The SpaceX IPO and the opportunity it creates in crypto

Transcript

Everyone is just waiting for SpaceX to do IPO and buy some shares. And my concern is that what's my edge in that trade? This show is an early one for me after the Knicks game last night, but it was all good because of the way things ended up. Hello and welcome to the Milk Road Show, the podcast that knows that bare markets are for building, so you are ready to party when the bulls come back. I am your host, John Gillan. Today is Thursday, June 11th, and today we are back with another episode of the Milk Road Pro analyst crypto research meeting. Once a week, we huddle up to talk about what's up in crypto. I always learn a lot from these conversations.

Unfortunately, Kyle is off today. He's out conquering the world somewhere. So, it is just going to be me and our head crypto researcher, Martin. If that sounds good to you, make sure you like and subscribe. Share this episode with somebody who's going to enjoy it. We're going to break down a lot of the alpha that's going on in the space today and just talk about what's keeping us interested in this bare market. Today's episode is brought to you by Cape, the privacy first mobile carrier, and Bitket, stocks 2.0 with real liquidity and real dividends. And without further ado, welcome back to the Milk Road Show. Martin, how are you? >> Hello, sir. I'm doing fine. What about you?

>> I'm okay. I'm uh yeah, you know, it's going to be an interesting conversation today. Uh I think you're you're very adamant that this not be an interview. Um, so I thought a good place to start the conversation would be with a discussion around the big news of the week that's really moving all markets, which is this IPO from SpaceX. It's coming in, I think, at a $ 1.77 trillion market cap, $135 per share, which is a lot, let's say that. Um, we've gotten some questions from our pro community at Milk Road about how this impacts crypto and what you think the the short-term, long-term impacts of this is going to be on the markets here. um for digital assets and for everything, but just any thoughts from you about the SpaceX IPO? What are you looking for? Any any things you're

you're watching as as it relates to the the crypto markets here? I was reading very good piece from Melvin uh yesterday and he highlights that the main thing about SpaceX is SpaceX is pretty much monopoly in terms of transportation into the space and the costs per kilogram are uh on a downward trajectory which is something that everyone is now looking at because if we are really at some point going to build data centers in face you need to bring a lot of material there. So, and SpaceX is right now pretty much the only player. So, I get that people are very excited about this

IPO and the bull case and the future potential is just enormous. But for for like my perspective, I'm trying to avoid things that are overcrowded and like right now everyone is just waiting for SpaceX to do IPO and buy some shares and my concern is that what's my edge in that trade? It's just I'm like everyone else. I I'll just buy no matter what and I don't want to be that guy. Um, so I'm probably going to skip. I know that there is a lot of excitement and some people are going to jump in and maybe, you know, sell the

very same day because the the stock is going to explode. Maybe, maybe not. I don't know. But I'm probably going to pass let things settle a little bit and see where you know SpaceX trades in 6 to 12 months because then there are some unlocks you know then they SpaceX will be added to some indices so it will generate some substantial um buy pressure. Um, so yeah, uh, probably I'm not as bullish as everyone else. Um, but I don't know. What about you, John? Are are you buying in tomorrow?

>> Well, it sounds like you're bullish. You just have a little bit of a a patient strategy, which I think makes a lot of sense. I think that um there's ample reason to think that this will continue to be a highly valued stock and there'll be a ton of demand for it. Um, I think that the way I'm thinking about this is looking at the the weakness it's creating in other assets, right? because there's been a little bit of a pullback in a lot of markets and it seems like a lot of people are raising capital um specifically to allocate to this or or um to to be able to take a position um when they want to and so I think we've seen weakness in other risk assets particularly um Bitcoin and crypto right now have gotten like no attention no speculation no euphoria um and to me

that is the interesting opportunity right where you have such high quality assets in the digital asset space like Bitcoin and Ethereum and so forth um that nobody's interested in, nobody wants to accumulate. Um and so while everybody is is piling into these AI stocks, I think it's a great opportunity to look at other things where capital has left um to go speculate on on SpaceX, but that the fundamentals haven't changed, that the valuation is still uh really strong. Um and then I think, you know, that's the market presenting you an opportunity. Um, so that's kind of how I'm thinking about this is not playing the SpaceX IPO itself, but looking for high quality things that I want to own that are maybe selling off or seeing a period of weakness because of the SpaceX IPO. Um, but yeah, I think that there's going to

be ample time to get an allocation to SpaceX and it's going to come into these major indices. So, everybody's going to get a piece at some point. Um, but yeah, it doesn't mean you necessarily have to go trading the IPO right away. Yeah, so that's how I'm thinking about that. Do you fancy yourself an analyst andor a content creator in this space? Well, we want you. Specifically, if you live and breathe tech equities, Milk Road could be the home for you. We're hiring for two positions right now, analyst and content creator. So, check out the careers page below. >> SpaceX also holds Bitcoin on their balance sheet, which I think you pointed out recently. What do you make of that?

Like, they've been holding that for a long time. They haven't sold any of it. Do you think that that kind of bolsters the investment case for Bitcoin? Is that a vote of confidence? Is it is it sort of a shoulder shrug for you? How do you think about that? >> I think it's just a very tiny position. So I don't make a big deal out of it. I think all crypto people are trying to make this a big thing because there's not much going on to be completely honest and so like the we are like not we but the whole industry is looking for some things that could you know push our bags higher and yeah I mean like eventually I think most of the companies will have Bitcoin on their treasury on

their balance sheet because it just makes sense. and it's a diversified asset to everything else. So at some point every institution and company is going to have Bitcoin on their balance sheet. But right now is it going to move the needle or something? I I don't think so. Uh I think if United States government I mean is going to talk about that you know Bitcoin strategic reserve and make some big announcement and not just like okay we are keeping or like we keep holding or the seized Bitcoin or everything we we have right now we are not going to sell anytime soon. That's good but it's not great. I think what the market would really need is some big catalyst and if

if US is would be saying that they are going to buy as well some Bitcoin like regularly that would be that catalyst for Bitcoin but yeah I think we talked about catalyst last week or in some other episode and I personally don't see many catalysts on the horizon for crypto specifically outside of Sorry, >> which I think is going to die. I don't think that's going to get out of I don't think it's going to make it now. But yeah. >> Yeah. If not, well, it's going to be tough year for for crypto, I think.

>> Okay. Well, tough years are are still opportunities. Um yeah, the the Clarity Act is the the bill that's still going through Congress and I think that the headwinds are pretty big at this point. It's going to be really hard for them to get enough Democrats in the Senate to get this passed. They got plenty of support in the House of Representatives. Um, but a lot of Democratic senators have drawn some hard lines in the sand that, let's say, seem insurmountable at the moment. But, you know, anything's possible. We'll see. It's going to be down to the wire if it does make it, though. >> I think I I saw some tweet from Mike Noratz, who is a founder of Galaxy. He said that he's heading to Washington yesterday. he has some uh meetings there and he said that he remains positive that this will go through soon. But he

he also said a time frame that if it's not going to pass in the next four weeks or so then it it will probably not going to pass like anytime soon. >> So you know we have at least we have some timeline. >> Yeah. Well, I would say we have a very narrow window of time, right? Like that's the problem. There's only a few weeks left to like logistically be able to complete all the steps necessary to get this through the the floor of the Senate, do a reconciliation and vote on all of that again and then get that to the president um before uh Congress adjourns for the session. It's just a a pretty narrow window. So if Senator Thun sets a floor debate in the Senate for it, then we'll we'll see because that's

I mean that's trying. So um but he hasn't done that yet. And I think the reason he hasn't done that yet is because he knows he doesn't have the votes yet. So, um, we'll see what happens there. Um, you brought up Galaxy Digital. I wanted to ask you about that because that is, I believe, still your largest position in your Milk Road Pro portfolio. And for anyone listening, you can see all of our analysts pro portfolios if you sign up for Milkroad Pro. It's just a dollar. Um, so it's a great deal and a great way to get a lot of alpha from all of our analysts who are playing these markets in many different ways. Um, but Martin, uh, Galaxy, I believe, was under $20 back in April on the last dip and has since rallied up to, uh, it's north of $30 now

anyway, but it there's been some price action in that, um, some volatility and some strong performance from Galaxy. Uh, what do you think is driving this recent move in Galaxy? And why are you so bullish on this particular asset right now? Yeah, I think well I'm really bullish on Galaxy because not necessarily because of their crypto business that is doing let's say just fine but more about their AI data center business which is still not recognized by the market and what happened this last week is that Mike Novagratz who is the founder of Galaxy he said that they will have another tenant signed in by the the end of this summer. And so

the Helios their data center has already contracted 800 megawatts to Corv which is going to bring Galaxy 1 billion in revenue per year and they have like 90% margins. So 900 million goes to Galaxy uh as profits and they in January they got they got additional 800 megawatts approved and now they are looking for that tenant and within next two months or so they will have a new contracted locked up tenant that is going to bring I assume even more money than Corv because right now

making delay like this with Galaxy the risks reduced dramatically because they were able to deliver calls uh to curve on time and that is going to start generating regular cash flow. show not just from you know execution perspective but also from cash flow perspective galaxy is is becoming less risky and so I assume that the next tenant is going to be some big company again and it's going to bring like additional one one more billion uh revenue per year so I think those are just insane numbers and

market is still not really pricing it in. Um, and there is still potential for additional 1.8 gawatt that are still under study. That's probably going to be approved, you know, within 12 months or so because Galaxy is also part of um what's called badge zero, which is program that should accelerate approvals for existing wellestablished founded companies in Texas. And on top of that because the data center is in Texas and it's w Texas and there was a program by government where they were trying to incentivize um creation of electricity there like 20 15 years ago and as a

result there is now so much electricity created that some days if you are able to consume that energy you are not paying for it but you getting paid because it's just over supplied. You know, it we keep hearing that there are electricity bottlenecks everywhere and that's true, but if you are in West Texas, the situation is a bit different. And so I think Galaxy is just a very well um positioned to capture this this next big trend which is you know providing um electricity to big no clouds like Corv, Nibios and all these guys who are going to sell that computation to hyperscalers.

So and then there is still that crypto part. So they have um 1.8 8 billion in crypto on their balance sheet and they still have a crypto business that's you know trading lending and asset management and like many other stuff and I think even if you just remove that crypto part and just focus on that uh AI data center business it's still undervalued and I think the crypto part is still a nice call option that is going to play out eventually. So um yeah, that's why it's my biggest position. It's it's because I think the risks are quite limited because the revenues from all these contracts are

coming up. They are locked in and so unless you know some of these tenants is not going bankrupt then it's just a stable cash flow and I like that. show. >> Yeah. And what I think is interesting about this is that you found a really great great way to play the the thesis on both of these these major trends in the market, right? Digital assets, crypto, but then also AI and energy. Um, and I think Galaxy is like a single uh stock that you can articulate that thesis and really capture a lot of the upside from both of those things. And that I think is something a lot of investors have been looking for, right?

Is like where is that intersection? How do you get exposure to it? um and do that in a way that makes a lot of sense and and just like you said has a lot of um defensible, stable cash flows behind it um that really make it a strong business proposition. So, I think it's it's something I always like getting an update from you on on where that is and and how you're thinking about it. Um, another thing I think you said in Discord recently was that you're looking at buying more Figure and I wanted to see if you had anything to share on that, any updated thoughts or like what's driving you to take another look at Figure and and what's got you excited about that uh this week? Yeah, I think figure is such a interesting blockchain play because you know when we say crypto

people usually think just about blockchains uh tokens sorry but figure is is a regular stock uh on US exchange and the thing that makes them interesting is they created they started with um with their own loans against home equity. So if you if you own some property, you can take loan against your property. Uh it's called Hilo. Uh and now it was it was very successful but they were thinking about okay this works great but what if we bring more more loans to our marketplace. So we are not

just you know originating these loans but we sort of expand into a platform that everyone can originate loans using our own blockchain and sort of be composable with everything and so all all the pieces and all the informations are stored on the blockchain. So there are no databases or like Google sheets and like okay there are two decimal there's one decimal and like hey there's a mismatch in number so how should we you know reconcile all that? No, that's all gone. That's that's why blockchain is such a unique technology because it just makes all these things much easier.

And now they are bringing many more. I think they have around 400 partners today who are originating loans on their marketplace. And I think it's just again one of the players that people still don't really recognize the value potential for for business like this. But um they just acquired another lender and I think it's pretty interesting because uh figure is valued something around 5 billion or something um pretty low valuation but they just acquired a new lender who is going to uh originate all all the loans on on figure automatically and I think they're going

to bring more than seven seven billion in volume per here to the figure platform and they are also positive and profitable. They make around um 100 million in in abida in rent profits and so and they only bought this company at I think five 560 million or something like that. So I think it's a very good buy and it it's going just to accelerate the adoption of their marketplace which is called Figure Connect and yeah I I think I'm going to add more uh to my position today.

>> Okay. Well, that's a very strong thesis on that. Um do you think that there's anything about this that is like cryptospecific that makes you excited about it or do you think that this is just like a really strong lending business? um like yeah how do you think about that relationship between figure digital assets or is it just a really strong you know like I said lending business um that that's growing and continuing to gain traction like how do you think about that >> it's lending business but on blockchains and it makes the big difference and they are also very active in DeFi so they have product which is called democratized prime which means that anyone can lend money there and those money are then

lended on their platform. So like you know even me I can lend into these wa and sort of provide liquidity for their platform. So they are very well integrated into Solena, Ethereum and I guess all all uh relevant blockchains today. So it's very positive and like you know Morph just raised uh 180 million or something at two billion valuation. So it only adds that credibility or just validated thesis that the capital capital is going to move onchain and that there is demand for that and figure is is doing just just that. Um so yeah I'm very bullish in figure.

>> Could you talk a little bit more about vaults because I feel like Morpho does a lot of things with vaults. Figure like you said you can you can add your capital to these vaults and participate in their lending business. A lot of people I think who are digital asset native still don't really understand what vaults are, how they work, how that unlocks more access to DeFi and the appeal to institutions of those. What's your view on vaults? What's your understanding of them? Why do you think this is getting to be such a bigger narrative um in the digital asset space? Now >> vaults are pretty much um contracts where you can just deposit your money and then there are some vault v world creators who are like you know professional risk managers who are just taking your deposits and managing it in a you know risk adjusted way. So like

instead of me going through different protocols and chasing the best yield, I don't need to do it. I can just deposit my money into a vault and they will do their job. So it's very compelling uh I think and for these professional risk managers it's also very compelling because their way you can raise much more money and get more assets under management which would might otherwise be you know much more challenging and but I was I was critic of walts for for for a long time and I'm still not sure that walts are the winning one the winning strategy Because

like for example I deposit my all my stable coins into sky savings rate and the way I do it is because I will get liquid token against it which represents my deposit. So I can still operate with that money while I'm still keeping I'm still receiving yield and I think that's much better offering than just locking my money in some world and then most of the time these walls have some lockup as well. So if you want to withdraw, you might need to wait like 7 days or two weeks or something like that. So I prefer to be liquid all the time. So I personally don't use vaults much, but I understand why some people are really

bullish and use them a lot. >> Everyone's tokenizing stocks these days, but almost nobody's doing it right. Thin liquidity, prices that drift from the real thing, dividends that just vanish. Bit stocks 2.0 is different. real NASDAQ and New York Stock Exchange depth through licensed brokers. Price is mapped one to one, dividends paid to your account in real time. Plus, you get the lowest fees in the market at just 0.04%. And you can trade them like any other crypto as margin in earn in grid trading. Tokenized stocks finally done right. Head to milkroad.com/bitgget to get started. Your phone carrier knows more about you than your best friend does. Where you go, who you call, when you sleep, and they're selling all of it. AT&T, Verizon, T-Mobile, they've all

been caught leaking data or cashing in on it. And your VPN, your encrypted messaging app, they can't fix what's broken at the network level. That's where Cape comes in. Cape is America's privacy first mobile carrier. Same premium coverage you'd expect, built with privacy from day one. Your phone's network identifier rotates every 24 hours, so you look like a different subscriber every day. Call logs are deleted after 24 hours. You get two encrypted secondary numbers for signups and 2FA included in your plan. Plus, SIM swap protection that puts you in control of your number, so no one, not even Cape, can hijack it. Use code milkroad at milkroad.com/cape for 33% off your first 6 months. Yeah, I think that vaults are a really interesting uh development and piece of technology because, you know, just like

using Figure as an example, they're they're doing a lending business, but they're leveraging digital assets and blockchain technology to do it better to improve the the markets for everybody, all the stakeholders. Vaults to me are another iteration of that. And I think that there's going to be a portion of the market um that maybe doesn't need that technology, but there are going to be a lot of investors I think are going to be really interested in what vaults allow you to do. Um both from an asset management side and an investment side. Um and I think that there's a lot of things that are going to come out of that that we haven't even seen happen yet. This is one of the things I think is so interesting about the digital asset space is all of the financial primitives, new innovations that it unlocks. um you know like prediction

markets and perpetual futures contracts have been around for a really long time but they never really found a market at scale until digital assets came along and this technology sort of unlocked a lot of those things. Um and I think that that's only going to accelerate that innovation can't really happen in the same way on Wall Street or in Tradfi. Uh but it can happen in the digital asset space. I'm really excited to see what that looks like when we get Agentic agents coming into this um ecosystem and we see things like highfrequency DeFi and um just like a lot of different things are going to start happening. Um and so it's it's cool to see that happen and and a lot of uh new financial primitives are going to still be created and I think at an even more rapid pace as this technology gets more adoption,

more capital and then more users and different kinds of users like human and non-human um and then institutions and and retail all of these different players are going to come in use this in different ways and it's going to be exciting to see all these different kinds of innovations, new products and services we haven't even thought of yet um that are still going to come out of the crypto space. So, that's one of the reasons why I think it's so exciting to be an investor here. Um, because of all of those things that are still going on. >> Do you know what I also like about Figure? I can check all their metrics on chain anytime I want. I don't need to wait for, you know, quarter earnings report or something. I can verify those metrics like right now if I want to. So, I can see that they are growing 5 to 7%

months over months. and you know that growth will just compound. So yeah um I I'm really bullish figure everyone should at least >> yeah not financial advice do your own research etc. Um, Martin, I think one uh one one headline that got your attention this week that you flagged you wanted to discuss um was A16Z ra leading a raise of I think $355 million for an investment into digital asset which is the the developer behind the Canton network. Um, and I think A6Z crypto has been really active uh recently in in doing investment raises, venture capital

back into the digital asset space, which we haven't seen it really in huge size until, you know, just the last couple years here um since FTX went down. But A6Z had been really aggressive um I think about raising capital, deploying it into the space, finding opportunities in digital assets. What particularly about this raise stood out to you? What got your attention about this? >> It got my attention because they raised first of all 355 million which is a lot of money and I I don't remember recently that someone was able to raise that much money. The valuation is still two bill.

So it it sounds decent but there is one important nuance because when more for raised day round which was you know also two days or 3 days ago they sold them their tokens using last month or like uh trailing 30-day price average. But here for Canon they they uh sold equity not tokens. So there is still that disconnect between tokens and then equity. So I wanted to raise that first but I think it's mainly interesting because if you look at who was participate participating in that

funding round you see Abu Dhabi investment group Apollo global management cital securities so like those are the biggest names like you you can think of. So those are not like you know small crypto VC investors who just need to participate in everything that could be interesting one day. No, those are huge players and some of them are already using Canon. So I think it's it's very interesting and we have been talking about Canon for a while now uh mainly internally because they are very interesting but we were not sure if they are legit and we were

also not able to find many data about their business and how it's going. Um, but I think this just validates that they are certainly legit and the the big guys like like these they they do their due diligence before they put any money into anything. So, and from my perspective when I just not comment this last round but talk about their product, I think it's pretty pretty compelling. And you know talking about Morpho and Canon, I think Canon is becoming what Ethereum was supposed to become and Morpho is becoming what AA was supposed

to become. uh and I'm I'm not necessarily saying that they have better technology or something but they certainly have better business development teams because they are just growing and doing pretty good job there on that front. Um and so while right now when we look at the prices we think that crypto is dead but there are still some improvements and there's still some development ongoing and every race like that just validates the whole thesis that what blockchains offer is something unique and something that investors are sort of thirsty and they want to participate in that upside when

it once it comes. And so right now you might not necessarily see it in the next year or two, but in the future if Canon really gets traction and will grow, you know, I think they said the team said that they're on Canon they process about trillions of volume uh per year. So those are not tiny numbers and I think it's just going to increase like dramatically over the years. And when I see all the participants on counter network and now the backers, I think all these backers will eventually become uh users as well. And so yeah, I I want to be bullish on Canon and but as I said at

the beginning, the only issue is that there is equity and then there is token. So like if I want to express my bullishness on Canon, how should I do it? Because if I buy token um I might not get exposure to the whole business that's behind it because if that's caseton would be raising but using tokens but they are raising money and using uh equity. So I don't know uh what do you what do you think John about this? It's um you know it it feels like Morpho I was really happy when I saw that Morpho was not selling equity but tokens were evolved but in the case of Canon

equity part is pretty sad. I think >> I have a lot of thoughts on this. Uh I think we see some of these things differently and I agree with you. The thing that stands out to me a lot about this particular raise is the intermingling of a lot of tradi and defi and crypto and wall street um among the the list of named investors right so you've got Apollo and BNP broadidge Citadel a lot of these names are the ones who were de behind the development of Canton initially and so it makes sense that they're investing um you got the CME ventures on there as well but you've also got Coinbase you've got A16Z's crypto uh team investing in this as So, I think there's a lot of reasons to be bullish on this project. I'm sure

that it's going to do well. I'm sure it's going to get a lot of volume and adoption. I believe they have a deal um some sort of tokenization project involving the DTCC, which is obviously huge because that's where a lot of the the global equities trade. So, if they're getting tokenization volume from the DTCC, that's going to bring a huge amount of volume to their chain. So, I think that Canton is going to do well. I don't think it's fair to say it's um it's a competitor of Ethereum, but to me a lot of these things are it's sort of validating the need for Ethereum, right? And we we haven't got to the then they fight you stage of Ethereum or public blockchain infrastructures development.

Um and this is what that starts to look like, right? Like once once they recognize that it things like public blockchains and and decentralized finance are not going away, they try to rebrand it as onchain finance and they try to go from decentralized to distributed. And they they try to say things like, "Oh, it's open and permissionless, but our 24 super validators are the only ones who actually can validate the network, and we're the ones who approve who can become a super validator. And also, if you do something one of our super validators doesn't like, we can unwind what you've done." Uh so like I don't know there's a lot of like gray area to this and I think that the market is trying to figure out where on this spectrum of immutability open permissionless censorship resistance um and all these different other things

that public blockchain infrastructure like Ethereum has where on that spectrum these products and services need to fall in order to find product market fit because I think a lot of people don't care about those things and they don't matter things like censorship resistance and open you know distrib distributed governance or decentralized governance um and immutable um transactions and so forth. Censorship resistance that people don't care about those things until they matter and they don't matter until they do matter. But once they do matter, they are the only things that do matter, right? So like you being able to own and access your capital and actually have some sovereignty over what you do, financial liberty, uh does matter a lot once someone has the ability to take it away. I think that's one of the things

that's going to hinder the development of these things, right? So like if you are part of the the consortium of partners that owns develops and operates one of these permissioned chains or let's say distributed but not quite decentralized chains then it's really attractive to you. However, if you're not one of those individuals, those institutions, then I think there's a big risk to adopting whatever that techn technology solution is because you're really trusting in some sense one of your competitors um to uh you know have a lot of transparency into what you're doing, how you're doing it, and to maybe use that information against you and then ultimately benefit a lot from from your capital, from your volume, from what you're doing. So, I think there's an incentive for a lot of these major institutions, right? Like you see a lot

of these names on here, Apollo, Citadel, CME, there's a lot of incentive for them to try to come to market with one of these products, but because of that, you know, like JP Morgan has Kexus, that's a completely different kind of product. They're all trying to compete with each other to to kind of like get their own L1 adopted by everybody, but because they're all trying to do that, I don't think they're all going to end up trusting one another or using one another's products. And so I think there'll be some fragmented liquidity, fragmented volume, a lot of competition for market share. But I do think ultimately though the the better option for everyone is to sort of settle back down to these public blockchain infrastructures because they are decentralized. They're they have they have truth, not trust, right? Which is what what the whole point of this is. Um

and then it allows you to be much more secure, much more scalable. It improves all all outcomes for all stakeholders. The big thing though I think is um also you get access to this continued innovation, right? If you're siloed off by yourself and you're only having development done by your team on your blockchain, you're not really getting to participate in a lot of the financial innovations that's also happening and still accelerating in the public blockchain infrastructure. So I think there's some gravitational pull towards the public solutions. I think that the competition from some of these more permission chains validates the the the huge value ad of these public blockchain infrastructures, but doesn't quite replace it to me. And I think that we're going to see a long messy middle of the

then they fight you stage where you're going to see a lot of these things there's going to be a lot of opportunity. And I think the total addressable market is so big that a lot of these things can coexist without needing to completely destroy one another, right? Like I think Ethereum and Cana network don't need to be mutually exclusive. Same thing with Salana and SUI and so forth. So, um, yeah, I think it but it's an interesting thing to watch as it develops because it it shows you that all these big institutions that maybe a few years ago were laughing this stuff off are now trying to compete, trying to come to market to to defend their market share, justify their existence um, and to continue to participate in the economy as these products and services evolve.

The enduser obviously I think benefits the most from this because all this competition from all these major players means the products will get better, the fees will get cheaper, um the quality of the services will improve as they compete for market share. Um so yeah, it's going to be really exciting to see how it plays out. I think it's interesting to see this investment. Um and yeah, I don't think Canon Network is is done by any means. I'm interested in getting an allocation, but I'm also kind of hoping that the the token dips again in this bare market so I can scoop it on the cheap. Um yeah, we'll be it'll be interesting to see how this plays out because there's a lot of capital going after this one.

>> Yeah. Uh one comment, I think their go-to market strategy is that they are addressing the things that Ethereum or any other blockchain is not able to provide, which is privacy because if you are a big financial player, you just don't want to reveal all your transaction information on a public blockchain. And second of all, they also provide that solution in a compliant way. So you can do it and it just, you know, meets all your uh like regulatory requirements because it's sort it's a let's call it a a modular blockchain. So you can build in all these stuff together. So I think that's if Ethereum has that it would be awesome and I think

it would be much more competitive. I think eventually at some point Ethereum and every other blockchain will need to at least that privacy uh layer bring as well. Um but right now Canon is is leading and yeah uh not sure how long but right now the traction is definitely on Canon but yeah like we don't need to discuss Canon versus Ethereum. I think they can both win. But I I think that that's a great so that's a great point, right? Because like privacy has become a huge narrative this year uh for a lot of reasons and for a lot of different um different market participants. I think Cardano's uh midnight side chain is a great

privacy solution as well. You're right. Ethereum is trying to build privacy solutions right into the L1, but they also have L2s like the Aztec network that are trying to bring privacy solutions to market because this is no longer just something that you know individual self-directed users want. It's something that institutions have said they feel like is a prerequisite for them to adopt this technology. So, it's been really cool to see how many different projects are coming out with all these different kind of ZK or or different kinds of privacy solutions. And I think that's all just really encouraging, right? It shows that this technology is responsive to user feedback. Innovation is happening. And you're right, I think it's going to be interesting to see who wins that competition because now it's it's a kind of a race to get to market and then capture capture that market share

because there's so many people um that that have demand for for those use cases. Um Martin, I think we've covered a lot today. Um I don't know if there's anything else we should conclude with, but um it's it's a bare market on Bitcoin. I I haven't heard you answer this question. I don't know if you have a direct thought on this, but I want to end with a a you're just has Bitcoin bottomed here? Do you think that we're going to see 50K? Do you think we're going to see 40k? Do you think we're we're kind of forming a bottom now? What what do you think happens with Bitcoin in the in the the rest of this year here? >> I don't know. Uh I think we are definitely closer to the bottom than closer to the top. So, but you know I think Bitcoin is still

driven by macro and if the situation in Iran escalates then probably US stocks are going to uh fall like much deeper and it will probably push Bitcoin prices down as well. So, but if the situation get resolved and then you know S&P is doing new all-time highs again, then I think Bitcoin should have bottom. Yes. >> Gotcha. Okay. Yeah. I think in the short term I'm watching this Bitcoin bounce. I think it's going to roll over again though. I think we might We're at 63K now. I think we might get to 64 somewhere in that range. Um but I do

expect we'll see some some weakness here. The way I'm thinking about this is I don't know where the bottom is going to be. I don't know how long it's going to take to get there. But I I strongly agree with you. We're definitely much closer to the bottom um than than it may appear right now, even though sentiment feels terrible still. But I think that's the opportunity, right? Like just stay patient. It's going to take maybe some several months before we start building up for for another bull run. But if you're patient with your capital, if you're you're buying dips and looking for opportunities to accumulate on on the assets you want to get into, now is a great time to start doing that. So, I've already made some purchases. I'm going to continue to buy Bitcoin if we get some more weakness. Um, and I'm just

I'm really excited about the opportunity the market's giving us here because it's it's going to be maybe a multi-year best buying opportunity on Bitcoin. >> Yes. And also like uh we have built internal tool which is called uh Bitcoin demand index and it it it shows us if there is you know more broader interest in bitcoin or not. So it it's looking at onchain holders, ETF inflows, sailor purchases and and stuff like that. So unless I see some you know demand there, I think Bitcoin is still going to be around these levels or like you know 6070s but unless there are some buyers on the market and I I see there I think

the sentiment is not going to shift just because of out of nowhere. So I think the first signs are going to be that the onchain holders are not distributing their coins anymore but they start they are slowly starting to accumulate. We will see some uh ETF inflows and you know maybe uh digital asset treasuries are going to accumulate more as well. So that will be the first signs and I think once it happens I agree I think Bitcoin is at generational uh low prices today but I think Bitcoin is competing right now for that momentum which is right now elsewhere but at some point I think

Bitcoin is going to be a good asset to buy. Uh, but we are not there yet, I think. >> Well, if you want to see all of these tools that we're building in the Milkroad Pro community and in the Milk Road Pro toolkit. Uh, definitely hop into Milkroad Pro. It's only a dollar for 7 days. You can hang out with Martin and me and talk about crypto and macro to your heart's content. Uh, Martin, great episode. Thanks for being here. Really appreciate you doing this. And thank you all for joining us. We will see you all on the next episode of the Milkro Show. Thanks for being here, everyone. Stay safe, stay educated, stay bullish, and we'll talk to you next time. Bye. Want insights on what's moving crypto markets and how we're trading each event? Subscribe to our channel. Join the Milk Road daily and

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