SpaceX Surprises Wall Street 👀 Does Crypto Win From It?

0:00 Elon is pumping the market, and it's all because of SpaceX and some other key things that are going on. We'll break it all down for you guys. Let's just get started. I do want to thank our sponsor, and that is Robinhood, where you guys can trade all in one place. If you use our link, you're going to be able to get up to $ 200 in a stock reward.

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0:36 You guys, of course, use our.

0:37 Link, get a little bit of juice to get into the market and tell them we sent you. Okay, so let's go over and take a look at some things that will get into where the market is heading. One, of course, has been the SEC. The OCC came in and finalizes the Genius Act rule. All of this came in around what we've been talking about for some time.

0:56 I want to show you the final rule, though. around this because there's some key things here that locked in. And this is in reference to specified third party payment chains.

1:05 And what they're talking about is yields.

1:08 What this simply means is that the rules still ban stablecoin issuers from paying yields, but that third party is still wide open. So for those of you that are out there earning yields in other places, you're going to be locked in. And this is kind of the situation. Payments also through third party won't count as violations.

1:24 Another big deal.

1:25 And they're going to review case by case, simply meaning Hey, we just trust you.

1:29 Go out there. Do what you're supposed to do.

1:31 And that is a big issue because all of this now locked in because the date has now passed. The SEC is now starting to lock in these rules. Most likely, we'll see some more updates on this. One thing, though, to remember about the banks is what Eleanor is talking about, and that is that the ABA, they weren't happy with the OCC's final plan here. And they get into this quote right here from the ABA CEO who said, attempting to address deposit flight and economic harm after it has occurred is the wrong approach. What they're kind of doing here is forecasting that this is going to happen. So you guys tell me down in the comments, will you leave a bank and go into an exchange or some DeFi platform out there so you can earn rewards?

2:14 Just let me know down in the comments. I'm kind of curious.

2:17 I don't think it's going to happen as much as these banks say it's going to. Let me know down in the comments below. Maybe we will begin to see some deposit flight. I want to go to a clip real quick because.

2:28 This is where maybe all of.

2:33 This issue around clarity was actually for the good. Here's Michael Saylor.

2:37 You know, if you're a capitalist, if you want to create a great economy or a great nation, what you want is a bill of rights, not a bill of restrictions. The best for the industry is you create magical products for 100 million people that are worth trillions of dollars that make them all happy and rich and delight them.

2:56 And then it doesn't matter who gets elected in 2029 because you're going to pry their magic products from their cold, dead fingers.

3:04 All right.

3:04 So there you go, guys.

3:06 What he's saying is it's we're just as good and maybe better off now that clarity is not in place. And you look at all of that happening around the SEC and what it looks like now in terms.

3:18 Of a roadmap going forward for crypto and blockchain.

3:20 And then you apply the jet fuel or in this case, rocket fuel coming in from SpaceX. And of course, that is in reference to their Q3 earnings. Revenue came up 161% year over year. That's $ 14. 6 billion. That was a $ 1. 6 billion beat. Operating margin was 19%. This is insane on the amount of performance that this company is doing. CapEx $ 19. 6 billion, including the $ 16. 4 billion for superintelligence. So the question is, how does this perform in the next quarter? And again, remember, there's still a possibility where we could see a little bit of a merger being talked. You look at the chart.

4:02 This is where it had bottomed out right here at about $ 106. This was back in the beginning of August.

4:09 And here we are trading right now.

4:10 Up about 45%. And that's just to the current trade of 160. So not a bad position. However, you could have been making a play on this if you were doing this overnight and and doing it in DeFi or over on Hyperliquid.

4:25 You actually had a chance to be able to get ahead of this stock move.

4:31 And that's one of the reasons we're going to continue to see these kinds of performance, especially in tokenized stocks, as you can see right there on Hyperliquid for those who can trade there.

4:40 I want to go to a clip real quick.

4:42 This will get into the earnings and how and what this might mean for SpaceX.

4:47 Here's Brad Gerstner. It was an extraordinary earnings call.

4:50 I mean, I think the biggest debate in the market today is do we have enough capital? Do we have enough manpower to build out the data centers across the United States? So think about the magnitude of what he announced last night. He said they're standing up 200,000 GB300s per month. Just a few months ago, that was what we were doing in a year. So SpaceX alone is going to put up 25% of the total gigawatts going up in the United States. The capital required to achieve this, right?

5:20 That's like $ 400 billion that's going to have to be raised to pay out that compute infrastructure.

5:27 But it makes very clear.

5:28 Elon understands we're at the brink of the singularity. We're entering superintelligence. And whoever has the most scale, capital, compute, and data wins the game of superintelligence.

5:41 Okay, so I agree with Gershner there. Granted, he's talking to his book, guys.

5:46 One thing, though, that he did say was them standing up this many GPUs, that is a huge advancement in terms of scale. And this affects one other category out there, and that's going to be what we're seeing in the neocloud space, which could include a lot of the miners and other companies that are using that right now, which are basically renting space out to many of these companies that haven't scaled just yet. But once they're scaled, or they are getting to that scale, then they're going to no longer need the neoclouds. Now, the question will be, does the demand continue to push against the scale? If it does, then the neoclouds have a business, or maybe there's some other things that could go in that direction.

6:24 So watch all of that.

6:26 Also in that same interview, they were talking about the merger, and this is going to be SpaceX and Tesla. And there kind of seems to be a natural fit here, but let's take a look.

6:35 So he's going to have to raise an extraordinary amount of capital at this point.

6:38 I mean, how does he do that?

6:39 SpaceX and Tesla together, I think one of the main motivations behind the merger, as somebody who owns shares in both companies, is they need, he wants to get scale now. He wants to accelerate scale now because if you have scale around capital and if you put the companies together, it's easier to borrow money, right? It's easier to raise money cheaper, et cetera. And you're going to need to raise cheap capital to build out all this capex.

7:01 Okay.

7:02 Yeah, so I would agree with that strategy.

7:05 It does appear to be an opportunity and an avenue for cheap capital, and that would make it go again. I think also it's timing, because remember, Elon's friendly with his administration, which is going to need an approval. I mean, this would be the biggest merger ever in the history of America. So some pretty big deals right now. Rand Neuner came out and said SpaceX earnings report might have just done something huge for crypto.

7:30 After nearly two weeks of AI.

7:31 Stocks getting hammered, SpaceX just delivered earnings that could change everything. The bubble fears is what he's getting at, which have been weighing on a lot of markets. And I think that's the concern. SpaceX went out, proved the market wrong, saying, no, there's actually some opportunity here. But how many more companies actually could flank SpaceX in the similar performances outside of maybe NVIDIA? And I think that's the question you have to ask. Is it enough to continue to propel this market forward? Time will tell, and so.

8:02 Will the charts.

8:03 Further into this SpaceX and Tesla merger, Brad was talking about that. This means at the end of the day, the shareholders have to do a full support of this. And there's a couple of points within this, because remember, SpaceX and Tesla both own Bitcoin. And you look at it right there, SpaceX holding 18,000 Bitcoin, Tesla 11,000, basically about 2.5 billion. Not a lot. in general, when you look at the size of the market cap of these companies.

8:30 But the point is, is that they're crypto oriented. And there are some advantages to that. Does it mean it's going to move Bitcoin? I don't think so. But it does show that there's faith in what's happening in the blockchain side, which is a good positive thing going forward. Because remember, a lot of these companies holding assets like this on their treasury starts to lead into other companies holding assets like this on their treasury. All right, one thing that could spoil all of this party is going to be an unlock. And it happens tomorrow on the 22nd.

8:59 And we get this video out here on the 21st. But you got 1.3 billion SpaceX shares unlocking tomorrow. If you go further into this, you'll see the unlock check out here. Let me zoom up on that image right there. This will be the largest one in history, even versus what we saw back in the beginning of SpaceX. And if you go back to the chart, let me pull up the chart real quick. Here's the unlock potential. That's the dive that we saw.

9:23 And here we are.

9:25 Pelting 160 again. So I don't know what you guys are going to do right now. I might take a little profit if I were in a SpaceX trade and kind of wait and see what this unlock does. One thing, though, to consider before you sell your stock, if you're going to, and again, not financial advice. I don't give advice about that kind of stuff.

9:43 JP Morgan's pointing it the other way. They're going up to 500. So Who do you believe?

9:48 Do you look at what's happening on an unlock on people who have been invested in this for a very long time and they're like, finally, we're going to be able to get out? Or would they say, no, I'm going to hold through because this could be unlockable?

10:00 A new era. And I don't want to be the investor that sold early. We'll see. Maybe JP Morgan is right. We'll find out.

10:08 I want to go to another clip here, though, because this will break down some things that I think are very important. And that is, where is all this capital going to be coming from?

10:14 Here's Larry Fink.

10:16 We're at a time now where we're finally unlocking private capital. And so the competition for capital is as large as I've ever seen in my professional career. If you listen to the hyperscalers in the United States alone, they're talking about a need for seven to nine trillion dollars to build out and to ensure that the United States is a leader in AI. That type of financing, that type of funding on top of the financing for the federal deficits is putting the term premium.

10:46 To be higher. Are we really that dependent? About two-thirds of the U.S.

10:51 Economy is capital expenditures right now on technology. And if we slow down the build-out of this technology, I think it really does jeopardize the economy.

11:03 So let's be clear. For the U.S.

11:05 To be a leader in this technology, which we are today... We also have to be the leader in the compute, the inference in our own nation.

11:15 So Larry's saying some things I would agree with there. I think we do need to be the leader. And it all starts to stem toward tokenized assets. And this is something that is starting to happen right now because you're kind of seeing a line in the sand being drawn. If you look at this right now, you've got SpaceX and Tesla being held by 140,000 wallets worldwide. on tokenized assets.

11:37 This is up 7.9X since January over on X stocks. Think about that for a second. We're just getting going. You got 140,000 assets out there being held, and it's likely that we're going to see a lot more stock starting to pour into this. The problem is this right here. You've got more and more companies now pushing back against this, simply saying, we don't want to have our assets in a position like this. I think they're doing a disservice to their investors, but you've got Goldman Sachs, Microsoft in there, Google also in there, McDonald's, and many others that have been out there very vocal on this, maybe not as vocal as the AMC CEO, but the point is there's companies pushing back on all of this, 16 companies now

12:22 objecting under the new SEC's tokenized stock framework. So this is going to come to a point where these companies will either need to come on board. I think it's just a matter of adoption now. and kind of getting with the times. I understand it's old Wall Street here, and I get what the reasoning is, but the point is that there is a future here in tokenized assets.

12:43 I think Fink is dead on much of this in terms of the amount of capital that's going to be coming into this market off the sidelines.

12:51 Tokenized stocks are going to be a big part of that.

12:53 Last up right here, you have tokenization accelerating over 360 on-chain token equity products. This is up 200% year to date. 10 of these products have exceeded 100 million in tokenized supply.

13:07 Look at that chart right there, guys.

13:09 This is absolutely insane, the kind of growth we're seeing. And it's just getting started. So look at all the assets that are out there being held. Follow the blockchains that are working in these areas and just understand this is where the market is going. And I think we're going to start to see this impacting cryptocurrency.

13:30 In a very big way. We're going to cover this.

13:31 Don't forget, we got FOMC next week coming in, along with some big news, of course, after midterms that we'll be watching, because that could be another catalyst for the market.

13:42 So stay tuned.

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