April 23, 2025 • 42 mins
Bloomberg’s Caroline Hyde and Ed Ludlow discuss the market gains on the hope of easing trade tensions. Plus, Tesla retail investor Alexandra Merz discusses Elon Musk’s plan to step back from government and why she thinks the company can dominate in full-self-driving. And Jack Mallers, CEO of Twenty One Capital explains how the new Bitcoin firm started by Cantor Fitzgerald, Tether and SoftBank plans to build wealth for investors.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news from the heart of
where innovation, money and power collide in Silicon Valley and beyond.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 2 (00:34):
Live from New York and San Francisco. This is Bloomberg
Technology coming up.
Speaker 3 (00:38):
A U turn for Tesla.
Speaker 2 (00:40):
Shares rise as Musk vows to pull back from doge plus.
Speaker 4 (00:44):
News of potential job cuts send Intel shares soaring.
Speaker 2 (00:48):
And Counterfeitzgerald teaming up with Tether and SoftBank to start
its own crypto firm led by Jack Mallers. We have
him live later on in this hour. The first that's
check in on the markets and bigcoin is on the
high side, so to a stocks Let's look at how
the NASDAC is currently adding to a two day gain
that is the best two day gain in about ten
days since April tenth. Were actually about two weeks now.
(01:09):
We're adding about six hundred billion dollars in terms of
market capitalization to the NASDAK one hundred and I'm looking
at the magnificent seven.
Speaker 3 (01:14):
It really is big tech on top.
Speaker 2 (01:16):
We're at four point eight percent and what are you
looking at in the micro I'm looking.
Speaker 4 (01:20):
At Tesla and a stock that is up eight percent,
and frankly, it is shocking when a company misses earnings
by that wider margin, which we'll go through later in
the show, and the stock reacts in this way. And
it's about a single story Elon Musk key Man Risk
and him saying next month May I will pair back
the amount of time that I'm spending on Doge and
(01:40):
I will allocate more time to Tesla. It's exactly what
the market wanted to hear, and we throughout the hour
and to go deep on that name because it's such
a critically important one.
Speaker 3 (01:48):
Carrot, Let's talk.
Speaker 2 (01:50):
A little bit more about US Treasury Secretary Scott Besson.
He's soothing the markets further with a recognition that America
first does not mean America alone.
Speaker 3 (01:59):
He also showde for the IMF and World Bank.
Speaker 2 (02:02):
He shared some support, but he spoke of the need
to course correct Bluemox. Kaylee Lines has more from DC.
This seems to be a calming, a soothing to the
market that's going on right now.
Speaker 5 (02:14):
Well, yeah, and you're seeing that evident in the price
action today, Caroline. This is just another instance of a
kind of a tone shift we've seen from the administration
over the last several days, as there has been, of course,
a lot of disdain for multilateral institutions emanating from the
Trump White House. Scott Vessant, to some extent, putting the
worst of those fears to bed, saying that the administration
is willing to work with the IMF and World Big
(02:34):
so long as they keep to their missions and avoid
what he called mission creep focusing on things like carbon
footprints or climate change. He also, to your point, the
key line that investors likely will seee on here is
America first, does not mean America alone. Kind of underscores
that this administration is trying to pivot away from perhaps
the worst case scenarios the markets had considered around American
isolationism and protectionist policy. Keeping in mind that today's speech
(02:56):
came after Scott Vessant yesterday told a closed door meeting
of investors that the current tariff situation with China specifically
is unsustainable that he expects a de escalation. President Trump
then followed those remarks, speaking in the Oval Office to
reporters yesterday by saying he does expect a deal with China,
that the ultimate terriff freight will be well below the
one hundred and forty five percent where it currently stands.
(03:17):
And of course, we got some fresh reporting from the
Wall Street Journal today that the administration could be looking
at cutting those tariffs on Chinese goods by as much
as half, in the range of fifty to sixty five percent,
depending on the product and whether or not it is
pertinent to US national security interest. So we're seeing kind
of a walking back of some of these most extreme policies.
I would point out, though President Trump right now is
speaking with reporters on the north lawn of the White
(03:38):
House and still reiterating that he thinks both China and
the European Union have been ripping the US off, though
he reiterated he does think they will get a fair.
Speaker 3 (03:46):
Deal with China.
Speaker 4 (03:47):
Bluemos Kye Lines in DC, thank you very much. Just
turn back to Tesla. The company's rise in the market
today can be attributed to one key moment on the
earning School yesterday.
Speaker 6 (03:59):
Starting in next month, may my time allegation to do
as will draft significantly. I'll have to continue doing it well.
Speaker 7 (04:09):
I think we appoy the remainder of the President's just
to make sure that the waste and fraud that we
start does not come roaring back.
Speaker 4 (04:17):
Plas saying he will allocate more time to test the
starting in May, reducing his doge activity from more. Let's
go to Bloomberg's estraday and I go back to irrespective
of what must just said on the top and bottom line,
this was one of the worst courses for a long time,
but Wall Street and investors around the world are looking
past that.
Speaker 8 (04:34):
Yes, that's absolutely right.
Speaker 9 (04:35):
I mean, whichever way you will.
Speaker 8 (04:36):
Slice these numbers, these were absolutely terrible numbers, numbers that
have been not been seen in years for especially when
you go to first quarter comparisons. Despite that, expectations were
that numbers will be terrible, So that was kind of
built into the stock, and that exactly is what the
(04:57):
stock market.
Speaker 3 (04:57):
Is telling us.
Speaker 10 (04:58):
Like the stock is up five person last I checked,
and a lot of it is really coming on from
the fact that Musk is now saying that he will
start pulling away from his government work and kind of
focusing back on Tesla, and this is exactly what investors
were hoping to hear.
Speaker 4 (05:17):
Now up eight percent near session highs Bloomberg session day.
Thank you very much for more on Tesla. William Stein
Truest Securities Managing director joins us now he maintains a
hold rating on the company with a price target of
two hundred and eighty dollars. You know, well, you're traditionally
a semiconductor analyst, right, you think about compute and you
think about AI. But I did note in your research
(05:39):
that you, even against your own models, the fundamentals of
this business missed by a really wide margin. Just take
me through that data set that you have and then
we'll get onto the other stuff like ROBOTAXI and AI.
Speaker 11 (05:53):
Yeah. I don't mean to be disagreeable or controversial, but
I on mysef very clearly that that you know, when
we look at results of companies, you know, it's important
to understand both the broker or cell side aggregate consensus
(06:13):
but also the byside consensus view. The company had already
updated investors in the street with delivery numbers about a
month ago, and I think many investors had not updated,
or at least on the cell side, had not updated models.
So when you compare versus sort of the so called
consensus numbers, it looks like this huge miss, but in reality,
(06:38):
you know, relative to our model that had been updated,
and I think compared to other models, where if you
looked at just the consensus of updated estimates, the miss
was not very big. In fact, you know, relative to
our model, only one and a half percent on revenue
actually beat on gross profit, missed on operating profits somewhat,
(06:59):
and they missed on by six cents. This was not
like some disaster, at least relative to what we were
expecting following the update a month ago. They were somewhat
disappointing results relative to what we expected. The disappointment came
in two places. One was in energy forage and generation,
(07:20):
so that you think about solar roots and megapacks and
that sort of thing. And the other was operating expenses,
where they accelerated some AI R and D investments, And
you know that's I don't think the end of the
world for investors. In fact, one could take a positive
spin on that.
Speaker 2 (07:37):
William I get that perhaps it doesn't miss versus downgraded expectations.
But a profit dropped the worst profit numbers is twenty
twenty one. A revenue drop nevertheless shows real fundamental issues.
Here are the fundamental issues going to be alleviated by
more time spent at the company by musk.
Speaker 11 (07:58):
Oh, I think in at least two ways, right, I mean,
the two sort of obvious ways are. Number One, if
you accept the supposition that Musks in the way that
the investor relations team has described it to me that
his greatest superpower is in delivering huge technological advancements by
(08:21):
spending very little money but just very focused talent, then
it's a big positive from that perspective. And the other
is to moderate what I think musk characterized as political sentiment.
I think spending less time in the public eye doing
(08:42):
government projects will be good for the stock.
Speaker 2 (08:46):
We want to thank you so much William Stein, who's
been joining us from Truest Securities. I know you're a
man who focuses a lot on the AI opportunity, a
lot on the semiconductor space as well, so we appreciate
your time today. Meanwhile, though, coming up, we're going to
get more on semi conductors. Intel planning more than twenty
percent of job carts ahead of earnings tomorrow.
Speaker 3 (09:03):
More on that scub ahead. This is bluemin technology.
Speaker 4 (09:15):
Let's look at Intel shares surging after Bloomberg reported the
company's looking to cut more than twenty percent of its staff.
It will be the first major restructuring under new CEO
lit Bhutan Bloombazi and King joins us with more. This
is based on what a source told us, and yes
there's a bloat issue, right, but there's also a refocusing issue.
(09:38):
Reading the report, it's like, get rid of middle management
and focus on actually making some money on technology that's competitive.
Speaker 12 (09:46):
Yeah, I mean, I think our understanding from our sourcing
is that the problem is the decision making it. Intel
has become bloated that everything that should be happening quickly
isn't happening quickly. There's a lot of meetings, a lot
of you know, empire building, a lot of silos that
need to be swept away in order for them to
get back on track and to try and catch up
(10:07):
with competitors liking video and all.
Speaker 2 (10:11):
Eyes on how they can make moves in AI. In King,
we appreciate it. It was a great scoop that came out. Meanwhile,
looking at the broader tech markets and we've got on
called Crawford with us ALGA portfolio manager who can speak
more broadly to the tech space. But just going to
this need to focus in on generative AI. The opportunity
by a company like Intel. Is it still all about AI?
Are we able to focus on the long term opportunity
(10:33):
when you've got headlines just now from Trump saying well
that the US will have a fair deal with China.
Speaker 13 (10:38):
Yeah, I look, AI is the next revolution that we
have to chase. So it is important that Intel fixes
a house. But you know, I think Intel has kind
of lost the game on AI. What they have to
figure out is if they can hold the kind of
prowessign manufacturing and catch up with TSMC, because that becomes
(11:00):
a more strategic comparative then being able to develop a
competing AI chip to Nvidia.
Speaker 2 (11:05):
How ELSEO manufacturing there was meant to becoming more to
home Ohio for example. That then gets pushed back because
of current quandaries about whether there's gonna be government support
for the chips acts anymore, whether there's gonna be money
coming from the government. How is Intel any chip maker
currently to navigate whether they invest in the US or not.
Speaker 13 (11:24):
Well, definitively, we need to invest in the US. I
think the administration has made it very clear. I think
it is a necessity that we start investing in the US.
So I am completely on board with that. I don't
actually think that the lack of chip Act funding is
the reason that Intel is not investing in the US.
(11:46):
I believe that they've actually lost the benefit of being
first and they are struggling with going from one node
to the next. We'll see where they are on at
which is the next note. But as of right now,
they're still outsourcing to Taiwan Semi, which shows you that,
(12:07):
in fact TSM has taken the lead on these last
three notes.
Speaker 4 (12:11):
And we will find out more Thursday evening when Intel
post numbers, I think they'll have to answer a lot
of those questions. Earnings is so interesting right in the
context of everything happening around the world. I want to
bring up this chart, which is average GPS Surprise and
we're still kind of rattling our brains a little bit
on about the Tesla share performance in this session relative
(12:32):
to the numbers it posted. And the reason I like
this chart I find it so interesting is that actually
Tesla has a terrible track record compared to the other
mag seven names in positive surprise on EPs. That's all
to say, do you think that given the macro environment
right now, all of these names might get a bit
of a pass this quarter.
Speaker 13 (12:49):
Yeah, I think sentiment has gotten so dire that many
of these companies are putting up okay numbers. Like you
look at Iserge yesterday in healthcare, you know the numbers
were okay. However it was better than expected. Tesla the
same way. The numbers were okay, but they talked about
I think some of their growth drivers, which are humanoids.
(13:10):
They talked about how they're going to have autonomy by
the end of this year. I think he said millions
of vehicles by the second half of this year. And
even if it's not second half of this year, as
long as there's a roadmap to true autonomy, I think
that's what's going to drive the next leg in Tesla.
Not necessarily that the margins on the on the Auto.
Speaker 4 (13:27):
Side, they also pulled guidance. Do you expect that to
be a move elsewhere in the MAGS seven names.
Speaker 13 (13:35):
I think that we could get many companies not actually
giving any guidance because the uncertainty is high. So if
you're a CFO or a CEO trying to navigate this market,
you really have a hard time right now because you know,
what do you guide to? Do you guide to one
hundred and forty five percent terra for forty percent terra
(13:56):
from China? Do you guide to and what you're seeing today?
For example, invertive, i'veardive basically has assumed or an I
search have assumed you know, full tariff impact? So you
know I searched last night. The CFO said one hundred
and forty five percent tariff is what they have included
in their guidance and have guided that way just in
order to buffer any kind of impact on their earnings.
Speaker 2 (14:20):
You say it's difficult for a COO, CEO, a CFO
to navigate.
Speaker 3 (14:23):
Boy, is it also difficult for you and investor?
Speaker 11 (14:26):
Oh?
Speaker 13 (14:26):
For sure?
Speaker 2 (14:26):
So do you remain committed in the longer term? Do
you stick to the longer term narratives that have driven
these stocks higher over the last couple of years, or
do you pause?
Speaker 3 (14:35):
Do you take money out?
Speaker 13 (14:36):
So so, I think if you haven't taken your money
out already and protected yourself, now is not the time
to do it.
Speaker 3 (14:42):
So that's the first thing.
Speaker 13 (14:43):
Secondly, you know by September I would I will go
out on a limb and say, by September we are
no longer going to be talking about these trade wars,
and we will have moved on to something else and
maybe maybe we'll be looking at the midterms and how
great the economy is doing, but it won't be the
trade wars. So I think this is a kind of
a short term focus geopolitically to play a game that
(15:08):
the US the administration is currently playing. However, it will
be behind us shortly. You know, as we move forward,
the AI trade is still very, very prevalent and there's
no escaping it. That train has left the station. So
you know, yes, we will start again, and you know,
right now there's some very compelling opportunities in the market.
Speaker 4 (15:31):
Should America's biggest technology companies prepare for a recession?
Speaker 3 (15:35):
You know, tough to.
Speaker 13 (15:36):
Tell, and I think it's a it's a binary answer,
and in part because the policies are going to dictate
if we go into a recession. So you know, if
we do have one hundred and forty five percent tariff
and we keep ratcheting up these these tariffs on foreign
goods and we have a retaliatory effect, yes we are
(15:58):
going to go into a recession. And I would say
that there would like ninety some percent probability that that
would happen. If we can thread the needle and not
be quite as aggressive, the situation changes and maybe we
have a bit of a soft landing at you know,
one percent GDP growth instead of negative.
Speaker 4 (16:15):
GDP growth on core crawl food of Alsia. Great to
have you on the show. Thank you very much.
Speaker 3 (16:27):
The European Union.
Speaker 2 (16:28):
It's fine Apple and Meta for violating. It's tough new
anti trust rules for big tech. Now the finds total
seven hundred million euros about seven hundred ninety eight million dollars.
They're actually relatively modest compared to previously U finds, and
it's likely to be thought to be avoiding further provoking
President Trump for more. Let's bring in Bloomberg's Sam Stolten.
But it's provoked the hour of Apple and Meta. They've
(16:49):
got some fighting talk in response.
Speaker 7 (16:53):
In hasing days. Yes, hello Karenine here from Brussels. Yes, well,
Apple has said that it will actually appeal is fine,
and it's about five one hundred million euros against the
California firm. And Meta has gone even further with Joel Kaplan, who,
of course you'll remember, spent quite a few years himself
in the White House. But now Meta's global head of policy,
(17:14):
saying that this is a discriminative act from the European
Union and that it is continuing to unfairly targets American businesses.
So it's certainly a ratcheting up in these transatlantic tensions. Indeed,
metas find itself was a bit less than than Apple's,
it was only two hundred million. But generally, despite these
(17:37):
finds being lower than traditional anti trust penalties, they still
haven't particularly pleased firms on the other side of the Atlantic.
Speaker 4 (17:45):
The logic being that because they're lower than historic penalties,
they won't draw the hor of President Trump. He won't retaliate.
But I think that a spokesperson that for the E
that we spoke to you for the story, points out
that this had nothing to do with trade.
Speaker 14 (17:59):
Sam Yeah, I mean that's the message coming from the
European Commission. This is an independent regulatory action. It's got
nothing to do with the trade talks whatsoever. But the
scuttle butt here in.
Speaker 6 (18:11):
Brussels and around town generally is that, of course the
EU has had powers under the Digital Markets Act to
find these companies up to ten percent of global annual revenue,
and actually these finds are less than zero point one
point five percent of global annual revenue for both Matter
and Apple. So there is something that is holding the
(18:31):
EU back here, and it is more likely than not
despite what the European Commission says, these ongoing trade negotiations.
Speaker 4 (18:39):
Being there's Sam Stalton in Brussels, thank you very much.
Another story we're tracking, the co founder of Instagram says
the photo sharing app could have thrived without Facebooks. Kevin
Sistrom testified that Meta CEO Mark Zuckerberg treated Instagram's growth
as quote threat and starved the app of resources after
the purchase. The US government's c to prove the social
(19:01):
media giant created an illegal monopoly through its acquisitions of
Instagram and the messaging service WhatsApp curR.
Speaker 2 (19:08):
Yet more antitrust case is going on ed and the
Justice Department's effort to break up Google is one of them.
Mrks Dave Alba joins US on the latest out of
what is trying to find remedies to ensure that Google
no longer seems to be a monopoly. One of those
remedies the government wants is to sell off Chrome, and
seemingly there's a buyer for it.
Speaker 15 (19:25):
Yeah, Yeah, we heard in trial testimony yesterday that the
head of product for Chad gbt Nick Turley, from open Ai,
said that open Ai would be interested in buying Chrome
if it were actually for sale. Google of course does
not intend to sell it and is fighting sort of
(19:46):
this remedy that is proposed by the DOJ. But you know,
they will see how the rest of this remedies trial
goes and what judge Meta, the judge in this case,
eventually decides.
Speaker 1 (20:00):
DAVI.
Speaker 4 (20:00):
A point of intrigue is that Chromium, the underlying code
based for Chrome, is open source, right, and I think
Google will lean heavily into the idea that in the
browser market that's a really good thing. Has there been
any debatea that so far?
Speaker 6 (20:13):
Yeah.
Speaker 3 (20:14):
Absolutely.
Speaker 15 (20:14):
Google's defense in not wanting to spin off Chrome is that, look,
the underlying technology for Chrome is open source, and it's
used by different browsers from different companies, including Amazon's Silk Browser.
But the DOJ still contends that Chrome is a key
gateway into the Internet and Internet search specifically, and if
(20:38):
it were to be controlled by another party, then that
would help sort of break up the power that Google
has about users, data, users, queries, everything that feeds into
Google Search and improving that product.
Speaker 3 (20:56):
Bloo Books.
Speaker 4 (20:56):
Davie Albat, thank you very much. We have some breaking
news crossing the Bloomberg. Treasury Secretary Scott Besson says that
there has been no unilateral offer from Trump to cut
China tariffs. He is speaking to reporters on the sidelines
of the Institute of International Finance event in Washington, where
he was giving a keynote, and this is the keywording,
no unilateral offer from Trump to reduce tariffs on China.
(21:19):
There had been earlier reports, of course from the Wall
Street Journal that the President was considering a tiered approach
to tariffs, but the wording here incredibly specific. He also
has been commenting on remarks by the President about firing
Federal Reserve Chair Powell, saying that in Besson's case, the
(21:39):
Treasury secretary quote does not have a stand on the
Trump Powell firing remark. And Caro, that's something in the
market's context. With the Nazak one hundred pushing up three
point one percent that we've been tracking.
Speaker 2 (21:50):
Closely off of its highs, are still trading up on
the day.
Speaker 3 (22:01):
Welcome back to Bloomberg Technology and Caroline Heide.
Speaker 4 (22:03):
In New York and I met lod Loo in San Francisco.
Carry some moves in the market.
Speaker 2 (22:07):
Boy are their moves, and we may higher on the Nasdaq,
up more than three percent on the Nasdaq one hundred,
even as we try and digest some.
Speaker 3 (22:13):
Of the overall headline risk.
Speaker 2 (22:16):
Whether or not we're seeing a cooling down of tensions
around China, whether we have Trump having some more positive
narrative towards the country, but Scott Bessant coming out clearly saying, look,
there is no full China trade deal yet. It's going
to take two to three years. So we come off
of our highs a little bit. We're up two point
eight percent. No unilateral offer from President Trump to cut
China's tariffs as yet. But we look underneath the hood
(22:38):
with some of the individual stocks that are on the move.
I want to shine light on European trading. We just
finish SAP surged eight point eight percent. We had the
best innings in six years. They post really strong profitability
and a great backlog for their cloud orders. What does
that mean for the company that is run by Bill McDermott,
which is a service now of course he used to
run sap over in Germany.
Speaker 3 (22:58):
Now he runs service.
Speaker 2 (22:59):
Now up six point percent their earnings after the bell.
Will they post some resiliency? Remember they're exposed some and
the DOGE cuts across government. So two is IBM. We're
up just two percent ahead of their earnings after the
bell as well. Revenue is likely to flatline for that
particular business.
Speaker 14 (23:14):
Ed.
Speaker 3 (23:15):
Let's go back to Tesla.
Speaker 4 (23:16):
The stockers also pulled back literally in the last couple
of minutes on those headlines from Treasury Secretary Scott Bessen,
but still up seven percent. Not up on fundamentals or
the core of the earnings report, but literally the commentary
from Elon Musk that he will pare back time at
DOGE and add more time, allocate more time to Tesla.
Bloomberg's Craig two Dell, who leads our global coverage of
(23:37):
the auto industries with US. You and I have been
pouring through the commentary on the call and the earning steck,
and there are contradictions in there about the core business
demand hit from the backlash to DOGE, or is it
the brand or is it something else?
Speaker 16 (23:55):
Hello, I do think the first quarter we absolutely have
to acknowledge that the model why changeover was disruptive, right,
and it's going to take us some time to to
sort of parse, you know, just how much demand there
is for that that model. It is after all, Tesla's
most popular far and away and it's one of the
best selling vehicles in the world. You know, the question
(24:18):
is going to be, you know, how much can Tesla
rely on on that one vehicle and you know, can
it reliably continue to be you know, sort of a
one trick pony where the Model three has has you know,
been a letdown despite that vehicle getting a makeover recently,
and the rest of the lineup is is you know,
kind of sucking win. The cyber truck is not living
(24:41):
up to Musk's expectations in the least.
Speaker 2 (24:44):
Yeah, significant number in sales down for the cyber truck,
but there is going to be a cheaper model why
in the first half of this year. That's what helps
send the shares higher. So two is the Robotaxi outlook
for what's happening in Austin, and there was real recommitments
scenarios of the business.
Speaker 16 (25:04):
Yeah, I do think that there was a concern after
some reporting by by Reuters a few days ago that Uh,
maybe there was a setback in the timing for more
affordable vehicles that they've been you know, saying well, we'll
be on the way for the first half. I think
there was, you know, not necessarily a full throated denial
of that. There was a comment during the call about
(25:27):
you know, a ramp not going as as smoothly as
as hoped.
Speaker 4 (25:31):
Uh.
Speaker 16 (25:31):
And I do think that you know, the even even
the you know, driverless rides that they're going to start
in Austin, I think you know, Musk talked about that,
you know, being a pretty limited initial launch of you know,
just a handful of vehicles. So maybe some expectations setting
there in light of how you know, Musk tends to
(25:53):
really sort of promise the moon, it's maybe a little
surprising to see the shares jumped so dramatically, you know,
when you know, when some of these reasons for sort
of being swage were not necessarily forthroaded.
Speaker 4 (26:08):
Bloombergs Crage dool in London. Thank you very much for
more on Tesla. We're joined now by Alexandra Mertz, a
longtime Tesla shareholder on social platform x. She goes by
at Tesla, Booma Mama and is seen frankly as a
leader among the very large group of retail investors that
follow the ev maker closer. She's also the CEO and
founder of L and F Investors Services. Alexandra, thank you
(26:30):
for joining us back on Bloomberg Technology. Let's just start
with the basic reaction you have to Elon Musk opening
the call saying, starting in May, I will pair back
the amount of time spent on Doge and allocate more
time to Tesla.
Speaker 9 (26:45):
Thanks for having me ed yes with pleasure. Well, first
of all, I wanted to thank Elon for having done
the job at Dodge. He's been doing this has been
important for any US taxpayer and for anybody that's interested
in the United States becoming the power it should be.
And he has been stellar in getting this organized. How
he is stellar in organizing anything, So I'm really pleased
(27:07):
he puts some time and effort into this. It's always
been clear both by Elon and by President Trump that
this would be limited in time for his full time,
a full time allocation of time. But this is coming
to an end in May, which is not surprising at
all other than people who may not have listened. So
(27:27):
him dialing it down to one to two days a week,
and do remember Elon's week is a seven day week
and not a five day week, So him dialing it
down to one to two days of Dodge oversight and
still being available to it doesn't mean he's completely backing
out of it. We're happy as Tesla shareholders that he's
going to put more time into Tesla, but frankly, nothing
(27:49):
has been delayed or missing the four or five months
that he has now been with Dodge. The launch of
the new model why simultaneously in four factories and three continents,
shows how strong the Tesla team is, whether Elon is
in Washington, DC or somewhere else in the world. So
there is really you know, there was no concern whatsoever
(28:11):
and people being surprised by the stock going back up.
As Greg said, I think they have not watched what
Tesla is actually going to accomplish.
Speaker 4 (28:21):
Alexandria something you just said that nothing has been missed.
I was also trying to understand there was some contradiction
between what Elon must said on the demand side and
absence of macroeconomic impacts. They don't see an impact of demand,
but the CFOs in Asia was quite clear about the
brand impact in the quarter, the first quarter and quote
(28:43):
the changing political landscape having an impact on future sales.
I have a question for you from X from the audience,
from one of your fellow community members essentially, and it
asks you you usually live in California, what is your
gauge of quote brand damage given your geography? And that
question comes from Farzad.
Speaker 9 (29:05):
Yeah, that's a very good question of Farzad. I honestly
hear in Santa Barbara don't see any impact. There are
more Teslas out there. I picked up my new model
why last Saturday, and the Tesla Center was busy. It
was crazy actually, But at the same time, from ten
to twelve there was the typical Saturday morning protestation in
front of the teslast always the same people. They get
(29:28):
carried in with buses at ten o'clock, they start at
twelve o'clock, they go off. And this will have an impact.
This has an impact on people that probably would not
have purchased Tesla's but still want to make noise. On
the other side, on the upside, there is now a
whole new Cleontele. We're seeing many people that have never
considered EV's now considering EV's And in particular Tesla's and
(29:50):
so you know it is give and take. I'm not
saying it was completely without brand damage, but clearly the
overall goal of Tesla putting real a on the streets
being the one vector that will be the one transporting
anybody and everybody in the next decade. That hasn't been
changed in anything.
Speaker 2 (30:10):
But Alexandra, they're kind of late to that party, certainly
slower than Weimo. I got my Weaimo in Arizona just
last week. What of the rollout and when it becomes
a real business.
Speaker 3 (30:21):
Model action here?
Speaker 9 (30:23):
That was actually the key phrase I found yesterday in
the in the Earning School when Elon for the first
time quantified when he expects significant revenues from full self drive,
which he set by middle of twenty twenty six, and
that is just around the corner. So and the Weymo model.
That was actually really a fun moment because the whole
(30:47):
team there had a good chuckle about Waymo costing way
more money. I mean, as you know, Weimo is built
on other companies vehicles, is very expensive and is GEO fenced,
so it is in no way comparable. But I mean
no doubt they have done a great service of bringing
(31:08):
full self driving to the masses and have to be
congratulated for it is in no way comparable what Tesla has.
Tesla's will work everywhere, as has been proven with the
rollout of FicT in China, they had hardly any any
information on Chinese roads, yet were immediately able to adopt
first to China.
Speaker 2 (31:27):
Alexandra is always great to have you on the show.
Thanks you for our taking losing so Alexandra Marts of
L and F Investor Services. Now coming up, Jeff Rosenthal
joins us to discuss his new venture capital funds CIV,
back in tech startups tackling energy and manufacturing as a
blue meg technology, There's a new venture capital fund on
(31:52):
the scene, CIV, launching with an inaugural two hundred million
dollar fund to back startups trying to reshape manufacturing electrician
compute needs. Jeff Rosenthal, co founder a managing partner of CIV,
joins us.
Speaker 3 (32:03):
Now, you've got some big.
Speaker 2 (32:04):
Names behind you as well, some real founders in USV
for example, Fred Wilson's on board grins shotwell as well
of SpaceX. Where are you already allocating the money because
you've already invested in certain startups.
Speaker 17 (32:17):
Yeah, you know, we built this firm for a specific purpose,
and that is to back and build companies focused on
critical infrastructure and industry here in the US, and so
that spans digital infrastructure, robotics, AI and compute. Really guided
by this fast moving, fast approaching set of megatrends with
(32:39):
AI and compute and the power needs behind it, the
reshowing and reindustrialization of global industry following COVID Ukraine and
now a new administration, and really just the electrification of everything.
So we're seeing this inflecting demand, you know, driving this
demand and supply, and it now is not only a
deep need for our economic well being, but it's also
(33:00):
national security issue.
Speaker 4 (33:01):
Jeff, when did you conceive the idea for the firm
and the fund and when did you start building it,
because clearly this is very much in line with what
this administration is trying to do in America with heavy
industry of different types.
Speaker 17 (33:14):
We started building this firm a couple of years ago. Really,
you know, thinking about the origination of the idea of
backing and building in these spaces, I don't think that
we could have predicted that these trends would have accelerated
the degree that they have in the last say six
to twelve months across nuclear and critical infrastructure, supply chain, logistics, manufacturing.
(33:36):
But you know, we have both the background in investing
in these themes but also building companies in these things,
and so we're not just passive capital. We actually also
roll our seeds up.
Speaker 2 (33:45):
I mean, you've invested in SpaceX, Patrick has founded a
clean energy business, You've got a a joy over from COT.
But what of the thesis of where you invest in
how you actually seed but also co found businesses like
a new me a business.
Speaker 3 (34:00):
So what's the recipe here?
Speaker 17 (34:02):
Yeah, so we're principally an investment firm. We spend the
majority of our time in capital really identifying and then
earning the right to back the best founders when we
have a really defined thesis, a real right to win,
and a partner who is going to lead that business
as the active co founder and CEO.
Speaker 3 (34:19):
Only then what we co.
Speaker 17 (34:20):
Found businesses on platform. So before we raised in the
outside capital, really to prove the thesis to ourselves ourselves,
we made six investments, five or direct investments in companies
like base Power, Crux, Verse Center Systems, and then our
first build company As you mentioned, we co founded the
Nuclear Company, which is a fleet scale nuclear developer really
powering AI.
Speaker 4 (34:41):
In large gale industry here in the United States, Jeff,
Manufacturing and growing manufacturing requires capital. It's expensive. You're looking
at the early stage. So what are the innovations that
you hope to find that I guess lower the cost
of doing business in this country or something of that effect.
Speaker 15 (34:57):
Yeah.
Speaker 17 (34:57):
Absolutely, I think that when you look at just the
cost of doing business in this country, when we think
about the reshoring of heavy industry or critical industry, one
of the things that people will point to as a
major challenge is just the cost of labor. And I
think that there's a lot of technological innovation across robotics
and AI that gives us confidence that that is something
that we will be able to compete on a global
(35:18):
scale here domestically. The beauty of many of these businesses
compared to say, traditional venture capital Silicon Valley style software companies,
is that they scale often with non deleute of capital.
So we focus on businesses that are actually highly efficient
to equity and then can scale with asset capital or debt.
Speaker 4 (35:36):
Jeffros Civ, co founder, managing partner thank you for joining
us here on the show.
Speaker 2 (35:48):
Crypto News Counterfitzgerald is teaming up with Teather and SoftBank
to create a new crypto company called twenty one Capital.
It's going to be accumulating bitcoin in a similar fashion
to say that of Michael Sailor's strategy, plans to lord
more than forty two thousand bitcoin, of course worth more
than four billion dollars.
Speaker 3 (36:03):
And Jack Mallis is also co founder.
Speaker 2 (36:05):
He's CEO of twenty one Capital, and he joins us,
Now we asu you have you on because a strike.
Speaker 18 (36:10):
Can get me fired up.
Speaker 3 (36:11):
How you doing, Calind Good to see you Jack. When
did this idea come to buy?
Speaker 6 (36:16):
Uh?
Speaker 18 (36:16):
The founding story? So I co founded the business with Tether.
I would say I've known the Tether group for over
a decade. There just weren't that many bitcoiners around over
ten years ago. So we you know, we've done a
lot of work together in El Salvador, et cetera. We've
been so inspired by Michael Saylor and all of the
public companies acquiring bitcoin. But I would say over the
last few years that inspiration turned into what we thought
(36:38):
was an opportunity and a hole in the market that
we could deliver on which is bringing blue chip credibility
and startup upside. We feel like we can bring enough
capital and be big enough to win. We're small enough
to grow, and most importantly, a pure bitcoin business. A
lot of these companies, they're pivoting from a past operating business,
they're rebranding, changing their name. They're maybe selling video games
(36:58):
to buy bitcoin, or selling medical equipment to buy bitcoin.
And we're a purpose built bitcoin company. We're gonna build
bitcoin products, bitcoin cash flow, and we're going to give
bitcoin per share growth to shareholders and be hopefully the
best way for investors to get bitcoin exposure in the
public markets.
Speaker 4 (37:13):
Jack, I think off camera just before we started to
use the word vehicle at vehicle for bitcoin, I think
like a reasonable question that people have is what does
the CEO of a new company whose mission is to
accumulate bitcoin do day to day? What is it that
you're going to try and manage or achieve.
Speaker 18 (37:30):
Yeah, So for all the bitcoiners out there, we encourage
you to check out our filing. We've introduced two new
metrics to the public markets. One is BPS stands for
bitcoin per share as opposed to earnings per share, and
the other is BRR, which stands for Bitcoin return rate.
And my job and what I'm dedicated to do for
our shareholders in which we view similar to our customers,
is grow our bitcoin per share. So we're an operating company,
(37:54):
and when you buy a share of twenty one in
a hypothetical sense, what we intend to do is, let's
say our bitcoin per share zero points zero five, our
intent is to be able to grow that to zero
point zero six bitcoin per share zero point zero seven
bitcoin per share. Where a vehicle, like an ETF, your
exposure is static. So twenty one is an operating business
and we will be building bitcoin products, bitcoin operative cash flow,
(38:16):
and then using the capital markets to accreatively grow the
bitcoin on our balance sheet. So we want our shareholders
to get wealthier, get richer in bitcoin terms, and our
metrics encourage the market to view us, not in fiat terms,
in bitcoin terms, because we're not here to necessarily beat
the market. We're here to build a new one and
encourage the world to adopt bitcoin in a sense that
we believe it hasn't yet.
Speaker 2 (38:38):
But Jack, you already have a bitcoin product and it
strike yes, and it's where people can buy, sell, stall
that crypto. Well, how much of that are you still
going to be leading that business?
Speaker 13 (38:47):
Yeah?
Speaker 18 (38:47):
And the CEO both companies we're actually disclosing today X
Strike some of our financials. So Strike immensely profitable. We
have over twenty percent even a margin, eighty five percent
gross profit margin. We have only twenty five employees, so
on a grosser net profit per employee basis, we got
to be one of, if not you know, the biggest
in the bitcoin space in that regard, and so it's
(39:09):
an incredibly strong business. It's doing well. I'm so proud
of the employees and our investors, and thankful for our customers.
And you know, Caroline, you can just do things. And
I'm going to lead both businesses. I truly believe my
purpose on this planet is to try and help bitcoin
have a chance to change the world. And what I
believe is the right direction, and I think Strike in
twenty one both independently work towards that.
Speaker 4 (39:31):
Jack, you have plans to raise capital, and I guess
not just like as a one off over time raise capital, Right,
how will that work in practice? What mechanisms we use?
And a lot of people that watch the show like
ask if they're not registered institutional invest is like, how
can they participate in that?
Speaker 18 (39:47):
Yes, I thought for a second you were going to
offer me some money to buy some bitcoin.
Speaker 4 (39:51):
Absolutely not, absolutely not. Can and go with my actual question.
Speaker 18 (39:55):
No, totally, So listen. We are hopeful to have our
share listed on a stock exchange under the ticker XXI.
Today we are trading under CEP, which Caroline mentioned is
our Canter Equity Partners, and that stock is trading and
live today. If it's successfully merged, upon closing, it will
be XXI. We do intend to raise as much capital
(40:17):
as we possibly can to acquire bitcoin. Again, my one
rule to my shareholders is it will be a creative
Our bitcoin per share will grow. We will never have
bitcoin per share negative at least that's our intent. Our
intent is to make sure that when you're a shareholder
of twenty one that you're getting wealthier in bitcoin terms,
and that's my job as a CEO to deliver that.
So we plan on raising capital in all different type
(40:40):
of sectors in markets and really blending bitcoin and incorporating
it in the traditional financial system to deliver a powerful
equity to the public markets.
Speaker 2 (40:48):
For bitcoiners is that the selling poin versus ETF because
you came up with this idea over the course of years,
and since that time there's not just been strategy that
you can invest in or block, but you can get
st bitcoin ats what's the upside? And in fact, a
viewer from boombergs asking like, how can you have more
bits than an ATF?
Speaker 4 (41:07):
Right?
Speaker 18 (41:07):
Okay, So I gotta be clear, I'm not preaching a
future that I can I can promise. This is hypothetical
and this is our intent Somewhere. My lawyers are like,
that's our guy, right, But our intent, Caroline, is that
when you buy a share of twenty one, and let's
say that's zero points zero zero five bitcoin per share,
we go out and we intend to close deals, build products,
(41:28):
add bitcoin to our treasury, to where in which you
get a press release and you say, wow, twenty one's
bitcoin per share group from zero points zero five to
zero point zero six. I just got more bitcoin exposure.
I got wealthier in bitcoin terms, just by being a
shareholder of this company. And ETF is not an operating company,
you know, IBID is an outgrowing your exposure to bitcoin.
(41:49):
It's a static exposure through their security instrument. Whereas for
us we're a business. I'm a CEO. I get up,
I work every day to grow how much bitcoin your
share represents on our balance sheet, that's the big difference.
Speaker 4 (42:00):
Twenty one Capital CEO Jack mallers Endstrike CEO. Great to
have you back on.
Speaker 2 (42:05):
The show, Caro, And that does it for this edition
of Bloomberg Technology.
Speaker 3 (42:09):
Are busy one ad?
Speaker 4 (42:10):
Yeah, let's just quickly look at some of the names
we care about. Tesla it's up because Elon Mask has
pledged to return to Tesla, less time at DOGE Intel
Bloomberg Reporting is cutting twenty percent of staff, getting focused
on tech, cutting out middle management, and the market broadly's
pulled back right carrow since those bestent heads. But there's
green on.
Speaker 2 (42:29):
That screen, green on the screen as we anticipate IBM
service now earnings, and of course we've got Intel tomorrow.
Speaker 3 (42:36):
Don't forget to check out our podcast. You can find
it on the terminal as well as online
Speaker 2 (42:39):
On Apple, Spotify and iHeart this is Bloomberg Technology.
Bloomberg Audio Studios, podcasts, radio news from the heart of
where innovation, money and power collide in Silicon Valley and beyond.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 2 (00:34):
Live from New York and San Francisco. This is Bloomberg
Technology coming up.
Speaker 3 (00:38):
A U turn for Tesla.
Speaker 2 (00:40):
Shares rise as Musk vows to pull back from doge plus.
Speaker 4 (00:44):
News of potential job cuts send Intel shares soaring.
Speaker 2 (00:48):
And Counterfeitzgerald teaming up with Tether and SoftBank to start
its own crypto firm led by Jack Mallers. We have
him live later on in this hour. The first that's
check in on the markets and bigcoin is on the
high side, so to a stocks Let's look at how
the NASDAC is currently adding to a two day gain
that is the best two day gain in about ten
days since April tenth. Were actually about two weeks now.
(01:09):
We're adding about six hundred billion dollars in terms of
market capitalization to the NASDAK one hundred and I'm looking
at the magnificent seven.
Speaker 3 (01:14):
It really is big tech on top.
Speaker 2 (01:16):
We're at four point eight percent and what are you
looking at in the micro I'm looking.
Speaker 4 (01:20):
At Tesla and a stock that is up eight percent,
and frankly, it is shocking when a company misses earnings
by that wider margin, which we'll go through later in
the show, and the stock reacts in this way. And
it's about a single story Elon Musk key Man Risk
and him saying next month May I will pair back
the amount of time that I'm spending on Doge and
(01:40):
I will allocate more time to Tesla. It's exactly what
the market wanted to hear, and we throughout the hour
and to go deep on that name because it's such
a critically important one.
Speaker 3 (01:48):
Carrot, Let's talk.
Speaker 2 (01:50):
A little bit more about US Treasury Secretary Scott Besson.
He's soothing the markets further with a recognition that America
first does not mean America alone.
Speaker 3 (01:59):
He also showde for the IMF and World Bank.
Speaker 2 (02:02):
He shared some support, but he spoke of the need
to course correct Bluemox. Kaylee Lines has more from DC.
This seems to be a calming, a soothing to the
market that's going on right now.
Speaker 5 (02:14):
Well, yeah, and you're seeing that evident in the price
action today, Caroline. This is just another instance of a
kind of a tone shift we've seen from the administration
over the last several days, as there has been, of course,
a lot of disdain for multilateral institutions emanating from the
Trump White House. Scott Vessant, to some extent, putting the
worst of those fears to bed, saying that the administration
is willing to work with the IMF and World Big
(02:34):
so long as they keep to their missions and avoid
what he called mission creep focusing on things like carbon
footprints or climate change. He also, to your point, the
key line that investors likely will seee on here is
America first, does not mean America alone. Kind of underscores
that this administration is trying to pivot away from perhaps
the worst case scenarios the markets had considered around American
isolationism and protectionist policy. Keeping in mind that today's speech
(02:56):
came after Scott Vessant yesterday told a closed door meeting
of investors that the current tariff situation with China specifically
is unsustainable that he expects a de escalation. President Trump
then followed those remarks, speaking in the Oval Office to
reporters yesterday by saying he does expect a deal with China,
that the ultimate terriff freight will be well below the
one hundred and forty five percent where it currently stands.
(03:17):
And of course, we got some fresh reporting from the
Wall Street Journal today that the administration could be looking
at cutting those tariffs on Chinese goods by as much
as half, in the range of fifty to sixty five percent,
depending on the product and whether or not it is
pertinent to US national security interest. So we're seeing kind
of a walking back of some of these most extreme policies.
I would point out, though President Trump right now is
speaking with reporters on the north lawn of the White
(03:38):
House and still reiterating that he thinks both China and
the European Union have been ripping the US off, though
he reiterated he does think they will get a fair.
Speaker 3 (03:46):
Deal with China.
Speaker 4 (03:47):
Bluemos Kye Lines in DC, thank you very much. Just
turn back to Tesla. The company's rise in the market
today can be attributed to one key moment on the
earning School yesterday.
Speaker 6 (03:59):
Starting in next month, may my time allegation to do
as will draft significantly. I'll have to continue doing it well.
Speaker 7 (04:09):
I think we appoy the remainder of the President's just
to make sure that the waste and fraud that we
start does not come roaring back.
Speaker 4 (04:17):
Plas saying he will allocate more time to test the
starting in May, reducing his doge activity from more. Let's
go to Bloomberg's estraday and I go back to irrespective
of what must just said on the top and bottom line,
this was one of the worst courses for a long time,
but Wall Street and investors around the world are looking
past that.
Speaker 8 (04:34):
Yes, that's absolutely right.
Speaker 9 (04:35):
I mean, whichever way you will.
Speaker 8 (04:36):
Slice these numbers, these were absolutely terrible numbers, numbers that
have been not been seen in years for especially when
you go to first quarter comparisons. Despite that, expectations were
that numbers will be terrible, So that was kind of
built into the stock, and that exactly is what the
(04:57):
stock market.
Speaker 3 (04:57):
Is telling us.
Speaker 10 (04:58):
Like the stock is up five person last I checked,
and a lot of it is really coming on from
the fact that Musk is now saying that he will
start pulling away from his government work and kind of
focusing back on Tesla, and this is exactly what investors
were hoping to hear.
Speaker 4 (05:17):
Now up eight percent near session highs Bloomberg session day.
Thank you very much for more on Tesla. William Stein
Truest Securities Managing director joins us now he maintains a
hold rating on the company with a price target of
two hundred and eighty dollars. You know, well, you're traditionally
a semiconductor analyst, right, you think about compute and you
think about AI. But I did note in your research
(05:39):
that you, even against your own models, the fundamentals of
this business missed by a really wide margin. Just take
me through that data set that you have and then
we'll get onto the other stuff like ROBOTAXI and AI.
Speaker 11 (05:53):
Yeah. I don't mean to be disagreeable or controversial, but
I on mysef very clearly that that you know, when
we look at results of companies, you know, it's important
to understand both the broker or cell side aggregate consensus
(06:13):
but also the byside consensus view. The company had already
updated investors in the street with delivery numbers about a
month ago, and I think many investors had not updated,
or at least on the cell side, had not updated models.
So when you compare versus sort of the so called
consensus numbers, it looks like this huge miss, but in reality,
(06:38):
you know, relative to our model that had been updated,
and I think compared to other models, where if you
looked at just the consensus of updated estimates, the miss
was not very big. In fact, you know, relative to
our model, only one and a half percent on revenue
actually beat on gross profit, missed on operating profits somewhat,
(06:59):
and they missed on by six cents. This was not
like some disaster, at least relative to what we were
expecting following the update a month ago. They were somewhat
disappointing results relative to what we expected. The disappointment came
in two places. One was in energy forage and generation,
(07:20):
so that you think about solar roots and megapacks and
that sort of thing. And the other was operating expenses,
where they accelerated some AI R and D investments, And
you know that's I don't think the end of the
world for investors. In fact, one could take a positive
spin on that.
Speaker 2 (07:37):
William I get that perhaps it doesn't miss versus downgraded expectations.
But a profit dropped the worst profit numbers is twenty
twenty one. A revenue drop nevertheless shows real fundamental issues.
Here are the fundamental issues going to be alleviated by
more time spent at the company by musk.
Speaker 11 (07:58):
Oh, I think in at least two ways, right, I mean,
the two sort of obvious ways are. Number One, if
you accept the supposition that Musks in the way that
the investor relations team has described it to me that
his greatest superpower is in delivering huge technological advancements by
(08:21):
spending very little money but just very focused talent, then
it's a big positive from that perspective. And the other
is to moderate what I think musk characterized as political sentiment.
I think spending less time in the public eye doing
(08:42):
government projects will be good for the stock.
Speaker 2 (08:46):
We want to thank you so much William Stein, who's
been joining us from Truest Securities. I know you're a
man who focuses a lot on the AI opportunity, a
lot on the semiconductor space as well, so we appreciate
your time today. Meanwhile, though, coming up, we're going to
get more on semi conductors. Intel planning more than twenty
percent of job carts ahead of earnings tomorrow.
Speaker 3 (09:03):
More on that scub ahead. This is bluemin technology.
Speaker 4 (09:15):
Let's look at Intel shares surging after Bloomberg reported the
company's looking to cut more than twenty percent of its staff.
It will be the first major restructuring under new CEO
lit Bhutan Bloombazi and King joins us with more. This
is based on what a source told us, and yes
there's a bloat issue, right, but there's also a refocusing issue.
(09:38):
Reading the report, it's like, get rid of middle management
and focus on actually making some money on technology that's competitive.
Speaker 12 (09:46):
Yeah, I mean, I think our understanding from our sourcing
is that the problem is the decision making it. Intel
has become bloated that everything that should be happening quickly
isn't happening quickly. There's a lot of meetings, a lot
of you know, empire building, a lot of silos that
need to be swept away in order for them to
get back on track and to try and catch up
(10:07):
with competitors liking video and all.
Speaker 2 (10:11):
Eyes on how they can make moves in AI. In King,
we appreciate it. It was a great scoop that came out. Meanwhile,
looking at the broader tech markets and we've got on
called Crawford with us ALGA portfolio manager who can speak
more broadly to the tech space. But just going to
this need to focus in on generative AI. The opportunity
by a company like Intel. Is it still all about AI?
Are we able to focus on the long term opportunity
(10:33):
when you've got headlines just now from Trump saying well
that the US will have a fair deal with China.
Speaker 13 (10:38):
Yeah, I look, AI is the next revolution that we
have to chase. So it is important that Intel fixes
a house. But you know, I think Intel has kind
of lost the game on AI. What they have to
figure out is if they can hold the kind of
prowessign manufacturing and catch up with TSMC, because that becomes
(11:00):
a more strategic comparative then being able to develop a
competing AI chip to Nvidia.
Speaker 2 (11:05):
How ELSEO manufacturing there was meant to becoming more to
home Ohio for example. That then gets pushed back because
of current quandaries about whether there's gonna be government support
for the chips acts anymore, whether there's gonna be money
coming from the government. How is Intel any chip maker
currently to navigate whether they invest in the US or not.
Speaker 13 (11:24):
Well, definitively, we need to invest in the US. I
think the administration has made it very clear. I think
it is a necessity that we start investing in the US.
So I am completely on board with that. I don't
actually think that the lack of chip Act funding is
the reason that Intel is not investing in the US.
(11:46):
I believe that they've actually lost the benefit of being
first and they are struggling with going from one node
to the next. We'll see where they are on at
which is the next note. But as of right now,
they're still outsourcing to Taiwan Semi, which shows you that,
(12:07):
in fact TSM has taken the lead on these last
three notes.
Speaker 4 (12:11):
And we will find out more Thursday evening when Intel
post numbers, I think they'll have to answer a lot
of those questions. Earnings is so interesting right in the
context of everything happening around the world. I want to
bring up this chart, which is average GPS Surprise and
we're still kind of rattling our brains a little bit
on about the Tesla share performance in this session relative
(12:32):
to the numbers it posted. And the reason I like
this chart I find it so interesting is that actually
Tesla has a terrible track record compared to the other
mag seven names in positive surprise on EPs. That's all
to say, do you think that given the macro environment
right now, all of these names might get a bit
of a pass this quarter.
Speaker 13 (12:49):
Yeah, I think sentiment has gotten so dire that many
of these companies are putting up okay numbers. Like you
look at Iserge yesterday in healthcare, you know the numbers
were okay. However it was better than expected. Tesla the
same way. The numbers were okay, but they talked about
I think some of their growth drivers, which are humanoids.
(13:10):
They talked about how they're going to have autonomy by
the end of this year. I think he said millions
of vehicles by the second half of this year. And
even if it's not second half of this year, as
long as there's a roadmap to true autonomy, I think
that's what's going to drive the next leg in Tesla.
Not necessarily that the margins on the on the Auto.
Speaker 4 (13:27):
Side, they also pulled guidance. Do you expect that to
be a move elsewhere in the MAGS seven names.
Speaker 13 (13:35):
I think that we could get many companies not actually
giving any guidance because the uncertainty is high. So if
you're a CFO or a CEO trying to navigate this market,
you really have a hard time right now because you know,
what do you guide to? Do you guide to one
hundred and forty five percent terra for forty percent terra
(13:56):
from China? Do you guide to and what you're seeing today?
For example, invertive, i'veardive basically has assumed or an I
search have assumed you know, full tariff impact? So you
know I searched last night. The CFO said one hundred
and forty five percent tariff is what they have included
in their guidance and have guided that way just in
order to buffer any kind of impact on their earnings.
Speaker 2 (14:20):
You say it's difficult for a COO, CEO, a CFO
to navigate.
Speaker 3 (14:23):
Boy, is it also difficult for you and investor?
Speaker 11 (14:26):
Oh?
Speaker 13 (14:26):
For sure?
Speaker 2 (14:26):
So do you remain committed in the longer term? Do
you stick to the longer term narratives that have driven
these stocks higher over the last couple of years, or
do you pause?
Speaker 3 (14:35):
Do you take money out?
Speaker 13 (14:36):
So so, I think if you haven't taken your money
out already and protected yourself, now is not the time
to do it.
Speaker 3 (14:42):
So that's the first thing.
Speaker 13 (14:43):
Secondly, you know by September I would I will go
out on a limb and say, by September we are
no longer going to be talking about these trade wars,
and we will have moved on to something else and
maybe maybe we'll be looking at the midterms and how
great the economy is doing, but it won't be the
trade wars. So I think this is a kind of
a short term focus geopolitically to play a game that
(15:08):
the US the administration is currently playing. However, it will
be behind us shortly. You know, as we move forward,
the AI trade is still very, very prevalent and there's
no escaping it. That train has left the station. So
you know, yes, we will start again, and you know,
right now there's some very compelling opportunities in the market.
Speaker 4 (15:31):
Should America's biggest technology companies prepare for a recession?
Speaker 3 (15:35):
You know, tough to.
Speaker 13 (15:36):
Tell, and I think it's a it's a binary answer,
and in part because the policies are going to dictate
if we go into a recession. So you know, if
we do have one hundred and forty five percent tariff
and we keep ratcheting up these these tariffs on foreign
goods and we have a retaliatory effect, yes we are
(15:58):
going to go into a recession. And I would say
that there would like ninety some percent probability that that
would happen. If we can thread the needle and not
be quite as aggressive, the situation changes and maybe we
have a bit of a soft landing at you know,
one percent GDP growth instead of negative.
Speaker 4 (16:15):
GDP growth on core crawl food of Alsia. Great to
have you on the show. Thank you very much.
Speaker 3 (16:27):
The European Union.
Speaker 2 (16:28):
It's fine Apple and Meta for violating. It's tough new
anti trust rules for big tech. Now the finds total
seven hundred million euros about seven hundred ninety eight million dollars.
They're actually relatively modest compared to previously U finds, and
it's likely to be thought to be avoiding further provoking
President Trump for more. Let's bring in Bloomberg's Sam Stolten.
But it's provoked the hour of Apple and Meta. They've
(16:49):
got some fighting talk in response.
Speaker 7 (16:53):
In hasing days. Yes, hello Karenine here from Brussels. Yes, well,
Apple has said that it will actually appeal is fine,
and it's about five one hundred million euros against the
California firm. And Meta has gone even further with Joel Kaplan, who,
of course you'll remember, spent quite a few years himself
in the White House. But now Meta's global head of policy,
(17:14):
saying that this is a discriminative act from the European
Union and that it is continuing to unfairly targets American businesses.
So it's certainly a ratcheting up in these transatlantic tensions. Indeed,
metas find itself was a bit less than than Apple's,
it was only two hundred million. But generally, despite these
(17:37):
finds being lower than traditional anti trust penalties, they still
haven't particularly pleased firms on the other side of the Atlantic.
Speaker 4 (17:45):
The logic being that because they're lower than historic penalties,
they won't draw the hor of President Trump. He won't retaliate.
But I think that a spokesperson that for the E
that we spoke to you for the story, points out
that this had nothing to do with trade.
Speaker 14 (17:59):
Sam Yeah, I mean that's the message coming from the
European Commission. This is an independent regulatory action. It's got
nothing to do with the trade talks whatsoever. But the
scuttle butt here in.
Speaker 6 (18:11):
Brussels and around town generally is that, of course the
EU has had powers under the Digital Markets Act to
find these companies up to ten percent of global annual revenue,
and actually these finds are less than zero point one
point five percent of global annual revenue for both Matter
and Apple. So there is something that is holding the
(18:31):
EU back here, and it is more likely than not
despite what the European Commission says, these ongoing trade negotiations.
Speaker 4 (18:39):
Being there's Sam Stalton in Brussels, thank you very much.
Another story we're tracking, the co founder of Instagram says
the photo sharing app could have thrived without Facebooks. Kevin
Sistrom testified that Meta CEO Mark Zuckerberg treated Instagram's growth
as quote threat and starved the app of resources after
the purchase. The US government's c to prove the social
(19:01):
media giant created an illegal monopoly through its acquisitions of
Instagram and the messaging service WhatsApp curR.
Speaker 2 (19:08):
Yet more antitrust case is going on ed and the
Justice Department's effort to break up Google is one of them.
Mrks Dave Alba joins US on the latest out of
what is trying to find remedies to ensure that Google
no longer seems to be a monopoly. One of those
remedies the government wants is to sell off Chrome, and
seemingly there's a buyer for it.
Speaker 15 (19:25):
Yeah, Yeah, we heard in trial testimony yesterday that the
head of product for Chad gbt Nick Turley, from open Ai,
said that open Ai would be interested in buying Chrome
if it were actually for sale. Google of course does
not intend to sell it and is fighting sort of
(19:46):
this remedy that is proposed by the DOJ. But you know,
they will see how the rest of this remedies trial
goes and what judge Meta, the judge in this case,
eventually decides.
Speaker 1 (20:00):
DAVI.
Speaker 4 (20:00):
A point of intrigue is that Chromium, the underlying code
based for Chrome, is open source, right, and I think
Google will lean heavily into the idea that in the
browser market that's a really good thing. Has there been
any debatea that so far?
Speaker 6 (20:13):
Yeah.
Speaker 3 (20:14):
Absolutely.
Speaker 15 (20:14):
Google's defense in not wanting to spin off Chrome is that, look,
the underlying technology for Chrome is open source, and it's
used by different browsers from different companies, including Amazon's Silk Browser.
But the DOJ still contends that Chrome is a key
gateway into the Internet and Internet search specifically, and if
(20:38):
it were to be controlled by another party, then that
would help sort of break up the power that Google
has about users, data, users, queries, everything that feeds into
Google Search and improving that product.
Speaker 3 (20:56):
Bloo Books.
Speaker 4 (20:56):
Davie Albat, thank you very much. We have some breaking
news crossing the Bloomberg. Treasury Secretary Scott Besson says that
there has been no unilateral offer from Trump to cut
China tariffs. He is speaking to reporters on the sidelines
of the Institute of International Finance event in Washington, where
he was giving a keynote, and this is the keywording,
no unilateral offer from Trump to reduce tariffs on China.
(21:19):
There had been earlier reports, of course from the Wall
Street Journal that the President was considering a tiered approach
to tariffs, but the wording here incredibly specific. He also
has been commenting on remarks by the President about firing
Federal Reserve Chair Powell, saying that in Besson's case, the
(21:39):
Treasury secretary quote does not have a stand on the
Trump Powell firing remark. And Caro, that's something in the
market's context. With the Nazak one hundred pushing up three
point one percent that we've been tracking.
Speaker 2 (21:50):
Closely off of its highs, are still trading up on
the day.
Speaker 3 (22:01):
Welcome back to Bloomberg Technology and Caroline Heide.
Speaker 4 (22:03):
In New York and I met lod Loo in San Francisco.
Carry some moves in the market.
Speaker 2 (22:07):
Boy are their moves, and we may higher on the Nasdaq,
up more than three percent on the Nasdaq one hundred,
even as we try and digest some.
Speaker 3 (22:13):
Of the overall headline risk.
Speaker 2 (22:16):
Whether or not we're seeing a cooling down of tensions
around China, whether we have Trump having some more positive
narrative towards the country, but Scott Bessant coming out clearly saying, look,
there is no full China trade deal yet. It's going
to take two to three years. So we come off
of our highs a little bit. We're up two point
eight percent. No unilateral offer from President Trump to cut
China's tariffs as yet. But we look underneath the hood
(22:38):
with some of the individual stocks that are on the move.
I want to shine light on European trading. We just
finish SAP surged eight point eight percent. We had the
best innings in six years. They post really strong profitability
and a great backlog for their cloud orders. What does
that mean for the company that is run by Bill McDermott,
which is a service now of course he used to
run sap over in Germany.
Speaker 3 (22:58):
Now he runs service.
Speaker 2 (22:59):
Now up six point percent their earnings after the bell.
Will they post some resiliency? Remember they're exposed some and
the DOGE cuts across government. So two is IBM. We're
up just two percent ahead of their earnings after the
bell as well. Revenue is likely to flatline for that
particular business.
Speaker 14 (23:14):
Ed.
Speaker 3 (23:15):
Let's go back to Tesla.
Speaker 4 (23:16):
The stockers also pulled back literally in the last couple
of minutes on those headlines from Treasury Secretary Scott Bessen,
but still up seven percent. Not up on fundamentals or
the core of the earnings report, but literally the commentary
from Elon Musk that he will pare back time at
DOGE and add more time, allocate more time to Tesla.
Bloomberg's Craig two Dell, who leads our global coverage of
(23:37):
the auto industries with US. You and I have been
pouring through the commentary on the call and the earning steck,
and there are contradictions in there about the core business
demand hit from the backlash to DOGE, or is it
the brand or is it something else?
Speaker 16 (23:55):
Hello, I do think the first quarter we absolutely have
to acknowledge that the model why changeover was disruptive, right,
and it's going to take us some time to to
sort of parse, you know, just how much demand there
is for that that model. It is after all, Tesla's
most popular far and away and it's one of the
best selling vehicles in the world. You know, the question
(24:18):
is going to be, you know, how much can Tesla
rely on on that one vehicle and you know, can
it reliably continue to be you know, sort of a
one trick pony where the Model three has has you know,
been a letdown despite that vehicle getting a makeover recently,
and the rest of the lineup is is you know,
kind of sucking win. The cyber truck is not living
(24:41):
up to Musk's expectations in the least.
Speaker 2 (24:44):
Yeah, significant number in sales down for the cyber truck,
but there is going to be a cheaper model why
in the first half of this year. That's what helps
send the shares higher. So two is the Robotaxi outlook
for what's happening in Austin, and there was real recommitments
scenarios of the business.
Speaker 16 (25:04):
Yeah, I do think that there was a concern after
some reporting by by Reuters a few days ago that Uh,
maybe there was a setback in the timing for more
affordable vehicles that they've been you know, saying well, we'll
be on the way for the first half. I think
there was, you know, not necessarily a full throated denial
of that. There was a comment during the call about
(25:27):
you know, a ramp not going as as smoothly as
as hoped.
Speaker 4 (25:31):
Uh.
Speaker 16 (25:31):
And I do think that you know, the even even
the you know, driverless rides that they're going to start
in Austin, I think you know, Musk talked about that,
you know, being a pretty limited initial launch of you know,
just a handful of vehicles. So maybe some expectations setting
there in light of how you know, Musk tends to
(25:53):
really sort of promise the moon, it's maybe a little
surprising to see the shares jumped so dramatically, you know,
when you know, when some of these reasons for sort
of being swage were not necessarily forthroaded.
Speaker 4 (26:08):
Bloombergs Crage dool in London. Thank you very much for
more on Tesla. We're joined now by Alexandra Mertz, a
longtime Tesla shareholder on social platform x. She goes by
at Tesla, Booma Mama and is seen frankly as a
leader among the very large group of retail investors that
follow the ev maker closer. She's also the CEO and
founder of L and F Investors Services. Alexandra, thank you
(26:30):
for joining us back on Bloomberg Technology. Let's just start
with the basic reaction you have to Elon Musk opening
the call saying, starting in May, I will pair back
the amount of time spent on Doge and allocate more
time to Tesla.
Speaker 9 (26:45):
Thanks for having me ed yes with pleasure. Well, first
of all, I wanted to thank Elon for having done
the job at Dodge. He's been doing this has been
important for any US taxpayer and for anybody that's interested
in the United States becoming the power it should be.
And he has been stellar in getting this organized. How
he is stellar in organizing anything, So I'm really pleased
(27:07):
he puts some time and effort into this. It's always
been clear both by Elon and by President Trump that
this would be limited in time for his full time,
a full time allocation of time. But this is coming
to an end in May, which is not surprising at
all other than people who may not have listened. So
(27:27):
him dialing it down to one to two days a week,
and do remember Elon's week is a seven day week
and not a five day week, So him dialing it
down to one to two days of Dodge oversight and
still being available to it doesn't mean he's completely backing
out of it. We're happy as Tesla shareholders that he's
going to put more time into Tesla, but frankly, nothing
(27:49):
has been delayed or missing the four or five months
that he has now been with Dodge. The launch of
the new model why simultaneously in four factories and three continents,
shows how strong the Tesla team is, whether Elon is
in Washington, DC or somewhere else in the world. So
there is really you know, there was no concern whatsoever
(28:11):
and people being surprised by the stock going back up.
As Greg said, I think they have not watched what
Tesla is actually going to accomplish.
Speaker 4 (28:21):
Alexandria something you just said that nothing has been missed.
I was also trying to understand there was some contradiction
between what Elon must said on the demand side and
absence of macroeconomic impacts. They don't see an impact of demand,
but the CFOs in Asia was quite clear about the
brand impact in the quarter, the first quarter and quote
(28:43):
the changing political landscape having an impact on future sales.
I have a question for you from X from the audience,
from one of your fellow community members essentially, and it
asks you you usually live in California, what is your
gauge of quote brand damage given your geography? And that
question comes from Farzad.
Speaker 9 (29:05):
Yeah, that's a very good question of Farzad. I honestly
hear in Santa Barbara don't see any impact. There are
more Teslas out there. I picked up my new model
why last Saturday, and the Tesla Center was busy. It
was crazy actually, But at the same time, from ten
to twelve there was the typical Saturday morning protestation in
front of the teslast always the same people. They get
(29:28):
carried in with buses at ten o'clock, they start at
twelve o'clock, they go off. And this will have an impact.
This has an impact on people that probably would not
have purchased Tesla's but still want to make noise. On
the other side, on the upside, there is now a
whole new Cleontele. We're seeing many people that have never
considered EV's now considering EV's And in particular Tesla's and
(29:50):
so you know it is give and take. I'm not
saying it was completely without brand damage, but clearly the
overall goal of Tesla putting real a on the streets
being the one vector that will be the one transporting
anybody and everybody in the next decade. That hasn't been
changed in anything.
Speaker 2 (30:10):
But Alexandra, they're kind of late to that party, certainly
slower than Weimo. I got my Weaimo in Arizona just
last week. What of the rollout and when it becomes
a real business.
Speaker 3 (30:21):
Model action here?
Speaker 9 (30:23):
That was actually the key phrase I found yesterday in
the in the Earning School when Elon for the first
time quantified when he expects significant revenues from full self drive,
which he set by middle of twenty twenty six, and
that is just around the corner. So and the Weymo model.
That was actually really a fun moment because the whole
(30:47):
team there had a good chuckle about Waymo costing way
more money. I mean, as you know, Weimo is built
on other companies vehicles, is very expensive and is GEO fenced,
so it is in no way comparable. But I mean
no doubt they have done a great service of bringing
(31:08):
full self driving to the masses and have to be
congratulated for it is in no way comparable what Tesla has.
Tesla's will work everywhere, as has been proven with the
rollout of FicT in China, they had hardly any any
information on Chinese roads, yet were immediately able to adopt
first to China.
Speaker 2 (31:27):
Alexandra is always great to have you on the show.
Thanks you for our taking losing so Alexandra Marts of
L and F Investor Services. Now coming up, Jeff Rosenthal
joins us to discuss his new venture capital funds CIV,
back in tech startups tackling energy and manufacturing as a
blue meg technology, There's a new venture capital fund on
(31:52):
the scene, CIV, launching with an inaugural two hundred million
dollar fund to back startups trying to reshape manufacturing electrician
compute needs. Jeff Rosenthal, co founder a managing partner of CIV,
joins us.
Speaker 3 (32:03):
Now, you've got some big.
Speaker 2 (32:04):
Names behind you as well, some real founders in USV
for example, Fred Wilson's on board grins shotwell as well
of SpaceX. Where are you already allocating the money because
you've already invested in certain startups.
Speaker 17 (32:17):
Yeah, you know, we built this firm for a specific purpose,
and that is to back and build companies focused on
critical infrastructure and industry here in the US, and so
that spans digital infrastructure, robotics, AI and compute. Really guided
by this fast moving, fast approaching set of megatrends with
(32:39):
AI and compute and the power needs behind it, the
reshowing and reindustrialization of global industry following COVID Ukraine and
now a new administration, and really just the electrification of everything.
So we're seeing this inflecting demand, you know, driving this
demand and supply, and it now is not only a
deep need for our economic well being, but it's also
(33:00):
national security issue.
Speaker 4 (33:01):
Jeff, when did you conceive the idea for the firm
and the fund and when did you start building it,
because clearly this is very much in line with what
this administration is trying to do in America with heavy
industry of different types.
Speaker 17 (33:14):
We started building this firm a couple of years ago. Really,
you know, thinking about the origination of the idea of
backing and building in these spaces, I don't think that
we could have predicted that these trends would have accelerated
the degree that they have in the last say six
to twelve months across nuclear and critical infrastructure, supply chain, logistics, manufacturing.
(33:36):
But you know, we have both the background in investing
in these themes but also building companies in these things,
and so we're not just passive capital. We actually also
roll our seeds up.
Speaker 2 (33:45):
I mean, you've invested in SpaceX, Patrick has founded a
clean energy business, You've got a a joy over from COT.
But what of the thesis of where you invest in
how you actually seed but also co found businesses like
a new me a business.
Speaker 3 (34:00):
So what's the recipe here?
Speaker 17 (34:02):
Yeah, so we're principally an investment firm. We spend the
majority of our time in capital really identifying and then
earning the right to back the best founders when we
have a really defined thesis, a real right to win,
and a partner who is going to lead that business
as the active co founder and CEO.
Speaker 3 (34:19):
Only then what we co.
Speaker 17 (34:20):
Found businesses on platform. So before we raised in the
outside capital, really to prove the thesis to ourselves ourselves,
we made six investments, five or direct investments in companies
like base Power, Crux, Verse Center Systems, and then our
first build company As you mentioned, we co founded the
Nuclear Company, which is a fleet scale nuclear developer really
powering AI.
Speaker 4 (34:41):
In large gale industry here in the United States, Jeff,
Manufacturing and growing manufacturing requires capital. It's expensive. You're looking
at the early stage. So what are the innovations that
you hope to find that I guess lower the cost
of doing business in this country or something of that effect.
Speaker 15 (34:57):
Yeah.
Speaker 17 (34:57):
Absolutely, I think that when you look at just the
cost of doing business in this country, when we think
about the reshoring of heavy industry or critical industry, one
of the things that people will point to as a
major challenge is just the cost of labor. And I
think that there's a lot of technological innovation across robotics
and AI that gives us confidence that that is something
that we will be able to compete on a global
(35:18):
scale here domestically. The beauty of many of these businesses
compared to say, traditional venture capital Silicon Valley style software companies,
is that they scale often with non deleute of capital.
So we focus on businesses that are actually highly efficient
to equity and then can scale with asset capital or debt.
Speaker 4 (35:36):
Jeffros Civ, co founder, managing partner thank you for joining
us here on the show.
Speaker 2 (35:48):
Crypto News Counterfitzgerald is teaming up with Teather and SoftBank
to create a new crypto company called twenty one Capital.
It's going to be accumulating bitcoin in a similar fashion
to say that of Michael Sailor's strategy, plans to lord
more than forty two thousand bitcoin, of course worth more
than four billion dollars.
Speaker 3 (36:03):
And Jack Mallis is also co founder.
Speaker 2 (36:05):
He's CEO of twenty one Capital, and he joins us,
Now we asu you have you on because a strike.
Speaker 18 (36:10):
Can get me fired up.
Speaker 3 (36:11):
How you doing, Calind Good to see you Jack. When
did this idea come to buy?
Speaker 6 (36:16):
Uh?
Speaker 18 (36:16):
The founding story? So I co founded the business with Tether.
I would say I've known the Tether group for over
a decade. There just weren't that many bitcoiners around over
ten years ago. So we you know, we've done a
lot of work together in El Salvador, et cetera. We've
been so inspired by Michael Saylor and all of the
public companies acquiring bitcoin. But I would say over the
last few years that inspiration turned into what we thought
(36:38):
was an opportunity and a hole in the market that
we could deliver on which is bringing blue chip credibility
and startup upside. We feel like we can bring enough
capital and be big enough to win. We're small enough
to grow, and most importantly, a pure bitcoin business. A
lot of these companies, they're pivoting from a past operating business,
they're rebranding, changing their name. They're maybe selling video games
(36:58):
to buy bitcoin, or selling medical equipment to buy bitcoin.
And we're a purpose built bitcoin company. We're gonna build
bitcoin products, bitcoin cash flow, and we're going to give
bitcoin per share growth to shareholders and be hopefully the
best way for investors to get bitcoin exposure in the
public markets.
Speaker 4 (37:13):
Jack, I think off camera just before we started to
use the word vehicle at vehicle for bitcoin, I think
like a reasonable question that people have is what does
the CEO of a new company whose mission is to
accumulate bitcoin do day to day? What is it that
you're going to try and manage or achieve.
Speaker 18 (37:30):
Yeah, So for all the bitcoiners out there, we encourage
you to check out our filing. We've introduced two new
metrics to the public markets. One is BPS stands for
bitcoin per share as opposed to earnings per share, and
the other is BRR, which stands for Bitcoin return rate.
And my job and what I'm dedicated to do for
our shareholders in which we view similar to our customers,
is grow our bitcoin per share. So we're an operating company,
(37:54):
and when you buy a share of twenty one in
a hypothetical sense, what we intend to do is, let's
say our bitcoin per share zero points zero five, our
intent is to be able to grow that to zero
point zero six bitcoin per share zero point zero seven
bitcoin per share. Where a vehicle, like an ETF, your
exposure is static. So twenty one is an operating business
and we will be building bitcoin products, bitcoin operative cash flow,
(38:16):
and then using the capital markets to accreatively grow the
bitcoin on our balance sheet. So we want our shareholders
to get wealthier, get richer in bitcoin terms, and our
metrics encourage the market to view us, not in fiat terms,
in bitcoin terms, because we're not here to necessarily beat
the market. We're here to build a new one and
encourage the world to adopt bitcoin in a sense that
we believe it hasn't yet.
Speaker 2 (38:38):
But Jack, you already have a bitcoin product and it
strike yes, and it's where people can buy, sell, stall
that crypto. Well, how much of that are you still
going to be leading that business?
Speaker 13 (38:47):
Yeah?
Speaker 18 (38:47):
And the CEO both companies we're actually disclosing today X
Strike some of our financials. So Strike immensely profitable. We
have over twenty percent even a margin, eighty five percent
gross profit margin. We have only twenty five employees, so
on a grosser net profit per employee basis, we got
to be one of, if not you know, the biggest
in the bitcoin space in that regard, and so it's
(39:09):
an incredibly strong business. It's doing well. I'm so proud
of the employees and our investors, and thankful for our customers.
And you know, Caroline, you can just do things. And
I'm going to lead both businesses. I truly believe my
purpose on this planet is to try and help bitcoin
have a chance to change the world. And what I
believe is the right direction, and I think Strike in
twenty one both independently work towards that.
Speaker 4 (39:31):
Jack, you have plans to raise capital, and I guess
not just like as a one off over time raise capital, Right,
how will that work in practice? What mechanisms we use?
And a lot of people that watch the show like
ask if they're not registered institutional invest is like, how
can they participate in that?
Speaker 18 (39:47):
Yes, I thought for a second you were going to
offer me some money to buy some bitcoin.
Speaker 4 (39:51):
Absolutely not, absolutely not. Can and go with my actual question.
Speaker 18 (39:55):
No, totally, So listen. We are hopeful to have our
share listed on a stock exchange under the ticker XXI.
Today we are trading under CEP, which Caroline mentioned is
our Canter Equity Partners, and that stock is trading and
live today. If it's successfully merged, upon closing, it will
be XXI. We do intend to raise as much capital
(40:17):
as we possibly can to acquire bitcoin. Again, my one
rule to my shareholders is it will be a creative
Our bitcoin per share will grow. We will never have
bitcoin per share negative at least that's our intent. Our
intent is to make sure that when you're a shareholder
of twenty one that you're getting wealthier in bitcoin terms,
and that's my job as a CEO to deliver that.
So we plan on raising capital in all different type
(40:40):
of sectors in markets and really blending bitcoin and incorporating
it in the traditional financial system to deliver a powerful
equity to the public markets.
Speaker 2 (40:48):
For bitcoiners is that the selling poin versus ETF because
you came up with this idea over the course of years,
and since that time there's not just been strategy that
you can invest in or block, but you can get
st bitcoin ats what's the upside? And in fact, a
viewer from boombergs asking like, how can you have more
bits than an ATF?
Speaker 4 (41:07):
Right?
Speaker 18 (41:07):
Okay, So I gotta be clear, I'm not preaching a
future that I can I can promise. This is hypothetical
and this is our intent Somewhere. My lawyers are like,
that's our guy, right, But our intent, Caroline, is that
when you buy a share of twenty one, and let's
say that's zero points zero zero five bitcoin per share,
we go out and we intend to close deals, build products,
(41:28):
add bitcoin to our treasury, to where in which you
get a press release and you say, wow, twenty one's
bitcoin per share group from zero points zero five to
zero point zero six. I just got more bitcoin exposure.
I got wealthier in bitcoin terms, just by being a
shareholder of this company. And ETF is not an operating company,
you know, IBID is an outgrowing your exposure to bitcoin.
(41:49):
It's a static exposure through their security instrument. Whereas for
us we're a business. I'm a CEO. I get up,
I work every day to grow how much bitcoin your
share represents on our balance sheet, that's the big difference.
Speaker 4 (42:00):
Twenty one Capital CEO Jack mallers Endstrike CEO. Great to
have you back on.
Speaker 2 (42:05):
The show, Caro, And that does it for this edition
of Bloomberg Technology.
Speaker 3 (42:09):
Are busy one ad?
Speaker 4 (42:10):
Yeah, let's just quickly look at some of the names
we care about. Tesla it's up because Elon Mask has
pledged to return to Tesla, less time at DOGE Intel
Bloomberg Reporting is cutting twenty percent of staff, getting focused
on tech, cutting out middle management, and the market broadly's
pulled back right carrow since those bestent heads. But there's
green on.
Speaker 2 (42:29):
That screen, green on the screen as we anticipate IBM
service now earnings, and of course we've got Intel tomorrow.
Speaker 3 (42:36):
Don't forget to check out our podcast. You can find
it on the terminal as well as online
Speaker 2 (42:39):
On Apple, Spotify and iHeart this is Bloomberg Technology.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!