PULLED BACK 71 POINTS.
INFLATION A HOT TOPIC THIS WEEK.
WE ARE WAITING CPI AND PPI DATA.
THIS WEEK THE CONSUMER PRICE
INDEX WILL BE OUT AT 8:30 A.M.
EASTERN AND WE WILL HAVE THE
NUMBERS FOR YOU AND SEE IF THEY
HAVE MARKET IMPACT.
TO DISCUSS ALL OF THAT
MANAGEMENT CEO MARK JOINING ME.
JOINING THE CONVERSATION ALL
MORNING LONG, FOX BUSINESS DAGEN
MCDOWELL AND ROB LUNA.
GREAT TO SEE YOU THIS MORNING,
MARK, THANKS VERY MUCH FOR BEING
HERE AND THANK YOU, EVERYBODY,
FOR JOINING.
LET’S TALK MARKETS AND PUTTING
MONEY TO WORK HERE, MARK.
YOU HAVE THE INFLATION DATA
COMING OUT THIS WEEK.
ARE YOU EXPECTING ANY SURPRISES?
>> NO, MARIA, I REALLY DON’T SEE
MUCH IN THE WAY OF SURPRISES.
I THINK THE NUMBERS WILL START
TO TREND DOWN.
I THINK WE HAD, YOU KNOW,
TRANSITORY TO BORROW THE WORD
FROM OUR LEADERS AT THE FED BLIP
UP AN INFLATION, MOST OF THAT
CAME FROM USED CAR PRICES AND A
FEW OTHER THINGS THAT WERE
IMPACTED BY LOCKDOWN MEASURES.
I THINK THOSE ARE GOING TO FADE
AWAY AND WE ARE GOING TO GET
BACK TO REALLY THE PROBLEM,
DEFLATION, TOO MUCH BET, BAD
DEMOGRAPHICS LEADING TO LOWER
INTERESTS AND DEFLATIONARY
PRESSURES GOING FORWARD.
MARIA: YEAH, I’M GLAD THAT YOU
MENTIONED DEBT BECAUSE I WANT TO
GET YOUR TAKE ON ALL OF THE
SPENDING BUT SPECIFICALLY I WAS
THINKING ABOUT YOU EARLIER WHEN
I WAS READING THROUGH THE
CHANGES ON THE FEDERAL
REGULATION OF CRYPTO.
OF COURSE, THE CHANGES.
>> BLOCKED BY THE SENATE
INFRASTRUCTURE VOTE, MARK.
THE AMENDMENT THAT WAS BEING
PUSHED WOULD HAVE CLARIFIED THE
DEFINITION OF A BROKER WHO UNDER
THE CURRENT PROVISION TEXT WOULD
BE REQUIRED TO REPORT CRYPTO
GAINS IN 1099 FORM.
SO THAT WAS BLOCKED, MARK, WHAT
DO YOU THINK THIS MEANS FOR
CRYPTO INVESTORS AND WHAT KIND
OF A REGULATORY FRAMEWORK WOULD
YOU EXPECT?
>> YEAH, LOOK, I THINK
UNFORTUNATELY THIS IS ANOTHER
EXAMPLE OF PEOPLE PUTTING
TOGETHER LEGISLATION ON
SOMETHING THEY ACTUALLY REALLY
DON’T UNDERSTAND TECHNICALLY.
IT’S LITERALLY IMPOSSIBLE FOR A
MINOR OF ONE OF THE NETWORKS TO
MAKE THIS TYPE OF REPORTING AND
BY REQUIRING TECHNOLOGY
DEVELOPERS TO MAKE THIS KIND OF
REPORTING, YOU’RE BASICALLY
GOING TO FORCE THAT DEVELOPMENT,
THOSE JOBS INTO FOREIGN
COUNTRIES.
THEY ARE JUST GOING TO LEAVE THE
UNITED STATES AND THAT’S REALLY
SAD.
WE HAD A CHANCE TO PASS
LEGISLATION THAT WOULD MAKE US
ONE OF THE LEADERS IN CRYPTO
CURRENCY.
CRYPTO CURRENCY IS HERE TO STAY.
BITCOIN IS MAKING NEW HIGHS FOR
THE YEAR.
BEST PERFORMING MAJOR ASSET
CLASS THIS YEAR.
OTHER CRYPTO CURRENCY IS DOING
WELL.
I THINK IT’S AN UNFORTUNATE
EXAMPLE OF TRYING TO CRAM
SOMETHING IN A BILL THAT REALLY
DOESN’T BELONG AND HAD REALLY
GOOD INSIGHT OF PEOPLE TRYING TO
HELP THEM AND THEY JUST REJECTED
IT I THINK IT’S KIND OF SAD.
>> THEY ARE LOOKING FOR REVENUE
ANY WAY THEY CAN GET IT, MARK,
BECAUSE THEY HAVE TO COME UP
WITH PAY FOR’S FOR THE MASSIVE
SPENDING PLAN.
YOU KNOW, YOU CALLED BITCOIN A
LONG TIME, OBVIOUSLY YOU WERE
RIGHT, IT’S GETTING ANOTHER
BOOST THIS MORNING, AFTER THE
COIN-BASE PROFIT SURGED,
COIN-BASE SHARES UP MORE THAN 2%
IN EXTENDED TRADING YESTERDAY.
TELL ME WHAT YOU SAW IN THE
QUARTERLY REPORT AND WHAT IT
TELLS US ABOUT BITCOIN OVERALL?
>> YEAH, MARIA, THANKS FOR THAT.
WE WERE EARLY INVESTORS IN COIN
BASE AND TALKING ABOUT
INFRASTRUCTURE, WE HAVE A NUMBER
OF FUNDS THAT INVEST IN THE
INFRASTRUCTURE, IN THE PICKS AND
SHOVELS THAT ARE BUILDING OUT
THE NEW ECOSYSTEM AND COIN-BASE
HAS BEEN JUST A MASSIVE HOME RUN
AND YESTERDAY WAS JUST A
COMPLETE BLOWOUT.
THEY SET NEW RECORDS FROM
REVENUE, FOR PROFITS, I MEAN,
THEY MADE $1.6 BILLION OF
PROFIT.
MARIA: WOW.
>> THEYHAMTHEY HEMORRHAGE CASH.
THEY ARE THE TRUSTED PLACE FOR
RETAIL INVESTORS AND NOW
INCREASINGLY INSTITUTIONS, 10%
OF THE LARGEST HEDGE FUND HAVE
INSTITUTIONAL COUNTS OF COIN
BASE AND CORPORATIONS ARE
REACHING A COIN BASE TO BE THEIR
TRUSTED ADVISER.
LOOK, THEY DO ACT AS A BROKER.
THEY DO MAKE COMPLIANT REPORTING
AND I THINK IT MAKES PERFECT
SENSE FOR AN EXCHANGE TO MANAGE
THE REPORTING.
NOBODY WANTS TO AVOID TAXES,
RIGHT, WE WANT TO PAY THE TAXES
THAT WE OWE.
WE DON’T WANT TO DO IS REQUIRE
PEOPLE WHO ARE DOING THE
DEVELOPMENT OF THE NETWORKS,
SECURING THE NETWORK WHO ARE
TECHNOLOGIST NOT FINANCIAL
INTERMEDIARIES.
MARIA: YOU KNOW WHAT I’D LOVE TO
SEE LIQUIDITY IN COIN BASE AND
THAT REALLY GIVES YOU A SENSE OF
THE STRENGTH OF THE COMPANY.
STOCK IS UP 3% RIGHT NOW IN THE
PREMARKET.
LET ME BRING ROB LUNA REAL
QUICK, GO AHEAD, ROB.
ROB: I JUST CAN’T ECHO ENOUGH
EXACTLY WHAT MARK IS SAYING.
HE HIT THE NAIL ON THE HEAD WHEN
HE SAID THE PEOPLE THAT ARE
TRYING CREATE LEGISLATION AROUND
THIS DON’T UNDERSTAND THE BLOCK
CHAIN AND DON’T UNDERSTAND
WHAT’S GOING ON WITH CRYPTO
CURRENCY AND TO YOUR POINT,
MARIA, IT’S A MONEY GRAB.
COIN BASE IS GROWING TWICE AS
FAST AND PROFITS ARE HIGHER AND
TRADING HALF OF THE VALUATION,
THIS IS REALLY WHERE THE FUTURE
IS AND I’M GLAD TO HEAR OTHER
PROFESSIONALS LIKE MARK
REALIZING THIS IS AN
INSTITUTIONAL CLASS, COMPANIES
LIKE COIN BASE ARE DOING THE
PROPER REPORTING, I JUST WANT TO
ECHO CRYPTO CURRENCY IS HERE TO
STAY AND IF YOU LOOK AT SOME OF
THE PROTOCOLS LIKE CARDANO,
MOVING AWAY FROM TRADITIONAL
FINANCIAL SYSTEM, THAT’S WHAT
PEOPLE ARE WORRIED ABOUT BUT
THAT’S REALLY WHERE THE MARKET
IS GOING.
MARIA: USERS AND TRANSACTIONS
REALLY JUMP THERE IN THE QUARTER
FOR COIN BASE.
MARK, WHAT DO YOU SEE ON STOCKS,
GROWTH VERSUS VALUE.
GROWTH SEEMS TO HAVE TAKEN THE
LEAD IN THE LAST COUPLE OF
SESSIONS, YOUR TAKE.
>> YOU’RE ABSOLUTELY RIGHT,
MARIA.
I THINK WE ARE SUFFERING FROM
BAD BREATH, HAHA.
THE FANG MAN TRADE IS BACK AND
PEOPLE ARE IGNORING THE THINGS
THAT ARE CHEAP.
IT’S REALLY INTERESTING FOR ME
TO WATCH STOCKS THAT ARE --
COMPANIES THAT ARE MAKING MONEY,
THEIR STOCKS -- THE HANDFUL OF
NAMES THAT ARE GOOD COMPANIES
ARE JUST PRICED FOR PERFECTION
AND I THINK IN AN ENVIRONMENT
WHERE GROWTH IS PROBABLY GOING
TO SLOW INTEREST RATES ARE GOING
TO TREND DOWN TOWARDS DEFLATION
AND OR STARTING TO TALK ABOUT
MORE LOCKDOWN PROVISIONS, I JUST
THINK THEY’LL BE
DISAPPOINTMENTS, PRICE TO
PERFECTION, DISAPPOINT MEANS
THAT THE GROWTH CONCENTRATION IS
NOT WHERE YOU WANT TO BE.
WE STILL LIKE VALUE.
WE STILL LIKE SOME OF THE
FORGOTTEN AREAS LIKE ENERGY AND
NATURAL RESOURCES, MATERIALS,
OBVIOUSLY THE INFRASTRUCTURE
BILL HELPS THAT, SO INTERESTING
TIMES IN THE MARKETS.
MARIA: GREAT POINT IN TERMS OF
THOSE COMPANIES THAT ARE CLOSER,
CLOSELY TIED TO THE ECONOMY
RECOVERY AS CERTAINLY WE ARE IN
THAT RIGHT NOW.
MARK, GREAT TO CATCH UP AS
ALWAYS.
THANK YOU, SIR.
>> THANKS FOR HAVING ME MARIA,
GREAT TO BE ON YOUR SHOW.