Binance Hack Shockwave: Hyperscale Earnings, BTBT, WYFI, HOST, IREN, CORZ & SLNH News! 的完整文字稿

00:05:01.920 So this is a challenge. 00:05:02.079 --> 00:05:16.959 Um so nobody's going to um uh maybe except the shareholders, nobody's going to you know effectively lose because it will be covered, um, but it does raise that uh raise that issue about you know security. 00:05:17.040 --> 00:05:23.040 Uh you know, we've been talking on the channel for years and years about you know blockchain being you know secure. 00:05:23.360 --> 00:05:27.759 And now, you know, is it um you know the case of your passwords? 00:05:27.920 --> 00:05:32.000 This wasn't even requiring to use passwords, this was done a dip a totally different way. 00:05:32.160 --> 00:05:50.639 This has basically tricked the blockchain in terms of the way it's been set up, and by the time it's been highlighted, they've actually managed to move uh a lot of the uh a lot of the coins um onto other blockchains and then sort of like utilize that uh to to make their getaway. 00:05:51.120 --> 00:06:04.720 I expect now that there'll be a big push now to get uh further security to really um uh you know to really bolster this because this will not send out a great message for new potential um people coming into the space. 00:06:04.800 --> 00:06:11.040 There'll be uncertainty with these headlines, it's not small amounts, 6.3 billion is a significant large amount. 00:06:11.120 --> 00:06:14.879 The timing is significant as well, only 20 minutes to do this. 00:06:15.120 --> 00:06:25.759 I mean, it took the Hatton Garden robbers about three days to remove all the gold from London uh back in the 60s, it took, and that was about 40 million pounds worth. 00:06:25.920 --> 00:06:35.279 Um 6.3 billion 20 minutes uh takes some takes some imagination, and it and it was imagination, but um overall, nobody's hurt, the money's going to be replaced. 00:06:35.360 --> 00:06:38.800 Uh Binance will take the hit on the balance sheets, as we said there. 00:06:38.959 --> 00:06:51.600 But I expect now that some big, big security measures will be coming in um to sort of like try to and actually if it's been caused by AI, then use AI to start bringing in some better security measures as well. 00:06:51.920 --> 00:06:55.680 Use it in a positive way to prevent this in the future. 00:06:55.839 --> 00:06:57.920 That's maybe a good way of looking at this. 00:06:58.000 --> 00:07:05.680 Um, if they can use it for removal, let's move it to use it to shore up the up the defence systems, um, because it certainly needs it. 00:07:05.759 --> 00:07:06.959 We don't need these stories here. 00:07:07.120 --> 00:07:12.000 Bitcoin was in a nice position at that time between that 80,000-85,000. 00:07:12.399 --> 00:07:15.759 Um, it's pulled up a little bit since it dropped to 77,000. 00:07:15.839 --> 00:07:17.920 Let's see how it plays out the rest of the day. 00:07:18.079 --> 00:07:28.959 We'll pick it up on Monday when uh Asia come on, and hopefully we we can get some recovery towards that 80,000 again, but not a great news story for Bitcoin

or crypto today. 00:07:29.279 --> 00:07:31.680 No, and a couple interesting tweets here, Anthony. 00:07:31.759 --> 00:07:37.920 Michael Saylor, again, to your point, saying Binance has committed to its own balance sheet to making customers whole. 00:07:38.079 --> 00:07:42.879 Uh, you can see Binance put out an announcement there, and then an interesting one from Elon Musk. 00:07:42.959 --> 00:07:45.040 We know he likes to stir the pot a bit. 00:07:45.120 --> 00:07:47.439 Uh, timing, I guess, could be better. 00:07:47.759 --> 00:07:59.439 He does, and um, you know, he's put out a little smiley emoji there, but uh ZZ has has responded to that one um uh quickly and said, look, you know, we got a lot of respect for you, but not the greatest time to troll. 00:07:59.519 --> 00:08:00.240 Please stop. 00:08:00.399 --> 00:08:09.920 And by the way, uh we invested$500 million in your Twitter takeover, and that's now worth a billion dollars in SpaceX. 00:08:10.240 --> 00:08:12.720 Would appreciate if you show a little support, thanks. 00:08:12.800 --> 00:08:15.920 And you can see the uh the feelings there as CZ. 00:08:16.160 --> 00:08:25.120 He was in um Hong Kong when I was there for the Bitcoin Asia conference to a packed audience, and he gave the best part of an hour's presentation. 00:08:25.360 --> 00:08:31.279 Um, really talking uh Bitcoin and really from a from a really down to earth level as well. 00:08:31.519 --> 00:08:33.759 Um, so extremely good presentation. 00:08:33.840 --> 00:08:37.360 I was part I was there with my with my wife listening to that one there. 00:08:37.519 --> 00:08:43.120 One of the better presentations I saw in in Hong Kong, apart from the two that I did, actually, they were very good as well. 00:08:43.200 --> 00:08:45.200 But um, yeah, he was there to do that. 00:08:45.279 --> 00:08:48.080 And he's doing he's saying that I think he's saying the right thing here, really. 00:08:48.240 --> 00:08:50.240 We don't need to look on the downside. 00:08:50.320 --> 00:08:57.200 We want to come up with uh Elon should come up with a way of you know all his um knowledge and technology, come up with a preventing this type of thing. 00:08:57.279 --> 00:09:03.360 Because bear in mind, uh Tesla have one of the largest, they're one of the largest holders of Bitcoin. 00:09:03.440 --> 00:09:08.799 They surely don't want to lose um their I think 11,000, 12,000 Bitcoin on the balance sheet. 00:09:08.879 --> 00:09:13.440 That's a significant amount of Bitcoin, one of the largest holders from a public company. 00:09:13.600 --> 00:09:17.519 So uh not the greatest time to tweak a smiley emoji. 00:09:17.840 --> 00:09:18.720 No, it's not. 00:09:18.960 --> 00:09:22.399 And uh we obviously know this causes a lot of questions now. 00:09:22.480 --> 00:09:24.080 What's the best way to store Bitcoin? 00:09:24.159 --> 00:09:25.840 Is iBit the best way to go? 00:09:26.000 --> 00:09:29.679 Should you go into one of the proxies like Strategy or Stretch? 00:09:29.759

--> 00:09:32.480 Uh, or do you take your chances with the exchange? 00:09:32.639 --> 00:09:33.519 I don't know, Anthony. 00:09:33.600 --> 00:09:37.200 It's it's getting harder and harder to find a safe place to store this stuff. 00:09:37.360 --> 00:09:40.799 Uh, in terms of the stocks, though, they're definitely taking a hit here. 00:09:40.960 --> 00:09:48.080 We've got the Bitcoin focused ones, ABTC, the Riots, the Maras with the HODLs getting hit on the Bitcoin side. 00:09:48.240 --> 00:09:50.960 We're also seeing a sell-off market wide here. 00:09:51.039 --> 00:09:56.960 So SP, uh, hyperscaler neo cloud, and of course the AI infrastructure stocks. 00:09:57.120 --> 00:10:00.879 This is following yesterday, which was also a pretty bad day. 00:10:01.279 --> 00:10:03.279 Yeah, not a great day for stocks today. 00:10:03.440 --> 00:10:05.519 A sea of red against uh the stocks there. 00:10:05.679 --> 00:10:08.240 Wolf having the best day in there, down nearly 3.5%. 00:10:09.039 --> 00:10:11.120 And actually, that stock has recovered somewhat. 00:10:11.200 --> 00:10:13.360 It was down at 11.52 in earlier trading. 00:10:13.600 --> 00:10:18.639 Now it's at 12.31, so it's gained 50 cents, and it's still down 3.4%. 00:10:19.279 --> 00:10:20.879 So um a little bit of recovery there. 00:10:20.960 --> 00:10:24.720 But you look at the 52-week range, pretty much everything towards its low. 00:10:24.879 --> 00:10:29.120 Um, I'm looking at my portfolio, it's at a year's low as we speak now. 00:10:29.200 --> 00:10:31.759 So that no, again, all the signs are the same. 00:10:32.000 --> 00:10:44.720 No big volumes today in terms of uh stocks, so really, probably on this news um that's spreading across the market there, even though most of these companies are doing very little in terms of mining anymore. 00:10:44.799 --> 00:10:48.000 Uh quite a few of them still hold Bitcoin in their treasury positions. 00:10:48.080 --> 00:10:55.919 Uh, some of them are still mining significantly, like the likes of BitDear, like uh Mara, uh, but don't seem to be impacted too much. 00:10:56.080 --> 00:11:08.159 ABTC, which is a pure play, um, they don't have any strategies to do anything other than either buy Bitcoin or produce Bitcoin, and they're down you know, uh over 9% as we speak there. 00:11:08.480 --> 00:11:12.159 Um, and so you know it's a it's a it's a it's a red day. 00:11:12.320 --> 00:11:15.759 Moving to the heat map, we can see you know that sea of red there. 00:11:15.840 --> 00:11:31.360 The five-day change is um predominantly green, there's a one percent increase in the five-day change, but we've had some three or four days of of reasonable um updates, and so um, you know, we've seen that sort of you know, the the greens coming through there, but one one day can just turn that around. 00:11:31.440 --> 00:11:35.759 Then you look at the one month change down 35%, that four-month change. 00:11:35.840 --> 00:11:44.399 We talk about that four-month period there, down 52% on

average, and then the year to date and one year change, 17 and 13% down there. 00:11:44.480 --> 00:11:59.279 So, pretty much the sea of red, uh, with the exception of the of the five-day change where it's um there's a there's a few green shoots there, but uh, we need the daily rate to really recover um to sort of help all those periods. 00:11:59.440 --> 00:12:05.759 So, you know, maybe next week brings us some more positivity as earnings start to come out in real force next week. 00:12:06.000 --> 00:12:09.519 Got quite a few earnings coming out from companies we talk about on a regular basis. 00:12:09.679 --> 00:12:16.879 Core Scientific, uh, Keel have got their results next week, Riot got their results next week, so some big names out there. 00:12:17.039 --> 00:12:18.720 Hive, I think the week after. 00:12:18.879 --> 00:12:22.799 So maybe some of those results, maybe some announcements with those results. 00:12:22.879 --> 00:12:39.519 I know we've seen before a lot of companies like to hold a little bit back for earnings, and we're hoping that um maybe Ben, maybe Jason have got something under their um under their wings there, ready to sort of like to give the market something to hope, hope, because we need a bit of hopium at the moment. 00:12:39.600 --> 00:12:45.200 Um, it's took a bit of a bashing over these last four months, pretty much if you think back since the last earnings period. 00:12:45.360 --> 00:12:51.679 So um it'd be nice to get some some positivity back into these stocks before the end of the year. 00:12:52.000 --> 00:12:53.600 Yeah, it certainly will be. 00:12:53.759 --> 00:12:58.399 Uh now, something that could act as a catalyst here, Anthony, hyperscaler earnings. 00:12:58.480 --> 00:13:00.080 So we've got a couple to go through here. 00:13:00.159 --> 00:13:02.559 We're gonna start with Alphabet or Google. 00:13:02.799 --> 00:13:06.399 Specifically, we're talking CapEx here and free cash flow. 00:13:06.480 --> 00:13:10.159 We're seeing some big changes from the biggest companies in the world. 00:13:10.320 --> 00:13:12.639 I'll let you start off with Alphabet. 00:13:12.720 --> 00:13:17.039 Uh, obviously, Google, a big player in the AI space. 00:13:17.440 --> 00:13:20.240 Well, they've been a big player in this space for a long time. 00:13:20.399 --> 00:13:26.480 I mean, people have been using Google for many, many years, and they just dominated the space in terms of search engine. 00:13:26.639 --> 00:13:29.759 It's the number one search engine out there that everyone's used. 00:13:29.840 --> 00:13:46.240 However, now that we've got um various AI um applications coming to market, like ChatGPT, like Claude, like News, and many, many, many others, they're actually doing exactly what Google does, and some of them are actually doing it better. 00:13:46.480 --> 00:13:49.840 So, Google at the moment are in that sort of quandary. 00:13:49.919 --> 00:13:57.759 They've got Google One, which was gold standard, and now they're thinking about you know, what do we do to bring on Google Two? 00:13:58.399 --> 00:14:08.639 And in terms of their investment, uh, you know, they're looking to invest significant amounts, and this is causing a problem for the market in terms of in terms of cash flow. 00:14:08.879 --> 00:14:22.879 Um, if we look at the revenue though for Google Cloud, um, you know, that's doubled um to 30.7 billion, and it as it's as it's now hit, and listen to this, a half a trillion dollar run rate. 00:14:23.200 --> 00:14:34.639 So we took about, you know, yesterday, I think we talked about iron and 4 billion run rate by the end of the year, and Google are at half a trillion, and we're just at the starting point, really, for this particular area. 00:14:34.799 --> 00:14:38.720 This is how much these companies can grow uh quickly. 00:14:38.960 --> 00:14:56.720 Now, the cloud revenue growth, um, you know, it's 103% up uh with operating income of$11.1 billion versus$3.6 billion just a year ago, and that's been helped by enterprise AI infrastructure and sales of its TPU chip systems. 00:14:56.879 --> 00:15:02.559 The total revenue itself for the company was$127.6 billion for the quarter. 00:15:02.720 --> 00:15:07.679 That's the uh 13th straight quarter of double digit growth. 00:15:07.840 --> 00:15:18.399 So some some really positive parts of this um uh with operating income up 30% and a 31.8% operating margin. 00:15:18.480 --> 00:15:23.039 These are numbers that are fantastic, you know, positive operating growth, operating margin. 00:15:23.279 --> 00:15:29.039 Uh search growth um also up 12% to 63.4 billion. 00:15:29.200 --> 00:15:41.279 So even um, you know, Google as a search engine there is still bringing in more revenue than it's ever done before, with query growth the highest in five years, according to their CEO, Sundar Pichat Pikay. 00:15:41.840 --> 00:15:59.440 Um 1 billion users are using the Gemini app, which um which the CEO calls the fastest growing product in Google's history, uh, with model APIs processing nearly 32 billion tokens a minute, which is more than four times just a year ago. 00:15:59.600 --> 00:16:06.320 So this is you know, uh, you know, you go through their their earnings to start with, it's it's just tick, tick, tick, tick, tick, tick, tick. 00:16:06.799 --> 00:16:20.399 Net proceeds from senior notes and stock issued at its ATM value, there totaled about$42 uh billion dollars to help um uh you know uh grow the capital expenditure. 00:16:20.639 --> 00:16:25.039 Now, here's an area that um that um didn't do as well. 00:16:25.120 --> 00:16:31.200 The earnings per share, um, because obviously they've issued more shares now that that's dropped to$2.12. 00:16:31.279 --> 00:16:32.879 So still still very positive. 00:16:33.440 --> 00:16:36.159 $2.12 every share. 00:16:36.320 --> 00:16:38.720 But a year ago it was$2.87. 00:16:39.279 --> 00:16:54.720 And one of the main reasons for this is you know, effectively there's been an$8.2 billion expense from the

income statement relating to the uh reduction in value of um shares held in other companies, effectively. 00:16:54.879 --> 00:17:04.240 So Google being the size it is, remember we talked about the stake in TerraWolf, we talked about the stake in Cypher, they've got a massive stake in SpaceX, plus a number of other companies. 00:17:04.400 --> 00:17:06.960 What's happening to the tech market over the last four months? 00:17:07.200 --> 00:17:08.880 Hello, we've just talked about that. 00:17:08.960 --> 00:17:12.559 You know, some of these stocks are down 30, 40, 50 percent. 00:17:12.799 --> 00:17:19.759 So if you look at the uh, you know, the the impact to Google's uh valuation, that goes straight to the income statement. 00:17:19.839 --> 00:17:29.440 Any reduction in assets, just like we highlighted with um, you know, when companies increase you know that through their Bitcoin value, they get that as a positive. 00:17:29.599 --> 00:17:31.039 This is the exact opposite. 00:17:31.119 --> 00:17:42.240 If the sh if the value of assets, including shares, including Bitcoin, drop, then they report that lower value, and that it goes straight to the income statement, so it's it's there as a as a loss. 00:17:42.480 --> 00:17:48.240 So that uh 8 billion impacted their EPS, but everything else was phenomenal. 00:17:48.480 --> 00:17:55.440 The only other one negative factor, which I don't I'm not sure it's negative, is the fact that they're spending a lot of money on CapEx. 00:17:55.759 --> 00:18:06.160 Well, you know, hey ho, you want to grow these companies to be something you know bigger than everybody else, you've got to spend you've got to spend capital to grow, you know, you want to be through that hurdle first. 00:18:06.319 --> 00:18:09.519 And we've just highlighted Meta's uh numbers. 00:18:09.599 --> 00:18:15.200 I mean, their CapEx expenditure for this quarter alone was 34 million. 00:18:15.359 --> 00:18:22.240 Then you look at um what Google have spent, and it's 51 billion, and that's like 50% more than Neta. 00:18:22.880 --> 00:18:29.440 Um, and that's jumped to 114%, which has basically put their free cash flow in negative. 00:18:29.519 --> 00:18:52.000 So if you've got like 42 billion in operating income and you've spent 51.4 billion in Capex, hello, one versus the other, you've got a$9 billion net uh negative net cash flow, which the market highlights, and so that's an issue, but not really is it an issue because when companies grow, how are you gonna grow? 00:18:52.079 --> 00:18:55.680 They're not gonna, you know, these these facilities don't come along and don't cost anything. 00:18:55.839 --> 00:19:04.400 And you look at um, you know, the cost of these facilities at 12 to 14 million, the GPUs, anything from 30 to 35 million per megawatt. 00:19:04.640 --> 00:19:07.119 So you're gonna spend a lot of money to get there. 00:19:07.279 --> 00:19:13.839 Uh so I don't think it's as as as as big a deal, but the market obviously you know has has took a downside. 00:19:13.920 --> 00:19:22.559 That share price um after closing on on Thursday was uh or after on Wednesday, sorry, was down 12% after these results came out. 00:19:22.799 --> 00:19:29.359 So that just shows you that's one of the biggest one-day drops Google's had there, but not insurmountable. 00:19:29.599 --> 00:19:38.000 Now, if you look at the full year CapEx guidance for 2026, it's going to be between 195 and 205 billion. 00:19:38.160 --> 00:19:43.440 I mean, we were talking six months ago, these companies were going to spend about$100 billion each. 00:19:43.599 --> 00:19:46.720 Now they're literally doubling those estimates there. 00:19:47.039 --> 00:19:59.279 And if they've spent$132 billion for the through the first three quarters of the year, that's another$63 billion to$75 billion to spend in the last quarter of the year alone. 00:19:59.359 --> 00:20:13.359 And it doesn't stop there because they've already provided the guidance for 2027, and yeah, you've guessed it right, it's going to be another 50% increase in CapEx to$300 billion just for Google alone. 00:20:13.599 --> 00:20:18.640 And um, that's versus Meta where they're guiding up to$145. 00:20:18.720 --> 00:20:21.599 So again, double the amount that Meta are doing there. 00:20:21.759 --> 00:20:34.559 I think Google really are looking to sort of bring something out that will sort of like just be a game-changing application in the market, just like uh Google search engine was when that came out all those years ago. 00:20:34.799 --> 00:20:45.440 Now they have uh raised uh that 41 billion uh to help towards this, and I've already explained 28.7 through the senior notes and 12.4 through ATM stock. 00:20:45.759 --> 00:20:53.839 Uh now if you think about the future ahead now, bear in mind they're spending 200 billion this year, 300 billion next year, whatever they spent 100 billion last year. 00:20:54.079 --> 00:20:59.359 A lot of this cost is around GPUs and obviously a lot about infrastructure as well. 00:20:59.519 --> 00:21:05.279 There's gonna be some big depreciation costs coming through over the next five years for the for these costs going out there. 00:21:05.359 --> 00:21:09.519 So you're gonna see that start to flow through the income statement. 00:21:09.599 --> 00:21:20.400 And so, you know, uh it's going to take a few years before these revenues start really showing, and the net income from these revenues, bear in mind, you'll have depreciation. 00:21:20.480 --> 00:21:27.039 So depreciation being the cost to deliver this um revenue, you know, the cost of the GPUs, the cost of the site. 00:21:27.119 --> 00:21:30.880 Um, infrastructure would probably be depreciated over a longer period, maybe 20 years. 00:21:30.960 --> 00:21:37.039 But GPUs, I would think at the longest period five, might even be even less than that price. 00:21:37.119 --> 00:21:41.119 So overall, I think the the news is positive. 00:21:41.200 --> 00:21:43.519 They're spending the money, they've got

the money. 00:21:43.680 --> 00:21:47.440 Um, they haven't had to go out and borrow hundreds of billions of dollars. 00:21:47.519 --> 00:21:56.720 They've been very savvy in using cash flow from income, cash uh from using their ATM and getting a smaller amount that just under 30 billion senior notes. 00:21:56.880 --> 00:21:59.759 There, um, this sounds to be very manageable for. 00:22:00.240 --> 00:22:04.799 Google, but the market obviously reacting negatively towards it. 00:22:05.039 --> 00:22:09.440 Yeah, it seems we can't catch a break now, regardless of what headlines come out. 00:22:09.519 --> 00:22:12.000 But we see that as an investment in the future. 00:22:12.160 --> 00:22:17.839 Obviously, short-term pain with free cash flow, but that long-term gain in terms of AI revenues. 00:22:18.000 --> 00:22:20.160 Now, the next one we have up, Microsoft. 00:22:20.240 --> 00:22:22.799 This is Q1 2027 for them. 00:22:22.880 --> 00:22:29.759 You can see again big growth on the Azure AI platform, but also some big CapEx investment. 00:22:30.079 --> 00:22:35.279 Yeah, the market actually liked uh Microsoft numbers a lot better than they did Google's numbers. 00:22:35.359 --> 00:22:40.160 Um, they had 92.3 billion revenue, as that you quite rightly say. 00:22:40.319 --> 00:22:51.119 The Azure uh growth there of 48%, and their backlog hitting another massive number here,$677 billion. 00:22:51.839 --> 00:23:00.240 Now the revenue itself is up 19% with operating income of 45.9 billion, which is up 21%. 00:23:01.039 --> 00:23:03.839 Earnings per share$4.89. 00:23:04.319 --> 00:23:14.559 Um, and that's excluding the OpenAI investment effects, which is up 18%, 19% in constant, I don't want to mention that, which is up 18%. 00:23:15.359 --> 00:23:21.039 Uh, and it's versus$4.92 on a gap basis, which is up 32%. 00:23:21.759 --> 00:23:38.400 Now looking at just the Azure revenue growth there, that's up 48%, with uh within Microsoft Cloud Revenue of$63.9 billion, up 30% again, and the remaining um commercial performance obligation up 73%. 00:23:38.720 --> 00:23:46.079 A measure of the contracted revenue, still to be recognised, is that$677 billion I just quoted. 00:23:46.319 --> 00:23:59.599 Now, agents and infra revenue up 25%, while devices and consumer fell 3% to 15.5 billion on a 22% on a 22% drop in Windows, OEM, and devices. 00:23:59.680 --> 00:24:03.200 Uh, so you know, 76.8 billion total there. 00:24:03.359 --> 00:24:13.680 They've managed to return 10.2 billion to shareholders through dividends and share repurchases, so extremely positive uh there as well, Bryce. 00:24:14.000 --> 00:24:18.000 Yeah, really nice to see that money flowing back to investors' pockets. 00:24:18.160 --> 00:24:20.799 Now, Amazon is the third one to round us out here. 00:24:20.960 --> 00:24:29.119 We've got an interesting uh 12-month trailing free cash flow chart here, and a similar story to what you said with Google, Anthony. 00:24:29.279 --> 00:24:34.079 Significant investment, but starting to hit the company uh in a meaningful way. 00:24:34.400 --> 00:24:36.720 Yeah, so uh good numbers out from Amazon. 00:24:36.799 --> 00:24:47.279 They posted their highest operating margin ever at 13.9% as their AWS operating income jumps 56%. 00:24:48.799 --> 00:25:00.000 In terms of operating income, um, that was 28.1 billion, up from 17.4 billion just a year ago, uh, with that near 14% margin, the highest ever. 00:25:00.160 --> 00:25:06.079 The Web Service operating income is up from$11.4 billion to$17.8 billion. 00:25:06.160 --> 00:25:23.279 So these numbers, in terms of you know, this this uh new technology that all these companies are taking on doing extremely well, and they're up on sales uh up 39% to 46 billion and 184 billion annualized run rate already. 00:25:23.440 --> 00:25:32.960 So, you know, these numbers are really dwarfing some of the ones we talk about on a daily basis from some of the neo clouds or or or even some of the smaller companies. 00:25:33.119 --> 00:25:56.559 If you look at the 12-month uh free cash flow position, it's negative 42.4 billion versus a positive 14.8 billion just a year ago after a 94.8 billion increase in net property and equipment in net property and equipment purchases, which Amazon say really reflects their AI investment. 00:25:56.799 --> 00:25:59.759 So again, uh another sizable now, you know. 00:25:59.839 --> 00:26:12.799 Now that we've got the four companies out there, we can sort of like really highlight Meta at 34 billion, uh, you've got Microsoft at 39 billion, you've got Google at 51 billion. 00:26:12.880 --> 00:26:22.480 This is in the quarter capital expenditure, and topping everybody, you've got AWS at 77 billion dollars. 00:26:22.799 --> 00:26:25.119 Um, these are mouthwatering amounts. 00:26:25.200 --> 00:26:36.319 This is just for a quarter, so um, you know, the expectation is these numbers for all these companies will significantly um increase as we move into 2027. 00:26:36.640 --> 00:26:40.079 Um, and this is not getting this is not slowing down at all. 00:26:40.240 --> 00:26:48.960 Um, I don't think, you know, uh we can go back to you know when the internet was around and people were sort of like you know, uh saying it's not going to last forever. 00:26:49.039 --> 00:27:00.480 Um, this is definitely here to stay, and you can see these companies want to be uh first past the post, and the only way you can do that is to grow um extensively, and and they look like they are doing. 00:27:00.559 --> 00:27:03.680 We're looking at growth in the companies we talk about on a daily basis. 00:27:03.839 --> 00:27:12.799 Um, I'm afraid they just can't keep up with the sort of numbers here, but maybe five or six years' time, some of the companies we do talk about can start to produce some of these numbers. 00:27:12.960 --> 00:27:17.680 It hasn't taken these companies that long to do that, but uh you can see the race is on. 00:27:17.759 --> 00:27:29.119 This is why these are called

hyperscalers, because the sheer size is massively different from what um what uh worries some of the COs that we talk to on the podcast on a regular basis. 00:27:29.200 --> 00:27:31.839 These are dwarfing numbers here. 00:27:32.079 --> 00:27:34.960 Um, but um, you know, all for a good position. 00:27:35.200 --> 00:27:36.799 Think about what they're spending there. 00:27:37.039 --> 00:27:48.880 How much of that$200 billion that's been invested by these four companies in the quarter will flow at some point into the companies that we talk about because our companies have got the power. 00:27:49.119 --> 00:27:55.839 They've also uh proved that they can build uh data centers, and so they look very attractive. 00:27:56.000 --> 00:28:04.640 Some of them have already got um deals with the likes of Google, with the likes of Microsoft, with the likes of AWS, and with the likes of Meta. 00:28:05.039 --> 00:28:20.720 And so, you know, there's a number of companies out there that are still to get uh sizable contracts with the amount of available power now, and so hopefully we'll see the scramble now to get these companies uh their contracts signed. 00:28:20.799 --> 00:28:30.799 Because believe you me, when you're spending$200 billion a quarter, this is going to be a trillion dollars for 2027 between these four companies alone. 00:28:31.039 --> 00:28:40.960 They'll need to purchase uh these sites, and the companies that we talk about have the sites, have the power, and are ripe and ready to take on these contracts. 00:28:41.200 --> 00:28:45.359 Yeah, you wouldn't guess it from the share price, but we still think they're in a pretty good spot. 00:28:45.440 --> 00:28:49.200 Uh, final earnings update for us today: strategy. 00:28:49.359 --> 00:28:52.400 Uh, posting some pretty eye-watering numbers as well. 00:28:52.799 --> 00:29:07.440 Yes, and I don't really want to focus too much on strategy, really, because strategy are effectively a software company, and I can tell you now that the software revenue for the quarter was an eye-watering$125 million. 00:29:08.240 --> 00:29:16.480 Um, I say eye-watering because when you look at the operating income for the same quarter, the net income is$19.1 billion. 00:29:16.960 --> 00:29:20.400 I know a few of you out there be saying, Anthony, you just mentioned the revenues. 00:29:20.640 --> 00:29:22.240 Where do you get the net income from? 00:29:22.400 --> 00:29:26.000 Well, I can tell you straight away where the net incomes come from. 00:29:26.240 --> 00:29:36.559 Under the uh FESB rules for accounting, you're allowed to um account for your cryptocurrency as it rises and therefore show a true and fair value. 00:29:36.720 --> 00:29:50.480 And as we spoke about, between quarter two and quarter three, um, the last quarterly reporting, the Bitcoin price rose between$24,000 and$25,000 in a quarter. 00:29:50.799 --> 00:30:18.240 And so the amount of Bitcoin held by strategy somewhere in the region of about$848,000, and the majority of that was held back in the end of Q2 because um, through their stretch preferred uh share, they've not been able to sell as many shares with the price of that stock below$100, and we've highlighted that I think something like 14-15 weeks now. 00:30:18.400 --> 00:30:26.319 Now bear in mind, you go back to the end of the uh the quarter two, that's probably about 16 weeks ago from where we are today. 00:30:26.480 --> 00:30:36.079 So if you look at the previous three periods, uh you can see uh for the end of uh March, it was a 12.6 billion loss. 00:30:36.240 --> 00:30:45.039 The end of June was a 12.8 billion loss, and that's sort of you think where the Bitcoin price was at the start of the year, we are pretty much where we were at the start of the year. 00:30:45.119 --> 00:31:07.359 So we've recovered those sort of like two net losses over the past two um quarterly announcements in this one announcement this month because Bitcoin price at the end of QQ um three four strategy was the the same as the previous the same as amount as probably the previous two periods added together, and that's how you see that recovery there. 00:31:07.440 --> 00:31:11.920 So, not showing a sort of like a true reflection of what's happening in the company. 00:31:12.079 --> 00:31:16.480 This is all about assets and valuation of assets and how that impacts. 00:31:16.559 --> 00:31:27.119 And as we highlighted with Google, with some of their assets, which majority stocks, you can see how these can impact favorably or negatively uh within a quarter. 00:31:27.680 --> 00:31:30.160 Yeah, it can really move one direction or another. 00:31:30.240 --> 00:31:36.160 Now, on the earnings topic, Anthony, two more from our uh regular AI infrastructure players here. 00:31:36.319 --> 00:31:42.160 Bit digital coming out with their Q3, gonna be Thursday, November 12th, pre-market. 00:31:42.400 --> 00:31:50.160 Then we've got sister company white fiber wifi out pre-market as well on November 10th to talk about their earnings. 00:31:50.319 --> 00:31:53.519 And on the Wi-Fi topic, actually a nice little shout out. 00:31:53.680 --> 00:31:55.920 We've been talking about the launch of Continuum. 00:31:56.000 --> 00:31:58.799 This came to market uh late in September. 00:31:59.039 --> 00:32:06.799 Looks like they've actually got another example up and running now, 83 kilometers apart uh in the Atlanta region, Anthony. 00:32:06.960 --> 00:32:13.839 Again, showing the possibility of connecting these smaller uh satellite data centers to a larger network. 00:32:14.000 --> 00:32:20.160 They're stating upwards of 32,000 GPUs can be supported on this technology. 00:32:20.559 --> 00:32:36.000 Yeah, they're showing that the distance between Wi-Fi's QTS ATL1 Atlanta site and the QTS SUW1 Suwani site is 83 kilometers and it's connected by 12 dark fiber strands leased from Zio. 00:32:36.559 --> 00:32:46.160 Now the aggregate bandwidth from 170 channels of 800G optics uh with measured round trip

latency of 0.9 milliseconds. 00:32:46.319 --> 00:32:51.200 Uh don't worry too much about all the tech here, is 136 terabits per second. 00:32:51.680 --> 00:33:02.559 Um 256 NVIDIA H200 graphic processing units at each site running as one logistical cluster, so jobs can span sites without being rewritten. 00:33:02.720 --> 00:33:06.799 So a total of about 512 GPUs across both sites there. 00:33:06.960 --> 00:33:34.960 And the number of GPU endpoints the network fabric is designed to support around 62 times today's cluster, though Wi-Fi says that design capacity is not deployed or tested, so probably a total of 32,000 GPU endpoints, and as we've talked about before, uh Continuum became commercially available with plans to add more sites to the Meshore Hub and Bespoke Layout um from the September 23rd. 00:33:35.519 --> 00:33:36.960 Yeah, and kind of a nice segue. 00:33:37.039 --> 00:33:38.480 We're gonna move into host digital. 00:33:38.720 --> 00:33:44.400 They've actually got smaller sites like this and potentially could benefit from continuum technology. 00:33:44.559 --> 00:33:48.640 We've got Sean Matthews, the former CEO of Cantor. 00:33:48.799 --> 00:33:50.799 He's actually the chairman of Host. 00:33:50.880 --> 00:33:52.160 He was on Bloomberg. 00:33:52.240 --> 00:33:53.519 We mentioned this earlier in the week. 00:33:53.680 --> 00:33:55.839 We're able to grab a couple of clips, Anthony. 00:33:55.920 --> 00:33:57.200 Two caught my attention. 00:33:57.359 --> 00:34:00.000 I'll play you the first one here, and then we can go through the second. 00:34:00.640 --> 00:34:02.799 Trying to get infrastructure built online. 00:34:03.359 --> 00:34:06.240 What what is the local community's attitude to it? 00:34:06.400 --> 00:34:09.440 Has it actually stopped you from making any progress? 00:34:09.840 --> 00:34:16.800 No, actually, if you work with a community and don't try to put in massive projects that are out there. 00:34:16.960 --> 00:34:23.760 We're we're in the beginning looking between 20 and 100 megawatts, which are you know reasonable-sized projects. 00:34:23.920 --> 00:34:28.639 They work, there's real estate already in place, we there's power in place. 00:34:28.880 --> 00:34:31.679 So we're not changing the environment in any way. 00:34:31.840 --> 00:34:35.039 We're just using what's there and taking advantage of it. 00:34:35.119 --> 00:34:41.679 And that's we're able to do that because we have a great team in place that allows us to find sites and has the ability to put these deals together. 00:34:41.840 --> 00:34:43.599 So that's the key component here. 00:34:43.920 --> 00:34:47.360 And it's great to see that uh that pickup from Sean there. 00:34:47.519 --> 00:35:26.559 We've been covering exactly the same points all the way through there with a number of of the companies that we talk about regularly, and one that springs to mind is Keel in terms of engagement with local communities, explaining, educating, showing them exactly what's going to

occur, showing the impact of these machines, and um also the benefits that are attributable to the local uh domestic um, you know, uh community in terms of you know what will come through in terms of tax revenues, what will come through in terms of support, uh, what sponsorships will be available for numerous things. 00:35:26.800 --> 00:35:36.639 They are companies that take community involvement extremely seriously, and it's great to see that host also following through in that same strategy. 00:35:37.360 --> 00:35:41.440 Yeah, social responsibility, a big theme on the channel here recently. 00:35:41.679 --> 00:35:48.239 Now, the second clip we've got, this one very relevant today, Anthony, talking about capital becoming more discerning. 00:35:48.320 --> 00:35:50.800 So there was a lot of money flowing into this space. 00:35:50.960 --> 00:35:57.840 Now they're being a lot more selective in terms of where the financing's coming from, the interest rates, uh, the backstop. 00:35:58.079 --> 00:36:00.960 So this is another awesome clip from the interview. 00:36:01.519 --> 00:36:05.760 Financing risk, particularly the debt load in what's happening in aggregate. 00:36:06.320 --> 00:36:09.039 We're concerned, you're concerned about that. 00:36:09.440 --> 00:36:12.400 Well, I got white hair early on because I was always concerned. 00:36:12.559 --> 00:36:20.960 I mean, when we look at kind of how credit works, you know, credit is readily available and then it becomes discerning over time, right? 00:36:21.119 --> 00:36:24.000 And at this point in time, credit is becoming discerning. 00:36:24.239 --> 00:36:27.440 That's not a crazy statement, it's reality. 00:36:27.679 --> 00:36:37.039 And, you know, from our perspective, we think it's healthy because credit, when it's just readily abundant and available, eventually that causes bubbles. 00:36:37.199 --> 00:36:42.320 We think that the actual the market is is actually looking at it more logically now. 00:36:42.480 --> 00:36:48.320 And it means that you're having a little bit of a pause, you know, from the perspective of, oh, let's just do any deal. 00:36:48.400 --> 00:36:54.880 To now let's look at actual counterparties, let's look at cash flows, and let's look at we're getting our cash back, right? 00:36:54.960 --> 00:36:58.000 Because what what a credit, what do credit investors care about? 00:36:58.159 --> 00:37:00.719 They care about getting their money back with a return, right? 00:37:00.800 --> 00:37:02.000 And that's all they care about. 00:37:02.159 --> 00:37:08.880 So I think it's just changed the dynamic in some ways, um, but all healthy and all in a logical cycle. 00:37:09.199 --> 00:37:13.599 I like Sean's point on here that you know it's not going to be ready available. 00:37:13.679 --> 00:37:15.440 There'll be some checks and balances. 00:37:15.599 --> 00:37:20.559 You don't want to issue out um loans to every uh company that comes along. 00:37:20.639 --> 00:37:24.159 There are some good actors

out there, but equally there's some bad actors out there. 00:37:24.320 --> 00:37:39.039 We've seen this already in terms of permitting now, has taken a change in terms of there's got to be a number of um uh standards that each of these companies have to adhere to uh before they'll be issued permits for power. 00:37:39.199 --> 00:37:48.239 I think the same will be certainly in terms of issuing um uh the available debt uh for these companies to raise capital. 00:37:48.400 --> 00:37:57.039 And so I'm in I'm in favor of this because this will certainly um select the ones that can and ones that can't deliver uh very, very quickly. 00:37:57.280 --> 00:37:59.360 And Sean, equally good to raise that point. 00:38:00.400 --> 00:38:01.280 Yeah, agreed. 00:38:01.360 --> 00:38:10.079 Now the next story, Core Scientific, again, a good segue talking about community involvement and about executing, bringing these data centers online. 00:38:10.239 --> 00:38:16.960 They actually reached out to some of the first responders in the local community and had them on a walkthrough of the facility. 00:38:17.440 --> 00:38:23.679 Yeah, and we we've been through uh quite a number of facilities last year, and I've been to a couple of other ones in previous periods as well. 00:38:23.840 --> 00:38:28.079 This one looks pretty much um, you know, high high class here. 00:38:28.159 --> 00:38:30.239 You can see it looks extremely clean there. 00:38:30.320 --> 00:38:41.679 There's no site of any ear defenders there, I'm not quite sure it's a Bitcoin mining site there, but great to see the involvement uh bringing these people in there just to highlight uh what they're doing. 00:38:41.760 --> 00:38:49.119 I'm I'm more than certain that these organizations are involved in all the safety aspects of these companies before they do go live. 00:38:49.280 --> 00:38:58.000 There's a lot of commissioning in place, and you'll have to have a lot of certification before you can do any any energization for any long-term periods. 00:38:58.079 --> 00:39:15.840 But um, again, it's bringing in a community, uh bringing in these first responders, and then word of mouth will filter out to the communities uh from these people as well to highlight that it's you know it's what the opportunities these data centers bring and not all the negativity all the time. 00:39:16.480 --> 00:39:18.800 Yeah, education awareness critical there. 00:39:18.880 --> 00:39:29.760 And actually, Saluna mentioned to us on an interview they had the fire department out to their data center seeing if they have the equipment, the technology to handle some sort of a fire at these types of facilities. 00:39:29.920 --> 00:39:36.320 Keep in mind these are rural fire departments that in many cases have never seen a data center in their jurisdiction. 00:39:36.480 --> 00:39:40.719 Uh, speaking of Soluna, another big pickup from Microsoft here, Anthony. 00:39:40.880 --> 00:39:44.079 We've seen a lot of synergy between Microsoft and Saluna. 00:39:44.239 --> 00:39:50.159 So I don't know if this is foreshadowing or not, uh, but adding a big position VP of planning. 00:39:50.480 --> 00:39:54.880 Yeah, so uh Mikhail Stark is uh welcome to the team there. 00:39:55.039 --> 00:40:08.800 Um as the VP of planning, she'll uh be supporting the data center development team as well as advancing their AI pipeline and scale the mission to make renewable energy a global superpower. 00:40:09.039 --> 00:40:27.039 And if you look at um her resume, she's spent the last 11 years, nearly 12 years, at a certain Microsoft holding director positions in data center schedule management, development, construction scheduling, and data center construction special project. 00:40:27.199 --> 00:40:32.559 So brings with her a lot of experience in all the right areas for the company. 00:40:32.800 --> 00:40:39.760 We've seen this now more than happening with every company we talk about in getting those, bolstering those teams there. 00:40:39.840 --> 00:40:55.679 This is not um Bitcoin mining, this is uh this is high performance compute AI, this is a total different strategy, and you want to make sure you've got the expertise throughout the company to help you deliver this, and this is what we're seeing happening now from every company. 00:40:55.760 --> 00:41:12.239 Uh, we're highlighting you know new appointments at the senior level pretty much on an every other day basis, and so this will continue as these companies grow out, and it's just interesting that they're managing to find key people from my uh you know, some of the hyperscalers. 00:41:12.320 --> 00:41:13.199 This is not the first. 00:41:13.280 --> 00:41:23.119 We've seen a number of big appointments across the board from the likes of Microsoft, Google, uh, Meta, um, AWS, etc. 00:41:23.360 --> 00:41:23.679 etc. 00:41:24.079 --> 00:41:28.079 So um great for Saluna, bolstering that team there. 00:41:28.320 --> 00:41:35.119 Um, and we've had the pleasure of going to their site in Silverton, uh, seeing Dorothy One and Two firsthand. 00:41:35.199 --> 00:41:37.679 Dorothy 3 is going to be built at that site there. 00:41:37.840 --> 00:41:39.760 That's going to be one of their flagship sites. 00:41:39.840 --> 00:41:44.639 They've got a 50 megawatt uh LOI signed with Applied Digital. 00:41:44.960 --> 00:41:52.320 Um Soluna putting in the the power and the land into that uh into that joint venture. 00:41:52.480 --> 00:41:57.679 And what um Applied Digital do, they'll match the capital there, and it's a pretty much 50-50. 00:41:57.760 --> 00:42:08.880 I think it's 51% uh applied and 49% Saluna, so pretty much 50-50 all the way through on this deal, and it sort of like really highlights uh the real potential. 00:42:09.039 --> 00:42:19.840 I mean, you look at the size of these companies, and they're a million miles away from each other in terms of market capitalization, but it looks like it's a good fit, and everyone's looking to get power. 00:42:20.000 --> 00:42:27.360

And if it means going down the joint venture route, look at Mara, they've gone down a joint venture route with one of the biggest data center builders, Starwood. 00:42:27.519 --> 00:42:30.159 Uh, we're still waiting for that deal, Fred. 00:42:30.239 --> 00:42:41.599 So um, hopefully, we'll get something um announced in the near future, maybe around earnings to highlight something's happening there because we could really do with a pickup in the uh in the share price there. 00:42:41.840 --> 00:42:50.000 But uh it's great, as I say, great to see a lot of new um incoming talent to these companies and the right the right calibre of talent too. 00:42:50.320 --> 00:42:52.639 No kidding, yeah, some big appointments there. 00:42:52.880 --> 00:42:54.559 Final story here, iron. 00:42:54.960 --> 00:43:00.000 Just looking at the live trading, Anthony, down nearly 10%, 2365. 00:43:00.400 --> 00:43:03.679 So a new 52-week low today for Iron. 00:43:04.000 --> 00:43:06.639 Uh, they came out with a tweet from GTC Berlin. 00:43:06.719 --> 00:43:09.119 We talked a lot about the full stack integration. 00:43:09.280 --> 00:43:12.719 This was a big concern from semi-analysis with Iron. 00:43:12.960 --> 00:43:15.360 Are you gonna be able to integrate the software layer? 00:43:15.519 --> 00:43:25.760 Uh, they actually took the opportunity to present this live at NVIDIA GTC Berlin and had a full audience there for uh the full stack observation. 00:43:25.920 --> 00:43:28.000 So interesting development at Iron. 00:43:28.079 --> 00:43:36.239 Again, we're hopeful we get some meaty updates from earnings, but share price-wise, Anthony, we are struggling across the board today. 00:43:36.559 --> 00:43:47.280 Yeah, there's a there's an even bigger downturn since we started the podcast with many of the stocks now in double-digit um red positions, and uh not a great end to the week. 00:43:47.440 --> 00:43:51.760 Um, some tricky stories to go through today, some positive stories to go through as well. 00:43:51.840 --> 00:44:09.280 I mean, the expenditure of those uh four hyperscalers, that$200 billion just in a quarter, um, some of that money is going to flow into some of these companies that we talk about because you know they're out there looking for the for the power, uh looking to place their GPUs. 00:44:09.360 --> 00:44:11.039 And guess what's uh available out there? 00:44:11.199 --> 00:44:16.480 Many of the sites that we talk about on a regular basis are still waiting for contracts to be signed. 00:44:16.639 --> 00:44:18.800 Think of that big site, Corsi Carna. 00:44:18.880 --> 00:44:32.800 There's a number of sites in Pennsylvania, uh MARA have got a couple of sites, Clean Spark have got a couple of sites in in Texas as well, plenty of sites out there, plenty of contracts to be signed, plenty of investment in capital expenditure. 00:44:32.960 --> 00:44:39.119 Um, I think we you know we will get through this rocky period, and the future will certainly look a lot brighter a few years down the line. 00:44:39.199 --> 00:44:44.000 We want to see these revenues come through, their income statements that will highlight the positivity. 00:44:44.079 --> 00:44:48.079 I think the unknown at the moment is, you know, we're talking about everything like that. 00:44:48.239 --> 00:44:51.519 Nothing's happening from a from a from an earnings perspective. 00:44:51.599 --> 00:45:07.360 Some of these companies will have really uh limited earnings because they're not bringing any revenues in, and they're obviously spending hundreds of millions of dollars, in some cases, billions of dollars, to build out these sites before a penny of revenue comes through the door. 00:45:07.519 --> 00:45:20.960 So that's the challenge, but we can see fundamentally that these contracts stack up, and hopefully, um, you know, the opportunity now is to look at some of these stocks and see where you know there's some big value. 00:45:21.119 --> 00:45:27.679 Just highlighted that iron now down to its 52 week low, as are many of the other stocks we talk about daily. 00:45:28.159 --> 00:45:30.079 Yeah, really testing the patience here. 00:45:30.159 --> 00:45:34.400 But if you want to get the big returns, you have to wither the big downturns, Anthony. 00:45:34.480 --> 00:45:36.480 We'll see you guys back here on Monday. 00:45:36.559 --> 00:45:39.840 Uh, make sure you check out the Eric Jackson video that went out yesterday. 00:45:40.000 --> 00:45:43.039 Some very interesting price targets there in relation to HUT. 00:45:43.199 --> 00:45:47.360 Uh, let us know your thoughts on today's market, and we'll see you here next week.