Today the crypto Market recovers from Monday's steep sell-off Bitcoin miner Core scientific grows its partnership With AI company core weave again and as Crypto markets continue their wild Swings we speak to John Woo of Ava labs To find out where he thinks crypto is Headed Next welcome to cnbc's crypto world I'm Brandon Gomez crypto prices are staging A partial comeback after Monday's big Selloff by noon Eastern Bitcoin Rose 3.8% back above $56,000 that comes after the Cryptocurrency briefly fell to its Lowest level in 6 months yesterday Meanwhile ether climbed 3.1% to $2500 and salana jumped 11% to $145 yesterday's selloff took place as Crypto Traders were caught in a storm of Carry Traders unwinding their positions Raising concerns about a US economic Recession escalating tensions abroad and Increasing uncertainty about the outcome Of the US presidential election crypto Focused stocks like coinbase and micro Strategy were in the red yesterday amid The crypto selloff and it seems like Kathy Woods Arin vest took advantage of The lower prices as the firm bought Nearly $18 million of coinbase shares And more than $1 million of Robin Hood Shares as the market Sank okay let's talk about the top
Stories for today micro strategies Executive chairman Michael sailor joined CNBC Squawk on the street earlier this Morning where he said that the recent Crypto conference Bitcoin 2024 4 marked An inflection point for the Cryptocurrency as lawmakers and other Politicians as well as CEOs and Billionaire investors descended on Nashville for the event now sailor also Discussed the strategy of the company he Co-founded after the firm reported Q2 Earnings last week noting that micro Strategy Bitcoin Holdings Rose to 226,000 micro strategy's Bitcoin Development company we're an operating Firm and that means we have some Advantages over a trust company we've Got permanent capital we can generate Cash flows we've got operating Flexibility um our shareholders want More Bitcoin per share they think if we Get more Bitcoin per share that's Creating shareholder value that means We're pursuing BTC yield whenever we can Uh do a capital markets transaction That's a creative and generates more Bitcoin per share we'll do it we have uh We have uh the ability to sell Equity Into the market at a premium to net Asset value we have the ability to issue Convertible bonds we have the ISS the Abod to generate operating cash flow We're just going to keep uh generating
More Bitcoin per share any way we Possibly can by selling the volatility Of the asset class and then sweeping it Into the underlying asset next the SEC Is pushing back on coinbase's demands For personal Communications from chair Gary gendler in a filing on Monday the Agency called coinbase's request Breathtakingly broad because it sought Essentially all the documents that in Any way relate to crypto assets late Last month coinbase filed a court Document addressing the crypto exchanges Subpoena of SEC chair Gary gendler and Other Discovery disputes the filing says That the exchange was unsuccessful in Its many attempts made through June to Collect documents from the agency that Includes those related to coinbase's IPO And gendler's Communications coinbase Withdrew its request for gendler's Pre-air communications narrowing its Request in that filing now in this new Filing today the SEC says it already Produced all non-privileged documents Concerning the crypto assets at issue in A post on X yesterday evening coinbase's Chief legal officer said quote if the SEC is going to engage in an Unprecedented regulation by enforcement Campaign the least they owe to those They target and the public is Transparency last Bitcoin miner core Scientific is expanding its partnership
With AI firm cor weave yet again this Morning core announced plans to deliver Another 112 megaw of infrastructure to Host core weaves high performance Computing operations that's on top of The 270 megawatt of infrastructure Already pledged to the AI company core Scientific said that all told the newly Expanded deal brings the total potential Revenue to $6.7 billion over the next 12 Years this of course is part of a Growing trend of crypto miners turning To AI as a means to grow Revenue Especially after the having back in April cut mining rewards core scientific Stock soared 133% around midday All right for our main story let's turn Our attention back to the markets crypto World's Talia Kaplan spoke with John Woo The CEO of Ava labs to find out where he Expects crypto markets to head next as This volatile trading week continues we Will also discuss his utility on the Avalanche blockchain amid new government Agency Partnerships crypto markets were hit With a steep selloff to start the week Following a sharp drop in financial Markets around the world with many Analysts saying heightened recession Fears were to blame coupled with Escalating tensions in the Middle East At one point yesterday Bitcoin was Trading below $50,000 for the first time
In six months now today Bitcoin Recovered some of yesterday's losses Trading above $56,000 as of around noon Eastern what Do you think was behind yesterday's Selloff and what does it signal to you About crypto sentiment right now hey Talia well yesterday to sell off a lot Of that is what you attributed to the Macro environment um where it became a Little bit choppy and Bitcoin and the Crypto asset class as a whole is very Volatile there are also specific things Related to bitcoin and the asset class That contributed to that selloff as well I would say um you know one of the great Things about blockchain is the Transparency so people saw that the US Government have moved some a lot a large You know close to two billion dollars of Bitcoin from one address to another that Was an indication that they may sell on Top of that um it was triggering Leverage uh deleveraging on a lot of the Asian exchanges so you saw that in a in A panic cell over the Asia nighttime and Then on top of that you just had this Ethereum ETF so you were coming off of That positive sentiment but at the same Time there are ethereum trusts that have High cost structure so people naturally Will sell that to go into a cheaper uh Ethereum spot ETF and that unfortunately Happened during choppy markets so caused
More Selling now the recent drop in prices Has eaten into bitcoin's gains for 2024 But it's important to note that the Cryptocurrency is still in the green With Bitcoin Rising 32% since January as Of midday what's your outlook for Bitcoin in the coming months I heard you Say in a recent interview that you can See Bitcoin going well above $100,000 do you still feel that way with This week's selloff in the mix yes I I Do I see the medium-term as being very Very positive for Bitcoin and the whole asset uh class if You will the first thing is I think Morgan Stanley just announced that they Are now going to be able to allow their 15,000 wealth managers basically sell The Fidelity and the Black Rock ETF That's a new channel um frankly a lot of The Bitcoin ETF right now have been Retail and some institutional but not Really to the higher net worth ra Channel that is fantastic and positive If you look at the coinbase earnings That we saw recently in terms of monthly Users and other those streams of Revenue You see that it's actually stabilized or Actually growing nicely so users are not Leaving the platform they stay they're Staying there and they are more engaged And that's helping coinbase actually Generate other Revenue not just the the
Transactional revenue from from trades Because trades weren't down in the last Quarter or so so and then most important Thing I think is you're seeing real use Cases I'm at the the what they call Bass The blockchain applications uh Stanford Summit and basically it's all about Applications you have great academics Here but you also have great um real World developers trying to create Applications on the blockchain this is The first year that is by itself this Used to be attached to another Conference that's another indication That applications and utility are coming And if that's going to happen that that Builds a well for the um the asset class In both the medium and long term and We're going to talk more about utility In just a bit but I heard you talk about The presidential candidates in that Recent interview I referenced earlier Noting that the Republican nominee for President Donald Trump is pro business And pro-innovation he has come out Recently as a crypto-friendly candidate In fact in May Trump's campaign started Accepting donations in crypto and of Course the former president was the Keynote speaker at Bitcoin 2024 and Nashville nearly two weeks ago we're Also learning that Camala Harris's team Is reaching out to crypto experts to Learn more about the industry in fact
Speaking with us at Bitcoin Nashville Congressman roana said he advised her Team about digital assets how do you Think crypto is starting to shape this Election cycle and how much influence do You think it can have on the upcoming Presidential election the oper echelons In the political world we know now Recognize the community of crypto Because the community of crypto is Force Um we' know these stats over 53 million Americans actually own the crypto asset Uh one of the you know part of the asset Class either Bitcoin or others and a lot Of those are young voting Americans so It's a big voting base on top of that The um uh the Super PAC associated with Crypto actually uh raised over 207 Million I believe that at the time when I last look was actually bigger than Trump's make America great pack a little Bit slightly bigger so that shows you That it's impactful for fundraising as Well as actual votes and um you know It's great that Trump spoke at Nashville It's great that Rana a Democrat is also Catalyzing hopefully um vice president Harris's uh deeper study of it because It should be bipartisan it should be a Bipartisan effort where both sides Actually can help the community of Crypto come to a fair U sensible Standard so that everyone can develop That is a subject here at the uh
Blockchain applications conference at Stanford where you know a lot of the Applications that they people want to Develop is somewhat dependent on uh Removing uncertainty in the regulatory Path now moving back to utility Specifically on your blockchain last Week we learned that the California DMV Made history by leveraging blockchain Technology to modernize vehicle title Management the department has digitized 42 million car titles on Avalanche in The first move like this in the US the Project will allow California residents To claim their titles through an app Using a verifiable credential can you Take us through some of the benefits of This digitization of car titles well It's not just digit car titles anytime You have when you have many many people In a ecosystem many partners many people Using it many rails if you will of Information distribution and possibly Also value exchange putting them on a Database called the blockchain database Where there's transparency better Security and everyone can actually are Plugged in interop the interoperability Is better so there's that uh situation There's also many other situations Putting IP on the Chain that's another Big subject especially in front of AI Putting actually IP associated with Creator's content and that's going to be
Very very important going into um AI as A adoption comes there's gaming Companies trying to tokenize in-game Assets and putting it on the Chain these Complex workflows are streamlined when You put it on a Blockchain okay that's all we have for Crypto world today we will be back here Again tomorrow we'll see you then [Music]
