ever think

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<v Speaker 1>about selling parts of the business?

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<v Speaker 3>Right? I have to admit it's quite tempting to consider

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<v Speaker 3>these options, given how richly the market value scypto companies

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<v Speaker 3>these days. We certainly have the numbers to do so.

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<v Speaker 3>We've done about one point five billion in revenue last year,

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<v Speaker 3>about a billion in gross profit, reinvested about seven hundred

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<v Speaker 3>million of it. So let's say a three on a

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<v Speaker 3>million net profitability this year. I think it's going to

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<v Speaker 3>be better, especially if we see the Federate cut and

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<v Speaker 3>a strong Q four following. So we have the numbers

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<v Speaker 3>and we've been approached by all the top names in

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<v Speaker 3>them of the investment banks. We want to be a

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<v Speaker 3>very well run company, so we are working on preparing everything,

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<v Speaker 3>but no decisions have been made at this point. We

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<v Speaker 3>think that we actually enjoy operating as a private company.

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<v Speaker 3>It alls us to move really fast. We've got a solid,

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<v Speaker 3>solid balance street, so we don't have to make any

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<v Speaker 3>decisions in a short term.

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<v Speaker 2>Some breaking news this morning that you're looking at starting

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<v Speaker 2>sports prediction markets, particularly for the NFL. That's so interesting.

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<v Speaker 2>There was market reaction from some of the established players

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<v Speaker 2>that in that space. Right, explain how it's going to

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<v Speaker 2>get It's going to work, but why.

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<v Speaker 3>Look, we think that prediction markets are going to be

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<v Speaker 3>huge and sports is a part of it, but it's

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<v Speaker 3>not the whole thing. And if there is any company

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<v Speaker 3>out there, a large business that wants to build out

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<v Speaker 3>a prediction market operation, we are the perfect infrastructure partner.

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<v Speaker 3>We are regulated by the CFTC. We've got battle tested

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<v Speaker 3>trading technology, very robust, APIs all the best market makers.

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<v Speaker 3>We want to be the liquidity center for prediction markets

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<v Speaker 3>on shore in the US, so we'll play very aggressively

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<v Speaker 3>in that space.

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<v Speaker 1>And you're someone who's comfortable perhaps in markets that regulation

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<v Speaker 1>is always trying to catch up with. Chris, it's interesting

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<v Speaker 1>that the CFTC federal courts is still debating whether ultimately

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<v Speaker 1>sports prediction markets counter is gambling. How do you think

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<v Speaker 1>about the regulation process having given what you've lived through

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<v Speaker 1>when it comes to crypto.

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<v Speaker 3>I think it's news space and it's going to evolve,

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<v Speaker 3>and the regulatory setup is going to have to evolve

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<v Speaker 3>with it. We've gone through this journey of cryptocurrency, so

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<v Speaker 3>we are used to being the role of being in

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<v Speaker 3>the role of a trusted counselor to regulators and helping

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<v Speaker 3>them understand how they can do their job effectively while

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<v Speaker 3>allowing market participants to make use of these wonderful instruments.

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<v Speaker 2>Just very quick, Chris, do you expect that this could

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<v Speaker 2>be some sort of meaningful contribution to revenues this year?

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<v Speaker 2>You kindly gave us your financials for last year. Just

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<v Speaker 2>model it out for us.

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<v Speaker 3>I think it's still it's not gonna be a massive

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<v Speaker 3>contributor this year, but we're also very aggressive and pricing

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<v Speaker 3>for our partners, like it's all about building liquidity right now.

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<v Speaker 3>But if you look at what's going to be in

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<v Speaker 3>like five years time. I think it's going to be

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<v Speaker 3>a massive business line for US.

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<v Speaker 1>Crypto dot com C Chris Maslak is great speaking with you.