Transcript was automatically generated.

Frank Curzio 00:11

What’s going on out there? It’s Wednesday, May 13th.

Frank Curzio 00:13

I’m Frank Curzio. This is the Wall Street Unplugged podcast where I break down the headlines and, tell you what’s really moving these markets. Daniel Creech, what’s going on?

Daniel Creech 00:26

What’s happening, Frank? Another beautiful Wednesday.

Frank Curzio 00:28

Yeah, it’s been a while. Out of the office on business for a little bit. Nice to be back. Daniel taking the helm. All those emails, all the negative emails, go to daniel@curzioresearch.com. Let him know what kind of job he did.

Daniel Creech 00:40

Keep them coming. A lot of complainers out there.

Frank Curzio 00:43

Which is great. Not any complainers from New York because the New York Knicks are on fire. And man, what an energy in that place, Madison Square Garden, when they’re doing great. And I think two weeks ago they wanted to fire the coach, right? After it was 2-2 Atlanta, they said, “We want to fire the coach. We got to change everything,” right? All the Yankee fans are, New York fans, so I can’t stand them.

Frank Curzio 01:03

Uh, you know, they have a bad week. They booed Derrick, Derrick Jeter. New Yorkers booed Derrick Jeter. I think he had like a, like a 12-13 game Hitler streak, and they started booing Derrick Jeter. That’s New York for you. And I’m from New York. I get to talk about them, and I’m a Mets fan. That’s why I always bitch about the Yankees. I do like the Knicks as well, but awaiting the winner of Cleveland-Pistons series,

Frank Curzio 01:23

which is 2-2, uh, they’re scoring what? I think they scored 140 points several games in a row, 25, 30 points. Good for them. I mean, they’ve found it. I think they’re going to kill Cleveland or the Pistons because those are teams that can’t score. With that said, I don’t know if you’ve been paying attention, Daniel.

Daniel Creech 01:38

I have not. No problem.

Frank Curzio 01:39

I don’t think it matters. I mean, Oklahoma City is insane. I mean, they haven’t lost a game in the playoffs yet, Oklahoma City. And Oklahoma City, the greatest team, right? Supposed to get the last pick. Usually when you have these drafts, right, you get the last pick if you’re the best team. They have the 12th pick and 17th pick in the first round this year. And this is probably, you could argue, the most talented draft that you’ll see in the NBA history.

Daniel Creech 02:00

Is that because of, like, trades in the past or?

Frank Curzio 02:02

Yeah, just trades in the past and things that they’ve done in the past. Yeah, the 12th, the 12th, I think, yes, they got other picks. I think they’re getting the 17th from Philadelphia or something. And it’s just, man, it’s, it’s insane. They’re so good they have to get rid of their good, good players. That’s how good they are. They’ve got great players they’re going to have to get rid of on purpose, not because they want to leave or they’re going to make big contracts,

Frank Curzio 02:21

just to bring on the new talent. And it’s, you know, this is a team that could be good for a very, very, very long time. And, and man, they just, they don’t, they haven’t lost a game. So the Knicks, good luck. I love it. They’re playing great. Oklahoma City’s a different animal. Uh, and hopefully you got to get past Cleveland and Pistons, uh, first.

Frank Curzio 02:37

But it’s nice to see the Knicks doing well because I don’t think a New York team has won a championship in, in decades, uh, which is insane for a big, huge, huge money market. But, uh, and, and the Yankees are on fire, which they always are in the playoffs, and they just disappear every year. But we’ll see what happens. Uh, and I will be rooting for the Yankees. I like the Yankee team. But with that said, I always want to throw sports in there.

Frank Curzio 02:58

Uh, have you seen the Spencer Pratt videos?

Daniel Creech 03:02

I’ve seen a few of his ads, yes.

Frank Curzio 03:04

And this guy, if you go back, don’t, don’t even look at his history because he, he’s a social, not social media, but a reality TV guy. And they’ve gone back and showed some of his clips. And, and, you know, he’s, whether you think he’s acting or whatever, he’s a real asshole on, on, you know, in the past. But now he’s running for mayor, and it was kind of this joke, and now he’s, you know, gaining momentum.

Frank Curzio 03:23

He still doesn’t really have a shot to win, but, uh, throw up some of his videos, which is, which is awesome.

Speaker 3 03:29

I’m Karen Bass, and I’m running on my accomplishments.

Speaker 4 03:36

Los Angeles on fire, mayor nowhere to be found.

Speaker 3 03:40

We were so prepared for wildfires. I didn’t even.

Frank Curzio 03:46

I mean.

Speaker 3 03:46

Be in the country when the town burned. I’ve addressed the homeless problem. Now, most of them won’t stab you as long as you don’t make eye contact. Our climate change policy is so strong we’ve brought down energy use in the Palisades by 99%.

Speaker 3 04:09

Almost none of the needles in children’s playgrounds have AIDS on them. If you liked the last four years, you’re going to love the next four. Vote Bass.

Frank Curzio 04:20

I love this. Yeah, I love this. I love that he’s highlighting some of this stuff because it’s so ridiculous. But, uh, you know, it’s, look, the way LA is, the way these Democratic cities are, Karen Bass still favored to win 51%. I think Spencer Pratt’s now up to 33%. When I look at these Democratic cities,

Frank Curzio 04:39

and even if they were Republican-led, like these big cities, and they were horrible and more crime rates, and I just feel like the worse they make the cities, the more they’re going to vote Democrat every single time. I mean, if I believe you need to have a track record of destroying shit to get elected. That’s why Josh Shapiro didn’t get the nod for VP.

Frank Curzio 04:58

They’re like, nah, you’re doing too good of a job in Pennsylvania. We’re going to go, we’re going to go with Tim Walz for valleys. It’s just, I don’t get it of why, like, just change. Don’t, doesn’t, I don’t know why people don’t want to change. When things are really bad, no matter where it is, I don’t care who’s elected, who’s there. If things are really bad, change. There’s never been change for 30, 40, 50 years. Just promises.

Frank Curzio 05:17

It’s going to get better. It’s going to get better. It’s going to get better. And it constantly gets worse and worse and worse. Uh, and I just, yeah. So while, while it’s fun, everyone’s talking about it, there’s still no shot that, that Spencer Pratt’s going, going to win. And they’re going to vote Kyle Bass, of course. But I, um, Karen Bass, of course. But I just, I don’t get it. I don’t get why people just refuse to change when things are bad.

Frank Curzio 05:38

I can’t, I don’t know. I don’t know why. Maybe you could explain that to me, Daniel. I have no idea.

Daniel Creech 05:42

Well, they either refuse to change or it’s all fixed. So it’s got to be somewhere in the middle or something.

Frank Curzio 05:45

Somewhere in the middle. Yeah. But at least it’s entertaining, and it just shows. And hopefully that this, you know, gets things moving to, to provide, like, just a better environment for a lot of cities. I know New York isn’t as safe as it used to be as well. I know a lot of people, it’s just the evidence there of these people moving out as you’re raising their taxes. And, and, you know, it’s pretty crazy. But, uh, hey, it is what it is. It’s politics.

Frank Curzio 06:04

And get ready because it’s going to get a lot worse before it gets better with the midterms coming. So it should be a lot of fun. We’ll cover that part because there’s going to be a lot at stake when it comes to stocks and your investments, especially when it comes to inflation report. Daniel, you want to start there? What’d you think of the CPI? The CPI first. The PPI came out today, but holy cow.

Daniel Creech 06:21

Yeah. I mean, the CPI and PPI both, I mean, coming in hot. And, uh, we’ve kind of warned about this. I wouldn’t take each report with and put too much data behind it because obviously Iran energy prices are really funneling into this. But even when you strip out food and energy, when you look at core, still significantly higher.

Daniel Creech 06:41

Um, this shouldn’t be a surprise. As we’ve talked about in the past, the Fed has missed their mark now on inflation for over five years. So to think that they’re going to actually get their act together is pretty silly. That’s like LA mayor race. But obviously you can’t, you can’t ignore the uptick. And really what stood out to me is inflation is now outpacing wages by a little bit of amount.

Daniel Creech 07:02

That’s a big deal because that’s when we really start to feel it in reality. Um, I’m not trying to justify higher prices, but remember, that is the system we are in. And so when you have that wages, you know, this is during the past administration, we felt this so bad, let alone higher inflation. But this is going to be an issue.

Daniel Creech 07:17

I still think that the Fed can come up with ways to look through this because they are not going to punish the rich and the powerful people the way they do the middle and lower income class. Uh, we’ll see how that plays out. But yeah, definitely coming in hot. What continues to surprise me, Frank, I will admit, is the markets just don’t care. I mean, we, and listen, up is better than down in our business.

Daniel Creech 07:38

I get that. Um, but hey, at some point it will matter, Frank, but it doesn’t matter right now.

Frank Curzio 07:45

And a couple of things there. First, Joe, if you want to punch up the CPI, uh, and just the data on that, uh, it just, it’s just a breakdown showing prices. And I think there’s only one, two, three areas out of one, two, three, four, five, maybe 20 on here that have saw a decline in prices. Dairy 0.6%, used cars and trucks down 2.7%,

Frank Curzio 08:05

and Medicare commodities down 0.5%. Everything else is through the roof. But I highlighted some of these things here. If you could watch our YouTube page or, you know, through iTunes and, um, and Spotify. I mean, fruits and vegetables up 6%, non-alcoholic beverages 5%, gasoline prices up 28%. Now you said, well, it should come as no surprise.

Frank Curzio 08:26

The surprise to me is how much higher it was than what people thought it was going to be. And it even surprised me. I mean, what happened to the 2% target? We’re at 3.8%. I mean, let’s get down to 3%. We knew it was going to be a little bit over 3%. We didn’t know it was going to go to 3.8%. I mean, that, that is massive. And look, you’re talking about stocks going higher, and it’s driven by technology.

Frank Curzio 08:47

But if you look at the breadth of the market, most stocks are down every single day that we’re seeing this. Yes, it’s nice. We’re in energy. We’re benefiting. We have great stocks. We’re on fire in a lot of our portfolios. And we predicted this for over two years that we need more power and energy. And Joe hit it.

Speaker 4 09:02

I need more power.

Frank Curzio 09:05

I love that. And you know, more power, more power, more power. And we’re seeing it. We’re seeing the AI spend. We’ll cover that in a second. But, uh, thank God for AI right now because the market isn’t really doing as good as everybody believes. You could probably see it in your portfolio if you, if you’re not leveraged, if you don’t have a lot of exposure to technology within the AI race.

Frank Curzio 09:24

Uh, and the Microns and Nvidia’s taken off, and we’ve seen a lot of stocks do great. But, you know, stripping out food and energy, like you said, uh, which have surged since, since our warm what I ran, the closure of Strait of Hormuz, we’re still at 2.8%. And when you’re looking at the national average of gasoline at 460 now, it costs me $100 to fill up my truck.

Frank Curzio 09:45

Uh, like you mentioned, a big part of this is CPI’s now outpacing wage growth and first time in over three years. And you’re looking at it going, okay, well, you know, it’s temporary. Okay, we were told it was temporary two months ago. And there’s still no solution here. It looks like it’s going to escalate again because Iran’s not accepting anything, and they’re, they’re playing hardball again. And what are we going to do with this? Uh, so, and then what happens today?

Frank Curzio 10:06

We got a massive surge in producer prices, which were expected 0.5%, and we almost tripled that. That’s the surprise to me, Daniel, where, yes, I know it’s going to be higher. If you told me it’s going to be 0.5%, I’d be like, okay, maybe we push 1%. We’re at 1.4%, the biggest gain over four years. And by the way, for those of you saying, hey, it’s temporary, it’s not just food and energy.

Frank Curzio 10:25

Trade services skyrocketed. Okay, big component. That was a surprise. Does it have to do with tariffs? Because that’s not temporary, right? So it’s not just this food and energy and the closure of the trade and fertilizer prices through the roof and gasoline and oil prices through the roof. And there’s the airlines. And you saw the airlines on that chart. Uh, fares are up 20% on airlines. But it’s a good thing they let Spirit go under, right?

Frank Curzio 10:47

Because that was going to prevent competition. Good job for, for, for, you know, Senator Warren and all those guys. I was on that for so many years, even when they, they shit on that deal, uh, with JetBlue. And I said, this is an absolute joke. And now you actually will going to look to approve American and United. Just how do you say no to the two smallest airlines that wanted to merge to,

Frank Curzio 11:07

to, to try to compete with these big guys? And you clapped. And you, and this is, you know, the Democratic Party, who’s supposed to be four jobs and, hey, four competition. And they, they clapped and said, nope, this is going to result in, in, you know, higher prices. And look at the prices that these guys are charging for airfares. I mean, it’s basically, they have this industry controlled. You cannot start a new airline. No one in the world can, unless you have 25,

Frank Curzio 11:27

30 billion to spend, uh, and not have profits for probably 25 years. Uh, so, you know, you’re locking in all runway space at all these airports. And now you have just, you know, these prices are through the roof. And now they’re saying, did you see this, Daniel? That they’re going to stop serving, like, um, I think, I don’t know if it was Delta, uh, but they’re going to stop serving, uh, you know, beverages and snacks.

Frank Curzio 11:48

Uh, like, what else, what else are you going to do? You’re going to charge to go to the bathroom soon? I mean, it’s, it’s like a joke. And they could charge you whatever you want because it’s a necessity. You need it. Airlines figured that out. When Buffett was saying, hey, avoid airlines, like the plague, it’s the worst investment ever. And they, they figured, hey, you know what? We have no competition in this space. We have unlimited pricing power.

Frank Curzio 12:06

So, you know, now that they’re pricing in and, and just raising prices like crazy, much more than everything else at, uh, you know, the higher fuel prices, which a lot of these guys should be hedged anyway. Uh, but, uh, you know, Delta used to own their own refiner back in the day. But it is interesting to see inflation through the roof and what this means for stocks, where, like you said,

Frank Curzio 12:25

Daniel, it’s not so much, well, hey, you know, stocks are going higher still, which is a surprise. But it’s not all stocks. It’s a lot of the ones with the biggest market caps that are doing well. And I don’t know if that can continue much longer because the market at this price, and I know earnings are on fire and AI’s doing great. And, you know, again, not really for jobs and people losing their jobs like crazy.

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Frank Curzio 14:54

I just, the market is pricing in rate cuts. And now we have the predictability markets predicting now, a year from now, they’ve risen substantially after these reports that we’re going to get rate hikes. I don’t think we’re going to get rate hikes, but if rate cuts are completely off the table, I mean, what are we going to do with the housing market?

Frank Curzio 15:14

The housing market’s almost dead right now. And now you’re seeing what? 6.5%. We’re going above that rate for 30-year mortgages now. People just cannot afford that, throwing in energy and higher insurance premiums and, and, and, you know, all these massive costs and gasoline and stuff like that. It’s just, can we continue to grow without the help of the housing market, which is one of the biggest drivers of economic growth?

Frank Curzio 15:35

I know AI has taken its place, but that’s one of the things I worry about where, you know, I don’t know how much the market can sustain these prices with inflation this high and rates going to stay higher for much longer than anyone is predicting right now.

Speaker 5 15:49

Yeah, that’s a good point. And, you know, how long can it last? Who knows? Obviously, we’ve talked about the differences between the stock market and reality and Main Street and such. What I do kind of consider looking ahead is, you know, as you pointed out, AI is obviously driving this train.

Speaker 5 16:05

Um, electricity cost and energy costs going up are going to attack AI at some point. And you’re already seeing this, not in a meaningful way, but I’ve seen some headlines and some stories about how, Frank, up to half the gigawatts under construction right now could be delayed or canceled. You see some spotty news coverage, uh, even here in Florida.

Speaker 5 16:27

And I want to say, is it Palaca County?

Frank Curzio 16:30

Palaca, I think so.

Speaker 5 16:31

I want to say, I was reading a story, and again, don’t take this as gospel, but there was some pushback there against a data center because of the noise and the usage of power, uh, whether it’s collecting data on you and then the water usage, which, of course, for all the climate guys out there, you know, boy, you gotta, you gotta do the end of the world. While you were gone,

Speaker 5 16:50

Frank, uh, Bernie Sanders was talking about the existential threat of AI. Um, words have meaning. That means the end of humanity, by the way. So the world’s coming to an end, not because of global warming this time, because of AI. So we gotta, we gotta transition there and get your, uh, get your bunkers built for that.

Frank Curzio 17:05

They’re going to be right one of these times.

Speaker 5 17:06

No, they’re not.

Frank Curzio 17:07

I hope not.

Speaker 5 17:07

But, uh, no, they’re not. Don’t worry about it. That’s the easiest bet there is. And you know why they don’t bet? Because there’s no timeline. That’s the, that’s the key.

Frank Curzio 17:13

Yeah.

Speaker 5 17:13

That’s how you’re a shyster. You make a bet without a timeline so you can never make your wrong. It’s the most brilliant plan ever. Gotta give him credit. But I do think that that could be a headwind because if you get, if you get one of these stories out there that say, hey, XYZ is being delayed or, you know, we’ve seen some of this with the funding and the nervousness around funding. But again,

Speaker 5 17:32

when you fall back to fundamentals, the cash is still there, the earnings are still there. And to your point, earnings are really driving this market and will continue to do so. Can you imagine? Let’s fast forward to next earnings season a little bit. If revisions don’t come down massively, are earnings still going to grow at 20% given all these headwinds? I would say the odds are not in that favor, but will remain to be seen. So.

Frank Curzio 17:54

I’ve learned for the past 20 years of this business, never doubt earnings. You’re going to be wrong 99.9% of the time. I don’t get it. I would say the same thing. But these companies, they, they know their numbers. They know that, that they’re laying off employees tremendously now, 10, 15% of their staff, even,

Frank Curzio 18:13

even the hyperscalers, uh, which is going to result in this massive. So now you’re increasing revenue by 20, 30% annually, but, you know, you’re cutting those expenses. And that’s where businesses explode. That’s where things get great, right? It’s not just, hey, we’re cutting costs here. You’re seeing revenue go higher as you’re cutting costs. That’s the definition of great businesses. That’s the definition. That’s the Holy Grail.

Frank Curzio 18:31

It’s called productivity. That’s why AI is such a big deal, because it gives every single company, increases their productivity, right? Which is raising their revenue, you know, going to raise their earnings and, and, you know, you’re cutting expenses. Uh, you look at Bank of America came out with a note on AI and again, AI’s just been on fire even more so, right? We have, uh, you know, Michael Burry’s again for,

Frank Curzio 18:51

for the past, I think, like 12 months now saying AI’s going to crash. Uh, I think if some of these stocks go down 30, 40% from here, it’s still going to be higher than when he first said it. Uh, I saw a downgrade of AMD before the earnings and the stock went up what? 18, 19% after that. Uh, you know, just, but now Bank of America is like, you see, and I’m not bringing this out to, to make fun of people.

Frank Curzio 19:10

I’m bringing it up because

Frank Curzio 19:13

it’s rare that you see Wall Street offsides and they’re so offsides, they’re so behind the curve here. Bank of America’s note today is proof of that. So they go to AI data center total addressable market is now 1.7 trillion. That’s going to happen by 2030. Uh, they’re seeing massive, massive, massive growth, obviously. Uh, just to put the 1.7 trillion perspective,

Frank Curzio 19:33

the smartphone total addressable market is just 600 billion. Cybersecurity is 200 billion. If you take all the NFL teams, which I think there’s like 12 or 10 at over 8 billion, the whole entire, all the NFL teams combined is 240 billion. Okay, you’re looking at AI data centers that total addressable market going to $1.7 trillion. I mean,

Frank Curzio 19:53

think about a small company and we’ve done great on this, just getting a few billion dollar contracts, which is like pennies in a $1.7 trillion total addressable market, right? So they said their best plays on AI, obviously Nvidia, Broadcom, Micron, AMD, Marvell. Um, Marvell, they raised their, uh, price target.

Frank Curzio 20:12

And if you want to bring up that chart, uh, Joe, and Marvell, they raised their, their price target from 125 to 200. Okay, this is a big company, right? You talk about a market cap that at 125 was probably scroll down a little bit more. Shares outstanding,

Frank Curzio 20:32

probably about a $120 billion market cap was their initial target with a buy rating on it. Now they’re saying 200 billion, which is more like a $175 billion market cap. They also raised this target on Micron. You know what Micron’s trading right now? Daniel, throw up Micron. MU.

Speaker 5 20:50

The price or the market cap?

Frank Curzio 20:51

The price.

Speaker 5 20:52

No, about a thousand. No, 800, never mind.

Frank Curzio 20:55

Uh, you’re at 800. They have a buy rating on this stock. You know where they raised that target from? From 500 to 950. We’re talking about a company.

Speaker 5 21:06

Nice.

Frank Curzio 21:06

I mean, this was, go down to the market cap, right? Their market cap originally with their buy rating was $565 billion. That was their market cap. Now they’re raising it to 950, which would put them over a trillion dollars that they would join the trillion dollar club. And the way Micron is trading, it looks like it might hit there tomorrow. It’s at 800 right now.

Frank Curzio 21:25

It seems like it goes up about a hundred points every week, not every month, every week. It seems like it, right? I mean, there’s a stock in April that was what? 275? It’s 800. We’re talking about a major company here going into a trillion dollar neighborhood.

Frank Curzio 21:40

Uh, but it just shows you like these massive rising target prices of how Wall Street has been so wrong on this trend and so behind the curve. And that’s how you make a fortune in stocks. All right. But by understanding where the status quo is, and you know that by looking at the analysis with Daniel and I do, we say, okay, what’s Micron?

Frank Curzio 21:59

What are some of these companies? Okay, the expectations are for the stock to be 550, 600, and it blows through to 800 because they really don’t understand the demand for memory and they have unlimited pricing power, just like Sandisk and, you know, Western Digital. So, you know, these names have been absolutely soaring higher. And this is just one area of the market for us.

Frank Curzio 22:18

We’ve been picking apart small caps. Digipower X, Ken Griffith now just announced that he has a, you know, just filed his 13G. They have a 4.99% ownership in the stock. And that’s why, you know, it has been going up and it’s, it’s 830. Okay, just to put this in perspective, we’re looking maybe six weeks ago.

Frank Curzio 22:39

The stock fell under $2 and this is when you had the CEO, Shellmar, came, uh, he basically, uh, launched this initiative, uh, saying they’re going to create a new entity called US Data Centers. And everyone was like, oh my God, you’re pulling all these assets out of Digipower X and, and it crashed the stock.

Frank Curzio 22:59

It went under two, under $2. This is six weeks ago and we had him on. I had him on my podcast. This is a name we followed for a long time and he explained what he’s doing with USDC, that all the costs and infrastructure, once he gets the contracts, he said, we’re focusing on AI. We have the build out. They’ve been working on this for a year and a half, two years.

Frank Curzio 23:16

And they’re ahead of the curve from a lot of these other people and companies that own a lot of megawatts who are Bitcoin miners. And he said, you know, we turned the corner. Now we’re going to sell GPU as a service. They did that. They locked in a contract already. Uh, $20 million contract, the stock popped. And now they just signed another deal, which is with Cerebras Systems,

Frank Curzio 23:36

who is the hottest name on Wall Street right now. It’s coming out with their IPO. They raised it significantly. They’re basically known for, you know, their wafer scale AI chips, training inference and everything. But this is a new kid on the block that OpenAI is part of as well. Cerebras, uh, they have a strong relationship with OpenAI. So Digipower signed a deal with Cerebras,

Frank Curzio 23:57

uh, and it was over a billion dollar deal for a co-location. Basically, that means Cerebras is going to go in and rent the whole entire place, bring all the equipment in there and rent it over a certain amount of years. And they said that that deal could go up to 2.4 billion, I think it is. Uh, right now it’s 1.2. And if you look under the hood, Cerebras, who is going to IPO tomorrow,

Frank Curzio 24:18

Daniel, uh, and they’re IPOing, I’m pretty sure at $150, $160 a share. I think it was like 80 or 90. That’s how much it’s been raised. They’re looking at a 40, 45 billion dollar IPO the largest of the year. Their relationship with OpenAI, they have to provide 750 megawatts of power over the next three years for the company.

Frank Curzio 24:35

So you really could say OpenAI is probably behind this deal with DGXX, uh, but they’re announcing this Cerebras was, and they just signed a billion dollar deal to $500 million market cap. This stock, when we had him on, when he explained what USDC is, he explained it like Oracle and said, look, Oracle is great. They got all these contracts. You saw, uh, their backlog increased 400% in a quarter.

Frank Curzio 24:55

However, these weren’t software deals. These were hardware deals. They have to build the data centers. So they had to take out a lot of debt. And that’s when Oracle got killed. Michelle got annihilated for creating this division, saying all the costs are going to be passed through here. This way we don’t have to do the costs in DGXX once we sign these deals. So obviously he knew he was going to sign a lot of these deals.

Frank Curzio 25:13

Uh, and now you’re looking at those costs filtering through this other division that, you know, DGXX holders are going to own 50% of. And you’re not going to have to dilute shareholders. And, you know, the job that he’s done, and he’s been so criticized, but I had him on the podcast six weeks ago. The stock was under $2, guys.

Frank Curzio 25:31

And look where it is now. If you follow our social media, everyone, all you guys should own it. We’ve been really talking about this and we talked about the power deals and whoever has megawatts. And the next one in line is Vivo. Vivo, if you have over 75 megawatts of power, which you’re looking at DGXX has 200 at full capacity, Vivo has close to 400.

Frank Curzio 25:52

They have 360 megawatts of power. Anyone over 75 megawatts of power almost is automatically going to sign a deal and they’re not going to have to go to the hyperscales. The hyperscales are going to run to them. They’re going to run to them to sign these deals. And when they do, this is where, and look at Vivo Power. I didn’t even see it was up 15% today. This is a name that’s going to go up just as much.

Frank Curzio 26:09

So we’re looking for small caps that have tons of megawatts that they own before they’re signing these deals. And this company is probably going to sign a deal. They’re going to sign a deal. This is Nordic. It’s low power. They’ve done it under the radar. Great management team. And now the stock’s up 15%. Vivo is another name that we’ve been talking about pretty much since $2.

Frank Curzio 26:28

I think we have it in our portfolio. I know everyone, you know, goes, wants to buy free stuff and everything and goes, you know, on our X account. They’re like, I’m happy I bought DGXX at 350 and it’s $8. Well, you know, we recommended it at $1.60 in our newsletter. So, uh, you know, you guys should be doing well. We’re happy.

Frank Curzio 26:42

We love when you have big winners like this, but it just goes to show you when you see the balance where Wall Street is missing this and we knew the statistics. We knew there’s a power problem. We need more power. We know it’s coming.

Speaker 6 26:54

I need more power.

Frank Curzio 26:56

Good timing. Uh, you know, we’re finding these companies. I’m also going to be working with a couple more companies and these are power companies as well. Uh, these are names that are going to continue to go higher and higher because their spending is there for the hyperscalers. You’re looking at two of them spending 200 billion by next year, which is Google and Amazon. Uh, the spending’s not stopping anytime soon and they have to find megawatts.

Frank Curzio 27:17

They have to find the power because they don’t have it. Anyone that has it, it’s going to be rerated. We’re seeing that with Vivo now. We saw with DGXX and we’re going to come with a couple other names that we’re looking at as well. So it’s really exciting times for us in a portfolio in a market where a lot, most stocks are not doing that well, even though we’re at all-time highs. But we’re in the right market and the right sector and it continues to do very, very well for us.

Speaker 5 27:38

Couple of fun facts on, uh, Cerebras, I guess is how you say it.

Frank Curzio 27:42

Mm-hmm.

Speaker 5 27:42

Evidently, these chips, unlike Nvidia’s small chips, Frank, these are big as a plate, dinner plate. So that’s pretty hilarious. On their S1, which is what they file with the SEC to give you some info, and this is over my head, but the Nvidia B200 Black package, excuse me, has 208 billion transistors.

Frank Curzio 28:03

Mm-hmm.

Speaker 5 28:03

Okay, sounds like a lot no matter if you don’t know anything. The Cerebras WSE3 has 4 trillion, 58 times larger supposedly if you throw that into AI. But some wild, interesting numbers. 510 million in 2025 was up 76%. Backlog, Frank, 24.5 billion.

Frank Curzio 28:25

Are you kidding me? That’s their backlog?

Speaker 5 28:27

Well, AI could be lying. You never know.

Frank Curzio 28:29

Oh, yeah. I mean, that backlog has a lot to do with OpenAI.

Speaker 5 28:31

Well, as you said, the market cap or the value of this thing has doubled in the last couple of years. And these guys, Cerebras, I don’t have any confidence in saying that. Is that right?

Frank Curzio 28:41

I think it’s Cerebras.

Speaker 5 28:42

Whatever. I can’t.

Frank Curzio 28:43

Listen, I’m from New York. I pronounce everything wrong.

Speaker 5 28:45

But they filed for an IPO last year and then pulled it.

Frank Curzio 28:48

Yeah.

Speaker 5 28:48

And since then, man, good on them because they have more than doubled in the ability to raise capital. It’s going to be the biggest one until SpaceX comes out, but they’re talking about raising what? Four, four and a half to five billion dollars. You want to trade this thing, Frank? Talk me out of it. How does this thing not skyrocket tomorrow?

Frank Curzio 29:03

There’s just massive demand for it and it is AI. It’s in the right sector. And look, it’s looking at a 40, 45 billion dollar IPO. If those revenue estimates are right, and you could argue, you could say, you know what? A lot of this is bullshit. OpenAI is just signing these contracts, just like Nvidia is signing these contracts. They’re going to sign these big contracts. And once these companies get up and running, they’re going to, I wouldn’t say repatriate, but they’re getting those, you know.

Speaker 5 29:24

Circular flows.

Frank Curzio 29:25

The circular flows back into them. And right now it’s working and the money’s being spent. But when you can’t deny the money that’s being spent from the hyperscalers, right? It’s going to be a trillion dollars in spend probably by next year, if not pretty close to that. I mean, we’re looking at six, 700 million, a billion,

Frank Curzio 29:44

but it could go a lot higher than that because you’re not just talking about the major hyperscalers. You got to throw Alibaba in there. You got to throw Oracle in there. You got to throw, you know, a lot of these other companies in there, right? So, you know, Broadcom, major player, but there’s just more and more spending that’s going to continue. You have chips being made by Google now, chips being made by, uh, what is it?

Frank Curzio 30:02

The trillion, whatever it was from Amazon, saying that business is absolutely on fire. They’re selling their own chips. Uh, it’s interesting. When all the competition increased, that’s when Nvidia finally went higher. You think it would go lower and saying, hey, a lot of these companies are competing. Nvidia’s gone higher and, you know, these names are just absolutely on fire and they dipped on fire.

Frank Curzio 30:23

And people are saying, okay, these are momentum names. You’re right. But they’re being driven by earnings and the earnings that are coming out from these companies, you just saw them. If you looked at the past seven quarters, it’s been unbelievable the growth that they’re seeing. They keep raising that growth expectation. They keep beating the analyst estimates by a mile. Uh, you know,

Frank Curzio 30:41

so this isn’t, you know, dot-com hype and, you know, a billion dollar valuations when you have four webpages and the rest don’t work and the links don’t work on it. I mean, this is true growth that you’re seeing across the board, across every one of these divisions. Uh, and it’s going to continue. And could we slow down? Could they rerate? Could they trade at lower multiples?

Frank Curzio 31:00

Absolutely. We could, especially if we see, you know, more geopolitical risk through Iran. If that escalates, uh, higher gasoline prices are eventually going to hurt the consumer. Uh, you know, so, and if we don’t see lower interest rates, it is a little scary, I think, by the end of this year. Uh, I don’t know how much longer we can continue with it.

Frank Curzio 31:19

You know, rates where they are. Uh, but overall, these earnings are solid. They’re good right now. And, and I’m just surprised to see that the market is going higher after those two inflation reports because they couldn’t have been worse than what they are. Dan, we’re just anticipating a lot of this is going to be temporary. And I don’t see it being temporary.

Speaker 5 31:35

Transitory, Frank, not temporary.

Frank Curzio 31:36

Yeah. Transitory is a great word because transitory could be one month to 24 months now. We know that. That’s transitory. What transitory means.

Speaker 5 31:41

Or five years.

Frank Curzio 31:42

Yeah. Yeah, basically. Yeah. It’s transitory inflation. It’s just transitory.

Speaker 5 31:47

Quickly here. I will say something about that if you don’t mind. This whole inflation thing, we’ve been right on this and because during the last administration we said how, a, this wasn’t going to be transitory and this is going to last four years because, and I know this is still up for debate, uh, debate, excuse me, on some shows and some circles, but they are dead Florida wrong. And that’s why you listen to this podcast.

Speaker 5 32:06

You cannot print excess money out of thin air and dump it into the economy and expect that inflation to, a, be transitory and, b, not last several years. Doesn’t happen in history. Don’t think it’s going to happen this time. The reason I say all that is because remember who was in office during this whole fiasco during the COVID? And COVID didn’t do it. It was the reaction to COVID.

Speaker 5 32:26

And that was Donald Trump. And the irony here is it is blind, dumb luck that he didn’t get, you can say it was a, in his words, it was rigged. He didn’t get reelected.

Frank Curzio 32:33

Yeah.

Speaker 5 32:34

He missed out on the last four years during the Biden administration, weekend at Biden’s, Frank, and got to see that inflation. Guess what? That inflation would have risen damn near as high as it did under him.

Frank Curzio 32:44

Yeah. He’s in his office. Yeah.

Speaker 5 32:45

And he got lucky on that. Now he gets to see the downside of it, but it’s nowhere near going back to their base, which brings into, as we’ve talked about, the new Fed, um, defining new, say, targets, uh, access to data and all that kind of stuff. A lot’s going to be changing because you don’t get to this point without, um,

Speaker 5 33:05

and with debt and deficits and inflation and prices on the, uh, majority of consumers without having massive changes. So just prepare for that. This sticky inflation idea is not going anywhere. If you think anybody, I don’t care if it’s a Trump official or not, is telling you inflation’s going to go back to 2%, do not act on that. That is an absolute lie. It is impossible with the way our system is set up.

Speaker 5 33:25

So anyway, I ranted about that while you were going, Frank, but.

Frank Curzio 33:28

We’re seeing a spike also in rentals, believe it or not, in the past like three months or so. That’s another spike that you’re saying, okay, what is that attributed to? I mean, rentals are going higher nationally, right? It’s a big part of the CPI as well. But I could tell you, you know, it’s pretty happy right now. I think looking at these numbers, it’s got to be Powell and going to wash, wash, here you go.

Frank Curzio 33:48

Here’s the Fed fee, buddy. Here you go. This is you. You’re in now. Have fun. That guy, that guy’s, uh, that guy wants interest rates low is so bad. I cannot see how he’s going to make the argument to cut rates right now, uh, with inflation at three to four year highs, depending if you look at the CPI, the PPI. Uh, you know,

Frank Curzio 34:07

how do you, how do you, how do the president’s going to be all over him telling the lower rates? And he’s like, how can I lower rates? Because everybody else who’s part of me and everyone else who’s part of the Fed and everything else is like, absolutely not. You can’t do it. Uh, and I know that’s the reason why he’s getting in there. But, um, it’s going to be interesting because I think Powell’s like, hey, we’re good. Here you go. You know, you deal with this. This is yours now.

Frank Curzio 34:26

And of course, everybody blames the previous administration no matter who’s in of all the problems. That’s normal. Uh, but I just don’t see this being temporary. And, you know, we will factor in rates coming lower later this year, which I think is a big part of this bullish cycle. And if you have them going even higher, look out. We’re seeing that with the bond market. We’re seeing that with interest rates,

Frank Curzio 34:45

uh, you know, what mortgage rates, I mean, rates are stubbornly high. They’re staying high. And, uh, I just, it’s killing the average person who doesn’t own assets because in an inflationary environment, when you own assets, you’re going to benefit. Uh, and just people who have a lot of debt, it’s, it’s going to crush them.

Frank Curzio 35:02

And you’re going to see the divide is going to be more bigger this year than I think it’s ever been in the history when it comes to that lower end compared to the top end. It’s always been wide. It’s been this big gap. We’ve always complained. Every politician runs on it on both sides. I mean, truthfully, if you look at those numbers, they’re going to be worse than it’s ever been with inflation rising. You’re going to see asset prices go higher,

Frank Curzio 35:21

uh, as long as we don’t have, you know, stupid inflation going through the roof like 10, 12%. Uh, and, you know, that hurts the average consumer with gasoline, food prices are through the roof right now. And, uh, it’s going to get really ugly now. Plus AI taking jobs. You know, you could see this divide of how the stock market’s probably going to do well. The biggest companies in the world are going to do well because of AI.

Frank Curzio 35:41

Uh, but there’s going to be a disconnect where a lot of people are going to get hurt and they’ve been getting hurt. It’s going to get a lot worse before it gets better, I think. I just don’t see interest rates coming down anytime soon. And when I say anytime soon, I mean the remaining of this year.

Speaker 5 35:51

Yeah. And just like this report, they’re going to be lumpy. So we’re going to get decent CPI and PPI reports going forward just as things kind of ebb and flow. I wouldn’t put too much weight into one, uh, item. The real thing to look out for here, in my opinion, and we’re getting ahead of ourselves here, but if and when Warsh cuts rates, watch yields because if he comes out and cuts yields or,

Speaker 5 36:11

excuse me, cuts rates and bond yields rally significantly, then you better, uh, just reevaluate because that means the road that we are traveling on has changed, Frank. We’ve hit from pavement to, uh, dirt. You ever do that? When’s the last time you’ve driven on a dirt road, Frank?

Frank Curzio 36:25

Ah, dirt road. Wow. Wild.

Speaker 5 36:28

Have you ever seen a dirt road in New York?

Frank Curzio 36:29

Yeah. Dirt roads like crazy. Well, you know why I saw dirt roads? The most which was surprising is when I went to Wilson Basin in, in, in, was it in, uh, North Dakota?

Speaker 5 36:38

Oh yeah.

Frank Curzio 36:38

I mean, that was like, you know, whatever, about 10 years ago, uh, just to see the boom going on there. And holy cow. I mean, it was unbelievable. You have people working at Walmart making like $30 an hour. Uh, you know, it was this massive boom and all the people there were like, yeah, I’ve been part of this and it’s going to bust pretty soon. They were right. Did bust. They let me know it happens every 25 years.

Frank Curzio 36:58

We talked to Ope. It was great. If you get the chance, off topic here, if you ever get a chance to talk to someone in their 70s, late 60s or older, and they’re telling you stories, just shut up and listen. They’ve been through everything and the knowledge that they have is amazing. I feel like the younger generation kind of just looks at it and goes like, yeah, whatever, whatever.

Frank Curzio 37:18

I mean, the stories that they told, it just reminded me, you know, going to real estate agent and the lady there was probably like 75 years old and she was just, that’s exactly what she told us. She’s like, yep, and everyone’s moving here and all the man camps are not going to be great, but 25 years, the same thing happens every 20 years. And, you know, they just know stuff, right? They’ve been through everything. Uh, you know, just shut up and listen.

Frank Curzio 37:38

There’s a lot of knowledge there that gets passed on to you for free sometimes, especially if you have grandparents and stuff. But, but just listen to them. They’ve been there. They’ve done it. A lot of things are similar. And, uh, you know, I’ve learned to do that as I get older, actually, uh, in my 50s now, uh, just to shut up and listen and, you know, having mentors and having people even on a Kersio One listen stuff. And by the way, Kersio One,

Frank Curzio 37:57

um, members, uh, were able to get into the financing for DGXX. When I raised money at 230, 240, you got full warrants. It’s eight bucks right now, right? So, you know, that’s a benefit of that membership. But just having so many great people in that membership and being able to, to, you know, listen to their stories and stuff like that, it’s been fantastic for us for that Kersio One membership,

Frank Curzio 38:16

which is, you know, tailored for credit investors and actually have access to our conference, which is coming up, uh, in October. And, uh, you know, early bird registration is now, which can be found on our website. But let’s move on to the president in his airplane calling Elon Musk and Jensen Huang to say,

Frank Curzio 38:35

hey, I’m going to pick you up with Air Force One in about 10 minutes. I’m going to be landing. And now you have this whole trip going to China where you have Jensen Huang, you have Elon Musk, Tesla, you have Tim Cook from Apple, you have David Solomon from Goldman, Larry Fink from BlackRock. These are people that are worth billions and their companies are worth trillions.

Frank Curzio 38:56

Micron, Boeing, Meta, Visa, Mastercard, G Aerospace. Why does this sound familiar? Because when this happened with the Middle East, we said, buy the shit out of these companies because they’re in the Trump circle. I don’t care if you hate him. You had Intel we’ll pound the table on. You had Alcoa we pounded the table on. I think that’s still in our portfolio, right? Uh, no, it’s not in our portfolio, man.

Frank Curzio 39:16

I mean, just names that have been absolutely on fire looking at if you’re in that Trump circle, you’re going to have access to every country, all these deals. I mean, he’s bringing in the whole entourage and saying, this is what you have, China. If you want to play by the rules, this is how big the world gets. Okay. If you want to play by the rules, we know China’s never going to play by the rules and they’re going to steal technology and stuff like that.

Frank Curzio 39:36

However, if they can come up with just some deals, you’re looking at, you know, Nvidia, none of its price is factored in when it comes to China sales, a lot of these companies, right? So, you know, of course, Tim Cook, Apple sells, you know, that’s, that’s a little different. Goldman, BlackRock, Micron, Boeing, holy cow, there’s one company on that list, which we highlighted Alcoa being on that list.

Frank Curzio 39:57

It’s a tiny company. You know what another company’s on that list, which it’s almost like Wez Waldo. Why are they doing, why are they there? Illumina, $22 billion company, Illumina, DNA sequencing, very familiar with this company for a very long time. Uh, it’s small, usually $20 billion companies have been, usually they used to be big. Now we have trillion dollar companies.

Frank Curzio 40:18

So, you know, but everyone that you look at in this group, when I, Illumina is just the one that stands out like DNA sequencing with China. If they sign a deal, if they get any business, just like Alcoa did, you know, you could see this stock actually just rocket higher, like just surge Illumina, I-L, um, I-L-L-U-M-I-N-A, Joe, if you want to pull up the symbol.

Frank Curzio 40:37

So Illumina, I-L-L-U. And this is a company near its, uh, 52-week high. And, um, two Ls. That’s all right. You get that, Joe. You get this is a stock that’s not on anyone’s radar. So, um, which is pretty cool.

Frank Curzio 40:56

But Illumina is a great name, just like Alcoa was a great name. Uh, you know, but there’s just follow these companies that are in this circle if you can, because we told you in the past, again, I-L-M-N is a symbol. Uh, we told you in the past, be part of these companies, forget about your politics and you’ll make money on them.

Frank Curzio 41:15

And that’s what’s happening. These companies have been absolutely on fire. Now you have these companies as well. If there are any deals to be signed in China, you’re bringing this entourage. Daniel, how much did you say it was altogether? I think you mentioned it.

Speaker 5 41:27

I was just looking at a handful of the CEOs that Trump posted on his social media that he was riding with and it’s over 13 trillion in market cap.

Frank Curzio 41:35

That’s just who’s on the airplane.

Speaker 5 41:37

Yeah. I mean, I’m not saying I had the full list.

Frank Curzio 41:38

There’s people who have their own airplanes. And by the way, Cisco invited, did not go. I think Cisco reports earnings this week. What the hell is a matter with that CEO not going to this meeting?

Speaker 5 41:50

Blackout period. That’s what he said. Just telling you the excuse.

Frank Curzio 41:53

That, yeah, that’s the blackout period. You know what? Push your earnings three weeks from now and go to that meeting. You got to be in that meeting. You’re in the blackout period. That’s fine. It doesn’t mean you could say I’m going and I’m not speaking and just listen, but just you got to be part of that group. I know you’re reporting earnings this week, but come on. I mean, you got to get in there, Cisco. Your stock’s been doing well. You got, that’s a meeting you can’t miss.

Frank Curzio 42:14

Really, if you postpone earnings for a month, every shareholder would be like, that’s great news. You’re going to, you just, you got to be in that circle. You got to be there. This doesn’t happen all the time. You got to be in there, in the room with President Xi, all the top people. And to me, I was just surprised. I get it, the blackout period and stuff like that, but still it’s just, he was invited and they couldn’t go. As if I’m a shareholder of Cisco,

Frank Curzio 42:35

I’m like, I don’t care about anything. Just make sure you’re in that room. Uh, it’s disappointing that they’re not going to go. So, uh, you could be in that room. You could send somebody else and just say, hey, we’re in a quiet period, but we’re just going to listen. Say whatever you have to say, but you have to be in that room. So I was disappointing at Cisco, uh, and I’m sure Cisco is going to have to report very, very good numbers. Hopefully they better report good numbers. If they report shitty numbers and you miss that meeting, then you’re an idiot.

Frank Curzio 42:55

You deserve to be sold. You deserve to face stock to go down 20%. Hopefully it doesn’t happen to you because Cisco’s been on a tear lately.

Speaker 5 43:01

20%.

Frank Curzio 43:02

Seriously, it’s $100. If they report bad earnings and you chose to report bad earnings, then being at that freaking meeting, then you’re an idiot. I’m sorry. You’re terrible. You’re horrible. But let’s see what happens. Anyway, so, uh, that’s something to pay attention to. We just gave you a lot of names that make sense. Being part of that circle means that you’re part of the global circle. You’re going to get contracts.

Frank Curzio 43:20

Boeing’s going to get more airplane orders from China. You want, just like they’re getting orders from the Middle East, you want to be part of that circle. That circle is massive. We’re talking about billions and billions and billions in sales. They’re going to increase their sales for all these companies. Look what happened to Intel when, when Trump backstopped it basically. Because once you do that, you have SoftBank coming in, you have Nvidia coming in with deals.

Frank Curzio 43:41

Now you have all these companies signing deals with Intel because they know they have this backstop of the government. Same with Rare Earths. Oh, your permits are going to, you don’t have to go through the whole entire permitting process now. Okay, great. Now it’s going to be a lot easier. And that opens a door to private capital, which is what you have to understand. The private capital is not going to come in unless they’re able to reduce their risk tremendously. And then when you see, let me look at Intel’s move.

Frank Curzio 44:01

This is insane. This move is absolutely insane since April. What was it? In the 20s? It’s 121. This is a market cap that’s going to be competing with AMD pretty soon. Uh, and that’s what the guy said. Uh, I forgot who downgraded AMD before it went up 20%, like two days before they reported earnings or something like that.

Frank Curzio 44:19

And they said that Intel’s taken market share and Intel has all these assets that they thought were worthless and now they’re worth a lot more money, kind of like what you see with Micron and stuff. So, you know, still AMD has been on fire. And, uh, yeah, I think it was in the 300s when, when he downgraded it and, uh, you know, it just had this massive, massive move higher. But what’s the market cap for AMD now?

Frank Curzio 44:41

Wow. 700 billion. I remember looking at this saying, how is it a 2, 300 billion market cap compared to Nvidia being number two in the space? And then you have Broadcom and now Broadcom’s a trillion dollar company. Advanced Micro is probably going to get there as well. So, uh, this is a company I didn’t like for a long time and now I like it. I own it in my portfolio for a while now, um, because they finally showed that they have AI.

Frank Curzio 45:01

They’re capable of competing, uh, with Nvidia now. And, and yeah, that’s clearly changed. So, uh, just AI’s absolutely been on fire, but, um, definitely own the names from Trump’s list. And then, you know, last topic we want to talk about is, uh, crypto.

Frank Curzio 45:19

Bitcoin catching a bid here and we’re looking at the Clarity Act. So, Daniel, this is all you. I know you’ve been all over this. You’ve been studying, you know, just we have what? The House passed it pretty easily. Now we’re in the Senate. We have a 65% chance of passing in the predictability markets. And this is going to happen on Thursday. But tomorrow I think we know more of whether we’re going to have changes. And if you have changes, you got to go back to the House or they’re going to just say, hey, we’re good and sign it.

Frank Curzio 45:39

You know, what are your thoughts on what’s going on with the Clarity Bill? Because, uh, we’re definitely seeing it reflected in Bitcoin going to 80,000 now.

Speaker 5 45:45

Yeah, absolutely. And it’s definitely got some momentum. You’ve had, uh, Coinbase’s CEO, Brian Armstrong, has been against it out there kind of rallying the troops when this first, uh, language came out about stablecoins and passing through yield. We’ve talked about that in the past. That seems to be resolved. They’re not going to let dormant or just still, uh, stablecoin yields earn,

Speaker 5 46:06

excuse me, stablecoin holdings yield earn, but they will allow it for activity and rewards and such. The big banksters, Frank, are obviously fighting this. And tomorrow is the markup. And there has been a hundred at least, supposedly, Frank, amendments, 40 of them which are from Senator Elizabeth Warren. And you can guess what those are.

Speaker 5 46:25

Those are all anti, uh, Trump and Trump family things.

Frank Curzio 46:28

She gets the most of her money through, through the bank lobbyists. Yeah.

Speaker 5 46:31

Which is fine. Oh, I don’t know about that. I’m not disagreeing. I didn’t know that. Um, what’s wild here is that, and I get it. I, I only wish that they would look at insider trading and such like that on both Republicans and Democrats as much as they are to try to say Trump’s just doing this for crypto benefits. But that’s neither here nor there.

Speaker 5 46:50

What’s wild to me here is on Mother’s Day, Frank, on Mother’s Day, the American Bank Association CEO, I guess Rob Nichols is his name. I don’t think he’s in a relation to Joe Nichols, the country singer, but looks like they’re spelled the same. Frank, he sent out an email rallying the troops and saying,

Speaker 5 47:11

reach out to your senators and have them vote no on this. Evidently, they listened. They rallied the wagons, Frank. 8,000-ish letters, objections have been there, have been sent to, uh, senators and such. We’ll see how the markup goes tomorrow. I think they have the votes to do this. I think, and I’ve had to switch here because I was on record saying,

Speaker 5 47:33

hey, there’s no way anything passes because if you’re a Democrat, why do you give this quote-unquote win to a Trump administration? And the more I’ve been reading, the more it looks like they too, the Democrats and the Republicans, both want to play this crypto edge into the midterms, which makes sense. We’ll see about this. You pointed out Polymarket has the odds about 60% of passing this year.

Speaker 5 47:52

The other thing here, we talked about the yield issue and how it’s handled with the stablecoins. The other big language hangup here is on this Blockchain Regulatory Certainty Act. And as of right now, it seems to be favorable for the industry. And what I mean by that,

Speaker 5 48:11

Frank, is there’s language and back and forth going to where somebody has to be held accountable. Okay. Right now, or excuse me, right now it looks favorable. But the worry is there’s language in there that would punish software developers essentially and hold them accountable as money transmitters. And if you have that,

Speaker 5 48:32

the fear there is, hey, all the developers and all your entrepreneurs are going to go elsewhere to where they’re not going to be hunted down like that. And you have to have this into a law or you’re playing the political game that we’ve already come out of and we’ve seen during the last administration where they enforce by regulatory, you know, they enforce by courts.

Speaker 5 48:52

And we’ve heard countless stories of crypto-related companies going to the SEC under Omer Fudd, lookalike Gary Gensler, and him saying, oh yeah, you can do that. They go do this and then they get in trouble and the SEC comes after them. That is not going to encourage entrepreneurship or anything. And so the two big things here are the stablecoin yield, which seems to be resolved in this,

Speaker 5 49:13

um, language over the software developers. But Frank, you got to like 60% odds. Um, if you can get this passed, and hopefully we’ll have some more language on this tomorrow, if not next week. But if this gets passed, I do think that you see new highs across Bitcoin and several Bitcoin-related names. Um, I don’t know about.

Frank Curzio 49:34

That’s saying a lot. We’re at 80,000. You’re looking at 125. That’s a big, big move.

Speaker 5 49:37

You know, Bitcoin, I think, can move though. I mean, it was, it wasn’t too long ago. It was 125. And it was what? Two months ago. It was a 60.

Frank Curzio 49:43

Stocks got in a move. Yeah. Stocks got in a move.

Speaker 5 49:44

Yeah. And, um, you know.

Frank Curzio 49:46

Not really the underlying cryptocurrencies, not so much, but yeah.

Speaker 5 49:48

And tomorrow we can dig into more about Circle and maybe Coinbase or other plays related to this. Um, but Circle, just to tease, Frank, they reported earnings and it’s not an earnings story yet. Uh, they’re profitable in, in some ways, but what I mean is not, you’re not buying this on an earnings and, and, and earnings growth power.

Speaker 5 50:07

You’re buying this as an ecosystem expansion. And really the only thing I’ll tease today is year over year, circulation was up. Uh, I just lost that. 77 billion was what was in circulation. That was 28% higher quarter over quarter.

Speaker 5 50:27

But circulation, I don’t know. How about that, Frank? I just lost the number. I don’t know. It was impressive. I’ll tell you tomorrow.

Frank Curzio 50:34

When you lose a stat, that’s great.

Speaker 5 50:35

Well, I highlighted. Now I can’t find the data.

Frank Curzio 50:37

I love it. I love the fact. We don’t really have edits to the podcast ever, right? So whatever we say would stay. And, and that’s why we need you guys too, because we can talk about lots of numbers sometimes. We might be wrong on a number and, and we get emails on it and we’ll say it. But it’s so funny because you’re like, oh, you know, there’s so many stats that we go over. I will tell you this. And hopefully it doesn’t get us thrown off the air. The banks,

Frank Curzio 50:59

if you look at the, the big banks and what they’ve done, it reminds me of LIV PGA Tour thing, right? I mean, PGA Tour has been screwing everyone for decades, right? Taking most of the pie. Uh, you want proof of that, you know, because now if you want to come back to the PGA, because LIV’s almost done, they’re saying you have to apologize to us.

Frank Curzio 51:17

You know, F you. You know, F you on that apology because you have to have balls to say that. In 2021, the winner of the PGA Championship used to get over $2 million, right? And there’s so much money going into, and this is just one event that I’m pulling, one major. In 2023, after LIV started taking the top players, they, they’re like, oh, we got to increase these purses. You know what they increased it to?

Frank Curzio 51:36

They increased it by more than 50%. It’s 3.15 million, the winner. And in 2025, last year is 3.4 million. So in 2021, you were only paying out 2 million. It changed the whole dynamic. And it, because the PGA was cheap and they were keeping most of their money. And this is what, when they went after Phil Mickelson and said the Saudis and everything, and they totally got the left to destroy that poor guy, right?

Frank Curzio 51:56

And some of it he deserves because he’s outspoken. I get it. But he was complaining about this. Same, the purses are a joke compared to other sports and the payouts. And what did, what did PGA do? Okay, we have to raise it. And then now you have the players coming back. And now we’re supposed to apologize because you screwed them in the first place and allowed LIV to exist. This is the banking system. Okay, you’re looking at a banking system. The lobbying dollars make sense.

Frank Curzio 52:15

It’s 56 million that came in 2025. I wouldn’t be surprised if more than that came in just in the first quarter because of this rule. You have to understand what’s going on. I don’t blame the banks for lobbying, which is basically bribing, right? That’s what lobbying is, bribing, right? Your politicians and saying, hey, you know what? We want you to, we’re going to give you more money if you go in there and vote this way, right?

Frank Curzio 52:34

So it’s bribing. Uh, and I don’t blame the banks since they’ve been ripping off retail investors and institutions for a hundred years, right? And when you look at what’s going on, they have 8,000 letters that have been sent by bank affiliated groups to, to local senators urging them not to pass this. Uh, you’re looking at the deposits.

Frank Curzio 52:55

Okay. When you see the deposits and the sticking point here is stablecoins with this bill and can they pay yields? And big banks rely on cheap deposits and a lot of stupid people who don’t know better to fund their loans. And Circle and Tether are going to be returning 4% through stablecoins. And they’re like, whoa, whoa, whoa, whoa.

Frank Curzio 53:14

Because what’s the interest rate you provide? 0% if you’re the big banks, even though interest rates have been risen considerably. Daniel, do you know how much we’re talking about? The banks are citing potential outflows. Do you know how much these outflows could be if this, if this is approved? Stablecoins?

Speaker 5 53:28

Yeah. They’re, they’re making numbers up though.

Frank Curzio 53:30

6.6 trillion. Okay. I looked it up. I think there’s $11.5 trillion in deposits. We’re talking about checking and savings accounts that they have, that people put their money in there. And a lot of these big banks do not provide you an interest. That’s why brokerage firms like Robinhood, Interactive Brokers, your even Schwab, Charles Schwab, they’re providing 3, 4% interest.

Frank Curzio 53:52

And you’re seeing a lot of money, even my money, being moved to these brokerage accounts. If I’m not trading, I’d rather earn 4% than earn nothing. You’re paying me nothing. You’re doing nothing. You’re charging me fees for wires and everything else. They’re predicting 6.6 trillion. Even if it’s less than that, I mean, if you have money that’s generating nothing and you have an alternative that could generate 3, 4%, what do you think is going to happen to that money, right?

Frank Curzio 54:12

So it makes sense for the big banks to lobby against this. Or it would make sense if you just increase your effing interest rate a little bit instead of robbing all these people that have their deposits at your bank. Why don’t you do that, right? So this is a shakeup that you’re going to see. And now the banks have been getting away from it for a hundred years. It’s this whole boys’ club that’s never been disrupted, all right?

Frank Curzio 54:34

Yeah, you have online banking. It’s never been disrupted. You still pay fees for stupid stuff that you shouldn’t have to pay. And now it’s coming back to bite them in the ass. And this is why they paid the Biden administration to destroy the whole industry that said no banks could take crypto. And this is why a lot of crypto companies went out of business, FTX and all that stuff. Now that you’re seeing the amount of money, now cable, now that you have these companies,

Frank Curzio 54:55

the crypto companies have the lobbying dollars to actually compete with the banks. I mean, you’re looking at fundraising. More money came from crypto than any other place when it came to fundraising. And that’s why I would argue that you had Donald Trump win the election is because of the crypto community. You could say, yeah, you, you know, you had the, the Joe Rogans and Elon Musk in turn and Democrats, you know, went against them and stuff like that.

Frank Curzio 55:14

But a lot of this money came from crypto. This is an important bill. And the banks, I don’t know what they’re going to do if this passes, but they’re going to have to raise rates considerably, which they should have done. Just like PGA should have raised their, you know, those purses for those golfers. And they did it after LIV came and threatened them. This is a threat.

Frank Curzio 55:33

Let’s see how the banks respond because the lobbying dollars are no longer working. You can’t buy these politicians. Everyone knows how much is going to these politicians. And now you’re looking at a 6% chance of this bill being passed. That’s pretty exciting. It’s better. More competition is good for us. When we don’t have competition, we get 0% interest rates by keeping our money at a bank. 0%. They’re paying us nothing.

Frank Curzio 55:52

Now you can make 4% on stablecoins. Now you can make more money on interest. That’s great for everyone. And hopefully we see this bill pass. I think it’s great for the markets. It’s great for competition and it’s great for consumers.

Speaker 5 56:03

Absolutely. We’ll see, uh, we’ll see some more headlines tomorrow. I found the number. So yes, circulation for Circle USDC was up 28% year over year, but on-chain transaction volume, this is what I was talking about, the ecosystem expanding. We’ll talk about this tomorrow, tomorrow, but on-chain transaction volume, Frank, year over year, up 263%.

Frank Curzio 56:22

That’s incredible.

Speaker 5 56:22

We’re hitting well over, I mean, it’s trillions. It was like 21.5 trillion or something. But that, that will only catch fire and pick up speed with legislation clarity. And that’s, that’s key. So look for a lot of those trading headlines.

Frank Curzio 56:34

And the banks did a good job to push it this long to the point where they’re creating their own stablecoins. They did a good job and said, oh, you can’t do it. Then they created, you know, Jimmy, Emmy, Jimmy Diamond and, and, you know, Bitcoin, uh, is, you know, tulips and, and, you know, all this craziness and you’re crazy. And now you’re seeing how much, you know, these banks are getting integrated because now they’re prepared in case this happens.

Frank Curzio 56:53

They need to be prepared. Kind of like how the gambling company’s a little bit late, but the prediction market’s disrupting that whole industry. Now they’re getting into it. Same with the banks. So we’ll see what happens. And this is going to be a big deal tomorrow to see if it passes as is or if they have to rewrite a couple of things. I think it goes back to the house. It’s going to take a little longer. Uh, tomorrow’s a pretty big day for this and big day for service IPO.

Frank Curzio 57:13

And we’re going to see how that impacts also DGXX. If that stock goes a lot higher, they could get, I think it’s 40 megawatts of power for 1.2 billion, uh, which is, which is insane for DGXX. And, and they have 200 megawatts of power. But, um, you know, if we see this stock go a lot higher, uh, serve us.

Frank Curzio 57:32

I, I think if that IPO is, it’s, it’s very, it’s linked to Digipower. If that’s going a lot higher, uh, you could see Digipower push $10. It’s $8.85 right now. We came on, it was down 5%, it’s up 5%. Again, you have institutions that are going to start recommending this stuff and, and start following this company. You have Peter Lynch in this stock at $2, uh, which we talked about. You have Ken Griffin personally owning this stock now,

Frank Curzio 57:52

adding to his position. I mean, this is a real company now once you got these deals and what is the market cap? $500, $600 million market cap here. They’re getting billion dollar deals, right? I mean, if you’re looking at companies, uh, that trading similar, similar valuations, uh, this company should easily be trading over $20 a share. Again, let’s see what happens. You should be up a lot.

Frank Curzio 58:11

Take a little bit off the table here. That’s what I would do because it’s such a big winner. And it doesn’t matter if this thing goes to zero, you still made a fortune off it. But it’s coming. We got some emails, Daniel, that are really cool. Some of them saying, hey, Frank, I’m close to life-changing gains on this. You know, you’ve been talking about this since $1.50, $1.60, $2. You know, to see this stock go where it’s going and the momentum behind it. It’s a lot of fun right now.

Frank Curzio 58:30

And, uh, take advantage of it. Uh, feel free to take a little bit off the table here. You deserve it. Uh, but, um, I think it’s still going to go a lot higher from here, just from those deals. And they only locked in 40 megawatts of power for colocation. They have 200 megawatts full capacity that’ll come online.

Frank Curzio 58:46

So you’re probably going to see more deals in the works in at least the next six months to year ahead. With that said, I think we covered a lot today. What do you think?

Speaker 5 58:56

Yes, sir.

Frank Curzio 58:57

Lots of earnings. Earnings season’s almost over. We’ll see about Cisco earnings. We’ll talk about Cerberus tomorrow. And we’ll talk about the, uh, internet bill. And that’s going to be on Wall Street, uh, Unplugged Premium, which Daniel and I host, which is a small monthly fee. And that’s where we really dig into individual stocks and give you lots of ideas. And we’ll also have a portfolio around that as well. So for those of you subscribers, we’ll see you tomorrow.

Frank Curzio 59:17

Other than that, Daniel, any last words? And you can’t say no.

Speaker 5 59:20

Negative.

Frank Curzio 59:20

Okay. You didn’t say no. All right, guys. That’s it for us. And, uh, we’ll see you tomorrow. Take care.

Announcer 59:25

Wall Street Unplugged is produced by Curzio Research, one of the most respected financial media companies in the industry. The information presented on Wall Street Unplugged is the opinion of its host and guests. You should not base your investment decisions solely on this broadcast. Remember, it’s your money, and your responsibility.