Projects
![]()
No projects found
Investors
New
DAO Treasuries
DATs
Lend / Borrow APRs
Chains
Categories
Spaces
The 500 million dollar $FET crypto-AI treasury strategy
Recorded: June 12, 2025 Duration: 1:05:06Space Recording
Short Summary
Fetch AI and Interactive Strength announce a groundbreaking partnership, securing $500 million in funding to revolutionize the fitness industry with AI technology. This collaboration aims to enhance user experiences and operational efficiencies, marking a significant trend towards AI integration in wellness.
Full Transcription
Thank you. Thank you. hello hello hello hello mike check ladies and gentlemen welcome welcome hamayan and welcome
to trent ward the ceo of interactive strength
gentlemen it's a pleasure to host this spaces session and with that being said i'd love to
just get the ball rolling i'm sure that everyone is eagerly anticipating the discussion the nuances
the clarity of perception and the questions we're about to get mine i'd like to give you the word
feel free to roll in with an opener and trent we will shortly give you the word. Feel free to roll in with an opener and Trent,
we will shortly give you the word as well. We'll lead with an introduction of interactive strength
and then at that point we'll kick off the discussion. Yes, well welcome to the Twitter
Spaces and thank you all for joining. as our community and the passionate community that
we have. I felt it was good to come and speak to you guys and give you some clarity on what's
happening. I'm really quite excited about this deal, this technology deal, which we are doing with Interactive Strength.
Really been working for the last few months with Trent,
trying to bring fetch technology, not just to leave it within the Web3 space,
but to actually get it out.
And I'm sure the community who is following us has seen the technology releases that we've been doing, the development
work that we've been doing, and the traction that we've been getting. So this is really,
for me, that's very, very exciting that we're bringing this now to every single,
the technology is coming to various different projects, various different businesses. As we all know, AI is not limited to one place.
It's going to be everywhere.
Agents and agents, AI agents are going to be everywhere.
Everybody will have them.
And we wanted to kind of venture into wherever the, where we feel we can see the opportunity
to kind of go in, deploy and scale. So this transaction, which I
think, which financially, that is very much Trent's part. He will come and explain what these guys are
doing. But more importantly for me, it's a technology transfer kind of initiative whereby they will be using fetch technology.
And as I said before, to use fetch technology, and as all of us know, you will need to have
FET tokens.
And, you know, this is the beginning of that part.
And rest assured, there's going to be more technology transfers in different industries.
We also showcased something before with the freight company.
So I think I'll pass that on to Trent now,
just to make him do some introductions,
because our community might not know too much about it.
Thanks, Mayan.
And hi, everyone.
This is Trent Ward.
I'm the CEO of Interactive Strength, trading on NASDAQ, TRNR. I'm super excited to be here and a partner with Fetch. I'm blown away by the technology. crypto um and uh in ai in general obviously as a culturally if the average person is starting to
see ai come into the world um faster and faster and a lot of people in this community have been
there before and earlier um we're seeing it and we're excited to be a part of that. We're going to finish our third acquisition in the next month or two.
We're going to do more than $75 million of revenue this year. We continue to buy businesses
and improve them. One of the key things for us strategically has been how do we
use technology to improve efficiency, drive better returns. And in that process, we were introduced to Himayan and Fetch.
And, you know, I'd say the possibilities opened up in a really big way
that made us want to get involved, formalize the partnership,
both on the technology side, but then also make a very material investment into the token
that we expect that we'll need for the future work that we're going to do.
And we were able to pitch that vision to some pretty big investors
who were willing to back that idea of us bringing AI into the real world
in a meaningful way.
So, great to be here.
It's a pleasure to hear from you.
For the last two months working to see how, I mean, not just the fitness training kind of technology can use AI,
and you will see that very soon, and we can talk a bit more about the actual
integrations. But what is also quite interesting, and as I was saying to everybody, and I think
everybody is aware that the agentic systems are now completely on the rise, but what that
means is most businesses, it doesn't matter what vertical you're in, it doesn't matter what you do,
Most businesses, it doesn't matter what vertical you're in, it doesn't matter what you do, it's going to become an AI-agentic system first.
It's not going to be a web first. It's now the time for AI first.
Nico, sorry.
No need to be apologetic, sir. No worries at all.
And Trent, it's a pleasure to hear from you.
I'd love to uh slightly tone us
down and give you the option to introduce the company uh and in particular potentially a little
bit about its history as well i'm sure that a lot of the listeners are mostly from the
chi and wider asi ecosystems and there's certainly a desire for us to hear more from you and then in
subsequent parts of the spaces session will dive deeper
into the economic ramifications
and into the technological ramifications
of this landmark deal.
Certainly. Thanks, Nico.
Interactive Strengths started
eight, nine years ago.
I came from the traditional finance world
as an investment banker. And then I spent
eight years at Citadel, which is a big hedge fund, running a long, short equity portfolio.
I had a year non-compete. I sat that out. And then that year, I ended up on an entrepreneurial path
and didn't end up going back to traditional finance. Started the business, came up with, you know, had a vision for a product.
And, you know, it was sort of the first move into that kind of technology space.
I have an engineering and finance background.
This is kind of using the other part of my brain.
And we developed an incredible product.
The reality is, you know, business model-wise,
as far as direct-to-consumer fitness hardware,
isn't a great business, right?
Almost every business that started in that space really struggled.
There was an error of free money.
There was the demand shock of COVID.
You know, we weren't in production when COVID started,
so it was basically just a big negative for us.
We kind of persevered, got the product completed, went to market.
But at that time, we realized it was time to switch channels and move to a B2B model.
And we also realized that there were a bunch of other companies that had, say, gotten to
companies that had gotten to some level of scale, but not enough. And the funding environment had
some level of scale, but not enough.
changed and we had a vision for rolling up a lot of the players. And step one in that was really
getting listed on NASDAQ. About two years ago, we did a traditional IPO. And since then, we've
completed one acquisition. We have two that are in binding agreements that I'd expect to close
in a couple of months. When you put all this together, we're going to do more than 75 million
of revenue and be a profitable business. So step change in what we have been to where we are.
And in that, and in acquiring other businesses, there's a bit of freedom when you walk into a
business that isn't yours,
but is going to be, you can reimagine how it should work.
You know, you're not bounded by the past of having kind of grown in the business and lived
through it.
You can look at things with fresh eyes and figure out where there's more efficiency,
more synergies.
And one of the big ones is shared services and kind of platform across all of these brands, which are SportsTech, WattBike, Climber and Form.
But also, how do you bring in new technology and grow faster on less capital, better margins?
And so as we think about bringing technology into that, that's how we found Fetch as a partner.
And the vision going forward is we're going to continue to acquire businesses.
I don't necessarily believe we're going to be bounded by just the fitness space.
I think the wellness space in general is pretty big.
Wellness space in general is pretty big.
There's a lot of ways to express that.
There's a lot of ways to express that.
But we're a pretty powerful acquirer in that we're one of the few public companies and we have a public currency.
But we also now have a very strong capability from a technology perspective that I think is rather unique in how we pursue those acquisitions.
And that makes you probably the biggest treasury of AI,
AI treasury holder effectively,
making you kind of the first and the biggest one in the market,
in the capital market.
That's true.
And obviously, you know, there have been a number of been a number of crypto treasury programs that are out there.
Some of them have some substance.
Some of them are a bit hype, I'd say.
For us, we've gotten quite a few calls about different ways of participating in that.
And maybe it's my traditional maybe it's my, my,
my traditional finance background, but I was always a bit skeptical. I didn't really understand
how or why these worked. And, you know, the board as well, you know, we really need to find
some utility that made sense as opposed to it just being a financial play. We definitely think there is a financial play.
That's exciting, but candidly, that's, you know,
that's not a sufficient reason. It's not the only reason.
You know, it's really about, you know,
our vision of effectively we're the only pure play AI slash LLM
exposure in the market.
And we don't mean that from a hype perspective, we mean that from we're actually going pure play AI slash LLM exposure in the market.
And we don't mean that from a hype perspective.
We mean that from we're actually going to go out and execute and deploy those technologies that end up generating revenue and creating value.
I mean, the other way you get that is you're a VC and you're investing in, you know,
chat GBT, open AI, you know, Anthropic, those types of things.
That's not what the traditional public market investor
can access.
But it's something that we can,
as a new business and a small business
that now has access to, you know,
world-class technology and also world-class capital,
just being on NASDAQ,
that we think is going to be a pretty compelling story
over the next five to 10 years.
Certainly sounds like a compelling story and confluent with the transformative shift you're undergoing from an acquisition perspective.
There's a lot of sense to effectively revamp wellness and really embed the tech.
So in that sense, there's certainly kind of a shared path that we can explore and we will continue to explore.
sense there's certainly kind of a shared path that we can explore and we will continue to explore
bouncing off of her myans kind of remark being effectively the biggest ai crypto pure play i'd
love to dive deep into the structure of the 500 million facility uh it might not be obvious to
kind of the wider wet three space how tradfying instruments work and i'd love to just hear your
uh effectively your plans from a strategic perspective and then as part of that i'd how TradFi instruments work. And I'd love to just hear your,
effectively your plans from a strategic perspective.
And then as part of that,
I'd love to also ask what portion of the capital is effectively immediately available
and kind of what does the optional trench mean
for both interactive strength
and a long-term acquisition effect?
I'll take that one.
So we signed a facility that allows us to bring in up to $500 million of capital.
The first tranche of $55 million is what has been invested.
And from that capital, we will start acquiring FET tokens.
The structure of it, in full disclosure and transparency, it's complicated.
There's a lot of documents there.
I can tell you, even as I talk through people on our side around how the structure works,
there's a lot in there, but it really stems from being well thought out and making sure
we put a structure in place that is measured and for the long term and allows us to be
successful in all cases.
So the end align everyone's interests,
both on our equity holder side, as well as on the token holder side.
So there were a lot of parties involved and it took a lot of time to get this
right. I don't think we've done a great job explaining it yet.
And that's something we're certainly going to do over the next week or so.
You know, our timing objective was to get the transaction completed, make the announcement,
knowing that we have more work to do to talk people through it and how everything works.
But this is, you know, $55 million of cash and stable coin coming into the
into the company. It comes into our treasury subsidiary. And the capital sits there. And then
that is held at BitGo, which is our custodian, who then goes into the market and purchases the FET tokens.
We have to buy in the market.
We are not doing any block trades or OTC.
This is purchases in the market.
That's the only place there is supply and access.
We are long-term holders on that.
The investors have structured this so that they benefit when our
stock goes up, and they also benefit when the token goes up, which should drive the stock as
well. So everyone's aligned from that perspective. I think we'll be able to talk more about or just
maybe explain in FAQs on our website, interactivestrength.com,
as well as in investor presentations to come, kind of more about this.
There's a lot of questions, certainly on the equity holder side,
who are the traditional community for us that we speak with.
Just as I have to imagine, there's a lot of questions on the traditional token side and crypto community.
on the traditional token side and crypto community.
So much like two people getting married,
there's sort of new families here.
And I think we have the challenge
and the opportunity to bring everyone along.
But the structure and thought process
when we were putting all these things together
was how do we make this work for everybody?
And how do we have long-term value creation across all the instruments.
Yeah, just a slight interjection here, which is from our side, from Fetch side,
we do not do an OTC with the company. We are not involved in the financial part of this transaction that's
between the company and its funders. We are completely isolated from that. So our agreement
with the company is, which is, as I keep saying, for me, that's the most exciting bit is that we
are bringing the technology not just to the Web3 space, but to the rest of the world in different ways.
So that's where our interest lies.
And also for the company to use these services,
they will be requiring FET token
because they will be consuming FET token
to actually acquire the services
and the technology partnership.
Thank you, gentlemen.
Let me just recap that bit.
No block trades, no OTC open market, as that is effectively the only proxy.
And that is quite, I think that pretty much sums it up.
I'd love to pivot into a slight technology question,
but there's also a strategic question,
which is that we have AI agents that we at Fetch have known
are incredibly potent technology,
and they've certainly emerged into the limelight.
And I'd love to, in fact, this is a question for both of you,
for Trent and for Hermione.
I'd love to hear your perspective.
What are the high-imp impact use cases that you believe
are going to uh you know shed uh well impact in the context of fitness wellness and then
inverting mine what is the expected outcome as a consequence of a publicly traded company
adopting not just the token but the agents uh as a proxy for drastically improving the underlying
fitness industry and wellness industry so let's just go ahead and ask Trent first
Trent I'm curious what is what's your take on the use cases but how do you imagine the future from
a technological perspective we talked a lot about kind of personal training probably because that's
a product we already we already offer and we're I'd say, we were using some elements of technology to make that more efficient.
Personal training is great.
Like, people really benefit, consumers really benefit from having a coach.
And there's a lot of struggles around delivering that beyond, you know, kind of the top 1%. And I think as we envisioned,
a lot of things we did is how do you broaden
the use of that and how do you make it more accessible?
You're still always running into the real world issue
of someone's hour and someone's time.
And as you now move into the AI agent world, you can now get orders of magnitude more efficiency.
So that's kind of an obvious one.
And we're already working on that first product, which I think will harness the celebrity trainer that we have and should be a pretty compelling product on its own.
have um and should be a pretty compelling product on its own but it'll also move into agents for all
of our uh trainers um and allow them to drive more uh coaching to more people at you know a fraction
of the cost so that's the obvious one um but that's only the beginning from what is possible
um so you know i think it's it isn't constrained to just what we have in our hand.
It's really, we're an evangelist for this technology
and we can see a lot of applications for it.
And to dig on our side a bit more,
which is if you, for kind of listeners who don't know,
we have a full tech stack right from the top, which is the
agentic application layer, which Trent talked about. And then you have all the machine learning
models for which we have utilities, video generation, voice generation. We're training
all those models. And these models are trained and deployed on the compute, which is the compute platform that we merged with called QDOS.
So we have the full tech stack. And once we start seeing the actual execution of this technology transfer agreement,
we will start seeing the deployment right all the way from the agents who can actually not only issue you training objectives, training
programs, generating videos, organizing, arranging times with the clients, but also looking at
healthcare in general. I mean, food as in general, because the agentic systems can be quite
I mean, food as in general, because the agentic systems can be quite good at bringing, you know, different health regimes and you can actually distribute them.
And you can actually apply it to the whole supply chain, which includes how you eat, how you sleep, what you do, where you buy things, you know, all of that as a whole encompassing kind of ecosystem in itself.
And then you start to see, okay, I mean, this is not just a personal trainer or a training
equipment business. This is very much expands into people's lives, you know, how they eat,
how they sleep, what do they do. And so ultimately, that's the objective. So you can
get a personal training plan, you can get a weekly food health plan, and you can actually
ask your agent to plan it for you, to order it for you. All of those things then start becoming
more and more powerful to kind of come up with the whole coherent delivery path.
Thank you, gentlemen.
And if I may just slightly interject a bit of conjecture, you can start off with the personalized plans, but you can really push it to the limit.
And so you can, for example, create a digital twin based on coaches like Cal Juan Ancelotti or Pep Guardiola of Manchester City's coach or Jurgen Klopp.
And so what you get is S-tier coaching that is tailor-made for you.
And I think that that's the type of value prop that speaks for itself.
I'd love to slightly pivot away from the tech, we will circle back but shortly and i'd love to ask uh trent this
is a kind of right up your alley there which is we've kind of discussed the benefits for token
holders what are the benefits uh for common stockholders from the attractive strength
perspective and can we shed clarity of perception around that bit as well? Definitely. So,
let's see,
we have,
so it's hard to simplify the transaction.
Pictures would help,
but in general,
this is the equivalent
of the company raising an enormous amount of capital at a price above market.
And right now, that's 20% above where the price was before doing the deal.
But as the token appreciates, and we believe it will, that kind of effective price continues to go up.
And by what I mean is, as a convertible note holder converts into the stock,
which is still many months away, so there's no stock coming to the marketing time soon,
but as they were to convert down the road, we get to maintain the tokens,
we get to maintain the tokens and we hold those tokens.
and we hold those tokens.
And to the extent those tokens are more valuable,
for example, this 55 million in the first close,
and we hope to go up to the full 500 million over time,
but in this first 55 million,
we're going to go buy tokens in the market.
And with those tokens going up, let's say it doubles,
we now have close to $100 million worth of tokens.
That's the equivalent of not just a 20% premium
to the stock of the convertible.
It's really as if we'd raised 2x that.
So as a stockholder, we're long the price of the token.
That's a really good thing.
Tokens do go up and down. Crypto assets,
digital assets are volatile. We structured around that such that a decrease in the price in the token doesn't cause any detriment to our shareholders. The token has to go down by more than 50% before we'd start to see any impact.
So we're pretty insulated where we have the upside of the token. We don't really have the downside.
And we're able to grow our balance sheet in a significant way in a very asymmetric perspective.
significant way in a very asymmetric perspective.
So, again, that's not something that was, you know, the headline of the press release,
the press release was pretty straightforward of, we've signed this agreement for up to
$500 million, we've closed on $55 million and we're buying tokens in the market.
I think there is a lot more thought through that, that we need some time to educate shareholders and the market.
But we're pretty confident this is a really great deal for common equity holders.
So that's the, I'd say, the financial aspect of it.
aspect of it.
There's also a huge economic impact by having access to this technology and what we can
do for our business and for the business we're acquiring.
That thing is going to drive earnings and revenue also for those shareholders.
And we need tokens to be able to use them to be able to execute on that vision. So when we convinced the investors to invest a lot of capital
and to put this together, it was sort of a two-pronged perspective.
One is, you guys are going to make a bunch of money if the tokens work
because they're being used, and we're also going to go use them.
And we're buying companies at good valuations.
And you're going to win that way as well.
And so it's a pretty elegant deal where everyone should be a winner.
It was structured that everyone's interests were aligned.
It's really about over the long term acquiring a lot of tokens, using them, driving
revenue and earnings in our business. And as opposed to just putting capex out there,
we're using tokens that we also think go up in value. The same analogy would be
Bitcoin versus fiat, as opposed to us spending fiat on items in the business to make them grow.
We're using tokens and technology.
And we also think those tokens depreciate as opposed to those dollars to depreciate.
Thank you for the comprehensive answer.
It's a two-pronged approach because if you look at the capital market at the moment, most companies – I mean, I'll just give you an example.
Again, please do not – this is no financial indication from my side.
But if you look at NASDAQ or any other exchanges, the capital markets do not see these technology companies.
exchanges. The capital markets do not see these technology companies. I mean, if you think about
it, how many companies have an LLM, which we have ASI1, which is actually in benchmarking terms alone,
competes with all the top ranking LLMs, but we have the agentic part in it. We have a whole
agent framework and a whole agent tick platform. So we have a complete solution.
But if you look at the whole ASI tech stack, you have even compute.
So, I mean, so, you know, if you look in the capital market, where would you see that exposure?
Because the problem is the VCs generally come in quite early.
And by the time these tech companies come to the capital market, their valuations
are huge.
So this is quite an interesting approach because not only do we have an application where
we can see how this technology is going to be applied into the real world, which will
ultimately generate revenue and bring adoption to this technology, but also the technology itself.
And we have been leaders in developing this technology, not just in Web3, but in the whole market as well.
So bringing that to the capital market and that exposure to the capital market is a very interesting side in itself.
Thank you. Thank you.
Thank you, gentlemen.
And there's a short follow-up.
Well, there's actually multiple follow-ups there,
but let's just go ahead question by question.
Given the size and scale of the deal
and given the apparent skepticism,
which is quite typical and landmark
and kind of wildly innovative approaches
towards effectively combining
two seemingly different technologies, right?
What does fitness have to do with distributed systems and decentralized AI platforms, right?
And so I'd love to ask, Trent, this is for you.
What are some of the safeguards and performance milestones that you build into the deal that
you can shed clarity of perception around?
Certainly, this seems to be a little bit of an impactful question that's arisen.
So what are the performance safeguards and the performance milestones that you're kind of leveraging to ensure they own the space?
Well, so I spoke about kind of the insulation against price volatility. That was a key part of this to allow the appropriate time to commercialize these technologies.
So, you know, this is, you know, this was structured as an isolated vehicle within the company that allows the company to use the technology
and the tokens to drive revenue and earnings.
The actual financing of the tokens,
we don't have the balance sheet to acquire them ourselves,
but we have a vision to use them
and to use them in a big way.
And we needed financing for that.
So much like you build a factory and you get CapEx against it to then generate revenue and earnings,
we borrowed money from investors against buying tokens, which are an asset.
And we're protected against kind against price swings in that, where
we get the benefit of the price on the way up, and we don't share the downside of the
price on the way down.
But we're structured with a long-term view of holding them because you can't lose your
factory.
We can't lose those tokens if we're going to execute on the vision that we have. So it was structured such that
these tokens would be on the company's balance sheet. And then as we execute against our plan,
hopefully the public market starts to recognize that from a stock valuation perspective.
And that allows the investors to convert into stock and ride the upside of the stock.
What it does is it leaves the tokens in our possession free and clear.
And that will allow us to use them and consume them through the technology.
Our hope is we're bullish on the technology.
We think people are going to use it in increasing amounts.
So we're also bullish on the technology. We think people are going to use it in increasing amounts. So we're also bullish on the tokens. We're clearly buying ahead of our needs,
partly because our view is the rest of the market will catch up with us. They'll start to recognize
the value here. They'll start to recognize the utility. And we don't want to be in a scenario
where, in effect, our factory prices are doubling
in order to run our business.
So we're buying capacity ahead.
That's a very good point you've made because if you look at what happens in Web3
and if you look at what happened with Ethereum when the token price start going up,
you can't build a business where just one transaction is costing you
hundreds of thousands of dollars.
So I think the strategy which Trent and the company is taking is the right one.
The other interesting part, which I think you touched on, Trent, is that it's a separate
vehicle and the technology is also part of that separate vehicle.
What that means is it doesn't just have to sit in just one vertical.
As I think Trent mentioned right in the beginning,
we're looking to go out in the market, scale it,
use it for other purposes as well.
So it gives them that entry point into interacting other listed companies
and kind of spread the technology there and actually add to the
momentum that we're building around this AI and agentic systems.
There's something called a business development company.
But, you know, I'd say there's some analogies here.
We have, I think, the capability and the skill set to acquire businesses.
We now have an in-house technology that has a fixed price of when we buy the token.
And we think that that makes us a very powerful acquirer going forward where we can deploy technology at likely lower prices than competitors because we were able to buy the tokens when they were less than a dollar.
And so the vision for the investors was really numerous ways to win.
We get to go buy companies. We have basically lower cost of how we deploy technology that drives earnings.
of how we deploy technology that drives earnings,
but also the actual technology,
the token could appreciate as well,
and that's the expectation.
So there's sort of two ways to win.
The more you deploy, the more tokens you buy,
the more investors kind of join in.
The more tokens you buy, the more token the price appreciates.
Yeah, there's a very strong flywheel there. And there's also flexibility on the kind of
interactive strengths side, which I'm certain is something that they can appreciate on their end.
I see that Andrei Grachev is kind of in the spaces as well. And Andrey, I saw you raising your hand.
Feel free to request to speak again.
It'll be a pleasure to invite you so you can shed clarity of perception
around the roles that you play.
And in the meantime, kind of as we're waiting for that to happen,
I have a question, which is overwhelmingly sentiment around the deal
was incredibly positive.
And given that we've now shed clarity around what are some of the use cases we can anticipate,
namely S-tier, top-tier professional coaches being basically agentized,
I'd love to ask, what do you say to the skeptics?
to ask, what do you say to the skeptics? How can you address the small yet inherently loud
body of skeptics that see this as, well, that might...
Let me kind of, okay, I understand your question. We've answered it many times, Nico, so let
me start again. We are the first IEO. We started in 2018. We were the first merger. We are the first company with the first Web3 LLM.
We have again and again proven that we deliver technology. We have again and again proven that we look after our community in whatever way we can. What we have to also understand is
we cannot, one, we're not a meme coin. We will never be a meme coin. So if you're looking for
a very speculative pump and dump scheme, we are not it. And I want it to be very clear to the
community because a lot of the community members who are negatively always vocal. It doesn't matter what we do.
We have delivered every single time. Whatever we do doesn't make anybody. Some people just don't,
they're never going to be happy because they just want us to pump the price and we're not going to
do that. We can't do that. It's not in our control. Second, what I want us to be very clear is this
very clear is this is not new unless you innovate in this industry. 95% of the projects which
started with us are dead. We are progressing forward. We are actually creating products
which is bringing revenue, which is actually bringing momentum, bringing new ways to bring into Web3.
Web3 needs utility.
We don't have utility.
We're too stuck in some Ponzi pump and dump schemes.
We need to get out of it.
I'm not saying everybody's like that.
You know, there are really great projects.
But what we need to do is we need to bring, not just bring technology,
because Web3 is a limited space.
If we really want Web3 to be successful, we need to go out.
We need to actually give solutions to people,
not because we're decentralized, but because the solution is good.
So you go and test out ASI 1 LLM and tell me it doesn't compete with everybody else.
I mean, in benchmarking in several fields, we are better than the top rated LLMs.
Tell me a project, Web2, Web3, anywhere, which combines actual agents with LLMs,
where you can actually ask them to do tasks.
They speak to you.
You can deploy it within two clicks.
We are always innovating. We're trying to innovate. So what happens is sometimes innovation
needs time because people don't get it. And sometimes, you know, not all innovations are
going to be successful, but we have to keep trying to survive. So we are trying our best to bring new ways and
new things to the market. And we have been taking the lead. The merger was the first ever.
IEO was first ever. Web3 LLM is first ever. I mean, what more can we do but just not deliver technology and bring innovation to this space?
So to the FUDDers and to the people who are always going to be the naysayers, I'm saying,
hey, look at our record. We're still here. We're still delivering. We're delivering new and
innovative things. So bear with us. Success know, success comes, you know, good things come to
those who wait. Recap that in a very elegant way. We're not just the change we want to be,
we are spearheading the change we want to be. And I love that. I love that answer, Hermione.
It's a pleasure. Andrei, I see that you're a speaker. We can go ahead and mic check one,
two, see if we can hear you loud and clear.
And feel free to tune into the conversation.
Yeah, one, two, three, can you hear me?
We can hear you loud and clear.
Yeah, thanks for letting me speak.
speak.
Frankly,
I was not prepared
for these spaces.
I just asked who my unit is.
Cutting off a bit.
Ladies and gentlemen,
can you have a thumbs up emoji if you can hear
Andre? There's quite a significant
cutoff on my end.
One, two, three three i could hear him okay um but i think maybe you can do something you can do some introduction for andre please yeah
for those yeah apologies for the cutoff there you just started speaking and i immediately
immediately dropped off on my end but for our audience audience, Andrei Garchev is a managing partner at DWF Labs,
who in partnership with ATW Partners are effectively part of the initial closing,
the first 55 million tranche.
And in that context, Andrei's joined the Spaces
and I'd love to just hear his perspective on the unique approach and the landmark deal that this is.
Yes, thanks for helping me to introduce myself.
Yes, we joined this corporation and we put 30 mil from DWF Labs into this deal because from we're a financial player, right? We're investors,
we're market makers, and we're experienced, very well experienced in crypto, right?
And we purchased our first fetch like a few years ago when it was like around 20 cents, right?
And so now it is almost $1, right? And at its spike, it was $3, right? But with this opportunity, it aligns with our and my personal vision that crypto market
and traditional markets in the future, they will merge.
It will be the one for the only financial market, like just combined, right?
And these deals that allow people to buy some stocks to have access to
brilliant crypto projects and vice versa for crypto people to buy some coins that will have
some money inflow from traditional markets i really like it and we decided to join this deal because I do believe that it is
a good opportunity
because normal people
have access to an AI
company with
LLM, with
a proper AI
system,
which is based on blockchain,
and which is not at
a several hundred billion valuation like other AI companies on Nasdaq.
On the other hand, for token holders, and we are also token holder, right?
It is good because the company will acquire tokens on the open market, which will reduce the circulation supply and the company is
obligated by its prospectus, right, by law to keep these tokens for a while,
like for quite a long time.
Our deal is for two years, if I remember correctly.
And this is also very positive for the token itself.
And we believe that this is just a first deal right and many many other companies will follow this deal because you know what crypto people and i'm also crypto people right
what we are always waiting for we're waiting for when uh traditional money will go to the market
right this is exactly the way how traditional money can go to the market, right? This is exactly the way how traditional money
can go to the market easily.
Because people don't need to open exchange accounts
or learn crypto.
They just go to their trading app,
buy some stocks,
and then they have exposure to crypto space.
This is our and my personal view
of this kind of deal and this kind of structure.
And I'm here just like one of the investors in Fetch.
And yeah, I just shared my thoughts about that.
Yeah, thanks for listening.
And yeah, I'm more than happy to reply to answer any question.
Yeah.
Thank you, Andre.
That was well said.
Shall we take some questions?
Because I think time is going to catch up on us very quickly.
Or is there something outstanding still?
Nico, mic check.
Hello, hello. Anyone here?
I'm here.
Okay, I think we might have lost connectivity to Nico.
Trent, are you there?
Can you hear me?
Can the community hear us?
Yeah, I'm here.
Well, I guess I was flipping through some comments.
I just saw someone, something 5608 Nemesis, something asked about the ability for a $9 million market cap
business to raise $500 million.
Understandable
why that might be
skeptical.
Unfortunately,
the question belies a lack of
understanding of how capital markets
work and how this deal works.
We've already raised the $55 million. It's in
different instruments. So that cash, when we report our Q2, which is June 30th, when we report
that later this summer, you'll see around $50 million of assets on the balance sheet.
Whether that gets reflected in the actual stock price,
that's a different thing, right?
So capital in and market cap are not the same things.
One is factual, capital in.
The other one is a function of people's beliefs
and understanding.
And I'd say in the small cap world,
nano cap world,
investors tend to be rather skeptical.
They'd like to see actual numbers be reported.
They tend to not believe what they're told.
But that actually is why
there are a bunch of investment professionals out there and sophisticated investors who can understand what is happening before it's reported and sort of connecting those dots.
I don't think a $9 million market cap is an accurate representation.
You know, there's a famous saying from Warren Buffett, which is in the short term, you know, stocks or stock
prices that, you know, or the market is a voting machine and in long term, it's a weighing
machine.
I think what you'll see is that market cap should increase significantly.
You know, one of the main points on our, from our equity holders or the equity side is around
the Wattbike acquisition and the Sportstech acquisition.
You know, Wattbike's about 20 million about 20 million revenue sports tech's more than 50 million revenue um those two businesses aren't
included in our numbers yet um they should formally open up the door for questions and
hopefully you can hear me sadly i just experienced a two to three minute blackout this happens quite
frequently with spacesaces sessions.
It's not an overly refined feature,
but that's not going to stop us.
Nico, I've invited you as a speaker,
and whenever you have the chance,
feel free to ask.
Nico, can you hear us?
Can you hear us?
Hey, Nico, I was in the middle of answering a question,
so I'll just continue.
Yeah, please.
So one of the main concerns or bear points on our stock
or kind of the reasons for people to not yet buy
is they're not confident that our acquisitions will close.
I'm very confident.
We've said it continuously in our public filings
about these acquisitions are in the kind of ministerial stages of closing a transaction.
Those will be included in our Q3 numbers.
That will show a very different business.
By the time investors see that, you'd expect the stock to be higher,
you'd expect the market to be higher, right?
That's why people buy stocks is if everything were already priced in, then
the market would be efficient and you wouldn't have opportunities. This is really where investors
have opportunities when they can take advantage of misunderstood situations by doing their work
and listening and not just making kind of blanket assumptions such as,
well, there's a small market cap, this must be bad.
The stock chart's down, so this must be bad.
Actually, it's a disconnect between the reality of what's happening and what we expect to become.
Okay, Nico, any questions?
Any more questions?
We have 10 minutes.
Hi, thank you for the invitation. I don't really have a question, but I want to speak, like Andre talked about, like, this is, you talked as well, that Fetch AI, Ocean Protocol, you were the first with the AI, with the new tech, with the LLM, and I was like four or five years investor of Fetch.ai, of Ocean Protocol.
So I really bullish for years on Fetch.ai
and they are here again with the first new deal
for the space.
My big worry was like Bitcoin ETF was here,
ETF was here and big institution was investing
in Bitcoin and ETF.
But what happened with all the other coins, altcoins, the inflows and outflows of the
ETFs didn't come to the other projects, like the smaller caps or the top 20 tokens, top
30 tokens.
Like with this new deal, you can buy now the stock, and with that stock you have Fetch
here as well.
And I think this will start a trend
like for other projects yeah i think just want to quickly quickly give you a little bit of my
insight into this uh yeah there is um people can buy us a token which does nothing right
btc btc is something which has now become store of value, so it's very
understandable. Ethereum, actually, as you can see, had a true utility. You could actually use it for
doing stuff. If you take that same value prop of AI and you say there is true utility which people can actually use AI. I mean, that's not
hidden from anybody. Everybody knows AI is here, it's going to be even more here, and you're going
to need it for every business, every person will be using it. So, taking that assumption, you know,
if I Fetch didn't have a single product, and never launched a product and we're just talking and nothing was materializing, then I would understand a lot of the concern because then we haven't delivered.
We are not capable of delivering. very comparable, and actually in many cases, way ahead of the market, then you can see that the
utility will come and utility brings the revenue and the revenue ultimately brings value. So stock
markets are not just speculative instruments, like all the companies have to have revenues,
they have to have some technology. And crypto, unfortunately, doesn't have that fully yet, but this is the in route into that direction.
Yeah, like a revolution. Yeah, because me as a KOL, I invest in a lot of projects and I see some projects have some products.
And that's a big issue as well. But I think this new inflow maybe will boost the depths, the builders on the Web3 space to come with some new good products
that will help the people because I'm maybe
for 8 to 7 years in
crypto and I really don't use
crypto projects as their products
if I'm being honest. I'm here for like for
investing and doing other
stuff, helping projects. You should be using ASI1.
I mean if you're using chat GPT
you should be supporting ASI1.
When I was studying I used a lot of chat GPT, you should be supporting SL1. Yeah.
When I was studying, I used a lot of chat GPT.
It was hype, you know?
If I was studying now, I would use LLM, like from FAI.
Yeah.
No, no. You should do it.
You know, the Web3 information is quite up to date.
So, you know, I think you'll find it useful.
But, yes.
Thank you for the question.
Appreciate it.
Thank you, my brother.
Have a nice day.
Look, guys, I'm new to this community,
and I'm excited to be here.
I can tell you as an outsider,
we're making a massive investment
we're making a massive investment in this token and this technology.
in this token and this technology.
We think it's got a lot of potential.
Real investors are putting real capital behind it.
It's hard to say that there's a bigger vote of confidence.
Capital and investment leads revenue.
The technology itself is still in its early stage
of commercialization, but there is utility and there is revenue coming. And that's what this
investment is. This is effectively us being an early stage VC with an access to a massive balance
sheet from the public market saying, we're going to bet on this and we're going to drive earnings from it.
So I don't think there can be anything other than just the most positive takeaway from this
transaction, especially if you've been an investor and a follower in this technology for so long.
You couldn't have asked for a better vote of confidence. And we hope to you know prove that and show it to you but
first 55 million dollars is there we believe the rest is going to be coming
over the next year or two um you know but this is a this is like you know i sort of put it back
on everyone else what else would you like to see what else could be more exciting than um you know
a big investor with lots of capital saying, we're betting on fetch.
Well, actually, just again, to dovetail into that is, you look around, there are projects
which are worth much higher value than what the fetch and the ASI stack is. We're hugely undervalued and that's what the investors are
seeing now, which is that we have the technology, we have the products, we're doing commercialization
and look at our valuations, right? So this is a very simple way of kind of saying, hey, you know,
this is undervalued, we want to come in on it. So that's what Trent is saying.
Any other questions, Nico?
Yeah, for me, I want to talk about Fetch.js undervalued because I think as a crypto investor,
as a KOL, how the crypto people, like I talk with a lot of Web2 guys
and they are always long term.
And the crypto people are very short term
investing, getting my money out.
And when I saw the merge,
a merge is amazing, amazing stuff.
Like three big projects in the AI are merging.
But what happens, people see, okay,
this is my token valuation.
And then I get the new fetch, like the merge token, and maybe people get scared, like me as investor, and maybe they will sell that.
And maybe you get a lot of sell pressure because of the merch, and then the teams need to get back to each other, and then they will make new innovations, new marketing, and then the chart needs to have a structure.
And from there on, you will go back up when everybody sees the value of Fetch.ai, for me as well.
So now, I think what will happen is, with these new deals, new inflow of money, new technology,
Fetch.ai is always the first with the new stuff, that Fetch.ai will go up again.
Everybody will forget about the merge integration, like the positive side will stay, but like the token price, and then we will run up again everybody will forget about the merge integration like the positive side will stay but
like the token price and then we will run up again as well that's the reason i am investing in fetch
here as well and i believe and interacting a lot of with fetch stuff so that's the thing how i know
about the investors from the crypto side so that's my opinion thank Thank you. Thank you for the words. Thank you for the kind words and support.
Appreciate it.
Hi, Hermione.
This is Tom here from a geo-staking team.
Hey, long time.
I think good.
Yeah, good to speak to you again, sir.
Good to speak to you again.
I've got a couple of points to want to raise.
Ladies and gentlemen, apologies for the cutoff on my end, sadly, spaces.
Is it going to drop itself or can we ask one question?
Yeah, I think I'm good to speak.
If not, I suppose I'll get cut off.
Go for it, go for it.
So two points.
I'm very excited to see the intersection of decentralized AI
and sort of new startup companies building out,
looking to embrace the technology.
It's really exciting.
And I think as we see the whole Web3 crypto market mature,
I think we're probably going to see more traditional inflows into this space.
And as we always know, you know, adoption and utility will drive value.
And I think it's gonna be really really
interesting to see how it comes in the coming years but my question is with
this specific collaboration and is there a view of what we think the total
addressable market might be from a valuation perspective or even a number
of users for sort of the technology and the tooling and the offering that's
going to be built out using obviously the fetch infrastructure um i don't know if that's aimed more to mine or trent really
sure i mean trent do you want to take it or shall i take it quickly yeah you go first okay please so
fetch fetch technology in itself um is um very horizontally spread because you can use agents in every single thing as person,
as a business, as a machine, as a machine learning model, as anything. So we feel the
scale of having a genetic system is huge. Now, I don't want to put a number on it.
There are people who are putting numbers on it,
which is, you know, all the top five, top three, top four accountancy firms have put
agentic numbers, you know, as a valuation of $3 trillion or something. But for me, a very,
a more conservative, addressable market, I would probably say over the next two years is around 10 billion to 20 billion.
Now, that being said, I'm just talking about some very narrow part of the technology.
But as you know, Aresight TechStack has the full stack.
So you look at compute, which has its own addressable market, because now you're building machine learning models.
And the machine learning models themselves have their own addressable.
Each model has its own addressable market.
As you know, we're launching this initiative, ASI Train, where the models will become kind of self-owned kind of projects in their own right.
So that has its own valuations. I mean, it's easy
for me to kind of start throwing out numbers, but if I take a conservative approach myself
as a fetch project, I would say, including agents, including the technology stack,
you know, we are not going to be very far off, like $30 billion to $40 billion market annually, which we should be targeting.
Trent, it's over to you on your side.
Yeah, I mean, look, the rate of change is so fast that I think it's really hard to size, candidly.
Yeah, great.
You can be wrong by 50%, but wait a year and you're right.
So it's very challenging from that perspective.
I think take AI in general.
One side says, everyone's going to be out of a job.
The other side says, no, we're going to have more productivity.
We know it's big and we know the direction,
but actually measuring the specific size is hard, right?
I'd say specifically within our ecosystem, we have order of magnitude close to 100 million of revenue.
But we have the ability to acquire many more and many bigger businesses such that like from a direct thing what we count
i think the applications you know can grow very quickly it's fantastic it's a it's sure going to
be a buoyant market moving forward so thanks for that um sounds like a really really exciting
development appreciate it i think we're kind of out of time, guys. Nico, thank you, everybody.
And hopefully it answered all the questions that you guys had.
If you have any more questions, please pass them on.
Nico is always there as the community lead. We trust his voice of the community.
And we'll try and answer all the questions that you pass to us.
And, you know, we hope to speak to you very soon.
Thank you, everyone.
And, you know, just as a, you know, we do communicate a lot as a company.
So interactivestrength.com, add your email.
You know, we tend to try to explain things on a pretty regular basis about what we're doing and what we're seeing, if it's helpful.
Okay, appreciate it's helpful.
Okay, appreciate it. Thank you.
Thanks everybody.
Thank you for your time sir.
Have a nice day.
Bye-bye. Thank you.
