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BITCOIN MINING DEEP DIVE $CAN
Recorded: July 21, 2025 Duration: 2:06:21Space Recording
Short Summary
Canaan's strategic partnerships and innovative advancements in Bitcoin mining technology are driving growth, as evidenced by impressive returns from panelists' stock picks and a focus on increasing hash rates and domestic production.
Full Transcription
Thank you. you you you you you you you you you you you you you you you you you you you you you you you you you What is up everyone? Happy Monday. Happy almost end of the Monday. I hope you all had a great
first day of the week here, July the 21st and 5 p.m. Eastern time on Wolf Financial means we're
going to do our stock picks for the week. Just got finished up with our Stocks on Spaces show
and working on getting everyone kind of cracked in over here for our stock picks
for the week. And boy, looking at the results from last week, for those that aren't familiar
with the show, we pick stocks on Monday evening after the market's closed. We go by Tuesday's
open until the following Monday's close. So close today monday from last tuesday's open
buy went a whopping 0.20 to the upside and qqq a little bit more less than one percent at 0.7
as a panel we uh we didn't beat the market this week unfortunately but we did have a few great
pickers that absolutely did beat the market.
And we've got some definitely some great pickers joining us this afternoon. So looking forward to that. Let me go ahead and hit the results here real fast from last week. Our champion right now
is Mr. Gav Blacksburg, who hopefully will be on here in just a little bit. 4.45% return on PTIR and hood that he took last week. And second place
goes to our man, Nick Drendel, 3.72% return. And then Mr. Ben at Story Trading beating the S&P,
0.62% over there. Some really great picks. Let me highlight those. We'll do the top three picks
real fast. MP from Story Trading, 9.28% return was our top pick of the week. Second top pick was
from Jordan, ORCX at 8.82%. And Nick had the third best pick, SEDG, 8.38%. And with that,
I'm going to go ahead and jump into it a little bit. I know
Andrew sent a message and has to dip out a little bit early today. So Andrew, we'll go over to you
first. If you want to drop your market sentiment thoughts and your picks for us, and then we'll
go back into the market sentiment section. Yeah. What's going on guys. Thanks so much
for having me up. As always, these spaces are freaking awesome. So yeah, in terms of what I'm seeing in the market, let me just go ahead.
I have a post that I put out for my market analysis.
I'll just jump right into that.
But we saw a little bit of weaker breadth for today's session.
We started seeing a little bit of softness in some growth stocks, but nothing too crazy.
Let me just go ahead and share
this. So yeah, you can see on that dashboard, we only had, it was less than 50% advances on
today's session, which is a little bit weaker. Gold was pretty strong today. US bonds were pretty
strong. We actually got a pretty weak figure economically this morning. It was the CB,
the conference board leading economic index that
came in a little bit lighter than expected. So maybe some people bought some bonds just on that
weaker economic data. And then on the stock side, we had the MSOS cannabis ETF leading the way. It
was actually up 11.86%. This has been my pick in these spaces for the past two or three weeks now.
I was one of the people that was not on the leaderboard this week.
Cause last week MSOS was down pretty big.
So I'll just jump right into it.
Yeah,
go ahead.
You know,
MSOS ended at 0.0% from last week.
According to the sheet that I'm looking at break even.
wow.
That's kind of,
I don't know if you see that.
Is that correct?
Yeah,
I see the same on my
end so yeah yeah just to jump into that um i'll just jump right into my pick my pick is going to
be msos again and really the main reason why just to tee up this theme is msos has been in a big
bear market for you know four or five years that bear market was predicated on Democrats making a promise that they were
going to reschedule cannabis. There was a big hopium rally on that. And then when it didn't
happen over those four years, the stocks really just took a big hit. And the thing is the stocks,
they trade in the OTC market. So they're not like these other names that like the market goes up and
they all participate. If there's no one buying those stocks, they really languish.
So we had that four-year bear market.
And then with Trump winning the election, there was even further capitulation.
So it was like, hey, we have a Republican coming in.
There's no way he's going to do anything on cannabis reform.
So there was pretty much this huge whoosh lower and those stocks got killed.
But now I'm seeing that there
could be a reform catalyst on the horizon. And actually today, Terry Cole, there's going to be
a vote for his confirmation as the head of the DEA. If that vote goes through, he said specifically
on video recording that one of his first priorities would be cannabis rescheduling.
So that's why right now that MSOS ETF,
it's the biggest position that I have,
and I'm going to use it again for this week's contest.
So my long pick will be MSOS.
And yeah, just curious to see how it shakes out
when Terry Cole, if and when he gets confirmed
later today or tomorrow, what these stocks do.
So yeah, we'll see what happens.
But yeah, that's it for me this week.
Thanks so much for having me on.
And I know, Ben, you wanted to add something there, right?
Yeah, I was just joking that I'm going to steal that MSOS trick from you
if I went first.
It's got some good relative strength today,
and I've been following the story with Terry Cole and everything.
But yeah, I mean, should i jump in to the macro here uh because it's kind of related andrew do you have a do you have a second pick that you want to put on the board
for us oh for my second pick uh i'll just do msos twice okay well i'll allow it why not all right
appreciate you andrew yeah uh ben go ahead if you want to start us off market sentiment okay well I'll allow it why not all right three sent you Andrew yes Ben go
ahead if you start a market sentiment yes so I'm a so I did grab my attention
today and I got some call options near the end of the day honestly I wanted to
get the common shares but like there's like a weird thing of fidelity that I
have to trade it only on cash basis instead of margin on this ETF for some
weird reasons.
So it actually makes it much easier for me to do the options.
But yeah, I noted the relative strength there today in a sea of terrible price action, honestly.
So there's very few things that look good to me right now.
Look, I've been pressing really, really hard the last couple weeks into this frost.
I've been expecting
a correction. I've been saying that could happen beginning of August, but open-minded
to that possibly happening before the beginning of August. And I think today we got the price
action for me to basically go from like full on bull to yellow or red alert. We'll see
what I put in my newsletter tomorrow morning.
But, you know, maybe that correction is coming early. What we saw this morning, first of all,
the last few weeks have been epic for us. The last five weeks, I've been up 15% a week,
four of the last five weeks. And the one week I was red, I was down 2%. So it's been
an epic, epic run for us. And we've been pressing hard on all of these Trump themes, whether it be drones or drones or rare earths or nuclear or Ethereum plays or things like that.
You know, we've been pushing really, really hard on that, knowing that this is all kind of a lot of its froth and there's going
to be a sharp market pullback. And my plan basically was I'll pivot once we get that pullback.
And I think today, look, there were tons, tons of candles that were reversal candles today
in high flying leaders like Oclo and nuclear. Like these are names that were up significantly
green this morning and then close significantly red and it was all over the place.
It was in RTAT and UMAC and the drone sector.
It was in some of the quantum names.
It was in like MP and the rare earth names and TMC.
So all of these leaders got absolutely crushed today with these reversal candles.
And I definitely got caught on the wrong side of that, but that's okay because
I was riding that wave for five weeks. Okay, so now I got a nasty red day today and I started
pivoting today. I think the party might be over. And you don't see this reflected in
QQQ's Buy IWM yet. So it's happening beneath the surface and often that price action happens
beneath the surface before it hits the indices. So I'm pretty bearish right now, you know, and there's very few things that
look good for me, good to me over the next week. And you know what, I'm not really going
to have stock picks for you instead. And I'll say it right now because there's nothing to
talk about in terms of individual stocks. I really don't feel comfortable in any of
the individual stocks. And I'll even add, here's another example of this price action changing today.
There were a couple smaller cap drone stocks today that had unbelievable news, like inflection
point news, fundamentally inflection point news. One was ONDS and the other was MOB. They're
smaller caps with significant news, you can check it out. And they just had terrible price action, like opening up significantly green and then fading the entire day.
In the case of MLB, it went from like, I don't know, it was up like 15%, 20% in the morning to down 13%.
It was a nightmare.
So I can't pick any individual stocks because even if you have a good catalyst, you're getting sold off.
even if you have a good catalyst for getting sold off.
So my pick is going to be gold.
So my pick is going to be gold.
And I'm going to do it with GDXU, triple levered the miners.
And I'm going to do it with SHNY, a little-known ETF where the liquidity is not good,
but for the sake of the competition.
Right now I'm in gold calls, GLD calls for Monday.
But I'm going to go shiny, SHNY.
The daily chart on this uh gold is absolutely beautiful
right now and and maybe i'm kind of looking that at that as kind of some sort of hedge
with with the price action i saw so gdxu triple levered miners and shny triple levered gld that's
my pick for the week i i'm afraid to do any individual stocks right now. There you have it from Ben at Story Trading, dropping in the GDXU, the SHNY, and the word of caution across here as we hit earnings season, kicking off into full gear here.
But, hey, I definitely hear you.
There's a strong argument that's starting to be made about kind of today's price action.
I heard it from a few people.
Some people were debating it either way,
but definitely some things were shaking up underneath the hood a little bit.
So we'll see how that plays out.
Appreciate your thoughts there, Ben.
Let's continue around the panel and get everyone's market sentiment thoughts here.
Nick Drindle, let's come over to you next.
Yeah, I think Ben really nailed it.
The one stock that really opened my eyes, no pun intended, was OPEN today that had a massive move, was up like 120%, then reversed, dropped 40%.
It was on highest volume, I think, ever.
And when you get those types of reversals and you get market-wide leading growth stock
reversals like we saw, it definitely is a warning sign.
Now we've had multiple warning signs this entire run up, but the thing we haven't really
had was follow through to the downside after a reversal like this.
And that's what I'm going to keep my eye out for tomorrow. Because like QQQ
actually held green today because we saw rotation from some of these crazy speculative names back
into mega caps. So it wasn't like the money was leaving the market altogether. Meta, Amazon,
Google, all good days today. Apple kind of closed relatively weak, but still positive with a little gap up.
So I don't know.
It definitely feels late in this move.
But I wonder if, since this has been such a lockout rally,
if we're going to see a little bit more volatility in this topping phase
before we see actual price pullback.
One thing that I look at each week is
the NAIM active investors exposure. And over 95%, that's when I get pretty cautious. And that
actually dropped last week from, what was it at? It was at 86 two weeks ago, dropped to 83 while
we continued to make new highs and specular names shot up.
So it's not like everyone's overexposed at this point, but it does feel like the day could have been a character change in,
in the market.
And I'm just trying to kind of like balance out everything I see objectively.
So you see rotation into mega caps, some software and cybersecurity.
I didn't see any news that caused the sharp move down, but CrowdStrike was looking good earlier today and then kind of pulled back.
But that software and cybersecurity space, if the market's going to continue to rally, I think that is a group that has to show strength right away here
because it was one of the first to rally,
one of the first to pull back to the 50-day moving average.
And if we're going to keep the party going,
chances are those groups along with the mega caps
that have kind of pulled back before this most recent rotation,
those are the groups that need to take over
while some of the money bleeds from this
super speculative names that have been going nuts lately. So I don't know if the party is over
already. We'll see if we get followed through tomorrow, but I'm definitely playing more
defensively and looking for more extended names to short versus quality names to go long at this point.
Yeah, it makes perfect sense, Nick.
I appreciate you sharing your thoughts on that.
And yeah, I don't know, Nick, how aggressive are you being up?
Are you being cautious?
Are you being defensive?
What's your general approach right now?
I'm trying to be super aggressive shorting like craft companies that have gone up hundreds of percents. And then just keeping like some of my core positions,
I've got like some solar and China stocks right now, because I think those are two themes that
could have really nice moves in the second half of this year. But some of the like extended growth
names, you could trim some of that or trail it with a key moving average, which is fine.
I do like to play the short end to kind of hedge some of those,
some of that risk.
So some of the like really crappy stocks or like even like Chinese
pump and dump stocks, just building some short positions in there.
And then as the momentum dries up, we should see some,
like if we do get followed through to the downside,
we should see some of these momentum names really collapse.
And then that would be good alpha.
If shorting is your thing,
if shorting is not your thing,
then you're just playing the moving averages
and seeing if we continue in the uptrend.
Yeah, I can't disagree with that.
Appreciate you sharing kind of your mindset there uh let's
continue around the panel here get some more market sentiment thoughts from our different
stock pickers uh chris we'll go to you next and then we'll hit vegas i think everyone is absolutely
correct in right now it is not the time to be a hero and go long on a lot of things that have
been overextended uh right now it's time to be a hero and go long on a lot of things that have been overextended.
Right now, it's time to be a little bit cautious, play the defensive game,
maybe take some money out of high beta, rotate into value.
I've pretty much been just doing my homework on health care
and making sure that I'm crossing my T's, dotting my I's,
trying to understand why these companies have taken such a big dive.
Some of it is, of course, regulatory changes. Some of them are tax law changes with the big,
beautiful bill. But usually whenever you see an entire sector sell off, there's value to be had
because everyone has different levels of exposure to different kinds of regulatory changes.
And everyone just kind of says, oh, health care bad.
And now everyone has sold health care off.
So if you look at health care insurance specifically, you've got big names like United Health down 50 percent. Their operating income gives them a lot of flexibility to buy back shares and do all sorts of financial engineering to make their future growth prospects look a lot better than what the current market is giving them attention for.
So I think they're next like two, three years, I think I'm going to be rotating out of out of certain things and into more health care related, well, health insurance companies.
There's just so much bad PR, but people really don't understand the business and the fundamentals of the business and also the level of basic need that the sector actually has.
Like a lot of people say, oh, look at these health care companies, like health insurance companies.
They're all price gouging. They're evil. And I'm like, dude, they have like 3 percent margins.
They have 5 percent margins. They're just really scaled up high to to to give value to shareholders.
Otherwise, this is not a business. If a business was price gouging everyone,
you'd have like 10, 20, 50 percent margins and you would see that margin expand over time.
Their margins have basically been five to six percent forever. And there's also a lot of
regulations around how much money that they can hold, keep and how much they have to actually
disperse. So I think there's
just a lot of bad PR in the sector. But, you know, if you find the strong companies within
within the sector, you know, there's money to be made. So I am pretty long on United Health for
long term. In the short term, I'm in with these guys. I don't necessarily short a lot of companies
because it's just not my thing. So i don't even i'll be honest guys i
don't know what to pick uh so instead i think i think the best thing to do is just tlt and chill
you know so that's what i'm gonna do just chill with tlt and uh maybe put in some tm tmx in there
as well so not tmf which one which one tm Sorry. If you want to be really boring and safe, you can chill with UUP.
Yeah.
There you go.
I don't know.
Chris sounds...
I'm pretty chilly in money market.
I know it sounds bad, but I'm getting 4.5% not doing anything.
You know, I'm being...
This is the time where you want to save as much money, be liquid as possible so that when the market dumps, when sentiment goes to the opposite direction, that pendulum swings, you have that liquidity to just buy up these great names and just, you know, and relax.
Yeah, I was going to ask you a question and you pretty much answered it. You're sitting in money markets, but hey, at 4.5%, dry powder is ready to go. One of the hardest things, I think, Chris, when you get to a spot in the market like this is to try to just do nothing in a way.
But I mean, is that essentially, are you just literally just chilling in in bonds right now is that basically
yeah trust me there isn't a day that goes by for the last two weeks where i don't like turn on
twitter and i see like oh my god i've made two thousand percent on rocket lab calls and i'm like
what how are you valuing this company like what news just recently came out that makes this company
worth 22 billion dollars when literally like a year ago, they were worth like five.
And at the same time, most of their most of their their launches and all these other things, they're still unprofitable.
You know, so they're going to need to raise capital. They're burning cash, which tells me that they're probably going to do share like equity raises.
they're probably going to do share like equity raises.
If there's any company right now that hasn't got a 200, 300 percent boost
and is cash flow negative right now, they are all going to be issuing shares.
They need to pad up that balance sheet to give themselves
another five years of liquidity so that they can survive and pay their
CEOs and executives and and whatnot to, I guess, keep the mission going.
When you look at Open Door right now.
Open Door has been riding high.
I'm almost certain if this thing goes a little bit indoor about them doing a share offering and that gives them enough liquidity to, I don't know, survive another two, three years,
you know, so that's what I'm going to see.
So I think a lot of these names that are super overextended that are cashflow negative executives,
if they're smart, they'll, they'll, you know, they'll, they'll issue some shares, get some
money into on their balance sheet, and then they can chill out, you know, and basically
run, run the business for a few more years, even if it's unprofitable.
Hey, the name of the game is survive until you get the profitability so yeah it kind of makes sense honestly with uh when you see these
names run up like this that you'll start seeing offering season come through and i think we've
seen a few but it feels like that will continue to be the the thematic and chris when it comes
to rates do you mean do you do you think rates are going to go anywhere
at this point? I mean, they almost don't have a reason to, but obviously there's a lot of pressure
and talk about it. Or are we sitting at the same spot probably in September as we are now?
I think there's a challenge that some of the policies are deflationary, but then some of
the other policies are inflationary. And each narrative
is kind of fighting each other right now. And I don't know, I don't know which direction things
are to go. So like, when I look at, when I look at like, all the talk around deportations, and,
you know, and, you know, basically stopping migration and everything else, technically
speaking, that should be deflationary, because you're lowering aggregate demand for goods
and services so that's supposed to be deflationary but at the same time you're also shrinking the
labor pool which means that you know there should some of that some of that should counterbalance
and uh some of the wages you know they because a lot of these people occupy low wage positions
so if people if businesses are trying to make up for that labor, they're going
to have to hire American workers, which is fine. The problem is American workers are going to demand
a lot higher wages. So now all of those costs are going to get passed through to all the goods and
services that are out there. So if you look at the percentage of inflation that we're getting from
services, it's staying rather high. Energy, for the most part,
has been stable and it's been going down. And so on a year-over-year basis,
energy has helped lower CPI to somewhat closer to that 2% target, but nowhere near where we
need it to be in order for J-PAL to feel comfortable cutting. And then on top of it,
we did this whole thing with tariffs,
which I don't care what anyone says.
Tariffs are inflationary.
You're pretty much just putting a tax on people, all right?
Anytime anything comes into the country, you put a tax on it.
You call it a tariff.
Importers pay.
The importers pass through those costs.
Everyone knows that, yes, maybe we haven't seen it 100% show up, but that's mainly because most
of the companies ate the cost very, very early, and a lot of them front-loaded a lot of their
purchases six months ahead of time. So they actually had an inventory. Now the inventories
are dwindling down, and these companies are, they have no choice but to pass on the cost.
So one of the things that you saw in this last report, you actually saw goods inflation starting to creep up again.
Right. So I think this is the problem that we have.
And then to counter that, you're starting to see shelter weakened.
Housing prices are starting to come down significantly around around like the Sunbelt.
And that is technically disinflationary. So it's like,
there are so many moving pieces. I don't know which direction we're headed. And I think
if that's what comes about, I think that that just means that we're probably going to stay at
the neutral 2.5 to 3% range for I don't know how long. So it's literally like a tug of war
on an inflation front.
So I can't say that we're going to get rate cuts,
especially if the goal is getting to 2%
before you really get into the zone of cutting again.
So I, yeah, when in doubt, just chill.
So that's what I'm doing.
I hear you, Chris.
Appreciate you sharing those in-depth
thoughts with us on the panel this afternoon let's go over to vegas who we have back on the
panel today vegas how are you great to have you what are your market sentiment thoughts these days
it's been a while uh you know what my sentiment is very different than a lot of you guys um
you know what i think that there'll be I'm definitely prepared for some pullback or some
consolidation but I'm not in the bear camp yet I mean I think I've just really just like to go by
price action and let price action determine my thoughts I mean I don't want to forecast and have
a crystal ball and say okay we're going to be doing this like the price action will tell you
if it's going to do that so for now I'm I'm just, you know, they say the trend is your friend
and it's done extremely well.
Some of you like to do the, you know, chill with the trades.
And you know what?
My long-term portfolio is like really chilled.
I have like so many longer-term stocks.
I'm just letting them, you know, I don't care if they pull back
because these are very strong companies with serious cash flow, strong fundamentals.
My biggest position actually for me is Sophie.
And I just sit with it and let it play out indefinitely until I see this go eventually.
I think it's going to go to $100 long term.
But anyhow, going back to the market, I'm not bearish at this time.
But I am prepared for any kind of pullback or consolidation. But I'm not, look, the month of August has shown in the past that it can be volatile and to companies reporting. And, you know, even next week, we are going into the end of July.
And usually the last few weeks of July and the month of July is bullish. So why not seize the
opportunities and the money that you can make? But obviously being, you know, conservative,
and maybe you want to do a smaller size. But for me, I'm still bullish,
and I'm looking forward to some really good earnings this week.
In particular, do I want to tell you my pick for the week?
No, we're not yet.
You can hold that for just a second.
We're going to come right back around.
But Vegas, I like your thought process there.
Uptrend, new all-time highs just about every
other day it seems like I mean did you ride it until you get some type of blow off but is that
kind of your general thinking yeah well when I do the long-term accounts I just let them play out
because the long terms I have I'm holding them for the next two to five years I'm not looking to
sell any of them uh if I you know as the as the stocks go up and if they
double then i'll have to you know i'll put in some stop losses in there to preserve my capital
uh that i've put into some of these plays um but for now like in terms of like what the panel is
saying it makes it sound like everyone's going to be turning bearish right away and i'm really
surprised to hear that from some of the panel members. But then again, maybe I'll be surprised when I see the action,
but I am still seeing a lot of stocks closing with 52-week highs,
and you can't say you're bearish on stocks like even companies like Roblox,
52-week closing highs.
I mean, the stock's on fire.
I mean, it's just been such a great run,
and so many great companies with a lot of action.
And when earnings come out,
we'll certainly see a lot of these stocks make some movement, which way up or down remains to
be seen because it really comes down to the guidance. So I'm ready for that. And I'm excited
about some of the earnings in the company. And I think that'll be putting a lot of you in shock.
I love it, Vegas. Appreciate you sharing those thoughts. We're going to go over to Knott's
next. We'll come back around and get the few panelists that haven't picked yet. We'll get
everyone's picks here in just a few minutes. But I wanted Mr. Knott's, Mr. Bull Trade Finder, to
give his market sentiment thoughts. Knott's, which camp are you in here? Are you neutral? Are you
bullish? Are you bearish? What's your take on the market?
Well said.
Couldn't have said it any better there, Knott.
Jordan, we're going to go over to you.
See if we can get a hold of Knott here in a second.
Yeah, he might be sleeping.
But not too much to add for me.
I mean, I'm not feeling too heavily either way. I mean, this market's obviously just relentless, man. We keep on at all. So, I mean, we'll see how the week goes. I wanted to see us maybe retest Friday's lows
at the start of the morning. Obviously, we just ripped to the highs, and, you know, we're
trading much higher now, but if we want to go visit those I still think
that would be totally fine and it wouldn't make me like extremely bearish on the market so
I guess I'm still bullish but just really don't care about the higher time frame right now because
like in terms of like you know being too bullish or bearish or trying to find the top because
either way I'm just playing through uh through the intraday of course using the higher time frame still helping me out with my positions and everything but
not really trying to care too much about like okay are we finding a you know short-term high here
is the market just going to keep ripping because i'm just focusing on the intraday as much as i can
so um really just letting things play out if you know want to get a dip, I have plenty of levels ready for us
when we do want to actually get some sort of dip in the market.
But until then, we might just keep drifting higher.
I'm totally fine with that.
Still plenty of great setups in the market.
Volatility still is above 16, I believe.
So still hanging on there.
Got plenty of volatility in the market still.
And you see it in the price action, I think.
I mean, there's slow times in the market for sure but I'll keep saying it's
not as bad as it's been in the past when we've seen all time highs prior. So I would say
trading environment is still pretty decent. There's pockets of opportunity pretty much
every day and we're just going to keep trying to find those little pockets and play them
until this market wants to actually dip. And then I'm always waiting for that next
opportunity to add in the long term, but I don't think I'm going to have that opportunity
for quite a while. So we'll see what happens. But yeah, just taking things more day by day,
not trying to worry about the higher timeframe trend on things and where this market might end up projecting at. Yeah, it makes sense there, Jordan.
Knott's going to give you one other shot here, paging Knott's. If not, I'll jump in with some
of my thoughts. All right. Yeah, I'll go ahead and jump in with some of my thoughts. You know, I'm so neutral right here. I look at this from like a week by week basis. And I see like, okay,
it looks like we're a little extended, obviously a big kind of upper wick, you know, exhaustion
type of look today. But also look at, you know, what's coming down the pipe to kind of try to
push the market any higher. I would love for this market to come back and test even a 20-day or the 21 EMA or wick down and get to
the previous all-time high that we've broken out from and haven't back-tested. I would love to
come back and back-test that. I don't know that we'll get that, but that would be the easier trade,
in my opinion, if we did get something like that. Right now, I think the
painful trade will be if we just continue to go sideways here and maybe just float to the upside.
My approach has been basically don't do a whole lot of anything right now. I have a lot of winners
that I'm still riding because there's nothing really screaming at me to get out of them. I have
locked in a little bit of profit and just kind of rebalanced some things. When you have some names
like a Robinhood or something like that in your portfolio that goes up a crazy amount,
I rebalance a little bit. I don't want to be super overweight in a certain name.
But other than that, I don't know. I put on a little bit of hedges today just in case we
do come down from this a little bit extended for the next week, two weeks, maybe.
But at the same time, I see Vegas' point where we're coming straight and everything's fine basically in the market from what I can tell.
And I look at all these earnings coming right down the pipe at us going, OK, well, what if they all come in and they're feeling much more bullish or they give much stronger guidance
than maybe what we saw with some of the uncertainty last quarter.
So I am very, very interested to see what happens over the next few weeks.
And, you know, I can always be a little bit late to the party.
I don't mind leaving the party a little bit early and showing up a little bit late.
I don't want to be the first one and get stuck decorating.
I don't want to be the last one that has to help clean up.
So that's kind of my general where I'm at in the market right now. And it looks like knots is on
a phone call. Great. Thanks for giving me the cold shoulder knots. But either way, that's kind of my
thoughts on where we're at in the market right now. I do see some names that I look at. I'm like,
okay, this name looks, you know, if the market does kind of just slow down and go sideways,
like maybe some of these other names get get some love. Maybe like Chris said, maybe some of these
value names get a little bit of love, you know, and they spread it out or some of these names
that have just been sitting, consolidating, going sideways while the market favorites and the Mag
7s and your big tech and your AI plays and even like your hoods and Palantir's and those are
taking off. Maybe we see some of those
uh finally get some love so we'll see uh we'll see how that turns out and uh with that said
i'm excited to hear what everyone's picks are for the week the ones that we don't have so far
i will go ahead and call out the ones that we do have uh andrew earlier msos twice uh ben story Earlier, MSOS twice. Ben, Story Trading, GDXUSHNY, both on the long side.
This is a gold trade.
Sam Solid could not make it tonight.
He picked NOW, Service NOW, that's ticker N-O-W, and GitLab, G-T-L-B, both on the long side.
And we'll see if our champion, Gav, if he shows up here in a moment or two.
I think he had a last-minute meeting he had to run into.
But either way, let's dive into it a little bit.
Nick Drendel, I'm going to bring it back around to you and see what I didn't call out Chris.
Chris has TLT and Chill, Bonds and Chill, TLT and TMF.
So I'll call those two out on the long side there.
And then Nick, yes, coming back over to you.
What two picks do you have for us for the week?
All right.
I am not sure how this is going to open,
but we'll go with PSIX on the short side.
This is an energy stock that has made a massive move,
$20 today at uppercut 100 and failed within 1% of that nice round number.
Did so on volume.
And then we still closed over the five-day moving average.
So in a perfect world, we get like a day or two kind of rally, put in a lower high, like around 95.
And then I could be a little bit more aggressive trying to short this versus the previous high.
And the goal here is just get it back to kind of like the $72 area
where it had a little pullback, nice pivot, and then made this last, or I don't know if it's
actually the last, but this most recent rally from 70 up to 100 in just six or so sessions.
And this is kind of like what I am trying to focus on right now is like these stocks that have made massive, massive moves.
And then we're seeing really big volume in the reversals.
That just shows that a lot of retail people probably capitulated, bought right into the highs here.
And then there's just going to be a lot more selling pressure to push down.
If we do have any follow through to downside to take profits on a name that has gone up 5X in two months or three months, whatever it was.
So we'll go PSIX on the short side and then go back to my friend BMNR on the short.
That's the stock that went from like $3 up to $160 and then eventually came
back down to earth. And after that kind of kill bar on July 9th, where it dropped, I think it was
like 45% or so, every single bar from that point has opened higher than the close. So there's been pure distribution for the last eight or nine trading days.
And we're right near the lows of that pullback,
while the market is just starting to have some of the more active and
speculative names start to pull back.
So just like you wanna buy leading stocks that are pulling back to key moving
averages in a market pullback to the long
side to short some of these things. It's really like sexy to short the top, but a lot of the
easiest trades are after a name puts in like a momentum top or blow off top, whatever you want
to call it, goes through that first consolidation phase and then rolls further to the downside.
it goes through that first consolidation phase and then rolls further to the downside.
I mean, 160 to zero is the same return as 40 to zero.
So you just want to pick your spots with some of these shorts.
So we'll go BMNR on the short side as well.
And then my stop on that would be high of day because it has the ability to make these
massive moves if the market gets back and shakes off today, but
I don't think it will.
All right, Nick Drendel with the double short PSIX
and BMNR, which, didn't you pick that BMNR?
Didn't you like it? You had a big trade on that that one two weeks ago, three weeks ago, didn't you?
Yeah.
I closed out that short on the second day, but it's gone lower since.
It's gone lower while the speculative markets have gone up and up and up.
That's just huge relative weakness and lots of distribution in that name.
I think it probably goes lower here.
Yeah, I was looking at the chart here, sitting that BMNR sitting right on a gap fill as well at this like $40 range.
Is there a certain, just one follow-up question.
When you look at these for a short, you kind of said that you usually like to wait for that kind of like blow off top type of look.
Is that kind of the general approach you have on these?
I'm just picking your brain here.
Yeah, like I still will try to play that like major reversal on a blow off move.
The thing is, you never really know what that is until like you see follow through to downside.
And that point, like we're just basically guessing.
There's some like indicators that you could use, which is like, for me, the VWAP, like I always
want to stay on the side of the VWAP when I'm entering like extended trades, because if it's
going to keep going up, it's going to stay over the VWAP and get squeezed. But if you can crack
under that, and then like you get a lot of volume right near highs where BMNR was like a perfect example of that.
We had like the massive move on the third where it went from 57 up to 160.
And then it didn't break down for two days.
So it churned volume for two full days over $100, really like bringing in like probably less sophisticated traders,
less knowledgeable traders, pulled them in.
They saw a move from three to 160.
And then when we got that kill bar,
it just had so much more power because it had two days of churning at those highs.
And I think that's why you've seen so much distribution sense
and not even any real bounces.
Yeah, it makes perfect sense.
Appreciate you giving that little rundown there.
So Mr. Nick Trindle with PSIX and BMNR on the short side.
Of course, I do put out a tweet right here
on the Wolf Financial account with all these picks.
And of course, down at the bottom,
let us know who do you think is going to win.
And with that said, let's go over to our next picker Vegas what uh what two picks are you riding with this week
well you know I love Google and I know they have earnings this week so it is a risk that I'm going
to take this pick because really it's going to come down as we all know to the guidance but
I'm really liking a lot of the
stuff they're doing especially with their robo taxi and the waymo uh is doing so well my sister
used it when she was in la she loved it um and i think that a lot of people are actually bullish
on google i think that uh i want to hear about the guidance, obviously, and obviously their dominance in the robotaxi field.
So I know everyone's loving Tesla's robotaxi, which is expanding, obviously, most recently in Austin and with their FSD.
But Google is actually a little more advanced in the robotaxi field in comparison to where Tesla's at. I'm sure Tesla will catch up in that area, but for now,
Google is much more advanced, and they're on a level four. Tesla's on a level two,
and the market growth for Robotaxi could reach $800 billion by 2050 with Waymo's 250,000 weekly
rides, which is really showing that there's a lot of early
adoption. And they have their partnership with Uber, Hyundai, Toyota. So I'm really looking
forward to hearing about the earnings and what the guidance will be. So I'm bullish on Google
with the L, G-O-O-G-L. And so that's going to be one of my picks. And if the guidance goes against me,
then obviously that trade will not work out.
And my other one that I really like,
my second pick, is going to be Oracle.
Now, we all know that Oracle was an earnings winner.
And although it has had a little pullback today,
like nothing major.
Like to me, it's a very strong stock.
And I'm very interested in the 270 calls for the month of September. They closed around $7.65. They were around $8.85 was the high of day.
I still think Oracle is going to have a big move, and I think we'll see it when it breaks $250.
So Oracle is my second choice.
Google is my first choice.
But those are the two stocks I love.
I don't have to worry about Oracle.
The earnings is out of the way, so I really don't need to worry about babysitting Oracle.
So I'm even loving the comments on Oracle as well.
So definitely opportunities.
Anytime this stock is even under 250 I still think Oracle
is a strong buy so take advantage in my opinion if it has more pullbacks in the month of August
it's a phenomenal stock for the long-term portfolio the other thing is I have in my long term is ORCX, which is the Oracle ETF.
So I do like that.
That's the 2X Oracle ETF.
And I have it in my portfolio.
I bought it around $28.61.
And it's my actual second largest position in my long-term account.
So currently, you know, it was around $34.30 was kind of like the last price.
So I do like that one or cx if you
don't want to buy the actual oracle comments so those are my two picks google and oracle long on
both just to clarify there vegas do you want the or cx uh for your pick or do you want to just stick
with the uh the base oh yeah you know what let's do? Let's do that. Let's do ORCX. And then doesn't Google have the ETF as well, right?
What is that 2X leveraged Google?
I have to check.
It is.
I know they have, I think it's GG.
There's GGLS.
Is it GGLL maybe?
Yeah.
Hold on.
Let me see which one that one is.
GGLL. Is that the Google ETF? Yeah. Hold on. Let me see which one that one is. GGLL.
Is that the Google ETF?
Yeah.
Believe, yes.
Let's do that one.
GGLL and ORCX.
Those are my two picks.
Right.
So Vegas is long 2X leverage Google with GGLL and also 2x Leverage Oracle with ORCX,
which ORCX was Jordan's pick last week,
our second best pick of the week last week.
That name has been incredible,
even with the pullback that it had going into today.
Great picks there from Vegas.
Great having you back on the show.
Yeah, absolutely.
Let's continue around here.
We'll go to Jordan and get Jordan's couple picks,
and then we'll hit Mr. Gab Blacksburg, our current champion.
All right. Let's – how was that?
Actually, that Oscar pick from – or not Oscar.
What was it? What were you just talking about?
ORCX Oracle, which I – let me say this real fast.
Sorry, I get those two mixed up all the time., which I, let me say this real fast. I get those two mixed up all the time.
What's that?
Let me say this real fast.
Nots did,
he had a call that he had to jump on,
so he had to drop off,
but he did send me OSCR,
Oscar,
and SQQQ as his two picks,
just to throw those in the list
before Jordan tries to steal anything from him.
no Oscar for me.
I just,
I always get those two mixed up um
so that was a great pick yeah and basically from prospero gave me the gave me the little tell on it
um but it was just one of the only names that were on the short-term bull list that actually
were on a dip and i'm kind of doing the same thing this week uh except i want my tslt i don't i don't
care what prospero's saying about that. I want it
no matter what going into earnings. We're going to take the shot with that. So I'm doing the 2X
leveraged Tesla. And then one name that I did see on the Prospero list that I found interesting,
that is kind of in some nice consolidation on a higher time frame and on a dip that I think we
could definitely end the week higher, is Carvana. And I'm going to do the 2x leveraged
Carvana, which is CVNX. So
yeah, we'll roll with that. It's just honestly nothing too special. It's on
the short term bowl list. And it's on a nice dip, respecting all the
higher time frame areas it needs, in my opinion, to get out of this consolidation and go higher.
And might as well capitalize on the 2x leverage so we're gonna roll with those
all right so taking the shot for tesla earnings with tslt the 2x leveraged version of tesla there
on the long side and then carvana i didn't even know I guess I wasn't even aware, Jordan, that Carvana had a 2x leverage ticker, the CVNX.
You know, I wasn't aware either, but every week I come on and I'm like, OK, which ticker am I going to choose?
And then I'm like, I instantly go to Google and I'm like, is there a 2x leverage ETF?
And I managed to find one. So we're going to keep the streak going with that and hopefully find one every time.
But yeah, that one's from defiance
so shout out that but shout out prospero to giving me uh giving me the the tell on the picks there
because honestly like carvana all these all these names like even uh oracle from last week they're
just not names that i'm really looking at constantly or you know always in my watch list
so it's nice to have that getting my eyes on the, on some other names there that have opportunity. So yeah, good stuff.
Yeah. I mean, it worked out pretty well for you last week for you.
You took that Oracle pick there off of Prospero and it was our second best
pick of the week. You did go to X leverage, but either way, yeah,
shout out to Prospero with that. And this,
let's go over to our current champion from last week, 4.45% return with
PTIR and hood.
And nobody picked either one of those as well.
I don't know.
Maybe if that was just out of respect or not Gav, but, um, those are wide open, but great
job.
You're holding the trophy.
Gav, we didn't get a chance to get your market sentiment thoughts.
So if you have those, and then of course, course a couple picks would love to grab those from you yeah 100 had to come here as the champ and you know rep
let people know keep my spot up on stage nice and warm appreciate you highlighting that and yeah i
did my best with these picks from this past week and glad we were able to wrap them out a little
bit of a tougher week for some people in this market like you mentioned nice move there on hood nice move on
double-leveraged palantir first place by a nice little wide margin shout out to nick drendel over
there in second this is uh this is why they pay me the big bucks no i'm just kidding uh market is
getting really interesting right here a little fr frothy, a little frothy.
I think what we saw today was a little bit of a rotation out of high risk growth stocks into large cap tech.
And that's where you saw a bump today.
It aims like Google, right?
Saw that nice little move to the upside.
And you also saw inflows coming into a couple of other areas like Apple.
And so a little bit of movement here,
not a bad thing. It's very different than when everything's red and pulling back versus when
you're seeing a sell-off and perhaps a Robinhood and Palantir and a Tesla and a move into some of
those other areas, which is, I think, a little bit more healthy right now with what's happening.
So something to continue to keep our eyes on for this week, by the way, coming up here in a few
minutes, super excited. We're going to have a great chat here on spaces but for the moment while i'm going ahead and making my picks
for this week on spaces and i'm sure there's a whole bunch of stuff that people have thrown
into the mix here i'm going to take a couple of interessante ones here so one that i'm going to
take it had a pretty big pullback today i'm going to take
it and look for a bounce back to the upside a lot of pullback in this because of people taking
profit and that's going to be achr archer aviation this had been up a ton on the month it was up 36
now it's about 19 so looking to see if we will get to the upside. And by the way,
Christopher Gwynn, if you guys want to go ahead and request up on stage, feel free to go ahead
and request up right now and I'll get you on stage. The other stock I was going to take was
Grab. Has anyone taken Grab? No, but I did see it popping after hours. I could not find any news on
it, but I saw it starting to take off and make a little move here after hours i love grab long term too it's great pick good one good one yeah love it thank you yeah so a
couple of you know a little bit more unique ones for me today but i'm going to go ahead and take
those two awesome there you have it from the current champion achr archer aviation and then
grab both on the long side there.
I'm going to go ahead and tweet this out because I've already got my picks put in here as well,
and then I'll hit those, and we'll rotate that conversation here in just a few minutes.
Big shout out to the whole panel, of course.
I'm really interested to see who's going to win.
Yeah, go ahead.
Check out the first half of the year picks spreadsheet.
The year long or second half oh no the second half the new
one that we just did a couple that we just did a couple weeks oh my goodness yeah let me uh here
let me get send on this tweet my two picks for the week real fast are going to be draft kings
uh draft kings has got a flag it's riding the emas it hasn't really broken out yet there was a
little bit of a news thing today on polymarket um getting the doj thing dropped so i think the
draft kings like eighth times the charm maybe to finally break out here maybe one of these names
that hasn't caught the love just yet so i want to see if draft kings can get moving so that's
going to be my first pick my second pick is my favorite pair of shoes on shoes ticker on on. It's held this 200 day moving average on the daily so many
times. And some of these are a little bit more defensive picks just because of what I'm seeing
in the market. But once again, touches the 200 day big buy reaction right off of it, that $52
area. And I just want to see if maybe this is the week that it starts to get
going as some of the other names in the market get a little bit of love. So DraftKings and On
Shoes or On Shoes, On On is the ticker, are my two picks for the week. And let me make sure I'll
get that pinned up top so everyone can check it out. And yeah, we'll finish off with that, Ben.
so everyone can check it out.
And yeah, we'll finish off with that, Ben.
Ben, just a couple of weeks ago,
we did a second half picks.
We have our year long picks as well,
but second half picks and ASTS already up 24% for Ben.
What a pick there.
Futu from Nick Drendel is up 30%,
but our current leaders, Ben at Story Trading is up 17.52%.
He has AEHR and ASTS.
Second place right now I see is Chris Patel.
That next pick is up 25%.
His average is 12.64%.
And third place is Andrew, MSOS and TME.
I've been sitting at 11.83% there.
So great job and big shout out to the panel.
Thanks for everyone that joined us.
Make sure you go in and follow all these great stock pickers
that come on each and every week with us.
And also let us know in that pinned tweet up there,
who do you think is going to win this week?
Do we get bonds?
Do we get gold?
Do we get one of these picks?
Does Google blow it out?
Let us know your thoughts there.
And Gav, if you're available i would love to uh see if you
wanted to turn it over and introduce our friends i'm jumping up on stage
absolutely super excited for this one thanks so much to our amazing panel great stock picks as
always and a big second half of the year incoming gonna be rotating the conversation here a little
bit to one of the hottest topics out there right now, which is in the world of Bitcoin, Bitcoin mining and selling these Bitcoin mining machines.
If anybody hasn't not been paying attention, these have been running lately.
catching attraction. And I am very excited that we are getting an opportunity to work together
with ticker CAN, who I have their team on stage right now. They too, as you can imagine,
have popped really hard the past month up about 40%. They're up about 84% at one point.
Within the last couple of days, a little bit of profit taking here, which I think is
a good timing for this space to come in, not you know talking people necessarily right at the highs
and the peaks but rather it's cooled a little bit if people do end up wanting to you know take an
entry or anything like that gives them a little bit of a better opportunity um but yeah this is
going to be a fun one for us to dive into here i'm going to let the team just do some quick
introductions of themselves before we get started.
And then I will do a quick disclosure disclaimer off the top.
And I do want to mention for a lot of people, as always, you know, we are lucky to be able
to get experts in these industries on here.
There's opportunities in the market.
Sometimes the spaces where, you know, we're just throwing out stock picks.
That's what people are like.
Oh, you know, I got to be here and listen to the whole time.
But I'm telling you on something like this, you you're going to wanna stick around for this next hour
because you're going to leave with more information
and a better understanding of an important industry
that is on fire right now
than if you decide to dip out here.
So don't dip out, it's time to get things rolling.
Leo, Gwen, Christopher, welcome to the stage.
Leo, gonna come to you first
if you just wanna throw a quick introduction of yourself for 30 seconds here, then I'll roll over to the other two and then
I'll get us into things. Thank you, Gav. Can you hear me okay? Yeah, it's a little bit quiet,
but it's not bad. Gotcha. So yeah, my name is Leo Wang. I'm the head of Capital Markets and Corporate Development here with Canaan.
I joined this company in 2021.
Back then was the last Bitcoin bull market.
And now we're looking at the next bull market here.
I mean, we've been company for a little more than three years.
I'm based in San Francisco.
Looking forward to exchange ideas with you guys.
Beautiful.
And yeah, definitely looking to keep ramping up.
Great time for this conversation.
Bitcoin pretty much at all-time highs, just a few thousand dollars off.
Cracked through fresh all-time highs back on the 14th. So we are just one week from there. Gwen, how's it going? Hey, Gav, how are you?
I am doing great. Thanks so much for inviting us here to join you all today. I'm Gwen Lauber.
I joined Leo's team to head up corporate affairs almost a year ago today.
So I come from a technology background, a semiconductor background, new to Bitcoin, been here for, like I said, almost a year, drinking from a fire hose, trying to, you know, it's an exciting space and definitely an exciting time to join
Leo and his team so here I am thanks Gav thank you so much Gwen and Christopher how about yourself
good to talk to you Gav my name is Christopher Kroll I'm head of business and sales for
Canaan I've been in the bitcoin space for a while now before that I did work in Asia for a long time, did my own business.
I have a background in finance, went to law school, and I said, hey, Bitcoin's more fun. I want to do
that. So at Canaan, I help support business, new clients, new opportunities, and I get to talk
about it all the time on platforms like this. So I have great colleagues like Leo and Gwen,
and I'm really excited to talk about our company today,
you know, the Bitcoin miners
and all the great things we do for that ecosystem.
Fantastic.
Appreciate y'all all so much for being on here,
nice and timely.
Excited to roll into this.
As a quick note before we get started,
as the spaces are classified by the SEC as advertisements,
this advertisement for, tick C-A-N
is a paid advertisement. It's intended for informational purposes only. It's not a
recommendation or endorsement of any specific stock or investment strategy. Investing in stocks
involves risk, of course, including the possibility of losing your entire principal. Always conduct
thorough research. Use these spaces as a great starting place to do so. And if you feel the need
to, consult with a licensed financial advisor before making any investment decisions.
With that being said, let's go ahead and roll right into things and get into
the meat potatoes of what's going on here. Christopher, going to have you kick it off
if you can give us an overview of Kanan and what really sets your company apart in this
Bitcoin mining industry that has a lot of names bubbling up to the top.
Bitcoin mining industry that has a lot of names bubbling up to the top.
I would love to talk about that. So the Bitcoin runs transactions on a network,
and it's a very complicated brand new invention. And what we do is produce the mining machines
that help process those transactions and keep Bitcoin afloat. So if you believe in the
decentralization nature of Bitcoin, if you like Bitcoin, if you're
into this new technology, then Bitcoin mining is really the foundation of it all. So back in 2013,
we put the first ASIC chip technology Bitcoin miner to market. And that's really what the
whole market uses now. They use these ASIC chip Bitcoin miners. Cana has a long history in
the space. Because of that, we've been through many cycles and we build these Bitcoin miners
to support the market and to mine ourselves as well. So we do have hash rate ourselves.
These machines are very complicated. They're highly durable they're very uh well suited
for this activity in the network and we're excited to to be a part of that and that was the whole
goal from the beginning we wanted to keep bitcoin alive support it support the technology and look
here we are in 2025 we're in the fifth cycle another having and um things are
just looking better and better so we're really excited about telling everyone about canaan and
the bitcoin mining machines that we manufacture i love that i love the passion and the way that
you speak about it as well it's a really exciting time and your team has been excited about bitcoin
for a long time right it's not like you got. And your team has been excited about Bitcoin for a long time, right?
It's not like you got excited when it hit $5,000 or $10,000.
This has been happening for over a decade.
So came and launched the world's first ever ASIC Bitcoin miner,
which has really become kind of the gold standard.
How's the company evolved since launching that first Bitcoin miner?
that first Bitcoin miner. Right. So what we looked at from the beginning is how can we use this
Right.
breakthrough technology to not only support Bitcoin network, make it stronger, and also
support clients all over the world. So when we started, we decided these machines, they're going
to be shipped out to clients all over the world. We're not going to use them ourselves, and we're
not going to try to take down the Bitcoin network. And that's always been the philosophy from the
beginning, to build machines that all clients can use. They're durable, they run well. And
what we do is, because each cycle, the network grows more and more, we also have to make sure
these machines become more and more power efficient. And that's really the driving factor and the biggest changes over each cycle and the time that we've been producing.
So every generation, our machines get more and more power efficient.
That is, you can mine more Bitcoin per watt or per unit of power that you have.
And we've really seen that from each generation from the A1,
our first Avalon Bitcoin miner, all the way till today with our A15.
And there's a lot of interest in these miners.
You can see we have press releases out with this technology
being shipped out to Pubcos and different private clients
that need this technology to run their Bitcoin mining facilities and sites. And I would
say if you're asking, what is the biggest change from cycle to cycle and product to product,
it's really becoming more power efficient and going with what the market needs and making sure
that we suit the machines that we produce to those needs. And that's really what we do is try to make
the world
a better place by getting more and more power efficient and mining more bitcoin
yeah and i think people do have misunderstandings you know gwyn maybe you could talk to this
because we we mentioned you know people think that you know the bitcoin mining right it's just
you know wasting energy and hot and all these other pieces.
And I feel like when talking with you, you didn't have that mindset at all. Right.
There was a lot of ways that people are harnessing this for good.
Yeah, it's actually quite the opposite.
You know, as Christopher was just talking about, one of the things that the industry has done over the last 15 generations in our case is to make machines each generation become more and more efficient, meaning it uses less and less electricity to do more work.
So just from a technological perspective, the technology is improving all the time.
Bitcoin does other things as well, or Bitcoin mining does other
things as well. It improves the grid efficiency. It incentivizes the use of green energy or
renewable energy. It reduces greenhouse gas emissions. So it's really actually doing some really, really powerful things.
When we talk about stabilizing the renewable energy grid, what we're doing is we're making sure that when demand is low, we can pick up and use energy.
And when demand is high, we can actually turn off the machines. A Bitcoin mining facility or a data center can turn itself off pretty much immediately so that the energy can be
rerouted to residential areas or wherever it's needed. And then unlike HPC AI computing,
we can turn ourselves right back on and the industry can get up and running
immediately. We and other companies mine in countries around the world where there's a lot
of green energy. For example, in Africa, there are dams where you can use 100% hydroelectric power
to power your data center, power your mining. So you're using actually
nothing. It can run 24-7, not using any energy, I mean, any electricity from any other sources.
So we're actually doing a really great job managing the grid wherever we are. So it's a great,
great use, great way to use energy.
Super cool. Yeah, great to hear the way that you're going about it. Leo, do you want to chime
in a little bit on some of these different pieces in regards to kind of the long term vision right
now for Kanan, especially because I think when people hear Bitcoin mining, they're just thinking
of the companies that are actually doing the Bitcoin mining.
I do believe that Kanan obviously sets itself apart
because you are creating the Bitcoin miners.
So maybe you could talk a little bit more about vision
and how you want people to think about your company and see the company.
Absolutely.
We are an essential piece of the whole ecosystem.
And it really started very early. In 2012, our founders
team started the first project about turning ASIC semiconductor chips into Bitcoin mining
powerhouse. And back then, people were still using GPUs and computers to mine, more or less of the home players instead of industrial players.
And our company decided to not keep any Bitcoin mining chips that, by the way, was very, very
powerful back then by ourselves.
So we started by distributing all these chips and machines to global miners to make
sure the computing power are diversified into different places. So instead of keeping these
chips for self-interest, we actually ship them to our customers at a very, very low price. So everybody got to enjoy Bitcoin mining and start to stabilize and strengthen the Bitcoin
blockchain.
Without that initiative, I doubt that today Bitcoin would be so powerful and popular.
We stay very strong for almost 13 years since then, and we're still very, very strong in that
commitment. So we just saw the news that Genius Act has passed at the Congress, which is a
big win for United States leadership in global crypto ecosystem. So when it comes to leadership, we do not view
it as in the context of competition. We actually view them as a vision and a commitment to
decentralization. So this is very in line with what we believe in. We are a technology
company. We are always on the cutting edge of technology. Many standards and know-hows in this industry
were started by us.
And we started to become more and more open
and led other companies to use our technology,
eventually benefiting the whole mining industry.
By the end of 2024,
we have registered 488 patents worldwide.
In 2019, we also went public through an IPO,
one of the first in this crypto mining industry and the first in Bitcoin mining hardware. And I
think that determination to go into becoming a public company is really differentiating ourselves against our competitors.
Our competitors are majorly private companies based in China.
We also moved our headquarters to Singapore.
We are worldwide offices supporting our customers and partners.
So in the longer term, I really think we actually use hardware as a tool to
help Bitcoin decentralization. And we still are. Only last year, we started our consumer
products and we dispute all these products to homeowners and home miners. A lot of these smaller boxes are very efficient,
as efficient as the industrialized Bitcoin mining.
But the difference is that you don't need to find
a Bitcoin mining data center to plug these machines.
You can just keep one at your home or your office,
plug in to 110 volts plug,
and you can use your cell phone to scan and download an app and off you go.
So I would say we are always evolving along with the Bitcoin itself,
and we become more nimble, more resilient, and also more open and globalized.
Yeah, I like that.
Appreciate you diving into some of the details there, really,
and how it differentiates itself from a lot of the rest of these categories.
Well put.
I'm going to double back over to Christopher,
and then I'm going to open up the panel for some questions from others here on the panel i see that we got
shannon up who i know you have a lot of expertise in this area i see tropic and zet on stage as well
some great crypto minds so this is going to be epic let's get a little bit deeper into here
christopher talk to me about who are the customers right we're the customers why would people buy
from you right what's the competitive advantage here? Thank you very much, Gav. And it's great to see some friends on here
as well. I know Shannon, he's a really awesome guy, really intelligent and knows the industry well.
So when you look at Bitcoin mining as a, it's just a regular business. It runs just like any other traditional company.
So you'd wanna balance your revenues, your expenses,
keep your equipment well-maintained
and make sure that everything is running well, right?
So in a traditional Bitcoin mining,
you'd wanna keep your power costs low,
your operational costs low. You'd want to keep
the machinery cost down. So that would be the Bitcoin miners. And then you'd also want to make
sure that your mining machines are up to date and have the best technology. So it's really a three
pronged formula. It's quite simple, right? So keep your operation costs down, keep the cost of your machines down and have the best
technology. So typically our clients are those who understand Bitcoin mining very well. They look at
the business at a, uh, in a very healthy way. That is, they want to stay, um, uh, running very long
over each and every cycle like we have. And that's where we come in and fit in that bill
so canaan we build machines that are very very hardy and they run well very very well in the
rough bitcoin mining environments they also have a great uh power the technology is very high and
they're also very power efficient so that you can get your money's worth with the Bitcoin machine while it
runs in the facility. Also, we manufacture our machines in a very clever and a very conservative
way. So what ends up happening is we have these great machines for very good prices so that there
can be great ROI for the clients. The clients can make sure that they're running a healthy business.
And that really goes back to the hallmark of what we've always done from the beginning
is that we're trying to support Bitcoin and support the network. So typical clients we have,
they're publicly traded companies. For example, we've had a press release with the Bitcoin mining
giant CleanSpark, an amazing company that uses green energy and great operations right we've
worked with cipher mining we've just recently announced a wonderful press release with them
as well where we're going to be doing our first u.s manufacturing run and producing machines in
the usa this company also understands bitcoin mining very well cipher mining has great
operational costs they run very well and of course they mining has great operational costs. They run very well. And of
course, they're also the private companies that work with us. They're energy companies. And as
our VP, Leo Wong, just mentioned, we also support the home markets. So we have Bitcoin miners that
run at home so that you can be part of the Bitcoin network and be part of that ecosystem.
So these are our typical clients, right? They're the big
publicly traded companies that we have wonderful press releases with. They're the private companies
that need that support for their business. And also it's the home miners. So it's a very diverse
group and it's a very great story when you look at the whole picture of Bitcoin and how we fit
into supporting it. Great points there, Christopher.
And I love seeing the engagement underneath the space.
I know there's the Kanan Bull account.
I see that they just tagged a couple others,
including your main page and Leo to share it out on the official X page.
Definitely agree with them.
I know you got some warriors in the,
on the timeline that are big fans.
Thank you so much gavin uh we work really hard to stay part of the whole ecosystem make sure we're at all the shows we're on the
stages and we're connecting with all of our friends out there so canaan's a real friendly
company but we're also hard working and striving through each and every cycle so it's a it's a
great it's a great adventure.
Beautiful. Shannon, welcome to the panel. What's going on?
Just another wonderful day in Bitcoin mining.
Everybody seems to get excited about it when the price goes up, right?
Great to see Chris and Leo and been a fan of Canaan for a long time as they're both aware and happy to know those guys pretty well. And. Thanks, Shannon. And yeah, just to expand on that a little
bit, the consumer market for us is something that we're fairly new to.
I think we entered that about a year ago with one small nano product.
We expanded the product line at CES last January and since then came out with another sort of bigger, more robust machine called the Avalon Q.
bigger, more robust machine called the Avalon Q. I think all the products use the chips that we do
for industrial miners, but they just make them something that's compatible with home use. So you
can run our machines in your house. They're quiet. They don't get in the way of regular living. And it's a really good opportunity. And it's one of the things that the company feels extremely passionate about, which is making sure that Bitcoin mining is available to everyone. the playing field to be level and everybody to be able to participate,
not doing anything so complicated where you need to have an electrician come in and install a new power source for you.
The machines in the U.S. plug into a 110 volt regular outlet.
So we try to make it as simple as possible,
as accessible to anybody who wants to do Bitcoin mining.
So that's the philosophy for Kanan.
Really well put there, Gwen.
I saw Shannon jumped off stage.
I will try to bring him back in if he does get back up.
I thought there were a couple of the things I wanted to go into there with him.
Matt, I did see you joined up on stage curious your
thoughts on you know the general topics that we're going over here how you look at the industry maybe
any questions you have for the team yeah hey guys um thanks for having me on you know it's it's
always fun to talk bitcoin mining and i guess just real quick just so you guys are aware kind
of my background um i work in power generation i do energy
improvement projects for large nuclear customers primarily so i'm much more on the power generation
side of things but i did host a show for almost a year during the last year on bitcoin mining and
energy and the intersection between those two so i've had a lot of various guests that are in the Bitcoin mining industry on that show. And then I also
co-host a show on the mornings called Bitcoin Today sometimes. So always happy to talk the
intersection between Bitcoin mining and energy because I think it's
very, very interesting, especially some of the off-grid
stuff that's happening. And would just be curious, you know, from your guys' perspective,
I've heard from a lot of people within the industry that, you know, power sourcing is
definitely one of the hardest things, especially with the amount of data centers that are being
built right now. And haven't got the chance to talk to you guys about it before.
So I would be curious to see if that's also your opinion as well,
or if you guys think that there are other bottlenecks
that people are facing.
This is Leo Wang here.
Thank you for the question, Matt.
Glad you're on stage.
I have a slightly different view about that.
For example, I believe AI data centers are very strong and bigger operations that eat out a lot of power.
But usually when people start a data center, from a capex and operational perspective,
the Bitcoin mining is the number one application people use to apply. And people were actually
using Bitcoin mining in Texas and Georgia to educate the local grids and all these giant energy companies that using technology today will generate revenues and jobs for the people in that state.
And that education has turned out to be really, really outstanding.
So that most of the counterparts have started to be really friendly to Bitcoin miners.
parts have started to be really friendly to Bitcoin miners. And a lot of companies actually
came out of that experience and started to contribute their expertise into AI products.
Some of them are customers and partners. So I would say Bitcoin mining and AI infrastructure are actually a parody.
They work together really, really well.
Many people started their business in Bitcoin mining and turned some of these power that
are suitable to AI, meaning they're closer to the highly populated areas, they're closer to the high speed network and internet connection
into AI data centers.
And it would take them three to four years to finish their build outs.
But in the meanwhile, because some of these are public companies that when they announced
their projects, their stock got pumped up and they raised a lot more capital and started to use
capital to build more data centers for bitcoin mining um so overall i think this is actually
very helpful for bitcoin miners to attract more traffic and attention and also the support from our administration to move ahead with Bitcoin mining and over-war
crypto mining as a whole.
Also because so many American companies and Soviet funds are starting to accumulate Bitcoin
as a reward, but also as a class of asset people would need bitcoin mining and more
more efficient become mining to help protecting their assets because bitcoins are the rewards
from bitcoin mining itself and big mining is essentially a way to transact the business and protect the whole blockchain.
So I think when more and more companies
and institutions and funds building out their treasury
for Bitcoins and other cryptocurrencies,
the Bitcoin mining's strategic functionality
in this network will become even more stronger.
And Christopher, you have something to add to my comments?
Yeah, I think it's great that you brought up AI for Matt's question. Right now we're seeing a huge intersect of data centers, AI, and huge power loads.
I talked about this at Bitcoin 2025 in Las Vegas on the mining stage that we could see in the near future and even now with developments on this technology where Bitcoin mining could be used to balance the low demand time and high demand time of AI data center networks,
where we could see when demand drops off and you have all this power there for the data center, it's not being used.
The Bitcoin miners can rev up, use that electricity, not only to have a revenue and to have a Bitcoin rewards, but also be part of
this technological revolution in that we're also a part of the network. We're supporting the
processing of transactions and the auditing of the Bitcoin network every essentially 10 minutes.
And it's just a great intersect with these technologies. So I think Matt asked an amazing question and Leo was great to bring up
the AI aspect. And just real quick on that point, Leo talks about these funds and type of
energy companies and this new movement and this source. I feel like this is a big opportunity
for many companies out there. So there could be surprises where, you know,
people involved in data centers, electricity, it could even be, you know, new technologies of
software where this balancing mechanisms are happening between these loads. There's a lot
of opportunities there. And I think Canaan, you know, having this strategic point where we're
manufacturing machines and we have that low cost of equipment,
I think it puts us in a good position too to support all that activity. And I keep saying
it over and over, but we're very excited about that and the innovation coming. Yeah.
Great thoughts, y'all. I don't know if Taj got dropped off stage,
but if we're able to get him back on, I know that he'd be perfect for this because he's got a great mind for it. We do have Sam Solid on here. Sam, I'm not sure if we have a chance to look at the fundamentals. One thing that stands out to me about Can is the earnings are starting to look a lot better. I mean, probably the best earnings in like 10 quarters and continuing to peak up now into that gross profitability. Do you have any questions or thoughts here?
to peek up now into that gross profitability.
Do you have any questions or thoughts here?
Yeah, I was looking more into the server component design
as well as the servers that read over here
that you guys are designing ASIC chips
specifically geared toward Bitcoin mining.
And it's actually pretty interesting
because there's a few companies that are followed
that actually do build ASIC chips,
including the hyperscalers themselves.
But Marvel Technology designs the chips for a lot of these mega cap companies.
And I'm not, you know, I'm not expecting like, hey, you guys, are you designing something for Microsoft?
Please let me know, please, or anything like that.
But I'm more interested in the prospects for growing that part of the business.
I'm reading here that it's actually only a small portion of the business.
But do you guys expect to scale that up? I saw that you guys sold about 6,800 machines to Cypher Mining, which is pretty interesting
because that's a very big growing name in the industry. What are the prospects for these GPUs
or chips that are designed specifically for Bitcoin mining tasks?
bitcoin mining tests
christopher gwen do you want to take that
christopher that's probably a little technical for me do you want to
sure i'll take that one so um let me talk a little bit about ASIC chip technology, right?
So an ASIC chip is different from a GPU or CPU where the laptop can go on the internet and do Word.
And I'm sure you know all this.
I'm just reiterating it for the topic at hand, right?
Whereas, you know, this, your phone,
it can do all this technology, right? An ASIC chip, it just does one thing and it repeats it over and
over and over and over really well. For example, encryption style formulas and types of security,
you know, mathematics in a sense. So when we're running these asic chips in our mining servers
as you call them um these bitcoin mining servers they are processing the um the nonces and um
the algorithms for bitcoin very quickly i mean it's just more times than you can imagine per second
um so this technology kind of gets put right there on that spot of the security,
encryption, and keeping that technology online and keeping it safe. So what I can say to the CPU or
GPU or FPGA technology, we have a vast background in that in our company our our ceo
ng jang who actually is the one who invented the asic bitcoin mining machine in his early days
he was also a big developer in fpga technology so that is a deep rich history in our company so
it is something to look into when you look at the history of Canaan and what we do.
On that factor, we also have very advanced control boards that run our Bitcoin miners.
As you can imagine, if the machine is mining Bitcoin and doing this extreme loads of encryption and technology,
there also has to be a very powerful control mechanism to that, which supports that
machine, balances out voltages, frequencies, and keeps the machine healthy. And this is something
we are very good at, if that makes sense to the listeners. And then the one last thing I would say
is when it comes to the design of the ASIC chips themselves i know you uh describe it as you know
we design these semiconductors this is a tough tough business so we're getting down deep into
the nodes deep down to the very small nanometer uh levels and we're designing chips that can do
essentially the impossible when it comes to encrypting and unlocking Bitcoin and keeping
it secure. And that's a lot to say for what we do. And we're very proud of that ourselves.
And then, you know, one last point, we're doing a good job. Bitcoin, this technology for all
users has never been hacked once. Bitcoin is the safest digital asset in the world.
And it's the Bitcoin mining that
makes it happen. We're proud to be a part of that. Yeah, it sounds really good. I mean,
it's interesting because you have general compute, like NVIDIA's chips or AMD's chips,
and then you have application-specific integrated circuits or the ASICs is that's basically what the acronym ASIC
stands for for the audience who doesn't know and a lot of companies are kind of turning this way
because of the power consumption and also the processing efficiency that ASIC chips do deliver
like you said it's just for a specific task and when it comes to Bitcoin mining it's like okay
well you're not going to take a miner and start running like video games like Counter-Strike and
Call of Duty or anything.
You're going to be mining Bitcoin.
You're going to be doing a lot of keys, a lot of algorithms and everything.
And having chips that are specifically catered for that is probably something that miners look for because they don't want to spend all this copious amount of power generating the Bitcoin.
They want to be as efficient as possible.
And it's interesting that you guys do do that.
That's something that I just found very interesting
when I was diving into the fundamentals.
Yeah, well, thank you for the question.
It's very interesting.
And we'll keep you updated on what new developments
we have coming the market's way, right?
And thank you very much, yes.
Yeah, and just to reiterate,
so the name of the game is efficiency in Bitcoin mining. And our customers around the globe are just looking to get more and more efficient with each generation. Every bit of efficiency they can eke out means the difference of them, how many coins they'll be able to generate. So, you know, they're looking for that in our technology.
And that's why NG, our founder, came up with the technology all these years ago and why
it's still used today.
Great.
And one more question, if I could slip one in there.
I haven't looked at any other disclosures but are you guys planning
you know what never mind i probably shouldn't answer this question but it is good to see a
buyback program in place um just shows the confidence of the way you guys see as far as
your valuation goes with open markets um is there you know what never mind i don't want to ask any
questions without disclosing any content but But obviously, you guys are very bullish. You're at your market sentiment. In my opinion, and I'm pretty sure a lot of people agree as well, is that as Bitcoin continues to increase its value in price, you're going to have miners who are probably trying to mine more Bitcoin so they get sell in the market and so on and i feel that feedback's
going to continue going from my perspective and it was actually interesting uh seeing the amount
of machines that you sold to uh cypher are you guys in any talks you don't have to give any
name specifically but are you in talks on selling more equipment or possibly designs to other additional miners in the future?
Absolutely. So, yeah, so we believe that this business is very, very volatile, especially in the early days. And we still remember in 2021, when a lot of supply chain
when a lot of supply chain nodes were disrupted by COVID-19,
and all of a sudden our machines were sold five, six times more than the cost we make them.
We don't expect that to happen again.
But essentially, when we have a larger volume of demand coming in,
which is what we see as of today, our quarterly earnings
will essentially climb up higher and higher.
And historically, our second half of the year will do much better than the first half of
the year.
So we really have a lot of confidence and excitement towards our third quarter and fourth quarter. I think in the meanwhile, as a more matured company, we have streamlined our
business to reduce our expenses, including the recent announcement that we have exited the AI
chips business, which I have carried on the company for over six years.
This business has large expenses on both technology and staffing.
So we're expecting to save more than $5 million a quarter by cutting that AI chip business and refocusing on our mainstream business, which is Bitcoin mining machines
and cell mining.
That also shows our confidence in our Bitcoin mining businesses and Bitcoin mining machine
sales businesses.
Of course, we're always looking for opportunities that is in relation to the whole crypto world, including maybe
other crypto coins.
But Bitcoin as of today is still our focus.
We essentially are Bitcoin Maximist.
The whole company is very Bitcoin centralized.
It is interesting that when a lot of coins come and go, Bitcoin always stay there and
it's getting more and more widely recognized by the world.
And we believe many of that momentum has pushed the demand for Bitcoin mining machines.
So focusing on that business is really a great commitment for the company and for the whole industry.
Green, you want to talk a little bit about our ASP and margins?
Yeah, or actually I wanted to add before we move on to that, I wanted to add, you mentioned the buyback for the company.
And I just wanted to point out that it was somewhat of a tough spring for the company.
The price of Bitcoin pulled back.
Then there was all the, even when the talk of tariff started before anything was announced,
that really took a toll on the company. And I
think, you know, the price obviously was hit pretty bad. And at that point, you know, the company
took a moment to think about the opportunity ahead of us and the fundamentals of the business
hadn't changed. The opportunity in front of us hadn't changed. It was just really, you know, concern in the market just for things that weren't necessarily
changing the business for the long term, but just created this opportunity for the company.
And at that point, our management team, you know, felt that that was the right time to initiate a buyback. So we started
that. I think we announced that on our first quarter earnings call earlier this year. So I
think that was an important thing for the company because, you know, we do believe there's opportunity
ahead of us. There is a lot of excitement. You know, when Christopher talks, you can just hear the excitement in his voice for the whole company.
So thanks, Christopher.
Thanks for that.
That's really helpful.
Thank you very much, Chris.
Yeah.
So, and, you know, obviously you all can see that.
But let's see.
Leo, I think you wanted me to talk about ASPs.
Yes.
Good to touch on that ASP and margins.
Cause I, I just mentioned the volume and how that would help.
Yeah.
Yeah.
Yeah.
So, so, um, the, for the company margins for the company, it's, it's pretty much a pretty
simple business model.
Um, uh, margins are, are a function of demand. It's pretty much a pretty simple business model.
Margins are a function of demand.
Margins are a function of ASP.
So the price that it costs to generate each machine is pretty stable.
And we have done a really, really good job of being more and more efficient with each machine, making improvements, constantly improving, making the machine a little bit better, taking out the cost, just little costs here and
there. So every time when demand gets high, ASP goes up slightly, you know, every penny beyond the price of making one machine, everything drops to the bottom line after that.
So we're in a really good position where, you know, if demand is high, you know, the price of the machines, as Leo mentioned, you know, in the last bull market price of machines, the ASP went up to really pretty phenomenal levels. And while we don't expect that
in the future, we have seen ASPs increase as demand increases. And that's somewhat a function
of the price of Bitcoin. You know, more people get interested in buying more machines as the
price of Bitcoin goes up. So that helps as well. But, you know know we're also working behind the scenes to take out expenses
and and be more profitable moving forward through the second half of this year
uh i'll jump in and ask a question normally i'm the guy who gets into the weeds on bitcoin mining
and i'll tell you guys how great the new design is, how quiet it is, the fans, how it's better for hot aisle
containment. We just racked a thousand of the new 15 series and super excited about those. And
so far, they've been awesome. But a question that's a bit out of my wheelhouse, since you
guys are a publicly traded company, and I don't know if you guys have talked about it or made
announcements about this, is we see so many public companies going down that micro strategy
and the Nakamoto SPAC and putting Bitcoin on balance sheet.
Does Kanan hold Bitcoin on balance sheets?
And do you guys have any, I don't even know what it's called,
do you guys have any intention to put it on balance sheet
to put it on balance sheet and be a bit of a Bitcoin holding company?
and be a bit of a Bitcoin holding company?
Yeah, so our philosophy isn't quite to become a treasury stock, but we do, from the coins
that we mine through our self-mining activities, which we typically do through joint mining
arrangements with partners who are experts in mining and have excellent power contracts
signed beyond that uh what we do sorry uh sorry i lost my yeah so so we we we have several different
roads to collect bitcoins we use our machines deployed at Bitcoin mining data centers
to generate bitcoins, and that's very, very stable.
So in last month, we generated 88 bitcoins
from our Bitcoin mining activities.
We only sell some of it to cover our cost
because we want each of our data centers to be self-sustainable.
Out of the Bitcoin machines, we deploy there, we generate Bitcoins every month,
and we sell part of that Bitcoins to cover our maintenance and our energy cost.
That is the first way to get bitcoins. The second way is not that obvious, but because
we sell bitcoin mining machines, there are actually quite a few miners that wanted to
pay bitcoins to buy our machines. So we do collect Bitcoin as a payment
for Bitcoin mining machines.
And we hold large to those coins.
And they also accumulate to our balance sheet.
We have over 1400 Bitcoins by the middle year of this year.
And we will accumulate more and more.
So yes, we have accumulating Bitcoin mining machines, we have accumulating Bitcoins,
and we accumulate at a discount because we generate profit margins in that business. That means we can get Bitcoin cheaper
than companies who directly buy them from the open market.
Thanks.
That was a great question.
That was an amazing question.
When you guys are talking about your hosting
and co-location partnerships that you guys do,
I think the last one I saw announced was with Mawson.
I think it was something like 4.7 exahash
that was supposed to come on in, I don't know.
I think the announcement was in March.
I think it's supposed to come on in Q2 2025 or something.
Has that been added to your guys' hash rate?
And do you guys have, I don't know if you guys post publicly,
what's your total exahashes you guys have within your fleet.
Yeah, we have more than eight exahashes.
I would say about a little less than half are in the United States.
A little more than half are in Africa mostly.
But you can say 3.7 exahash inside the United States and 4.5x hash outside the United
States. We have an internal target to have at least 10x hash of deployed hash rate in the US
by the end of this year, if not earlier. That would mean about another 5x hash inside United States.
So we have 10x hash in US and 5x hash outside United States
that will add up to 15x hash by the end of the year.
But that is not a guidance that is an internal target,
but we are working hard on that.
So for us, Bitcoin mining machines can go into sales.
It can also go into sale mining.
Whether we want to plug more machines or sell more machines really depends on our cash position
and also our idea about the momentum of the market.
Sometimes we would like to sell more machines to get cash flow and revenues.
Sometimes we would like to plug in those machines because we love our own machines.
We believe they're the best in the market, especially if you compare machines against our competitors' machines.
You hear back from ourselves, but also from our partners and customers that our competitors' machines sometimes really go down
and become a headache for the operational people,
especially in the relatively hot areas in the summers.
And it's a little hard for them to be turned back on
if they have been shut down for a while um and you know their software and
their problems with their firmware um but for our machines um you know shannon i really like
think you should like the 1000 machines a15 and congratulations and i deal and appreciate your
business um but let us know um if you have feedback both positive or negative just let us
know but you know overall we we hear very good comments about our machines
yeah no everything's been good i mean we're running them everywhere from west texas to
iowa up to minnesota so obviously we have clients that are running them with us and so far so good
um i nitpick everything so uh if anybody wants to dig it usually if i start talking on the technical
side everybody leaves the space so i tend to avoid that unless it's specifically bitcoin mining
um but yeah so far it's been great and like i said that like there's a few few changes on the
new avalons at least in the last few generations where you know it's two fan larger, there's a few changes on the new Avalon's, at least in the last few generations, where it's two fan, larger fan.
It's a very squared design, makes it way easier for hot air containment.
So for people who are running these in industrial settings and running tens of megawatts and racking them as tight as they possibly can within containers or buildings, the design has been pretty helpful.
We have a few nitpicky things that are just ongoing, but credit to Kanan. If we have an issue, we reach out and they start
working to resolve it. There's been issues in the past with other Bitcoin manufacturers. If
there's an issue, there's just an issue. You go deal with it. So that's been a pleasant relief
to be able to have the communication going back and forth from those standpoints.
So from a customer service standpoint,
Canaan has been doing awesome.
So no complaints there.
Stoked to see you guys on Spaces.
I don't see that you guys got kneeing up here on stage.
You guys got to make that happen next time.
All right.
I got to bring in Tropic.
Tropic, I've been excited to hear from you tonight please jump in
yeah really good conversation it's kind of funny right in the middle of the exchange about power
efficiencies i had a little short blackout so that's why i had to drop down but um really quick
though as far as you know earlier you were saying that you're looking to start producing in stateside.
And I was curious, how dependent is your supply chain on Taiwan?
And how much are you bringing U.S. production to, you know, alleviate some pressures from whatever might happen globally?
Wow, this is an amazing question, Trophic.
We do be very diverse in our supply chain management. We started with a
Chinese supply chain and we were one of the first that moved our supply chain outside
China. So we have a full supply chain in Malaysia. And now we're moving the supply chain to United States also. Going forward, I expect our company to have three supply chains operational, US, Malaysia,
and China, or serving different customers in different regions to save costs for logistics,
but also more importantly on tariff.
We package our chips, we fabricate our chips in either Korea or Taiwan, depending on our
vendor.
We package them either in Taiwan or in China, and we assemble them in all these three facilities
I just mentioned. So we are not 100% relying on any region.
There is always a leeway if one region got hurt temporarily
by a policy change or a thunderstorm
or logistics and shipment.
So we're very resilient um i i would say um in the first quarter when the tariff was announced um the star market was pessimistic
about stock because they thought we we would be uh worse enough because last year we shipped almost 40% of our
volume to the United States. But I think the market has underappreciated that we are very nimble
company. And we do have a lot of market outside United States, where we ship our machines without
tariff. And within a mere three months, we have set up our US manufacturing capacity
and that will be a very strong supply chain
for our US customers.
So we always go extra miles to reduce cost for our customers.
Christopher, sorry, please go ahead.
Oh no, I have nothing to add to that. You described it perfectly. We are looking to maintain our status as a supply chain
expert in the field. It's not just the ASIC chip design and the Bitcoin manufacturing
expertise. It's also the supply chain expertise.
So I think you said it perfectly, Leo.
We're trying to lead the future in Bitcoin mining,
manufacturing, innovation, and support this beautiful industry.
Yeah, and I think that part of that is we're the original, right?
We're the OG of Bitcoin mining machines.
So we do have long relationships that we built over an extremely long period of time.
And we can pivot pretty easily depending on what we're seeing in the market.
So I think that's definitely a differentiator for us.
Interesting. That's good to hear.
Also, just a quick one. I know time's kind of running. But as far as understand that, you know, this this is a hardware company, but and from a software standpoint, do you have revenue coming in from software and support or services or anything of that nature? Or is this like primarily entirely hardware? Because I do understand that Bitcoin is open source
and all that stuff, but do you have any kind of proprietary things
that you can have additional streams coming in,
let's say if hardware slows down in some way?
Our strategy is, you know, primarily we're picks and shovels, right?
We make Bitcoin mining machines.
That's where the bulk of our revenue comes.
But we have a growing part of revenue from our self-mining activities.
And then also we have our consumer products, which we launched less than a year ago, but
they've been contributing meaningfully to revenue and definitely growing.
So we have those three sources of revenue.
And cell mining is essentially a SaaS revenue, software revenue, because you plug in these machines and you run algorithm and receive rewards in Bitcoins, which is essentially a software income.
which is essentially a software income.
And more importantly, the cell mining is a business that naturally hedging our inventory risk
because there are ups and downs in Bitcoins.
And sometimes when the market got overheated a little bit, we got our inventory piled up really quickly.
And then if everything slowed down, we end up with a lot of machines.
In the past, there's no way for us to keep these machines or sell them at a very high,
very deep discount. But now we could deploy them into our self-mining facilities and use
them to generate Bitcoins. So I think essentially the cell mining business
is very strategically crucial for this business.
Really cool.
Last quick one, and then I'll pass back the mic.
So I'm in a lot of these spaces talking to Bitcoin enthusiasts
and so forth, and not particularly the mining companies
and big boys in the space. But one thing that I hear repeated quite often, I'd love to hear either
agree with this or rebut it to say, they often say that anyone who is a solo mining is either
just an enthusiast that just wants to participate or have a conversation piece, but it's not
necessarily someone who is looking to profit from that.
Do you think it is profitable for an individual to get one of these things?
Or is it someone that just loves Bitcoin and wants to be in the network and participating
in all this amazing stuff?
I think they might have been correct that most of the solo miners were just using Bitcoin
mining as a lottery machine.
But because we have pushed out more and more efficient home miners, I think going forward
home mining will be more profitable.
For example, with our Avalon Q, which is a Q standing for quiet, these machines have
essentially the same efficiency
as the industrial level machines.
And a lot of miners out there, especially solo miners,
are getting really, really excited about this machine.
They call them the best machines in the solo mining history.
And they're very stable and very durable.
And it's a perfect fit for home mining.
I would assume that more and more solo miners
will turn to profit mining with the offerings that we have.
And also, to add to that, a lot of home miners
were actually utilizing very cheap power source,
including power from the grid in some regions.
It can be as cheaper one
cent um and some power from their own rooftop uh with solar panels I see channel had a raising a
hand about it I you know go ahead and try no no you kind of hit the nail on the head like Bitcoin
mining is hard and it just depends on the scales but there are a lot of of self-miners that are mining at like sub one megawatt.
They're, you know, putting sheds in their backyard.
They're doing small little net gas projects and they're all over the place.
So it is definitely possible to be profitable as a self-miner from that aspect.
But once again, super big fan of the home mining push.
And then what I've seen recently is also a massive push for heat reuse at more of the residential and retail level, which is also super exciting.
So I think we're going to see more and more of that in the future.
And so I hope Kanan continues to support that.
And Shannon works for Campus Point, which is like the giant master in the retail industry.
So retail mining, Shannon is the expert.
Beautiful. I am going to take, I'll go to Shannon for one more comment, Matt, and then we are going
to wrap up a little bit after this. I'll give the speakers a final comment there. There's clearly a
ton to discuss here. So I think we'll have to set up another space. I also pinned a link to the top
of the page that has a ton of great information on Canon
that I encourage people to go and check out.
Just like a deep dive into all the details.
You know, why now is the time to be looking at it.
I encourage everyone to throw this on a watch list.
They had their highest trading volume ever in this past month, which is pretty cool to
see.
And, you know, like we mentioned, stocked up now about 40% in the past month.
So definitely want to keep on watch. Shannon, sorry for cutting you off there. If you wanted to go and make that comment, then I'll cool to see. And like we mentioned, stocked up now about 40% in the past month. So definitely want to keep on watch.
Shannon, sorry for cutting you off there.
If you wanted to go make that comment, then I'll go to Matt.
Then I'll go to Leo, Chris, and Gwen and wrap up.
I was just going to say thanks to Leo, but I still feel far from an expert.
Maybe another 10, 15 years, I'll get closer to that.
One of these days, we're all working there.
Matt, go for it.
You know, I just wanted to give one point of clarification for the audience which i think is important because tropics question was
related to solo mining and i think a lot of the times terms can get confusing because there is
if if you're interested in mining and it's something that you want to look into, there's a difference between solo mining and home mining.
And home mining would generally be considered somebody who's just using an ASIC.
They're mining at home, but likely still contributing to a pool.
a pool and solo mining could be actually a decently large sized operation.
That's not contributing to a pool,
meaning they're basically playing the luck game,
hoping that they're going to hit a block because they're not pooling their
hash with anybody else's.
And I know that that's something that maybe is a little more technical than
we'd want to go into for the purposes of this conversation.
But I do think it's important for people to understand that there is a difference,
that you can mine at home and you can contribute to a pool and have a fairly predictable revenue
stream coming in, or you can solo mine, which is you're not contributing to a pool.
And if you don't have a very high hash rate, the likelihood is you're going to get zero revenue
from that unless you get really lucky, which is why people also call that lotto mining sometimes.
So I just wanted to point that out for people that are listening that might not have known the difference.
Great points. Great points. I'm really glad that you came up here, Matt, as well as Shannon. Appreciate you both.
We'll definitely get you guys back on for the next conversation that we do
with the team.
We'll move on to some final comments from the team.
Christopher,
I'll turn it to you first.
Any other comments you want to share tonight?
Sure.
On the topic of solo mining,
I just like to say the creator of Bitcoin,
Satoshi Nakamoto started out as a solo miner,
wherever he was when he did it.
He's kind of an anonymous figure in the space. We don't really know who he is, but
traditionally Bitcoin has been just mining and finding a way to make that business work,
either by yourself at home or on the industrial level. And with that being said, you know,
Kanan is a powerful company because we design these
ASIC chips, we have the supply chain expertise, and we manufacture the machines. Steve Jobs said,
real artistship. And I think that's a great thing about Canaan is we're actually producing these
machines at scale, we're manufacturing and getting these machines out to publicly traded companies,
private companies, energy companies, and the retail market as well.
So we have that rich history and we look forward to the next big advancements
in this industry and being there when everyone needs us.
And thank you very much for letting us be on this panel tonight, Gavin.
What a great show. Thank you so much.
My pleasure.
Yeah, this was awesome.
Leo, turning it over to you.
Any other final comments?
Right, right.
I would like to give an interesting number game.
So in the last cycle, Bitcoin peaked at around $60,000.
And now it's $120 it's 120 which has doubled but if you count in
the halving effect so miners are actually just starting to having their true bull market which will translate into our bull market. That is also evidented by our quarterly
earnings. We have guided $400 million for the second quarter, and $100 million is the
highest for the past 10 quarterly revenues. So I think the company is moving forward to profitability.
First quarter, we had some gross profit. Our loss from operations have significantly reduced from last fourth quarter.
And as I just mentioned, the company has exited its side business in AI chips and saving costs. So the next quarter and the next
and next, we're going to be better and better. We are very, very optimistic about our company's
future and also about the industry's future as well. Thank you so much for joining in this
interesting conversation. Our pleasure. And Gwen, thank you so much for helping to set this up.
I'll give you a final comment.
Yeah, thanks, Gav.
Thanks, everyone.
So, yeah, my final comment is, you know, this industry, Bitcoin and Bitcoin money is, I
just think, so exciting and so versatile.
You know, there's the normal business that we all talked a lot about tonight, but there's also managing the grid and rescuing stranded energy and consumers using the technology to offset the cost of heating their homes so they can heat their houses for very little or nothing.
And then just the whole opportunity, the whole grid management side of it.
It's just there's so many applications beyond just the core business that I think this is,
it's exciting today.
And I think tomorrow is even more exciting.
So thanks, Gav.
Thanks for setting this up.
Thanks, everyone.
Really appreciate your listening.
Very, very great.
Yeah, this was awesome.
I really feel like we dug into so many amazing pieces here.
This will just be the first to many conversations. There's going to be some more coming on Wolf
Crypto as well. Encourage people to check those out. Big thank you to everyone who tuned in
tonight. And of course, the Tropic, Sam Solid, Vegas for sticking out here on the panel.
The whole team from Cannes, Shannon and Matt, Jordan and Emp co-hosting with me. Zet, saw you up here as well.
Emp, I'll turn this one back over to you to close us out.
Yeah, what a great conversation here over the last couple hours,
especially this last hour, getting a deep dive look into Pan.
I'm very excited to dig deeper.
I'm actually, I'm already looking over at the Wolf Crypto schedule
so I can learn a little bit more about this.
What a great combo.
Appreciate the team coming on.
Appreciate everyone that tuned in and listened to this last couple of hours.
We do record every space.
So if you want to go back and listen to the stock picks from the first hour or this great deep dive into Bitcoin mining here in the second hour, you'll be free to do so as soon as I close this out.
Hope everyone has a great rest of their Monday.
That's it for our space of schedule for today.
We will be live first thing in the morning over on Wolf Trading around 8 a.m. Eastern time.
So get our future show going bright and early in the morning,
and then we'll kick you off straight into some live trading.
Take care, everyone.
Have a great rest of your Monday.
We'll see you tomorrow.
Thank you so much.
Have a good one. Thank you. Thanks, Chris. Take care, everyone. Have a great rest of your Monday. We'll see you tomorrow. Thank you so much. Have a good one. Thank you.
Thanks, Chris. Take care. Thank you.
