WEBVTT - US Pulls TSMC China Waiver, Tech Stocks Fall 0:00:02.520 --> 0:00:13.440 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live 0:00:13.480 --> 0:00:17.279 from coast to coast with Caroline Hide in New York 0:00:17.560 --> 0:00:19.400 and Ed Lovelow in sentances. 0:00:19.440 --> 0:00:27.040 Go this is Bloomberg Tech coming up us Paul's TSMC's 0:00:27.080 --> 0:00:30.960 waiver on essentral gear to its China chip making facility, 0:00:31.000 --> 0:00:35.480 adding further curbs to its semiconduction production capabilities, plus. 0:00:35.200 --> 0:00:37.600 Tech stock slide to start September im in a global 0:00:37.680 --> 0:00:40.199 sell off with all Magnificent seven names in the red. 0:00:40.240 --> 0:00:42.400 We dig into the fourth day of losses for Nvidio, 0:00:43.280 --> 0:00:44.160 and we speak. 0:00:43.880 --> 0:00:46.880 With the CEO of Crypto dot com about a new 0:00:46.920 --> 0:00:48.920 partnership with Trump Media. 0:00:49.120 --> 0:00:51.040 So first we check in on these markets which are 0:00:51.159 --> 0:00:54.120 under pressure from a global perspective. This is in many 0:00:54.160 --> 0:00:56.840 ways the bond market that is a tail that wags 0:00:56.880 --> 0:00:59.080 the dog when it comes to the equity market. Bond 0:00:59.080 --> 0:01:01.680 markets sell off why, particularly in the UK, we're worried 0:01:01.680 --> 0:01:04.280 about ability of governments to repay debt at the moment, 0:01:04.440 --> 0:01:06.200 but we are seeing just a risk of tone to 0:01:06.240 --> 0:01:08.720 this September start, and we're looking at big tech off 0:01:08.720 --> 0:01:11.520 by one and a quarter percent. Magnificent seven last time 0:01:11.520 --> 0:01:13.400 I checked, Ed all in the red. 0:01:13.600 --> 0:01:16.080 In particular in video, there's. 0:01:15.959 --> 0:01:18.039 Market sentiment and then there's news flow. In the show, 0:01:18.040 --> 0:01:21.160 we're going to talk about Tesla three pieces data from China, 0:01:21.360 --> 0:01:24.760 Bloomberg reporting on India launch and master Plan Part four 0:01:25.000 --> 0:01:27.640 in Vinya. Maybe it's a post earnings thing. There is 0:01:27.680 --> 0:01:31.479 anxiety broadly about the mag seven names and concentration risk 0:01:31.520 --> 0:01:34.320 at the index level. And then TSMC. We just broke 0:01:34.360 --> 0:01:38.400 the story the US pulling a key waiver for TSMC 0:01:38.680 --> 0:01:42.280 to get key gear to a pretty much sole facility 0:01:42.319 --> 0:01:44.440 for chip making in China. I want to get the details. 0:01:44.480 --> 0:01:47.400 Let's bring in Bloomberg Senior editor Mike Shephard and Mike, 0:01:47.760 --> 0:01:52.480 what's the need to know here specifically on TSMC in China. 0:01:52.560 --> 0:01:55.560 Well, this adds at another speed bump for a TSMC, 0:01:55.720 --> 0:01:59.400 and the supplier is in trying to bring equipment, chemicals 0:01:59.400 --> 0:02:02.440 and other things that they need for this facility in Nanjing. 0:02:02.840 --> 0:02:08.040 It is not a major portion of TSMC's overall manufacturing 0:02:08.120 --> 0:02:13.040 picture accounts for a relatively small fraction of the company's revenue, 0:02:13.240 --> 0:02:17.040 and yet it is symbolically significant because the move mirrors 0:02:17.040 --> 0:02:20.640 with the US government announced on Friday, and that is 0:02:20.680 --> 0:02:25.560 that Samsung and sk Heinex would face similar restrictions on 0:02:25.720 --> 0:02:29.000 their facilities in China going forward. All of this takes 0:02:29.000 --> 0:02:32.120 effect at the end of the year. They have until 0:02:32.160 --> 0:02:37.160 December thirty first before these new restrictions snap back into effect. 0:02:37.520 --> 0:02:40.079 What happened, in Essen said, is that the company's lost 0:02:40.160 --> 0:02:44.440 what is considered really a blanket waiver of validated end 0:02:44.600 --> 0:02:47.960 user agreement that they were trusted to be able to 0:02:48.040 --> 0:02:53.320 ship goods and material into those manufacturing facilities in China 0:02:53.440 --> 0:02:56.120 for chip making. That's ending, and it's part of the 0:02:56.320 --> 0:03:00.560 US government's broader effort to restrict China's access, even if 0:03:00.600 --> 0:03:05.600 it's foreign companies making things inside China, to restrict access 0:03:05.600 --> 0:03:08.720 by China overall to advanced technology. 0:03:09.000 --> 0:03:12.240 So, Mike, an additional one thousand or so licenses are 0:03:12.240 --> 0:03:14.400 going to have to be processed every single year by 0:03:14.520 --> 0:03:15.320 US officials. 0:03:15.600 --> 0:03:18.639 But who does that hamper? Who is the supplier here? 0:03:18.800 --> 0:03:21.360 Is it the I mean I think of ASML in Europe, 0:03:21.639 --> 0:03:23.600 is that the knock on effect we see. 0:03:23.400 --> 0:03:26.880 Here, Well, we could see a knock on effect on 0:03:27.000 --> 0:03:29.960 those We looked into the supplier question at the end 0:03:29.960 --> 0:03:32.600 of last week, and it will be a little bit 0:03:32.680 --> 0:03:35.560 of a drag. It's unclear which companies will be affected 0:03:35.600 --> 0:03:39.560 because it's not just ASML, it's even the chemical makers 0:03:39.840 --> 0:03:42.880 and other kinds of suppliers that may face some of 0:03:42.920 --> 0:03:46.720 those speed bumps. Now, as I mentioned the facility that 0:03:46.840 --> 0:03:52.160 TSMC is operate in Nanjing, it is an older grade 0:03:52.200 --> 0:03:56.280 technology there. It's sixteen nanometer chip technology that has been 0:03:56.360 --> 0:03:58.760 out in the market care for really a decade, so 0:03:58.800 --> 0:04:01.720 it may not be the most cutting edge of material, 0:04:01.920 --> 0:04:04.120 but what we're looking out overall is going to be 0:04:04.160 --> 0:04:07.680 some delays. This adds, as you noted, a thousand more 0:04:07.760 --> 0:04:10.920 permits that may need to be in the pipeline and 0:04:11.000 --> 0:04:15.080 approve by a government that is really understrained here in 0:04:15.320 --> 0:04:18.640 Washington from staffing and budget cuts and may not be 0:04:18.720 --> 0:04:23.480 as enthusiastic about issuing those kinds of approvals. We did 0:04:23.480 --> 0:04:25.640 see at the end of last week with the Samsung 0:04:25.960 --> 0:04:29.760 and s k Heinex announcement, an indication from the Commerce 0:04:29.800 --> 0:04:32.479 Department that, look, these approvals are not going to go 0:04:32.600 --> 0:04:37.560 to any sort of equipment or other supplies that may 0:04:37.600 --> 0:04:41.880 be used to upgrade or expand capacity at those facilities, 0:04:41.920 --> 0:04:44.680 So they are interested in keeping things where they are 0:04:44.800 --> 0:04:48.960 rather than allowing expansion or improvement in technology of those plans. 0:04:49.000 --> 0:04:52.200 The US versus China AI race continues Michael Sheppard, We 0:04:52.240 --> 0:04:54.960 appreciate it. Look, let's get the wider context here of 0:04:55.360 --> 0:04:58.719 a tech sector that is facing another day of losses. 0:04:58.800 --> 0:05:01.320 The Magnificent seven names in particular, every single one is 0:05:01.360 --> 0:05:03.719 in the red. Let's get over to bluem executary report 0:05:03.760 --> 0:05:07.320 around va Selica for more in Chicago and the pressure 0:05:07.320 --> 0:05:10.280 point here is one evaluation is it is it more 0:05:10.320 --> 0:05:12.599 the bond market that dictates or just a desire to 0:05:12.640 --> 0:05:13.960 be risk off at this moment. 0:05:14.960 --> 0:05:16.840 Hey, good morning, thanks for having me. I'd say there's 0:05:16.839 --> 0:05:19.360 probably some combination of all of those right now. I 0:05:19.400 --> 0:05:21.719 would just add that most of these mag seven names 0:05:21.880 --> 0:05:24.800 have been very strong performers this year, especially over the 0:05:24.839 --> 0:05:27.360 past few months since the April low. It is a 0:05:27.480 --> 0:05:30.080 natural place for investors to be wanting to take profits, 0:05:30.160 --> 0:05:33.080 especially if there's any sort of broader sense of uncertainty 0:05:33.640 --> 0:05:35.840 or any kind of risk off sediment. This is sort 0:05:35.839 --> 0:05:37.760 of the place you might go first in order to 0:05:37.800 --> 0:05:40.400 take profits just because of how well they've done. Now 0:05:40.440 --> 0:05:43.400 you mentioned valuations, because of how much they've risen over 0:05:43.440 --> 0:05:45.560 the past couple of months. We have gotten to a 0:05:45.600 --> 0:05:47.599 point where a lot of people are starting to feel 0:05:47.880 --> 0:05:50.320 maybe they're a little bit frothy, maybe there's some room 0:05:50.320 --> 0:05:52.920 for consolidation. On the downside, there's a lot of sort 0:05:52.920 --> 0:05:54.560 of sentiment about that right now. 0:05:55.560 --> 0:05:57.320 Ryan, let's focus on in Video is down for a 0:05:57.320 --> 0:06:01.080 full straight day, right, longest streak of decline since since March, 0:06:01.400 --> 0:06:03.560 which on the face of it isn't really that big 0:06:03.560 --> 0:06:05.560 a deal. But there's a lot of focus on the 0:06:05.640 --> 0:06:08.240 terminal this morning about weighting of the S and P 0:06:08.400 --> 0:06:11.239 five hundred and how much of a contribution in Video 0:06:11.360 --> 0:06:14.839 alone made to the gains we've seen inequity markets this year. 0:06:16.400 --> 0:06:18.600 So last week Nviigya came out with this report and 0:06:18.640 --> 0:06:21.760 it was broadly positive, but you did have some questions 0:06:21.800 --> 0:06:25.479 about China revenue. You have some questions about the sustainability 0:06:25.560 --> 0:06:27.719 of growth right now. And I'll say that the report 0:06:27.760 --> 0:06:30.560 was strong enough that we did see people increase their estimates, 0:06:30.600 --> 0:06:34.080 which had the impact of reducing the forward multiple. But 0:06:34.120 --> 0:06:36.040 I think, like you said, this is a stock that's 0:06:36.040 --> 0:06:39.400 done very well this year. It is absolutely enormous in 0:06:39.480 --> 0:06:42.440 terms of market cap and its weight within the major indexes. 0:06:42.760 --> 0:06:45.560 So it does seem like a natural place for investors 0:06:45.560 --> 0:06:48.520 to be taking some profits, especially since we're now past 0:06:48.560 --> 0:06:51.760 the earnings catalyst and it just given the overall weight 0:06:51.800 --> 0:06:54.239 that it has in major indexes, is kind of natural 0:06:54.279 --> 0:06:56.720 that we are sort of feeling the trimmers of that 0:06:56.839 --> 0:06:58.800 just across the overall equity market. 0:07:00.080 --> 0:07:02.920 Those Ryan las Selca, thank you very much. Let's stay 0:07:02.920 --> 0:07:06.440 with video. Anthony saglum Ben and Paraised Financial chief market 0:07:06.480 --> 0:07:10.840 strategist joins us now and I use the phrase concentration risk, Anthony, 0:07:11.120 --> 0:07:14.680 but there's two types of concentration risk. There's Nvidia's waiting 0:07:15.480 --> 0:07:19.520 in key benchmark indexes, right, and then there's the concentration 0:07:19.800 --> 0:07:24.400 risk of where in Vidias derived sales the hyperscalers which 0:07:24.440 --> 0:07:27.160 came up in the print last week. Of those two, 0:07:28.000 --> 0:07:30.760 which is the market most nervous about right now. 0:07:31.600 --> 0:07:33.960 I know I would say, you know, I think it's 0:07:34.000 --> 0:07:37.480 the letter. I think revenue risk when you heard in 0:07:37.600 --> 0:07:40.200 video report and you kind of and I think it 0:07:40.240 --> 0:07:43.680 gets highlighted it very well. The overall numbers were very good. 0:07:43.680 --> 0:07:47.280 There's some obviously uncertainty about the revenue that's being generated 0:07:47.320 --> 0:07:51.000 in China, which kind of brought some of the kind 0:07:51.000 --> 0:07:53.120 of the data revenue down, But at the end of 0:07:53.160 --> 0:07:56.160 the day, the overall picture for AI and in Vidia's 0:07:56.200 --> 0:07:59.160 place in AI is very strong. But it really is 0:07:59.160 --> 0:08:02.120 about execution. And when you kind of dig into the 0:08:02.200 --> 0:08:07.360 numbers and you see the hyperscalers having such a dominant 0:08:07.440 --> 0:08:11.280 role in driving their revenue, you know, mag seven companies 0:08:11.320 --> 0:08:14.880 accounting for forty percent of their revenue or so, you 0:08:14.960 --> 0:08:17.800 have to take a step back because if over time 0:08:18.440 --> 0:08:22.400 investors in those companies want a little bit more payback, 0:08:22.480 --> 0:08:25.920 they want to see return on investment. Uh, they're concerned 0:08:25.920 --> 0:08:28.720 about the cap X that's being spent by these companies. 0:08:28.760 --> 0:08:31.720 Well that's in Vidia's revenue, and so there is a 0:08:31.720 --> 0:08:34.080 little bit of unease around that. But I would point 0:08:34.080 --> 0:08:37.920 out the NANSDAC just finished August up for the fifth 0:08:37.920 --> 0:08:40.480 straight month, and as you guys highlighted, there's been a 0:08:40.559 --> 0:08:44.319 lot of strength in the Magnificent seven names. And so 0:08:44.520 --> 0:08:48.400 September is wall streets hate this month or they hate 0:08:48.440 --> 0:08:50.760 the month of September, and that's what we're kind of 0:08:50.760 --> 0:08:53.800 seeing today. Our view is that technicals are not stretched. 0:08:54.280 --> 0:08:56.640 There is a little bit of risk that markets could 0:08:56.640 --> 0:08:59.839 pull back, but I do believe fundamentals for Nvidia and 0:09:00.000 --> 0:09:02.320 technology as a whole remained very solid. 0:09:02.480 --> 0:09:04.680 I mean, yes, Anthony was seeing in Vidio down on 0:09:04.720 --> 0:09:07.040 two weeks, but over year to date up twenty five percent. 0:09:07.480 --> 0:09:10.880 But the idea that you've got concentration in where the 0:09:10.920 --> 0:09:13.200 revenue comes from for in video, and then you've got 0:09:13.280 --> 0:09:17.280 concentration in video and those mag seven names in ultimate 0:09:17.320 --> 0:09:19.880 rewards that every investor has felt right now, how many 0:09:19.880 --> 0:09:23.200 people are trying to trim that overall concentration in their books. 0:09:23.760 --> 0:09:26.120 You know, I think a lot of traders and institutional 0:09:26.160 --> 0:09:29.560 investors probably got ahead of the seasonal factors that they 0:09:29.559 --> 0:09:32.720 probably looked at some of the earnings or suspected that 0:09:32.720 --> 0:09:35.319 there could be a little bit of volatility around in 0:09:35.400 --> 0:09:37.840 video's earnings. And so I don't think there's a massive 0:09:38.400 --> 0:09:42.199 repositioning happening around in video. But as you mentioned, it's 0:09:42.240 --> 0:09:44.600 eight percent of the S and P five hundred. We've 0:09:44.600 --> 0:09:48.000 seen the NASDAC and the MAGS Magnificent seven have very 0:09:48.040 --> 0:09:51.760 strong performance since the April lows. We're in a weaker 0:09:51.880 --> 0:09:55.520 seasonal kind of factor for the markets, and so I 0:09:55.520 --> 0:09:58.440 think it's just natural that you're seeing a little rotation 0:09:58.720 --> 0:10:00.920 out of big tech. I don't think that's bad for 0:10:01.000 --> 0:10:04.200 the market overall. What we saw in August is areas 0:10:04.240 --> 0:10:08.040 like financials and energy and materials actually did pretty well. 0:10:08.280 --> 0:10:11.400 And when you look at the earnings expectations over the 0:10:11.520 --> 0:10:15.440 third quarter, actual expectations for Nvidia and Big Tech and 0:10:15.480 --> 0:10:19.160 Magnificent seven went up last month, and they actually have 0:10:19.280 --> 0:10:22.520 gone up over the last two months. So when we 0:10:22.559 --> 0:10:26.400 look at fundamentals, we think they're still strong in technology. 0:10:26.840 --> 0:10:29.800 But as I said earlier, it's about execution, and at 0:10:29.840 --> 0:10:34.040 these stretched valuations, investors sho expect a little bit more 0:10:34.120 --> 0:10:38.640 volatility around these really concentrated names that make up a 0:10:38.679 --> 0:10:40.760 lot of the major indexes today. 0:10:40.760 --> 0:10:43.800 Calm Context, Anthony segum Beni, it's great to have you 0:10:43.840 --> 0:10:47.559 on from Americ Price. Thank you kicking off the September trade. Meanwhile, 0:10:47.600 --> 0:10:50.240 coming up Klana, it's preferring to go public after delays 0:10:50.280 --> 0:10:52.400 earlier this year. We look at why the fintech company 0:10:52.480 --> 0:10:54.920 seeks evaluation size fourteen billion dollars. 0:10:56.280 --> 0:10:57.200 This is a blue back tech. 0:11:10.000 --> 0:11:12.160 Klana and its backers are looking to raise more than 0:11:12.160 --> 0:11:15.240 a billion dollars in a highly anticipated IPO as soon 0:11:15.240 --> 0:11:17.360 as next week. And mex Matthew Griffin is with us, 0:11:17.440 --> 0:11:19.840 joining us for more and a week of marketing kicks 0:11:19.840 --> 0:11:22.560 off formally ahead of what could be September the ninth, 0:11:22.600 --> 0:11:25.760 pricing trading September the tenth. What are the key facts 0:11:25.840 --> 0:11:27.120 that we know about this business. 0:11:28.000 --> 0:11:31.400 It's a really interesting road that Klara has taken to 0:11:31.559 --> 0:11:34.719 get here. They started as a sort of comparable to 0:11:34.800 --> 0:11:38.800 PayPal payments company. They rose to prominence during the pandemic 0:11:38.920 --> 0:11:43.280 in buy now, pay later financing for consumer purchases, and 0:11:43.320 --> 0:11:46.480 now just in the last few months, they're really making 0:11:46.600 --> 0:11:49.600 a new push to become a digital bank, to offer 0:11:49.760 --> 0:11:54.679 debit cards, to offer a bank accounts to people. So 0:11:55.240 --> 0:11:58.679 it'll be really interesting to see which peers they end 0:11:58.760 --> 0:12:01.960 up trading, like, who investors have in mind when they're 0:12:01.960 --> 0:12:05.520 thinking about this company, and how each of these businesses 0:12:05.559 --> 0:12:08.520 fit together, how that banking push goes. As we get 0:12:08.559 --> 0:12:10.480 a little bit further out past the IPO. 0:12:10.960 --> 0:12:14.960 I remember covering with Caro twenty twenty one that valuation 0:12:15.120 --> 0:12:17.520 in the private market it's forty six billion or something 0:12:17.559 --> 0:12:19.920 like that. So at the top end it's a fourteen 0:12:19.920 --> 0:12:23.440 billion dollar evaluation. But there's a biggest story about IPO 0:12:23.600 --> 0:12:26.559 environment this week alone. What are you saying. 0:12:28.160 --> 0:12:32.360 We've had a really hot summer at this point. In IPOs, 0:12:32.480 --> 0:12:36.880 I mean, just today you've got filings from Figure, they're 0:12:36.880 --> 0:12:42.520 a blockchain based lending company. Also in financial technology, you've 0:12:42.520 --> 0:12:44.880 got Gemini, which is a crypto exchange, and then you've 0:12:44.880 --> 0:12:49.360 also got Legends that's an engineering and HVAC company backed 0:12:49.440 --> 0:12:52.439 by Blackstone, which is a possible sign that the pipeline 0:12:52.480 --> 0:12:54.400 is broadening out a little bit. 0:12:54.600 --> 0:12:57.320 The reason that's important is, you know. 0:12:57.320 --> 0:13:00.880 A lot of IPOs were paused during the March volatility 0:13:00.960 --> 0:13:04.400 that we saw this spring because of tariffs. Things have 0:13:04.520 --> 0:13:06.600 bounced back. They're looking a little bit more like what 0:13:06.720 --> 0:13:09.320 investors hoped they'd see. But some of the first companies 0:13:09.320 --> 0:13:14.080 we saw go were, for example, e Toro, fintech, you know, 0:13:14.240 --> 0:13:17.079 companies that aren't directly affected by tariffs. So now we're 0:13:17.080 --> 0:13:21.680 seeing more companies. We're seeing companies that offer physical goods 0:13:21.679 --> 0:13:25.600 and services, and so that's potentially a thing that investors 0:13:25.600 --> 0:13:27.200 are going to take as a sign of hope for 0:13:27.280 --> 0:13:29.480 the pipeline this year and for a broader revival. 0:13:30.280 --> 0:13:33.880 Right Bloomberg's Matthew Griffin, great reporting, Thank you very much. Meanwhile, 0:13:34.200 --> 0:13:37.400 fintech firm Resolute, has kicked off a process for some 0:13:37.480 --> 0:13:40.440 employees to sell their shares in the company at a 0:13:40.559 --> 0:13:43.960 seventy five billion dollar valuation. That's according to a memo 0:13:44.200 --> 0:13:47.560 seen by Bloomberg. The secondary sale, we'd value each share 0:13:47.600 --> 0:13:50.560 at one three hundred and eighty one dollars, and sources 0:13:50.600 --> 0:13:52.760 say staff of the firm would be able to sell 0:13:52.760 --> 0:13:57.400 as much as twenty percent of their personal stakes Cara Significant. 0:13:57.440 --> 0:13:59.520 Meanwhile, coming up, the CEO of Crypto dot com is 0:13:59.600 --> 0:14:01.400 joining us. It's going to be talking about the company's 0:14:01.440 --> 0:14:03.840 latest partnership with Trump Media and a new focus on 0:14:03.880 --> 0:14:07.400 the growing sports predictions market. But before that, we get 0:14:07.440 --> 0:14:09.400 back to this market that is in cell off mode. 0:14:09.440 --> 0:14:12.040 Nazak one hundred of by one point four percent. In fact, 0:14:12.040 --> 0:14:14.360 the worst two days sell off we've seen since April 0:14:14.600 --> 0:14:17.080 in video off for four straight days. We haven't seen 0:14:17.120 --> 0:14:19.800 that since March of this year. Another three percent is gone. 0:14:20.040 --> 0:14:33.760 There's a brummeg tech. It's time now for talking tech 0:14:33.800 --> 0:14:36.600 and first up Amazon Well, it's launched its cloud services 0:14:36.760 --> 0:14:39.040 in New Zealand, says it will invest four point four 0:14:39.040 --> 0:14:40.800 billion dollars in data centers in the country. 0:14:40.920 --> 0:14:41.080 Now. 0:14:41.120 --> 0:14:43.400 The move comes as the country is looking to attract 0:14:43.400 --> 0:14:46.640 more foreign investment. The construction, operation and maintenance of the 0:14:46.680 --> 0:14:49.840 data centers expected to add about one thousand full time jobs. 0:14:50.080 --> 0:14:50.360 Plus. 0:14:50.400 --> 0:14:54.880 Lazan has appointed Dmitri Chevalenko, the Cheap Business Officer of Perplexity, 0:14:54.920 --> 0:14:57.960 to its port effective today now. Prior to joining Perplexity, 0:14:58.200 --> 0:15:01.520 Chevalenko previously held senior roles ober at LinkedIn and at Meta. 0:15:01.560 --> 0:15:03.960 But Lazard CEO Peter Orzag says that. 0:15:03.960 --> 0:15:08.240 Dimitri's AI expertise will support its long term strategy and 0:15:08.280 --> 0:15:11.960 cryptocurrency exchange Gemini space station, and it seeks to raise 0:15:12.000 --> 0:15:14.320 as much as three on ore and sixteen point seven 0:15:14.360 --> 0:15:16.800 million dollars in its IPO. The firm, of course, led 0:15:16.800 --> 0:15:19.560 by the Winklevoss Twins, plans to market sixteen point seven 0:15:19.560 --> 0:15:22.240 million shares seventeen to nineteen dollars each, giving the company 0:15:22.240 --> 0:15:25.080 evaluation of some two point two billion dollars at the 0:15:25.080 --> 0:15:26.040 top end of the range. 0:15:26.320 --> 0:15:26.360 ED. 0:15:27.240 --> 0:15:30.480 Let's stick with the digital currency space and bringing Chris Marslick. 0:15:30.560 --> 0:15:33.760 He's the CEO of crypto dot Com, which last week 0:15:33.920 --> 0:15:36.760 announced the partnership with Trump Media and a blank check 0:15:36.840 --> 0:15:40.520 Vehicle to launch a new crypto treasury business its focus 0:15:40.760 --> 0:15:44.200 buying Upcrypto dot COM's own token known as Chronos or Crow. 0:15:45.080 --> 0:15:47.720 I think, Chris, it's one of those stories where we 0:15:47.760 --> 0:15:48.800 start with the basics. 0:15:49.120 --> 0:15:50.680 Where did the idea. 0:15:50.360 --> 0:15:53.000 Come from to do this of a Kronos treasury company, 0:15:53.080 --> 0:15:54.120 Where did it originate? 0:15:54.640 --> 0:15:56.160 I think it's a little bit of a trend by 0:15:56.280 --> 0:16:01.880 now and a pioneer and by micros MicroStrategy, and I 0:16:01.880 --> 0:16:06.800 think every single blockchain from the top, say twenty will 0:16:06.920 --> 0:16:11.800 have a leading treasury company that will be focusing on 0:16:12.240 --> 0:16:16.160 driving demand for it and acquiring as much as physically possible. 0:16:16.640 --> 0:16:20.320 And we thought that partnering with Trump Media to do 0:16:20.400 --> 0:16:22.080 so is just the perfect match. 0:16:22.760 --> 0:16:25.040 So there are a number of initiatives between Crypto dot 0:16:25.040 --> 0:16:28.440 Com and Trump Media or the broader Trump family. Where 0:16:28.440 --> 0:16:31.400 did that relationship start, Who did you first meet and 0:16:31.480 --> 0:16:33.600 how long have you held those relationships? 0:16:35.120 --> 0:16:38.520 So I think it comes dates back a couple of years. 0:16:38.600 --> 0:16:43.200 And you know, we always look forward to working with 0:16:43.320 --> 0:16:47.680 people who are procrypto, who want to help drive this 0:16:47.840 --> 0:16:51.600 industry forward. And I think it has to be said 0:16:51.600 --> 0:16:55.720 that both the current administration and specifically Trum Media Technology 0:16:55.720 --> 0:16:58.840 Group has probably done it out in this space. We've 0:16:59.360 --> 0:17:03.080 helped them exit get on their big contrast strategy with 0:17:03.280 --> 0:17:05.840 a multi billion dollar a bit Com purchase. We help 0:17:05.920 --> 0:17:10.680 them cussid coins, so we provide infrastructure, and this new 0:17:10.760 --> 0:17:13.480 play on cr is just an extension of the relationship. 0:17:13.920 --> 0:17:17.600 Extension of a relationship that broadens out to ETFs, that 0:17:17.640 --> 0:17:21.600 broadens out to payments, a subscription creation. But it also 0:17:21.640 --> 0:17:25.120 broadens out the conversation that people are having about more 0:17:25.160 --> 0:17:30.520 broadly benefits to the Trump's broader family when it comes 0:17:30.560 --> 0:17:33.639 to crypto, Chris, when you're having those conversations with friends 0:17:33.680 --> 0:17:36.720 with family, how do you talk about whether or not 0:17:36.760 --> 0:17:38.359 there might be any conflicts of interest? 0:17:38.400 --> 0:17:40.119 Which I will reiterate. 0:17:39.920 --> 0:17:42.640 The family and indeed spoke to you for the administration 0:17:42.680 --> 0:17:45.160 would say there are none. 0:17:46.000 --> 0:17:48.600 And you know you have to agree with their statements 0:17:48.600 --> 0:17:51.480 because everything is held in brid trusts and this is 0:17:51.520 --> 0:17:55.080 a published company that operates independently, and you know, we 0:17:55.119 --> 0:17:59.359 are still a privately held company. But we love partnering 0:17:59.359 --> 0:18:02.760 with people who to really take this industry forward. So 0:18:02.800 --> 0:18:06.960 I think people need to understand that the administration has 0:18:06.960 --> 0:18:11.760 set a certain agenda which places cryptocurrency industry at the 0:18:11.880 --> 0:18:15.040 very center of it. With setting out a very ambitious 0:18:15.160 --> 0:18:18.479 role for America in this space, and anything we can 0:18:18.520 --> 0:18:21.239 do to help, we'll do so we'll support it. 0:18:21.480 --> 0:18:24.560 What's interesting is you say you're still privately held. What 0:18:24.600 --> 0:18:27.240 are the plans of crypto dot com? More broadly, we're 0:18:27.240 --> 0:18:29.280 just hearing of IPOs of Gemini and the like. Would 0:18:29.280 --> 0:18:30.879 you ever think of an IPO? Would you ever think 0:18:30.880 --> 0:18:32.600 about selling parts of the business? 0:18:33.880 --> 0:18:39.320 Right? I have to admit it's quite tempting to consider 0:18:39.400 --> 0:18:43.600 these options, given how richly the market values crypto companies 0:18:43.600 --> 0:18:47.280 these days. We certainly have the numbers to do so. 0:18:48.080 --> 0:18:51.480 We've done about one point five billion in revenue last year, 0:18:51.920 --> 0:18:55.480 about a billion in gross profit, reinvested about seven hundred 0:18:55.520 --> 0:18:57.119 million of it. So let's say a free had a 0:18:57.119 --> 0:19:01.919 million net profitability this year. I think it's going to 0:19:01.960 --> 0:19:06.960 be better, especially if we see the Federate cut and 0:19:07.000 --> 0:19:10.040 a strong Q four following. So we have the numbers, 0:19:10.320 --> 0:19:13.040 and we've been approached by all the top names in 0:19:13.119 --> 0:19:18.480 them of the investment banks. We want to be a 0:19:18.640 --> 0:19:24.040 very well run company, so we are working on preparing everything, 0:19:24.080 --> 0:19:27.000 but no decisions have been made at this point. We 0:19:27.080 --> 0:19:30.000 think that we actually enjoy operating as a private company. 0:19:30.080 --> 0:19:33.119 It alls us to move really fast. We've got a solid, 0:19:33.200 --> 0:19:34.880 solid baland street, so we don't have to make any 0:19:34.920 --> 0:19:37.000 decisions in a short term. 0:19:37.720 --> 0:19:41.120 Some breaking news this morning that you're looking at starting 0:19:41.160 --> 0:19:45.720 sports prediction markets, particularly for the NFL. That's so interesting. 0:19:45.720 --> 0:19:48.639 There was market reaction from some of the established players 0:19:49.040 --> 0:19:52.240 that in that space. Right, explain how it's going to get. 0:19:52.280 --> 0:19:53.760 It's going to work, but why. 0:19:55.160 --> 0:19:57.919 Look, we think that prediction markets are going to be huge, 0:19:58.080 --> 0:20:00.199 and sports is a part of it, but it's not 0:20:00.240 --> 0:20:04.440 the whole thing. And if there is any company out there, 0:20:04.560 --> 0:20:08.080 a large business that wants to build out a prediction 0:20:08.800 --> 0:20:12.760 market operation, we are the perfect infrastructure partner. We are 0:20:12.760 --> 0:20:16.840 regulated by the CFTC. We've got battle tested trading technology, 0:20:17.280 --> 0:20:20.680 very robust, APIs all the best market makers. We want 0:20:20.720 --> 0:20:25.879 to be the liquidity center for prediction markets on shore 0:20:26.280 --> 0:20:30.159 in the US. So we'll play very aggressively in that space. 0:20:30.880 --> 0:20:35.280 And you're someone who's comfortable perhaps in markets that regulation 0:20:35.440 --> 0:20:37.919 is always trying to catch up with, Chris, it's interesting 0:20:37.960 --> 0:20:40.600 that the CFDC federal courts are still debating whether, ultimately 0:20:40.640 --> 0:20:41.680 sports prediction. 0:20:41.600 --> 0:20:44.480 Markets counter is gambling. How do you think about the 0:20:44.480 --> 0:20:46.960 regulation process? Having given what you've lived through when it 0:20:46.960 --> 0:20:47.800 comes to crypto. 0:20:47.960 --> 0:20:50.360 I think it's news space and it's going to evolve, 0:20:50.760 --> 0:20:55.280 and the regulatory setup is going to have to evolve 0:20:55.359 --> 0:21:00.080 with it. We've gone through this journey with cryptocurrency. We 0:21:00.119 --> 0:21:02.960 are used to being the role of being in the 0:21:03.040 --> 0:21:06.800 role of a trusted counselor to regulators and helping them 0:21:06.880 --> 0:21:11.400 understand how they can do their job effectively while allowing 0:21:11.480 --> 0:21:15.320 market participants to make use of these wonderful instruments. 0:21:16.240 --> 0:21:18.880 Just very quick, Chris, do you expect that this could 0:21:18.880 --> 0:21:22.040 be some sort of meaningful contribution to revenues this year? 0:21:22.359 --> 0:21:25.040 You kindly gave us your financials for last year. Just 0:21:25.080 --> 0:21:26.360 model it out for us. 0:21:27.440 --> 0:21:31.199 I think it's still it's not going to be a 0:21:31.359 --> 0:21:34.919 massive contributor this year, but we're also very aggressive and 0:21:34.960 --> 0:21:39.040 pricing for our partners, Like it's all about building liquidity 0:21:39.160 --> 0:21:42.399 right now. But if you look at what's going to 0:21:42.440 --> 0:21:44.280 be in like five years time, I think it's going 0:21:44.320 --> 0:21:45.840 to be a massive business line for US. 0:21:46.359 --> 0:21:49.399 Crypto dot com CEE Chris Mazlek is great speaking with you. 0:21:50.040 --> 0:21:54.159 Coming against meanwhile coming up Tesla well in underwhelms and 0:21:54.200 --> 0:21:57.719 it's India debut, so much more news on that particular company, 0:21:57.760 --> 0:21:59.840 but we are more broadly looking at Tesla shares by 0:22:00.000 --> 0:22:02.200 one and a half percent. In fact, ed every single 0:22:02.200 --> 0:22:04.760 Magnificent seven name is in the red today. We are 0:22:04.800 --> 0:22:06.760