Strategy's STRC below $100: free money or a serious problem?

Transcript

Galaxy is the one thing that I'm still very excited about. I think it's it's still undervalued. I think it's sitting at about 13 billion market cap right now and from a lot of different estimates, it should probably be 20 billion or more. I think Galaxy is going to absolutely shoot through the roof. >> Coinbase just announced a big system update. Robinhood laid off some staff. Crypto seems to be finding a floor, but STRC is still off of its peg. Is crypto about to be so back or is it all about to be over once again? Hello and welcome to the Milk Road Show, the podcast that knows that the Federal Reserve has a new chairman but the same old money printer.

I'm your host John Gillan today is Thursday, June 18th and today we are back with another rousing 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 meetings. I know our audience loves them, too. So, if that sounds good to you, make sure you like and subscribe. Share this episode with somebody who's going to enjoy it. Today's episode is brought to you by Bitget Stocks 2.0 with real liquidity and dividends. Nexo, earn interest, borrow, and trade crypto. And Cash App, where your takes finally pay out. I think we're going to have a lot of interesting takes today. Welcome back to the show, Martin, Kyle.

Gentlemen, what's on your mind today about crypto? Did you guys watch the FOMC meeting? >> I did not. I saw some highlights. That was it, though. >> Okay. All right. Martin, were you paying attention to what's up at the Fed this week? >> No. I just read your thoughts about that. >> [laughter] >> Well, that's good to know. I wrote a whole newsletter summarizing it. There were a lot of takeaways. Not a lot of related to crypto, though. Um a big thing I think a lot of people are wondering about uh on crypto here right now as at least as far as strategy is concerned is this STRC product. This brought in billions of dollars of capital to crypto. A lot of new buyers.

Great product market fit. But now it is off its $100 peg and it is struggling to recover. I've heard a lot of mixed opinions on this. Some people are afraid that this is going to be like a Luna 2.0. Some people are saying it's no big deal and say that we'll get the peg back eventually one way or another. Uh is this concerning to either one of you guys? Kyle, let's start with you. What do you think is uh what do you think is the picture here? >> So, I think the first thing that everyone's getting wrong on Twitter is they keep saying it's de-pegged, and I think the thing to understand is this is not a stablecoin. It doesn't have a peg. It's not supposed to be at $100. They the way that this is it's just a stock, right? It's a preferred stock. So, it's

meant to to move up and down, and it's not a stablecoin that's meant to remain at a specific price. So, it doesn't really matter if it's below $100 or above $100, it's still okay. Um and so, if it goes above $100, that's preferred, of course, because then they can sell it, and they can buy some Bitcoin with it. Um but if it's below, it's not actually an issue. It's not like a stablecoin where everything breaks, right? Um and it just like all of a sudden goes down to zero. It it it's it doesn't need to be at 100. So, I I don't think it's as big of a concern as people think. It's definitely not a Terra Luna type thing where it was meant to be pegged.

Uh obviously, it would be better if it was at $100 or even above so that they can uh they can sell it and and and buy more Bitcoin with it. But again, it's it's not that big of an issue outside of obviously there were people that bought it at $100, and now they're down 10% on something they thought was going to be a little less volatile. Um but either way, even if you buy it at $90 or 89, which it is now, you still get your dividend the same amount if it was $100, right? So, you're still getting paid out. Um right now, if you buy it, you would get the same dividend plus the potential for it to go up 11% to go back to 100. Um so, maybe there's people that are interested in that. Um I think the issue right now is one, obviously, there is

just concerns because they sold Bitcoin was it 2 weeks ago now? They sold 32 Bitcoin. And then there's like competing products. Was it Strive has come out, and they have daily dividends instead of dividends two times per month. So, uh and I think they're maybe 12 and 1/2%. Um so, you'll or APY, so I I maybe people are liking that right now. So, I don't know. I'm not overly concerned. Obviously, it is not a great thing for it to be down here, but ultimately they've got 860,000 Bitcoin or whatever. So, they they have I think they posted yesterday 32 years worth of worth of capital to to cover the cost of this this dividend. So, I think ultimately it's going to be fine.

It definitely doesn't look great and probably it's scary Bitcoin right now, which is maybe why Bitcoin sitting at around 64,000. Um but I I if I was a betting man, which I am a betting man, but I'm not actually betting on this, but if I were to bet, I would say this is probably going to go back to $100 at some point in the next, I don't know, few weeks. >> Do you fancy yourself an analyst and/or a content creator in this space? Well, we want you. Specifically, if you live and breathe tech equities, Mill 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.

>> Yeah, I think I I said on Twitter, I think this is either the easiest free money ever or like a serious problem, but I'm I'm leaning more in the direction of free money. Martin, do you have anything to add on this? Anything you're seeing about this de-pegging or, you know, Kyle brought up there's a lot of other competing products that have come to market. You know, he he talked about Strive's product, but BlackRock also launched a Bitcoin yield product. It just seems like Saylor's product market fit has brought in a lot of competitors here. Anything you're seeing in that landscape that's got your attention? >> No, just when I'm thinking about it, like there's a nominal yield 12% or something, but the effective yield if I buy today and I buy for, I don't know, 90 bucks and not 100 bucks. So, that gives me additional 10%. So, like my

effective yield is like probably, you know, more than 20%, right? That's That's pretty interesting. Well, I'm not buying that, but like 20% yield, that sounds good. I think I've seen some announcement that JP Morgan or someone announced a product that is going to be Bitcoin as a productive asset. And so, they're probably going to lend your Bitcoin to some institution or someone and generate yield on top of Bitcoin. I think that's pretty interesting. That could drive a lot of adoption, I think, because a lot of people like Bitcoin, but like if it doesn't produce any yield, it's kind of boring and it's losing that, you

know, sexy narrative. And like for me personally, if it's not productive, I feel like um I don't know. Like my relationship with that asset is like not that great and like with ETH or some company they're making profits, like I I I can feel that the the relationship is just much bigger and better. Uh so, I think this could drive some adoption as well. >> The chart of MicroStrategy looks pretty bad, though. If you've ever seen a head and shoulders, uh I don't know if I can share. My computer's probably going to break as I share my screen, but let's just try anyway. This chart does not look great for MicroStrategy, but you know, it's held around these levels previously for almost all of 2024. Um

so, maybe it can do it again. Let's let's see, but that that chart doesn't look great. And then you combine that with the stretch chart, which is somewhere down here on my list. >> [laughter] >> That chart doesn't look very great, either. So, uh I don't know what's going to happen. I mean, good news is both of them are up this morning in in the pre-market. So, I don't know. Maybe there's some relief coming, but uh he's got himself in a bit of a pickle, I would say. But um I don't know. I I again, I think they've just got so much capital over there that they're going to be able to figure this out, but let's see. Let's see how it goes. Again, I'm not I don't own MicroStrategy and I don't own stretch, but I'm starting to wonder if it's time to buy one of the

two because yeah, they're pretty beaten down. And I don't know that's not going to last for forever, in my opinion. >> Is strategies still trading at premium, or is it close to NAV these days? >> I don't know. I have to look on the website. I'm pretty sure that they're still in a premium, but >> I would imagine that they are. I think that it's hard to it's hard to imagine that they're overvalued at this point. [laughter] Um yeah, but that that head and shoulders is something I've been watching, too. I heard somebody on Twitter joking that uh Saylor's going to watch his company lose 99% of its value again. And I think again I think all this doomerism is just totally overblown. People in crypto, I think, have this like hangover from FTX and Luna and Celsius and things that they just kind of have this fear that

something has to catastrophically fail in order for the bear market to be over. Um but that doesn't always have to be the case, you know? There are certain industries that don't have complete economic collapse every 2 years, and we can be one of them, too. Um I I want to talk about some of these other uh yield products that we've seen. Well, I think the way to frame this is one of the reasons I think STRC is off its peg is that other competitors have come to market, and they've they've come out with new products. Coinbase came out with some new products, and I want to get your you guys's thoughts on this. The list of things that Coinbase announced at their system update um is just huge. Just tokenized stocks, pr- uh pre-IPO perps, stock options, crypto options perpetuals derivatives it's just a lot of things in here. Even one

of them was agentic trading. They have a SEC registered uh AI advisor. Um talk to me about this. How big of a move is this from Coinbase? Who are they going after here? Is it hyperliquid? Is it Robinhood? What are you seeing uh i- i- if as takeaways from this big announcement from Coinbase? Kyle, I'll start with you on this one. >> Yeah, I mean, the first thing that I thought was interesting is that their tokenized stocks are actually backed one-to-one, uh and you get full rights on your on your shares, which I don't think we've seen yet in the industry. So, that was I figured Coinbase was going to do that. I knew that when they were going to launch it, they were going to do it right. That's why they were a little bit later than Kraken and a few others to launch. And so, I think one,

the industry needed that, so that's super cool. I think that's actually exciting. Perks obviously has been a popular thing and so they're continuing to push the way on that in the US and have it in a regulated way. So I think that's really cool. Look, I think Coinbase is is trying to become the, you know, the one-stop shop for everything you want to do, right? Everything you want to trade, everything you want to bet on, you're just going to do it in Coinbase. Same as what Robinhood's doing and and both of them are doing a good job at this and so you know, they're they're competing heavily with Robinhood right now. And will they win? I don't know. They've taken a different route. Like they're obviously very crypto native route that they've taken and so they're offering kind of different products than what Robinhood is offering.

But Robinhood has had a head start in terms of just like going after non-crypto people and so they're much bigger, have a larger user base, but they're basically now starting to offer basically the exact same products. So I don't know who's going to win. And then I guess the real question is who's going to expand out into other countries the fastest. Coinbase I think has gone pretty heavily into Brazil and I think India. I know they're expanding into Canada which Robinhood still has not done. But Robinhood just bought WonderFi so they will be. So I think right now they're they're on a race to just expand outwards and I think using being kind of on chain first really helps cuz it allows you, you know, they can they can bring in users on base anywhere in the world

and so they have that kind of advantage. So I don't know. I I do think, you know, we've had this thesis for a long time that we are going to aggregate most of our financial apps into one and so I do think there's a still a bullish story to be told in the like financial super app and I do think Coinbase and and Robinhood will will lead that globally. >> Martin, I haven't heard your thoughts on Coinbase and Robinhood in a while. I'm wondering if this changes these changes from Coinbase update any of your thoughts on this, you know, the super app competition or just either of these these companies here? >> I just want to say Robinhood current market cap is 95 billion and Coinbase market cap is 43 billion.

So, Robinhood is more than two times bigger right now. Yeah, I think what we didn't like about Coinbase in the past is that they were trying to do just everything. And you know, if you try too many things, then you lost you lose track of and you lose focus and then you might lose some battles. And it seems like the case for Coinbase at least on the retail side. Now, Robinhood is leading because they focus just on retail and they are doing that really well. They they had perps and they are adding like options and a lot of many things that people want and use.

I think Robinhood just shared their um last month's numbers and pretty much all of their products are at all-time highs again. And on top of that, they are laying off 10% of their employees, which is going to likely result in You can see that the leverage is there. The business is doing really great. They are laying off 10% of their staff. And so it's not because they don't have money, but it's because they can do it. And so now, I think we will see a a margin expansion and that's what investors love to see. So, I'm I'm still bullish there.

And for Coinbase's case, I think they now sort of pivot back into the the base and like what they want to do. And I feel like they they made a internal structure of what they really want to do and focus on. And it still remain retail. That's the part that Robinhood is leading right now. So, that's one of part of their business, but the second one, which is still not that much visible, that's the infrastructure for companies and funds and like financial players of the world. And that's the part that we are starting to see a adoption of that, but it's still not seeing in their their statement or like in their earnings report, but that's going to be huge I think at some point. And what I would

like to see is that during their earnings calls or where where I'm listening Brian talking some podcast, I would love to talk more about that part of their business because we know that the competition among retail is pretty big. Now, new bank is entering US markets as well. Revolut, which is the biggest fintech in Europe, is going into US as well. So, the competition for retail is just getting bigger, but the infrastructure side, I feel like there is an opportunity and Coinbase should capture that part because that might be even bigger than the retail part.

So, that's like I I own Coinbase. I own Galaxy and those are probably two biggest players who who satisfy that institutional demand in US. >> You mentioned uh Hood, I think is double the valuation of Coinbase. Coinbase last year anyway had 7. like 5 or 7.6 billion in um in revenue and Hood was 3.8. So, Coinbase actually has almost double the revenue of of of Robinhood. Now, that said, I'm pretty sure Coinbase has like three times the amount of employees as Robinhood. So, it's a much bigger operation, which and and now I mean, I guess Coinbase did let go some people earlier this year as well, but Hood is now like I don't know, around like less than 2,000 people I think working there,

whereas Coinbase is I don't know, like 4 or 5,000. So, yeah, a bit of a different story. The thing that Coinbase needs is I mean, Clarity Act is going to be the big catalyst for Coinbase, right? Because that's what's going to do in my opinion, give them a huge catalyst for their institutional side of their business. Both Galaxy and Coinbase should do really well as a result of the Clarity Act. And then the other thing I think Coinbase really needs is just like more adoption of stable coins, cuz that's where a big chunk of their revenue could come from that Robinhood and and others don't have. Coinbase gets like 50% of all Circle's revenue or something like that. And unfortunately, stable coins haven't grown at all in uh I'm going to actually look up the numbers here, but it's like in the last 6 to 8 months, um I'm pretty

sure that stable coins are actually down. Which is wild. I did not expect that. So, since October of last year, we are I mean, we're up a little bit. We're up like it's like I don't know, like couple percent in in terms of supply of stable coins. So, uh hasn't really moved in, you know, 8 9 months, which um was not on my bingo card back in October, I would say. Uh so, that's the key thing I think is we need stable coins to to grow. Uh and I think Coinbase will do well in that world. Uh the other thing you could look at obviously is Circle, which is down quite a bit. I think it's at like 80 bucks or something today. Where is it? Yeah, $80 and down a ton, obviously, but USDC has had no growth. It it's down uh in that

in the last year. So, it's sitting at a market cap of 20 billion. I would love to be buying Circle, but I don't know. You need some growth here. And I I don't know why stable coins are not growing, but that's what we need. >> 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. Bitget's Stocks 2.0 is different. Real Nasdaq and New York Stock [music] Exchange depth through licensed brokers, prices mapped one-to-one, dividends paid to your account in real time. Plus, you get the lowest fees in the market at just .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/bitget to get started.

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Get started at milkroad.com/nexo. >> Uh I think it's probably capital rotation, but I want to ask about this because, you know, you you guys have both talked about Robinhood and Coinbase in terms of their revenue, their size, and their market capitalizations. Hyperliquid's market cap is 18 billion, and they are also trying to become a sort of an everything exchange. They've taken a lot of volume away from other exchanges, um spot volume, perps volume, and a lot of people see this move by Coinbase as a an effort to try to compete with or offer some of the products that Hyperliquid offers, but in a regulatory compliant way within the United States. There's also uh USDC now on Hyperliquid, which is generating a lot of revenue for Hyperliquid and for um for Circle and Coinbase. Um but just uh

talk to me about that landscape. Do you think that this more decentralized and much leaner team uh at Hyperliquid is going to pose a threat to these businesses, or do you think that they're going to box out Hyperliquid? Martin, what are you seeing happen there? What what's that contest look like from your your perspective? >> Well, I think Hyperliquid certainly got attention from Wall Street, and like everyone's talking about Hyperliquid these days. But what makes it scary is that yes, they now also monetize their uh stablecoin balances in in collaboration with Circle and Coinbase.

But still, like 90% of their revenue is just one product, and that's like, you know, people trading. And that's that works until it doesn't, right? So, like they have a lot of liquidity, a lot of traders, but like is that really something that is going to be defensible and like durable over the years, or is I don't know, like as you said, Coinbase just launched perps, like Robinhood has perps as well. And now there is that more clarity for perps that can be offered by, you know, US regulated exchanges. And so, when I think about would I go and trade on Hyperliquid or on Coinbase, I would choose Coinbase. Like,

I am always so pissed when I need to make some moves using my stable coins, and then my transactions got stuck, or my MetaMask doesn't work, or something's going wrong. It's just the experience is still, like, it's 2026, and anytime I need to do something on chain, it's it's yeah, I I'm still not that surprised that the industry didn't get a ton of adoption because of the user experience is still very poor. So, I was talking about Coinbase before, and next month they're launching tokenized stocks out for users outside of the US. I'm really considering moving all my

all my money into Coinbase, because now I don't need to have Interactive Brokers, that's that's my broker account where I have my stocks. Then I have my crypto. I can move just everything onto Coinbase, and like, you know, the safety guarantees are like top notch. So, I I don't care about that. And, you know, when I think that way, I think much more people are thinking about the same thing. And so, I think it's the right move, and again, like, Hyperliquid is great. It it got still like 5 billion TVL or something like that.

I still want to see that the volumes are picking up, or because, you know, like, last few weeks it was about SpaceX IPO. Before it was about oil. Before it was about gold and silver. So, like, are they going to be able to like always bring new things that are getting like, you know, adoption and like people really want to trade? And because if not, there's no growth. Like the volumes, the trades, it's all flat. So, I'm just worried about the next leg up for for Hyperliquid.

>> I mean, I think they'll always get There's always something to trade, right? Like every month, every quarter, there's something, right? Like you said, it was SpaceX right now, it was oil earlier, it was silver for a bit. We've We always go through these things to trade. And And Hyperliquid has done a good job of like being the place to trade that. But like you said, well, now you can do this on Coinbase and on Robinhood and other areas where people already are. And so, the one issue with Hyperliquid is like it doesn't really have growth in terms of its user base. So, it spikes in these crazy moments, but everyone spikes, right? Like Coinbase spikes, Robinhood spikes. Like everyone kind of spikes whenever you have a big moment like a SpaceX or oil going to, you know, 120 bucks or whatever it was. And

the problem is it's not It's not this, right? Like a steady growth upwards. It's just like these little spikes and it goes back to its kind of baseline. And it's not really getting any new users. Uh and the more you get things like Coinbase launching this stuff, and I think even like Kalshi and, you know, all these things are kind of merging to be the same stuff. Uh offer prediction markets, offer perps. It's just less people that will go to Hyperliquid, which is, yeah, a hard thing to like move your money onto. And And I don't know why you'd move your money over there when you can do it all on Coinbase, which allows you to, you know, do everything else. You know, have your credit card there, have your stocks there, have your, you know, crypto there, uh have your stablecoins and your yield there. So,

it's it's hard to see. Like I do think there's plenty of room to grow in terms of just like the use of perps. So, like that's the one thing that makes me still somewhat excited about Hyperliquid, but I still I still haven't bought it. Uh and so, maybe I'm just like biased cuz I I don't own any, but >> [laughter] >> I'm sure you're not super >> bullish. People just keep talking about the revenues and like yes, they are making 50 million per month or something. So let's say 600 million a year, which is pretty good and they burn pretty much all of that, but nobody's talking about the the token emissions that they need to provide incentives for validators to validate their blockchain and as the prices of hype is growing,

then these incentives are growing as well. So right now, they're making 50 million per month, but they are also also issuing like 30 million in tokens every month. So now, all of a sudden, that picture, the economics, the profits, it it all of a sudden is just like 20 million per month at these prices and it it it it's it's a big difference and I think people are just ignoring that. Like they're all blown away like, okay, it's just 11 people making 600 million per year. That's awesome, but nobody's really talking about these token emissions.

>> So here's the emissions which have gone up here. Like they they spike up in June and you can all see the revenues are just down, right? Basically down only. Now, this might be missing this might be missing the stablecoin revenue, so I don't know how how important that is, but that's on Blockworks. So Yano, please fix your data if that's wrong, but otherwise >> [laughter] >> Well, he always says it's the best data on Twitter. I see it every day on Twitter, so if it is, I hope you're right cuz I'm quoting it right now. But anyway um >> [laughter] >> It's it's yeah, there's just no growth.

So I I just don't know if it sustains or what. Yeah, it's a hard one for me to be betting on it. What is it? 18 billion or 20 billion it's worth right now? >> Yeah, around 18, 19 billion, somewhere in that neighborhood. I I do want to ask you about this. This is something I've been thinking about a lot. Coinbase launched a like I said, an SEC registered Agentiq advisor. Robinhood has a similar sort of tool on their platform and both of you are AI power users. You're very bullish on the AI space overall, but I'm curious your thoughts on the adoption of agentic advisors or you know, like trading tools. Um have you looked at any of these for yourselves or you're curious to use them? Do you think this is going to take off? Is this how we're going to manage our assets in the

future? What's your take on this? Kyle, let's start with you. >> I don't know about letting them trade for me. Like I I haven't really >> Come on. I haven't even >> trying to do that myself. Where I do think they are useful. Um so one thing I've used is um the CFO Silva Silvia or Silva, whatever it's called, from Pomp. Um I just played around with it uh a couple weeks ago and it is quite interesting. You can plug in all of your your your bank accounts, your brokerage accounts, uh your crypto wallets. And basically what it does is it just tracks all of your your assets and then you can kind of ask it questions, you know, am I over and I do this with Claude right now. It tracks my Milk Road Pro portfolio. So for those that are are pro members of If you're not a dollar trial,

you can sign up for a buck and you can literally track my portfolio, Martin's portfolio, and three, four other analysts um and you can see our trades in real time. But what's cool is I just share that with Claude and and I go, "Here's what my portfolio is. I'm looking to do this or I was thinking this. Like what do you think?" And it kind of just like It's not that I just listen to it blindly, but it it does give me a bunch of feedback and and kind of pokes different areas that I didn't think about. And so Silvia kind of does the same thing but more like live, right? Cuz it's tracking like what's going on uh in price movements and things. So I I think it's very interesting to have an AI to just like bounce ideas off of and also like flag things. Like, "Hey, you

know, you're getting low on cash here and you've got this much debt. So keep in mind like you're going to run out in 6 months from now." And like that stuff I think is super super helpful because you don't really get that. When you go into the bank, sure they look at your your your um net worth and things and they might give you advice, but you go like I don't know. I I never go, but like I'm sure some people go once a year twice a year, whatever, into their bank. I track it all in like a spreadsheet myself every month, so like I already know that stuff, but I know most people don't. So, there's a lot of use in just having AI kind of see your financials, see the full picture, and then kind of give you advice, and like help you think through things.

I think that's super super valuable. In terms of giving it the keys to just go and like trade blindly for you, I I wouldn't do that yet myself. Maybe I would give like a little chunk of my portfolio and say go have fun with it. Or especially if I gave it some sort of direction, like trade in these things for this thing and like gave it some rules, maybe, but I just don't think it's there just yet. So, I think there's a lot of benefit to using AI to like navigate your financial like wealth, but other than that, I'm not sure about trading yet. But, I'm sure we will get there where we'll be better and it would make sense. What do you think, Martin?

Have you played with this? >> No, I haven't, but I agree. I think these agents are pretty good to help you improve your financial, you know, knowledge and like kind of habits and stuff like that, but it's probably not If you want to build your own portfolio and manage it, it's not probably like challenge you enough. So, like it'll probably tell you buy S&P 500 and you'll be fine. You know, that's that's very basic stuff. But, if you try to run AI agent and like just blindly follow a portfolio that it suggests you, it it's not going to be winning portfolio. I I can tell you that. And I have been testing like AI agents for for the news and like get me everything

that's going what's going on in in the world and in the markets. I would say it's pretty decent, but it needs that human touch. And so, like I really like like each each my Every morning, I start my day opening my Portfolio OS, which is an app that This is the way I how I manage my portfolio, and I have a bunch of data from the last day. So, that's how I start my day. So, I'm going to see like, "Okay, Coinbase just announced that. Okay, Robinhood is laying off people.

What does it mean?" And stuff like that. So, it's good, but it's like, "Okay, here is what you should do because there is a new announcement or, you know, maybe look at Western Union because the price is down, I don't know, 8% and it's down 20% since you since you're buy." So, stuff like that, but it's not really telling me like, "Hey, I think you should like sell this token and buy this token." It's not it's not there yet. I'm I'm not sure it will ever will. So, I think you always need a a someone in the >> at some point it will. I'm sure at some point it will. Come on, when we get AGI, but again, I don't know how far we are from that. But it it it is good at just like you know, one, it can do research

for you pretty quickly, but you do have to be The thing is is like to to get value out of using AI to help you invest, you have to be a good investor yourself. You have to be able to understand what it's feeding you, ask it the right questions, pick it apart cuz it obviously it gives you wrong things sometimes, you have to challenge it. Just like if you were to sit there and talk like I mean, what we're doing right now, right? We just kind of debate with each other about different things. You know, we saw John and David debate on ETH for for an hour a couple weeks ago. Like that's what you have to do with your AI, which is great. Like you want to debate and talk with someone and you get to do it 24/7. So, it's super helpful cuz like most people don't get

that option, right? Like you know, my family or or my my fiance, like they don't they I can't go talk to them about finances and see if it's a good idea to like buy or sell, you know, whatever. So, it's like I have 24/7 I can do with Claude. So, like there is value to it, but you've got to put in the effort yourself and and really do the do the work yourself, too. Um or you just, you know, sign up for a dollar trial and you just track what we do. Where Where would I go if I wanted to sign up for a dollar trial, Kyle? What What would I do to find that? >> Milkroad Pro. Just go to milkroad.com/pro. Uh and actually, you can challenge us.

We do have a community where you can literally come in and and ask John and Martin and the others questions anytime and we'll answer everything for you. John will answer your questions after midnight cuz that's when he usually does that but >> It's easiest time to get all those questions answered. >> You're listening to the Milkroad Show, which means you've got takes, strong ones I bet. But where do those takes actually go? Do you tweet them into the void, argue them in the group chat, or do you try to express them by buying a stock? The thing is, stocks move on like 50 other things at once, [music] and that's where Kalshi comes in. It's a CFTC regulated prediction market where you bet directly on outcomes like Bitcoin hitting 100K, [music] Fed rate cuts, GameStop buying eBay with a clean yes or no. We did a full deep dive on

why prediction markets might be crypto's third product market fit moment. Check the show notes for the full report and claim $10 [music] free when you trade $10 on Kalshi. >> Look, I think you guys are are both making a lot of great points, but I think there's something you haven't considered, which is that what I'm going to do is wait till this advisor, this SEC registered advisor goes live, then I'm going to give it $500 and say retire my entire bloodline, make no mistakes, and then I'll be done. So, that's checkmate right there. Guys, we got to start wrapping up here. We're getting close to time. I want to end with a last question, which is what are you guys watching to buy? What are you thinking about getting into? Position changes you might be making in your portfolios.

Kyle, I know you've been watching US DAI, which I think the ticker is Chip. Any updated thoughts on that or what are you looking at this week? >> Yeah, so I have been looking at Chip, which I had on my watch list now for, I don't know, since it TGE'd, and it's now I think below its TGE price. Or no, it's not, but it's getting close to it. And still waiting for it to go a little bit lower, but I am kind of excited about what they're doing. They're basically combining stablecoins and and compute, which is two, I think, very exciting things that we we talk a lot about here at Milkroad. Maybe they found a bottom here. I'm not sure, but so I'm looking to to enter into that at some point uh soon, but it's quite volatile. They just TGE'd, so I'm sure there's a lot of

investors still selling. So, that's the only reason I haven't really bought yet. Otherwise, um there's not a lot that I'm looking at in crypto. I still hold some things in crypto. I hold a little bit of Bitcoin, hold a little bit of ETH. Coinbase Galaxy is the one thing that I'm still very excited about. I think it's it's still undervalued. I think you guys might have talked about it last week when I wasn't here, but I think it's sitting at about 13 billion market cap right now, and from a lot of different estimates, it should probably be 20 billion or more uh based on its AI business. And if we get clarity act or any sort of life in crypto, um I think Galaxy's going to absolutely shoot through the roof. So, I think that you know, if you want to get some crypto upside, Galaxy is a great way to do it

where you don't depend solely on crypto, which is quite nice. And then, um I obviously hold Robinhood. I did take some profits on that recently, um but I'm trying to figure out where to put capital next. Uh it's probably going to be more in in stocks and in the AI side of things, but I'm still just looking to figure out what is what is my opportunity there, and I haven't quite established what I want to buy yet. So, I'll update you guys next week. >> Okay. >> We'll watch closely to see what happens there. Martin, what about you? What's on your radar? >> In crypto, nothing, honestly, right now. But Yeah, I think >> Thank you, Martin. Thank you. That was great.

>> [laughter] >> No, listen. Um Like, I am a huge believer in crypto as a technology. It's just that the music is playing somewhere else, not crypto. So, like, once I see that the attention and capital flows back to crypto, I will be looking to buy something crypto again. But right now, it's not the case. So, why I should be there. I'm still allocated to crypto, just much much smaller portion that it was a couple months ago. And it was a It was a good rotation. I'm a I just made a new all-time highs for my portfolio. So, despite, you know, crypto being still down pretty deeply. So, uh >> Martin, what about Nubank?

You were bullish on this before. Are you buying? >> Yeah, I think I added a couple of weeks ago. Yeah, I like Nubank. They have 140 million customers. >> Interesting. >> So, I really I really like the apps that they have. A lot of a lot of customers because they can just monetize them and take advantage of, you know, AI and then eventually blockchain as well. So, it will just improve their life. >> exactly what Robinhood's doing, right? Robinhood is just figuring out how to get more assets. Even if they're not getting more customers, they're getting more assets on their platform from their existing customers and that's huge, right? Because they can monetize that.

So, that's that's the key. >> is just Robinhood users base is 25 million or something. Nubank users base is 140 million. Obviously, it's a different because the purchasing power of, you know, people in yeah, South America is different than US but >> Well, I guess we'll have to keep listening to the music and we'll catch up next week to see where it's playing. Um but until next time, thank you all for joining us. Thank you guys both for contributing all of your thoughts today. I really enjoyed this conversation, I always do. Uh so, thanks for everyone for being here and we will talk to you next time. Until then, stay safe, stay educated, stay bullish and we will see you all on the next episode of the Milk Road Show. Thanks for being here, everyone. Bye. Want insights on what's moving crypto markets [music] and how

we're trading each event? Subscribe to our channel and join the Milk Road daily and pro newsletters and start investing like the top 1%. [music] This show is for educational purposes only. Nothing we say is financial advice. Investing is risky. Never invest more than you can afford to lose.