The Great Digital Transformation: From Bitcoin Mining to AI Platforms | EBC10

[Music] so I have two hours to speak and I promise you will not fall asleep I am going to speak quickly and we are going to post the slides because some of the slides are rich with content and I'm going to weave back and forth on my journey into the land of crypto and try to understand Senate I am known for the world of gold I've written books on gold I have created many gold royalty companies And Hive was the first public company mining actually ethereum and then Bitcoin and now it's Ai and I'm going to explain to you that journey and we went public in 2017 in September of 2017 and it was only in a matter of weeks that we went to a billion dollars market cap now why was that it's because Hive became a proxy Hive became a proxy for gold investors that were afraid of going out to buy Bitcoin but it was this educational format that Hive produced and what this journey has shown in this past year for those who are Financial analysts and I'm a money manager and the executive chair is that Hive does about 5 million in Revenue per employee Nvidia does 3.6 million in Revenue per employee Apple does 2.2 million Revenue per employee and Goldman Sachs does a million so this model is that when you have high Revenue per employee it allows you to have more flexibility to deal with the volatility of Bitcoin and ethereum now what I found in this journey of this great digital transformation every year I go to Harvard for a week with a group of 180 CEOs uh from 6070 countries and I've seen this progression in 2017 it was something like about 12 or 15% was on the digital transformation and last year year it was 70% and I'm talking about old guys like me I'm like the Colonel Sanders of crypto and on that journey I realized that there's some things that are happening and first of all is to understand volatility and every asset class has its own unique DNA of volatility and before you look to go and use Hive as your proxy for AI or for Bitcoin it's important to recognize this volatility so the S&P 500 means 70% of the time it's a non-event to go up or down 1% and over 10 days it's a non-event to go up or down 2% that's 70% of the time but when you go to bitcoin it doubles and it triples and when you go to Hive it's even more so and even bigger than Us's micro strategy Michael sailor who continues to buy Bitcoin and continues to have higher volatility so when you go to these asset classes you have to be a contrarian buyer that you want to buy in the down days that's the most important factor but most people all want to trade one that's on an upate and because the DNA of volatility you can make in 10 days as you can see in Hive 19% so over any 20 trading days it's a non-event to go up or down 20% so why is that well we're very proud of having so many first first to go public first to develop our own Asic mining rig first to buy data centers first to be green energy focused first to balance the electric grid in Sweden and first to have an AI strategy with our GP chips and our team is here you can go by our booth and get the swag we have hats with a Gucci be and we have Ben Ben Franklin with the Bitcoin sunglasses on because it's important to recognize the what is taking place in this digital transformation especially when it comes to money in my world the first digital transformation were Airline mileage points where I could turn around and have an economic value and share them with friends or family or employees and the more I flew the more points I got the more a trade but what have you seen with mileage points what used to only be 20,000 points to go from Europe to America is now 200,000 points devaluation and that's what's happened with paper money and that's what makes gold bugs from the old school where I grew up to the modern school they want to own Bitcoin and that is their hedge that's what they call an alternative asset class is the Hedge Ed and our team is all here for anyone to come and by come by the booth and you can meet the team so we use nothing but green energy this is a visual in in Bowden Sweden 100 miles south of the Arctic Circle now this looks busy and that's why I said you can go to our website and you'll be able to see it but it's showing you that there's a a long journey in the whole Bitcoin Network and what's amazing here to remember is that Bitcoin has no CEO Bitcoin has no Capital funding directly Bitcoin is a $1.3 trillion asset with over $18,000 peer-to-peer nodes functioning all over the world and Hive when we first started mining ethereum was with GPU chips and GPU chips are like driving a Porsche mining Bitcoin is like driving a Ford pickup truck it's an Asic chip and is so important for our transformation into AI because we're experts on managing GPU chips when we first launched Hive we grew to 5% of the global network of reminding ethereum and what I found out whether there was all these 12y olds around the world that were mining ethereum also 30 million kids were mining ethereum at my Agee I had a paper route now kids turn on their gaming and they went to bed and they ran up the electrical bill on their parents and if they could mine one or two ethereum coins a year it was like the money that I made from a paper root and then they would go and upgrade their computers and they also learned if they were good on gaming that they got digital money so this network was huge and when ethereum left proof of War work and went to proof of stake the valuation between Bitcoin and ethereum has been devastating for ethereum investors we sold all of our ethereum and we have focused on bitcoin but our technology in buying Nvidia chips to mine ethereum have allowed us to Pivot into AI so this is a a recent picture of a Nvidia CEO is one of the most gracious charismatic intellectual and a phenomenal energy of an individual and And Hive is a senior what they call a platinum buyer as we have purchased now about a 100 million of these AI chips these special chips and what really took off faster than we expected was chat gbt to get a 100 million users it was only two months and Uber took 70 months just have to recognize the significance of the adoption but most of the companies were using it and it seems to have slowed down here when you look at AI generated content that's only because there become so many new providers of competitive service Elon Musk has grock grock means do you intuitively feel do you feel good about this idea about this investment and Gro Gro is also one of the biggest buyers of the h100 uh chips by Nvidia so we have data centers are at the heart of the digital transformation you have to have data centers and for Hive it has been green and if you don't have a data center there's no cell phones there's no Netflix there's no game there's no for weather forecasting and what we have found with many government agencies they're oblivious they're oblivious they think it's like free but if you do not have these you do data centers you're not in business so with that my presentation I'm told is going to be ending soon but I want to point out that Germany's failing to keep up with the digital transformation and and it's interesting to see that it's an attitude towards the use of energy and right now there's a huge Scramble for energy but AI we're only about a third of the way up there's huge upside and the most important part right now is having access to energy and Hive is green energy demand for AI is going to be the big revolution for financial institutions for Health Care everyone in this room can live to a 100 with AI because how it can analyze your blood faster and they can turn around and look for Predictive Analytics for breast cancer that is is a Quantum Leap in one decade one decade a Quantum Leap by by taking a simple cat scan that looks like like a carpet and they can say you've got a cancer problem that is what AI is going to do and that is what's going to change everyone here from wearing a ring that's going to monitor your sleep and and your bio hacking the ability to bioh hack if you see um Jeff basos Jeff basos was a scrawny kid Jeff basos is now built he's got muscles everywhere Jeff basos has been biohacking Jeff basos has been one of the early adopters to AI Jeff basos was originally a hedge fund manager and he took that AI as a highfrequency Trader at De Shaw and built Amazon around that concept AI the definition started when I was born 1955 it we just know about it now and it's had this incredible bursts of breakthrough and this is the super Surge and so many applications and what we're seeing is the great need and the these other companies like Amazon and Google and meta and uh Microsoft they're the competition for these chips so Hive is positioned for AI we're extremely excited about it we're extremely excited about the capacity that we have green energy and we have the knowhow for Mining ethereum and as we're now pivoting and building out our footprint on AI and when you look at data centers they trade at 20 times iida and we trade at a substantial less multiple so stay tuned to this and and remember the biggest part about successful investing came out of MIT and it said that you have to have a positive mindset because if you're not grateful that you woke up this morning or here if you're not find something that's the grateful to before you will not find new Investments and you will not find new technology it's the mindset it's the growth mindset that is so important so stay positive enjoy the conference come by and get your swag and meet some of our executives are there and they can tell you about how we are on The Cutting Edge of the AI buildout thank you ladies and gentlemen ladies and gentlemen Frank Holmes thank you so much Frank Rock the main stage there and bonus points for the Gucci B swag get yourself over to the hive booth