Calling Bessent's 'Bluff,' Strategy CEO Buys Again | Bloomberg Crypto 9/1/2026

>> LIVE FROM BLOOMBERG WORLD HEADQUARTERS IN NEW YORK. TIM: A LOOK AT THE PEOPLE, TRANSACTIONS AND TECHNOLOGY OF DECENTRALIZED FINANCE. SCARLET: WE WILL SPEAK WITH DAN MOOREHEAD, THE FOUNDER AT PANTERA CAPITAL. TIM: PLUS AN EXCLUSIVE CONVERSATION WITH THE CEO STRATEGY RESUMING ITS PURCHASES AFTER A 10 WEEK PAUSE. SCARLET: DONALD TRUMP, JR. 1780 NINE CAPITAL LEADING OF NEW FUNDING ROUND FOR POLYMARKET AS THE FIRST FAMILY DEEPENS ITS TIES WITH THE PRODUCTION MARKETS INDUSTRY. TIM: FIRST OF THOUGH LET'S SEE WHERE THINGS STAND FOR TODAY AND THE LAST MONTH. BITCOIN SLIGHTLY LOWER DOWN ABOUT ONE POINT 2%, NOT MOVING MUCH DESPITE WHAT WE ARE SEEING WITH THE YIELDS. CLIMBING BACK TO THE HIGHEST LEVEL IN CLOSE TO TWO DECADES. BITCOIN THIS MONTH WITH SOME SERIOUS MOMENTUM. AUGUST WAS A FANTASTIC MONTH. THE BEST MONTH GOING BACK TO NOVEMBER OF 2025. BITCOIN UP 26%. THE FIRST NET POSITIVE AUGUST GOING BACK TO 2021. TOPPING $80,000 PER BITCOIN JUST A FEW DAYS AGO. THE TREASURY ANNOUNCED THREE PURCHASING OF BONDS. THAT'S WHEN WE SAW BITCOIN SPIKE. ALL THIS ACTION TO THE UPSIDE AFTER THE MIDPOINT OF THE MONTH AND THEN IT WAS A ROCKETSHIP FOR BITCOIN. SCARLET: ANOTHER CHART IS SOLANO. AS INSTITUTIONAL MONEY POURS IN. THE BEST WEEK OF INFLOWS LAST WEEK. IF YOU LOOK AT THE ETF TIED WITH IT, CROSSING $1 MILLION IN ASSETS UNDER MANAGEMENT LESS THAN ONE YEAR SINCE ITS LAUNCH. TRADERS POURED MONEY INTO CRYPTO IN THE LEAD UP TO FED CHAIR KEVIN WARSH IS JACKSON HOLE SPEECH ON FRIDAY. TIM: JOINING US IS PANTERA CAPITAL MANAGEMENT MANAGING PARTNER DAN MOOREHEAD. I WANT TO START WITH THE TREASURY SECRETARY SCOTT BESSENT, THE ANNOUNCEMENT A COUPLE WEEKS AGO BECAUSE IT REALLY SEEMED LIKE IT WAS A CATALYST FOR AT LEAST THE PRICE ACTION WHEN IT COMES TO BITCOIN. DAN: I THINK IT IS REALLY IMPORTANT. ONE OF THE THINGS WE'VE BEEN TALKING ABOUT THIS WHOLE TIME IS BITCOIN AND CRYPTO ARE A MACRO TRADE AND IF THEY'RE GOING TO KEEP PRINTING MONEY AND DEBASING PAPER MONEY, HARD ASSETS LIKE BITCOIN AND CRYPTOCURRENCIES ARE GOING TO DO VERY WELL. I THINK THE ANNOUNCEMENT REALLY CATALYZED AN ISSUE THE GOVERNMENTS OF THE WORLD IN PARTICULAR U.S. HAS IS THEY ARE PRINTING SO MUCH MONEY THAT THEY DON'T REALLY HAVE REAL LEVERS TO PULL. IN BLUFFING THAT YOU WILL BUY BACK ANOTHER 2 BILLION OF TREASURIES IS REALLY JUST HIGHLIGHTING THE PROBLEM, IT DOESN'T MAKE IT GO AWAY. TIM: YOU AND OTHERS HAVE POINTED OUT THAT 2 BILLION A WEEK OF PURCHASES ARE SO SMALL AS TO NOT REALLY HAVE A MEANINGFUL IMPACT. THE TREASURY SECRETARY IS A FORMER HEDGE FUNDER, SO HE MUST REALIZE THAT AS WELL. WHAT PURPOSE DID THAT BUYBACK ANNOUNCEMENT END UP SERVING? WAS IT PERHAPS PERFORMATIVE FOR THE SAKE OF SHOWING THE WHITE HOUSE IS DOING SOMETHING? DAN: THAT I CAN'T ANSWER BECAUSE IT IS CRAZY, IT HIGHLIGHTED AN ISSUE THAT'S BETTER LEFT NOT TALK ABOUT. IF YOU ARE -- THE ONLY WAY A BLUFF WORKS IS IF NOBODY AT THE POKER TABLE KNOWS YOU ARE BLUFFING. TO SLIDE AN EXTRA 2 BILLION OF CHIPS ONTO THE TABLE WHEN YOU ARE A FORCED SELLER OF 2 TRILLION EVERY YEAR OF BONDS DOESN'T REALLY MAKE SENSE. IT BACKFIRED BECAUSE EVERYONE COULD SEE THEY ARE OFF BY THREE ORDERS OF MAGNITUDE. TIM: I AM CURIOUS, LET'S SAY THE TREASURY SECRETARY -- WE WILL PLAY THIS OUT A LITTLE BIT. LET'S SAY THE TREASURY SECRETARY IS SUCCESSFUL IN THE BOND MARKET IS SUCCESSFUL ITSELF, IT GETS UNDER CONTROL. WHAT HAPPENS TO BITCOIN THEN? LET'S SAY HE IS SUCCESSFUL IN BRINGING DOWN AT THE LONG END? WHAT HAPPENS? DAN: IT IS A LONG-TERM PROBLEM IS THE ISSUE WITH THE TREASURY. THEY ARE CURRENTLY PRINTING 2 TRILLION EXTRA DOLLARS IN -- AND THE CONGRESSIONAL BUDGET OFFICE SAYS THAT IS RISING IN FOR AN ITEM. 3.6 TRILLION IN 10 YEARS SO THE GOVERNMENT PRINTS THAT MUCH MONEY IT IS JUST KIND OF PAPER OVER THE CRACK STEW BY ACCOUNTABILITY AND REALLY DOESN'T DO ANYTHING. I THINK THIS HAS REALLY IGNITED IT BITCOIN BECAUSE IT REALLY HIGHLIGHTS THERE ISN'T A WAY OUT FOR THOSE COUNTRIES LIKE THE UNITED STATES. HOW CAN IT MAKE MARKETS IN BONDS WHEN IT HAS TO BE BEFORE SELLING OF 2 TRILLION A YEAR I DO THINK THAT'S WHAT'S DRIVING PEOPLE INTO CRYPTO. YOU CAN PRINT MORE OF THEM. -- CANNOT PRINT MORE OF THEM. IT'S HIGHLIGHTING A PROBLEM. INFLATION IS ALREADY 3.4% AND THAT DEBASES 90% OF YOUR PURCHASING POWER OVER YOUR LIFE. SO IF YOU HAVE THE CHOICE TO OWN SOMETHING HARD LIKE BITCOIN OR A U.S. PIECE OF PAPER MONEY BITCOIN HAS HISTORICALLY GONE UP AND PAPER MONEY IS DEBASING A 3.4% A YEAR. IT DOES HIGHLIGHT THE FACT THE ECONOMY IS DOING AS WELL AS POSSIBLY COULD. UNEMPLOYMENT RATE IS 4.1. WAGE INFLATION IS 3.4%. EVERYTHING IS REALLY STRONG. YOU HAVE TO FIGURE OUT WHAT'S GOING GO ON WHEN SOMETHING BAD OCCURS THE DEFICIT WILL SPIRAL OUT OF CONTROL AND WE ARE ONLY A YEAR AWAY FROM THE U.S. DEFICIT GOING ABOVE WHERE IT WAS IT THE END OF WORLD WAR II. THINK ABOUT THAT WITH ALL THAT MONEY WE DEFEATED FASCISM. WHAT'S THE GOVERNMENT PRINTING THE MONEY FOR NOW? SCARLET: YOU ARE THE HEAD OF MACRO TRADING UNDER JULIAN ROBERTSON FROM 1996 TO 2000 SO YOU'RE IN THIS UNIQUE VANTAGE POINT WHERE YOU CAN TALK ABOUT DECENTRALIZED FINANCE AS WELL AS TRADITIONAL FINANCE. I AM CURIOUS ABOUT SOMETHING YOU SAID IN APRIL, YOU SAID CRYPTO MARKETS WERE UNDERVALUED COMPARED WITH A HIGH STOCKS. SINCE THEN BITCOIN HAS REVISITED THE $80,000 LEVEL. LOSING A LOT OF MOMENTUM IN JULY. WHICH IS THAT GAP BETWEEN CRYPTO AND AI TRADE LOOK LIKE TODAY. DAN: IT'S HELD BACK A LARGE AMOUNT BECAUSE AI IS OFF OF ITS VERY STRONG RUN IN CRYPTO AS YOU JUST MENTIONED HAS RALLIED. AND REALLY THAT ARGUMENT WAS TO MAKE AI'S MASSIVE ORDNANCE IS SOMETHING PEOPLE SHOULD HAVE EXPOSURE TO. BUT IT HAD GONE SO FAR AHEAD ON THE FOUR YEAR TREND WEARS CRYPTO 50% FROM ITS FOUR YEAR TREND. THESE ARE COMPLETELY UNRELATED TOPICS. AI DEFINITELY NEEDS CRYPTO. AI AGENTS ARE GOING TO WALK DOWN THE STREET TO GET A BANK ACCOUNT AT A NORMAL BANK. THEY WILL HAVE TO USE BLOCKCHAIN. A LOT OF THE PROJECTS WERE INVESTED IN THE INTERSECTION OF AI AND BLOCKCHAIN'S. WHEN ONE OF THEM IS AT RECORD HIGHS AND SURGING WAY PAST ITS LONG-TERM TREND IT SEEMS LIKE THAT GAP HAS TO CLOSE AND IT'S CLOSED A BIT IN THE TIMES BUT IT STILL MIGHT GO FURTHER. >> IF THE BUYBACK OPERATION WAS THE CATALYST WE SAW FOR BITCOIN IN LAST TWO WEEKS OR SO. WHAT IS THE NEXT CATALYST. BECAUSE IT WAS TREADING WATER FOR SUCH A LONG TIME RELATIVE TO WHAT BITCOIN HAS BEEN DOING OVER THE PAST COUPLE OF YEARS. IT ALSO SUFFERED A PRETTY SIGNIFICANT SELLOFF BACK IN FEBRUARY. DAN: I DO BELIEVE THE FOUR YEAR CYCLE IS IMPORTANT. THE BITCOIN GETS CUT IN HALF. AND WHEN I FIRST HEARD THAT IN 2012 OR 13 I WAS LIKE IF WE ALL KNOW THAT HOW CAN IT WORK. BUT IT'S WORKED INCREDIBLY PREDICTABLY FOR THE 13 YEARS WE'VE BEEN MANAGING MONEY. IN ABOUT 34 -- 34 YEARS AGO WE PREDICTED BITCOIN OF 30,000 IT WOULD PEAK AT 117,542 ON AUGUST 10, 2025 AND IT DID THAT DAY WHICH IS WILD. AS ONE OF OUR INVESTORS POINTED OUT THAT MEANS IT'S PROBABLY GOING TO GO DOWN AND IT HAS. SO IF IT THE PAST AND PREDICT THE FUTURE. THE BITCOIN WOULD BEGIN TOWARDS THE END OF THIS YEAR AND HAVE ANOTHER TWO AND A HALF OR THREE YEAR RUN. I DON'T REALLY HAVE ANY REASON TO BELIEVE THAT'S NOT THE MODEL THAT'S GOING TO CONTINUE TO WORK. TIM: DAN WILL BE JOINING US A LITTLE BIT. WE WILL HOLD HIM OVER WE WILL COME BACK WITH MORE IN JUST A FEW MINUTES. ALSO A LITTLE LATER IN THE SHOW. THE STRATEGY SEAL WILL JOIN US TO DISCUSS THE COMPANY'S LATEST BITCOIN PURCHASES. CHANGES TO THE BALANCE SHEET AND A LETTER JUST SENT. THE LATEST NEWS CHECK OUT THE TERMINAL. THIS IS BLOOMBERG. SCARLET: THIS IS "BLOOMBERG CRYPTO." WE ARE BACK WITH DAN MOREHEAD. YOUR FIRM LAUNCH THE S&P PRINTER DIGITAL ASSET INDEX WITH DOW JONES IN JULY BUT ONE NOTABLE THING IT EXCLUDES IS TOKENS WITH NO REVENUE AND REAL USAGE QUALIFIED. YOU LOOK AT BITCOIN AND IT IS 50% OF THE ENTIRE CRYPTO MARKET CAP. EXCLUDING IS A BOLD CALL. WHY WOULD AN INSTITUTIONAL ALLOCATOR WHO WOULD USE THAT INDEX CHOOSE THE BENCHMARK AGAINST AN INDEX THAT LEAVES OUT THE SINGLE MOST LIQUID TRADED AND RECOGNIZED DIGITAL ASSET? DAN: WE HAVE TO REMEMBER DIGITAL ASSETS HAVE DOZENS OF USE CASES, ONE OF WHICH IS STORING WEALTH AND MOVING MONEY ACROSS BORDERS. BITCOIN IS AMAZING AT THAT AND DOES A GREAT JOB. WE LAUNCHED THE FIRST BITCOIN FUND IN THE WORLD AND HELP PEOPLE MAKE BILLIONS OF DOLLARS. PEOPLE SHOULD HAVE EXPOSURE TO IT. HOWEVER, BLOCKCHAIN TECHNOLOGY IS TOTALLY DIFFERENT. IT HELPS PEOPLE DO THINGS BETTER FASTER AND CHEAPER. TO MY MIND, IT IS AKIN TO STOCKS VERSUS GOLD. PEOPLE OWN EQUITY IN COMPANIES VIA STOCKS BECAUSE THOSE COMPANIES DO THINGS BETTER, FASTER, CHEAPER AND OTHERS OWN GOLD BECAUSE IT IS A SCARCE ASSET. THAT IS THE WAY SHOULD THINK ABOUT BLOCKCHAIN. BITCOIN IS GOOD AT WHAT IT IS. A LOT OF PEOPLE ALREADY HAVE EXPOSURE TO IT BUT IT IS VERY DIFFERENT THAN BLOCKCHAIN TECHNOLOGY. SCARLET: WHAT IS BEEN THE FEEDBACK FROM DIGITAL ALLOCATORS TO THAT DECISION TO EXCLUDE BITCOIN? DAN: IT IS GOOD. AGAIN, MOST PEOPLE REALLY DO HAVE THEIR HEAD AROUND BITCOIN NOW. SIX OR EIGHT YEARS AGO, IT WAS HARD EVANGELIZING FOR THE SPACE. MOST PEOPLE UNDERSTAND IT AND HAVE SOME EXPOSURE. BUT MANY HAVE NO IDEA WHERE TO GO DOWN TO OTHER PROTOCOLS LIKE SOLANA OR OTHERS THAT HAVE CASH FLOWS. THIS IS AN INDEX THAT HELPS INSTITUTIONS MAKE A BET ON THE SECTOR AS A WHOLE RATHER THAN VERY SPECIFICALLY ONE OR TWO COINS IN. ALL OF US IN FINANCE HAVE REALIZED PASSIVE INDEX BETA PRODUCTS ARE VERY, VERY IMPORTANT AND THAT IS WHAT S&P 1 -- WHAT IS TO PARTNER WITH PENTAIR TO PROVIDE AN INDEX THAT IS SIMILAR TO WHAT THEY DO IN EQUITIES. TIM: WE ARE GOING TO BE SPEAKING TO PHONG LE IN A MOMENT. I HAVE DIGITAL ASSET TREASURIES ON MY MIND. YOU ARE BUILDING 1.25 BILLION DOLLARS PUBLICLY TRADED SOLANA TREASURY VEHICLE THROUGH A NASDAQ LISTED COMPANY STRATEGY IS THE SAME WITH BITCOIN. 43 OF THE 50 LARGEST BITCOIN TREASURY STOCK NOW TRY BELOW THEIR FIRST PURCHASE PRICE, THE SECTOR ALONE HAS LOST OVER $80 BILLION IN MARKET CAP. WHAT MAKES A SOLANA TREASURY COMPANY DIFFERENT FROM THE BITCOIN TREASURY COMPANIES? MANY OF THEM ARE FALLING APART RIGHT NOW. DAN: IT IS TRUE TREASURY COMPANIES ARE PROCYCLICAL. AS THE MARKETS ARE RALLYING, THEY OFTEN GO WAY ABOVE THEIR UNDERLYING BOOK VALUE AND AS THE MARKET FALLS THEY DO TRADE AT A DISCOUNT. WE HAVE SEEN THAT IN THE CYCLE. STRATEGY HAS BEEN AROUND FOUR OR FIVE YEARS AND HAVE GONE THROUGH BIG CYCLE LIKE THAT. IN MY OPINION, IS THE MARKETS REGAIN THE MOMENTUM AND HIT NEW HIGHS, MOST OF THESE DIGITAL ASSET TREASURY COMPANIES WILL TRADE UP TO AND ABOVE THEIR NET ASSET VALUES. I THINK IT IS IMPORTANT TO MENTION WE PROBABLY ONLY NEED BUT ONE OR TWO DIGITAL ASSET TREASURIES IN EACH OF THE CURRENCIES. IF THERE IS A CURRENCY WHICH HAS MULTIPLES OF DIGITAL ASSET FOR TREASURIES OR DOZENS AS THE CASE WITH BITCOIN, ULTIMATELY, PROBABLY DOES WILL GET ROLLED UP. THE BEST-PERFORMING ONES THAT ARE PROVIDING SHAREHOLDER VALUE WILL BE ACQUIRING THE ONES THAT ARE UNDERPERFORMING. TIM: WHAT SEPARATES THE ONES THAT ULTIMATELY PERFORM WELL FROM THE ONES THAT DON'T? OBVIOUSLY, THEIR SHARE PRICE BUT WHY DO INVESTORS BUY INTO ONE'S THEY THINK WILL PERFORM BETTER THAN OTHERS? WHAT SEPARATES THESE COMPANIES FROM ONE ANOTHER IF ALL OR JUST BUYING UNDERLYING -- THE SAME UNDERLYING ASSETS? DAN: THAT IS THE TRICK. MOST ARE NOT DOING THE EXACT SAME STRATEGY. SOME ARE DOING A CREED OF THINGS, EITHER ACQUIRING OTHER DIGITAL ASSET TREASURIES AT DISCOUNTS OR SELLING THEIR STOCK WHEN THEY ARE TRADING AT A PREMIUM. ULTIMATELY, FINANCIAL PERFORMANCE WILL MAKE IT VERY CLEAR TO INVESTORS WHICH DIGITAL ASSET TREASURY IS GROWING BOTH THEIR NET ASSET VALUE AND THEIR STOCK PRICE AT A FASTER RATE. AND THOSE WILL BE REWARDED WITH MORE CAPITAL. ONCE UNDERPERFORMING FROM EITHER THEIR FEES ARE TOO HIGH OR FOR MARKET TIMING, YOU WILL SEE IT IN THE FINANCIAL RETURNS AND THOSE WILL START TRADING AT A DEEPER DISCOUNT. ULTIMATELY, THE MARKETS WILL WASH THAT OUT AND THE ONES KIND OF DESTROYING VALUE WILL GET ACQUIRED BY THE ONES CREATING VALUE. TIM: WE ARE APPRECIATIVE OF ALL THE TIME YOU HAVE SPENT WITH US. GREAT TO CHECK IN WITH YOU. DAN MOREHEAD AT ENTERRA. THANK YOU. COMING UP, HYPER LIQUID NEARING A DEAL TO BRING PERPETUAL FUTURES TO THE U.S., TO TRADERS -- U.S. TRADERS. DETAILS ARE NEXT. THIS IS "BLOOMBERG." LIQUID LABS IN ADVANCE TALKS TO BRING PERPETUAL FUTURES U.S. TRADERS THROUGH A DEAL WITH HAYWARD. LET'S GET CONTEXT FROM DIGITAL ASSETS ANALYST. HYPER LIQUID IS IN TALKS ON A U.S. MARKET ENTRY. I THINK IF YOU'RE NOT IN MARKET STRUCTURE FOLLOWING THESE COMPANIES EACH AND EVERY DAY, A LOT OF THE STUFF IN WHAT I JUST READ MIGHT NOT NECESSARILY MAKE SENSE. WHY SHOULD PEOPLE PAY ATTENTION TO WHAT COULD HAPPEN WITH HYPER LIQUID IN THE U.S.? >> AS WE HAVE BEEN TALKING REPEATEDLY ON THIS PROGRAM FOR THE LAST YEAR, HYPER LIQUID IS THE BIGGEST NAME IN THE SPACE. UNTIL NOW, THEY ARE NOT ALLOWED IN THE U.S. WHICH BASICALLY MEANS UNLESS YOU'RE GOING THROUGH A VPN OR SOME OTHER CRAZY WAY OF ACCESSING HYPERLIQUID, LEGALLY YOU CANNOT ACCESS IT. BUT THERE PRESIDENT ANNOUNCING LAST WEEK THEY ARE FAST TRACKING GETTING HYPERLIQUID ACCESS, THIS ANNOUNCEMENT BY PAY WORD WHICH IS KRAKEN, ONE OF THE LARGEST PARENT COMPANIES WORKING ON GETTING AWAY TO GIVE ACCESS TO U.S. INVESTORS, USERS, TRADERS COME EVERYBODY IN THE U.S. ACCESS TO HYPERLIQUID IS EXTREMELY MEANINGFUL. WHAT IS INTERESTING IS HYPERLIQUID ITSELF WOULD NOT BE REGULATED AS U.S. ENTITY. THEY WILL BASICALLY PIGGYBACK OFF PAY WORD'S LICENSE. THEY BOUGHT A COMPANY FOR $550 MILLION EARLIER THIS SUMMER WHICH HAS A CF CD LICENSE TO OPERATE LEGALLY IN THE U.S. THIS GIVES HYPERLIQUID ACCESSED TO THE U.S. THROUGH PAYWARD. INCOME AND EXCHANGES THAT HAVE A REGULATORY LICENSE WITH THE CFTC IN THE CRYPTO SPACE SUDDENLY THEIR VALUE SHOOTS UP BECAUSE THIS BECOMES THE WAY FOREIGN ENTITIES CAN GET ACCESS IN THE U.S. WITHOUT ACTUALLY GETTING REGULATORY LICENSE. SCARLET: THE SAME DAY THE PAYWARD IT WAS ANNOUNCED, WHILE IT'S LINKED TO THE GROUP IN NORTH KOREA HAVE MOVED MORE THAN $30 MILLION IN BITCOIN THROUGH HYPERLIQUID IN THE PAST THREE WEEKS AND BASICALLY OFFRAMP THROUGH CENTRALIZED EXCHANGES, INCLUDING KRAKEN. WHAT DOES THIS TELL US ABOUT THE RISKS OF ONBOARDING HYPERLIQUID INTO THE U.S. REGULATORY SYSTEM? >> THE PROBLEM WITH DECENTRALIZED FINANCE, A DOUBLE-EDGED SWORD IN THE SINCE THE POWER OF COMMISSION -- DECENTRALIZED NETWORKS BECOMES A BIG PROBLEM. HYPERLIQUID COULD -- THEY DON'T HAVE A CHECK LIKE A TRADITIONAL EXCHANGE WOULD. THEY ARE UNIQUELY VERY PARTICULARLY DECENTRALIZED WHICH MEANS THEY DON'T CONTROL ACCESS TO THE HYPERLIQUID PLATFORM. THE BIGGEST ISSUE DEALING WITH HERE IS HOW TO REGULATORS, HOW THE CRYPTO INDUSTRY NAVIGATES GIVING ACCESS, MAKING SURE ONLY LEGAL PEOPLE ARE ALLOWED TO ACCESS ALL OF THESE PROTOCOLS. THAT ISSUE HAS NOT BEEN ADDRESSED YET. THAT IS THE QUESTION FOR THE NEXT 12 TO 15 MONTHS WITH REGULATORS GRAPPLING. TIM: I FEEL LIKE WE WILL HEAR MORE INSTANCES OF THIS. JUST BECAUSE WE HEAR ABOUT ONE DOESN'T MEAN IT IS ONE AND DONE AND THAT IS IT. BEFORE WE LET YOU GO, I WANT TO TALK ABOUT WHAT THIS MEANS FOR THE COMPETITIVE LANDSCAPE BECAUSE YOU DO TRACK THAT WHEN IT COMES TO CRYPTO DERIVATIVES VERY CLOSELY. CME SUED THE FTC EARLIER THIS SUMMER OVER PERPETUAL FUTURES, GUIDANCE, CLAIM BASED DERIVATIVES. CFTC ALREADY HAD APPROVAL. HYPERLIQUID, WITH HIM COMING THROUGH KRAKEN'S BID NO MEAL, WHAT DOES THIS MEAN FOR INCOME AND EXCHANGES AND WHAT IS THE PERPETUAL FUTURES MARKET ACTUALLY CONSOLIDATE? >> THINK ABOUT THE CME. THEY HAVE SPENT DECADES BUILDING THE U.S. FUTURES MARKET AND THEY ARE A VERY IMPORTANT PLAYER NOT JUST U.S. FUTURES BUT GLOBAL FUTURES. SUDDENLY OVER THE SUMMER, CFTC APPROVES KALSHI, COINBASE DERIVATIVES, A PEOPLE LIKE HYPERLIQUID INTO THE U.S. THROUGH THE KRAKEN PARTNERSHIP. IN A MATTER OF THREE MONTHS, CME SUDDENLY HAS A HUGE NUMBER OF COMPETITORS IN THIS PRODUCT CLASS, 80% OF CRYPTO VOLUME OF THE WORLD, AND CME DOES NOT HAVE A PRODUCT IN THAT SPACE. THE FACT THE CME FILED A LAWSUIT, YOU CAN LOOK AT IT AS REARGUARD ACTION COME EXPECTING THE PERPETUAL FUTURES MARKET TO GROW HERE IN THE U.S. AND COULD ACTUALLY BE A CLOUD HANGING OVER THE HEAD OF INCOME AND EXCHANGES AS THEY LOOK UPON ALL THE VOLUME OF ACTIVITY COMING THROUGH -- SCARLET: THANK YOU SO MUCH. REGULAR HERE FOR US BLOOMBERG INTELLIGENCE. WE HAVE SOME BREAKING NEWS, THERE ARE HEADLINES THAT LASTS WERE HEARD IN SOUTHERN IRAN ACCORDING TO A STATE MEDIA. WE ARE SEEING OIL PRICES SURGE IN RESPONSE. YOU'RE LOOKING RIGHT NOW AT BRENT CRUDE AT SESSION HIGHS, UP 4%. OIL PRICES WERE ALREADY ON THE RISE THIS MORNING BEFORE THESE HEADLINES HIT. WTI ADVANCING 4.6% TO ALMOST $90 A BARREL AS WELL. THERE WERE SOME EXPLOSIONS HEARD, BLASTS HEARD IN IRAN. THAT IS SENDING OIL PRICES HIGHER RIGHT NOW. SESSION HIGHS HERE FOR THE OIL MARKET. COMING UP NEXT, STRATEGY CEO PHONG LE ON WHY THE COMPANY IS RESTARTING BITCOIN PURCHASES AND FIGHTING AN PROPOSAL. MORE ON THAT TO COME. THIS IS "BLOOMBERG." SCARLET: STRATEGY IS BACK TO BUYING BITCOIN. BUYING LAST WEEK BREAKING A 10 WEEK PAUSE OVER THE SUMMER. STRATEGY HOLDS AROUND 70 $3 BILLION A BITCOIN AS IT RESHAPES ITS BALANCE SHEET. LET'S DISCUSS THIS AND MORE WITH STRATEGY PRESIDENT AND CEO FONG LEE. I WANT TO FOCUS ON THE PURCHASE OR BITCOIN BECAUSE I AM CURIOUS ABOUT THE LOGIC OF SELLING BITCOIN IN THAT 60,060 $5,000 RANGE. BUYING MORE OF IT LAST YEAR IN THE $80,000 RANGE. IT SEEMS LIKE A CELLO BY HIGH KIND OF SCENARIO. >> WE DON'T REALLY MAKE DECISIONS ON BITCOIN SPECIFIC TO BITCOIN PRICE. WHAT WE'VE DONE OF THE LAST TWO MONTHS WHILE WE WERE NOT BUYING BITCOIN WE SHORED UP OUR BALANCE SHEET. $72 BILLION OF ASSETS, 65 BILLION DOLLARS A BIT GOING -- MILLION TO BITCOIN. A 34% INCREASE IN THE LAST TWO MONTHS. WE'VE TAKEN OUR NET DEBT DOWN TO ZERO FROM ABOUT $7 BILLION IN THAT SAME TIME SO IT IS STRENGTHENING OUR BALANCE SHEET AND OUR EQUITY VALUE WHICH MAKES IT MORE PROFITABLE TO SELL MSTR AND BY BITCOIN. THAT'S WHAT'S CHANGED IN THE LAST FEW MONTHS. RIGHT NOW WHAT THAT'S DONE IS GIVEN US A FOOLPROOF BALANCE SHEET, A FORTRESS BALANCE SHEET AND HAS MADE US THE LARGEST CRYPTO COMPANY IN TERMS OF ASSETS IN THE WORLD. TIM: DO YOU REGRET SELLING JUST A FEW MONTHS AGO? PHONG: NOT AT ALL. IT WAS THE RIGHT TRADE TO SELL THE BITCOIN FOR DIVIDENDS. IT'S THE RIGHT TRADE AT THIS POINT IN TIME TO SELL MSTR AT A PREMIUM TO BUY BITCOIN. BOTH WERE THE RIGHT TRANSACTIONS AT THAT POINT IN TIME. TIM: YOU SAY DON'T MAKE DECISIONS BASED ON PRICE. WHAT DO YOU MAKE THE DECISION BASED AROUND? PHONG: THE COST OF CAPITAL. IT'S NOT MUCH DIFFERENT WHEN YOU LOOK AT SOMEONE WHO IS FINANCING A DATA CENTER BUILDOUT. IT'S A LOT MORE EXPENSIVE TO GET LAND AND ENERGY. TO BUY ASSETS THAN IT WAS 10 YEARS AGO. WHAT'S DIFFERENT THE COST OF FINANCING IS LOWER INTO OUR ALLY ON A DATA CENTER IS HIGHER. IT MAKES SENSE FOR US TO MAKE THE DECISION BASED ON COST AND CAPITAL TO MAKE THE RETURNS. TIM: YOU SOLD ABOUT -- SCARLET: YOU SOLD ABOUT 7000 BITCOIN FOR DIVIDENDS AND BUYBACKS. EVEN THOUGH AS A COMPANY PART OF THE THESIS IS YOU DON'T EVER SELL BITCOIN. IS THIS STILL A ONE-WAY ACCUMULATION STRATEGY OR HAS SOMETHING WITHIN STRATEGIES FUNDAMENTALLY CHANGE? PHONG: IT IS A TWO WAY STRATEGY. THERE WILL BE TIMES WHEN IT MAKES SENSE TO SELL BITCOIN. THAT IS LESS THAN 1% OF THE TOTAL BITCOIN WE HAVE. I KNOW IT GETS A LOT OF FOCUS BUT IT IS PRETTY MINUSCULE AMOUNT OF BITCOIN WE SOLD TO FUND THE STRUCTURE DIVIDENDS. WHERE IS THIS YEAR WE INCREASED THE BITCOIN HOLDINGS 25, 30% OVERALL. INCREASE OUR HOLDINGS 30% AND SELL 1% OF BITCOIN. WE WANT THE ABILITY TO DO THAT. BITCOIN IS OUR PRIMARY ASSET ON OUR BALANCE SHEET. A LOT OF OUR DEBT HOLDERS RATINGS AGENCIES ETC. SAY IF YOU AREN'T WILLING TO SELL THE BITCOIN OR YOU WILLING AS A COMPANY. A ONE-WAY ACCUMULATOR ISN'T A FULLY OPERATING. SOMEONE ABLE TO DEVISE HOW BITCOIN OR EQUITY, PREFERREDS THAT'S REALLY A TRUE OPERATING COMPANY INTO A CAPITAL MANAGEMENT COMPANY. TIM: WHAT NEEDS TO HAPPEN OR WHAT WOULD INDICATE TO YOU THE NEXT RIGHT TIME TO OFFLOAD SOME BITCOIN FROM THE BALANCE SHEET? PHONG: WE ARE A NET ACCUMULATOR. SO I DO NOT SIT AROUND AND SAY WHEN WILL I SELL BITCOIN NEXT. IT COMES DOWN TO A BIT OF A CAPITAL MANAGEMENT MATHEMATICAL EQUATION. I DON'T FORESEE US HOLDING BITCOIN AS WE ENTER INTO WHAT I CONSIDER A HEAVY BULL MARKET. WE WILL BE BUYING BITCOIN AT 80,000 OR 90, 100 AND WHEN BITCOIN HITS 130 THOUSAND ALL-TIME HIGH WE WILL BE BUYING IT AND PEOPLE SAY WE ARE BUYING THE TOP AND IT'S WHEN -- WHEN IT'S A 260,000 STILL SAY WHEN IT WAS AT 130,000 IT WAS A GOOD PURCHASE. SCARLET: I WANT TO ASK ABOUT A RECENT LETTER SENT TO MSCI FORMALLY OPPOSING THE INDEX COMPILER'S LATEST PROPOSAL TO EXCLUDE CERTAIN NONOPERATING ASSET COMPANIES FROM THE MSCI GLOBAL INVESTMENT MARKET INDEXES. YOU CALLED IT DISCRIMINATORY, ARBITRARY AND MISGUIDED. TELL US A LITTLE BIT MORE ABOUT HOW YOU LEARNED ABOUT THE PROPOSAL. PHONG: THOSE WERE SORT OF MY CAREFUL CHOICE OF KIND WORDS. THE WHOLE THING IS A BIT CURIOUS TO ME. IF YOU THINK ABOUT THESE INDEX COMPANIES WHETHER IT BE MSCI S&P BLOOMBERG, NASDAQ. THERE'S A LIST OF THEM. THEY ARE MEANT TO BE INDEPENDENT ARBITERS OF THE MARKET AND REFLECT THE MARKET AS A WHOLE. MSCI HAS NOW TWICE I WOULD THINK AGAINST THE WILL OF THE U.S. GOVERNMENT AND PEOPLE AND AGAINST THEIR PEER COMPANIES ARE DOING TAKEN AN ADVERSARIAL TAKE ON DIGITAL ASSETS. STATING THAT THEY ARE NONOPERATING ASSETS. IF YOU LOOK AT THE PRECEDENT TO SEC HAS CREATED SPLITTING UP BITCOIN IS AN OPERATING SEGMENT AND AN ACCOUNTING STANDARDS OF CREATED BY STATING THAT GAINS AND LOSSES OF BITCOIN ON OUR BALANCE SHEET ARE OPERATING INCOME IT'S CURIOUS THAT MSCI WOULD COME UP WITH A NEW CLASSIFICATION, THEIR OWN, THAT SAYS BITCOIN IS NOT AN OPERATING ASSET BUT REAL ESTATE OR OPERATING ASSETS. WE CAME TO THIS BECAUSE THEY ANNOUNCED. THEY HADN'T HAD MUCH OF CONVERSATION WITH US. A GOOD THING IS THERE IS A PROCESS AND I THINK IT WILL COME TO THE RIGHT ANSWER. I WILL END WITH ULTIMATELY THIS IS A PRINCIPLED DISCUSSION. IT DOESN'T MATTER THAT MUCH TO US BECAUSE 3% OF OUR SHARES OUTSTANDING ROUGHLY TRACK PART OF THE FUNDS THAT TRACK THE INDICES. SCARLET: ACCEPTING FEEDBACK TILL SEPTEMBER 30 ON THE PROPOSAL AND PLANS TO ANNOUNCE IT RESULT BY OCTOBER 16TH. HAVE YOU HAD CONVERSATIONS WITH OTHER TREASURY COMPANIES ON THIS , ARE THEY JUMPING IN AS WELL? PHONG: I THINK OTHERS IN THE SPACE WEATHER BE ADDITIONAL ASSET TREASURY COMPANY OR A COMPANY THAT PAYS MSCI MONEY FOR THEIR INDICES TO BE INDEPENDENT OR WHETHER YOU ARE A CITIZEN OF AMERICA AND WANT THERE TO BE A NEUTRAL PROCESS FOR PEOPLE'S INVESTMENTS INTO WHAT APPEARED TO BE NEUTRAL INDICES, YOU WOULD HAVE AN INTEREST IN THIS TOPIC. TIM: I WANT TO CIRCLE BACK AND END WHERE WE STARTED EARLIER WHICH HAS TO DO WITH THE BALANCE SHEET BECAUSE THERE IS SO MUCH INTEREST IN THIS. YOU HAVE 4% OF ALL BITCOIN THAT WILL EVER EXIST. MORE THAN THAT YOU HAVE ZERO NET LEVERAGE. $6.7 BILLION IN U.S. DOLLAR RESERVES. IF BITCOIN DROPS 30% FROM HERE WHAT HAPPENS TO YOUR ABILITY TO KEEP FUNDING PREFERRED DIVIDENDS WITHOUT SELLING MORE BITCOIN? PHONG: THERE WAS A QUESTION AS TO WHAT PERCENTAGE DROP WITH THE COMPANY BECOME INSOLVENT AND UNABLE TO SATISFY ITS DEBT. AND THAT NUMBER WENT FROM ESSENTIALLY FIVE TO THOUSAND DOLLARS BITCOIN. ALL OF THAT SAID IF THE $6.7 BILLION CASH WENT TO ZERO THAT WOULD NEED TO POTENTIALLY SELL BITCOIN TO PAY OUR DIVIDENDS. THE OTHER THING WE COULD DO IS RAISE MORE EQUITY CAPITAL GOOD WE'VE RAISED $20 BILLION OF EQUITY CAPITAL THIS YEAR JUST TO GIVE YOU SOME PERSPECTIVE WE ARE THE NUMBER FOR RAISER OF EQUITY CAPITAL THIS YEAR IN A BITCOIN BEAR MARKET. AHEAD OF US ARE SPACEX, GOOGLE, INTEL. SPACE EXPLORATION, AI AND SEMICONDUCTORS AND BITCOIN ARE THE TOP FOUR INFLUENCE ON EQUITY CAPITAL MARKETS IN THE U.S.. THERE ARE PEOPLE WHO WANT TO PUT MORE AND MORE MONEY INTO BITCOIN. SCARLET: THANK YOU FOR JOINING US. STRATEGY PRESIDENT AND CEO. WE WANT TO REVISIT THE BREAKING NEWS WE TOLD YOU ABOUT EARLIER. ATTACKS WE TOLD YOU ABOUT HAVE BEEN CONFIRMED BY THE U.S.. ACCORDING TO SEND, WHICH SAID U.S. FORCES BEGAN STRIKING IRGC TARGETS IN IRAN AT 12:00 P.M. EASTERN TIME TODAY. OIL PRICES SHOT UP ON THE NEWS THERE WERE EXPLOSIONS REPORTED IN SOUTHERN IRAN AND YOU CAN SEE THEY HAVE STAYED ELEVATED. BRENT CRUDE UP 4%. AND WTI UP 4.6% AT 89.67 A BARREL. TIM: S&P 500 DOWN ABOUT 6/10 OF 1%. MUCH MORE ON BLOOMBERG CRYPTO COMING UP IN THE NEXT FEW MINUTES. FOR THE LATEST ON MARKETS, CHECK IT OUT ALL ON THE BLOOMBERG TERMINAL. FOR CRYPTO -- THIS IS BLOOMBERG. IT IS TIME FOR A TOKEN MOMENT WHERE WE LOOK AT THE EFFORTS TO TOKENIZED DIFFERENT PARTS OF THE MARKET. THE LONDON STOCK EXCHANGE IS PLANNING TO TOKENIZED OR LAUNCH TOKENIZED STOCKS BACKED BY SHARES OF LONDON LISTED COMPANIES. THEY ARE PARTNERING WITH PAY WORD, THE COMPANY -- PARENT COMPANY OF KRAKEN. THEY RUN X STOCKS WHICH IS BACKED BY PUBLICLY TRADED SHARES IN EXCHANGE TRADED FUNDS. THEY LUNCH NEXT YEAR PENDING REGULATORY APPROVAL. IT IS PART OF A LARGER OVERWHELMING TREND TOWARDS TOKEN ICING EVERY ASSET ON EARTH. AMIRA VALLIANI'S HAD A PAYMENT GROWTH THAT THE SOLANA FOUNDATION. WANT TO TALK ABOUT THIS TOKEN ICING MOVEMENT, WE ALSO SAW SHEIN, THE FASHION GIANT BEGIN TRADING IN HONG KONG AND TRADING WAS AVAILABLE FROM DAY ONE ON SOLANA. I WANT TO START THERE WITH YOU. YOU LOOK AT SHEIN 'S DEBUT, HE PLUNGED 10%. FOR A TRADITIONAL EXCHANGE LIKE THE HONG KONG STOCK EXCHANGE, POSITIVE LISTING IS PREFERRED OVER A DISAPPOINTING DEBUT. AS SOMEONE WITH THE SOLANA FOUNDATION, ARE YOU INVESTED IN THE PRICE ACTION OR MORE AGNOSTIC ON HOW THE COMPANY'S TRADE ON CHAIN IN THEIR FIRST FEW DAYS OF TRADING AS YOU WOULD BE IF YOU ARE THE HEAD OF A TRADITIONAL EXCHANGE? AMIRA: THANK YOU FOR HAVING ME. THIS IS A STORY OF ACCESS AND FOR ME AS WELL. WE SAW BOTH WITH SHEIN GOING LIVE GLOBALLY AS SOON AS IT WAS AVAILABLE ON THE HONG KONG STOCK EXCHANGE IN THIS NEW ANNOUNCEMENT FROM THE LONDON STOCK EXCHANGE WE ARE SEEING GLOBAL EXCHANGES INTERESTED IN BEING ABLE TO DISTRIBUTE ALL OVER THE WORLD AND GET ACCESS TO GLOBAL MARKETS HERE. FOR INDIVIDUALS THAT STORY IS A GREAT ONE. IF YOU'RE SOMEONE WHO IS IN THE UNITED STATES OR ARGENTINA OR NIGERIA, BEING ABLE TO USE A NUMBER OF DIFFERENT TOOLS TO GET ACCESS TO THESE PRODUCTS IS WHAT YOU ARE LOOKING FOR AND THAT IS THE EXCITING PART. PRICE ACTION, I CANNOT COMMENT. SOME STOCKS WILL DO WELL AT DEBUT AND OTHERS WON'T. THE KEY IS PEOPLE BEING ABLE TO PARTICIPATE CAN DO SO AND ACTUAL EXCHANGES CAN ACCESS A TRULY GLOBAL POOL OF INVESTORS. SCARLET: I'M CURIOUS WHETHER THAT MATTERS TO YOU OR ARE YOU AGNOSTIC BECAUSE AS LONG AS IT IS USED IN AVAILABLE ON CHAIN, THAT IS ALL YOU NEED? AMIRA: WE DON'T PAY ATTENTION TO PRICE ACTION. WE ARE EXCITED ABOUT THIS BEING ACCESSIBLE AND PEOPLE FINDING THEIR WAY ON. TIM: THE PROBLEM IF SOMEBODY IS WATCHING AND SAYING, WELL, WAIT A SECOND. THIS STUFF IS ACCESSIBLE TO ME AT LEAST ONE THE STOCK STARTS TO TRADE AND I CAN BUY IT MONDAY THROUGH FRIDAY FROM 9:30 TO 4:00, WHAT IS THE PROBLEM THAT THAT SOLVES? AMIRA: THERE ARE A COUPLE OF DIFFERENT ANSWERS. THE FIRST IS THAT WE THINK ABOUT ACCESSING THE STOCK MARKET. YOU, ME, SOMEONE WHO SPENDS TIME IN SAN FRANCISCO OR NEW YORK, WE CAN ACCESS STOCKS WHEN THEY ARE AVAILABLE TO TRADE. WE ARE IN A GLOBAL MARKET. I AM THE CHILD OF IMMIGRANTS. I DON'T KNOW ABOUT THE AVERAGE EAST AFRICAN OR PAKISTANI HAS ACCESS TO THESE STOCKS EASILY. THE IDEA IS TO CREATE A GLOBAL MARKET THAT IS ACCESSIBLE. THE OTHER THING THAT IS INTERESTING IS YOU ARE SEEING FROM THE EXCHANGES, IN THIS CASE THE LONDON STOCK EXCHANGE, THAT THEY ARE INTERESTED IN ACCESSING GLOBAL MARKETS. THEY SEE AN OPPORTUNITY TO GET PRODUCT MARKET FIT BY DRIVING LIQUIDITY TO THE ASSETS THAT ARE LISTED ON THEIR EXCHANGES. IT IS NOT JUST A FOUNDATION INTERESTED IN SEEING THE GROWTH OF INTERNET CAPITAL MARKETS ON THE BLOCKCHAIN. THE EXCHANGES SEE OPPORTUNITY TO GET GLOBAL ACCESSIBILITY TO THE MARKETS. TIM: THANK YOU TO AMIRA VALLIANI . THANK YOU FOR TAKING THE TIME THIS AFTERNOON. WE WANT TO GET BACK TO THE BREAKING NEWS WITH IRAN. ATTACKS JUST CONFIRMED BY THE U.S. TYLER KENDALL JOINS US FROM THE WASHINGTON OFFICE. U.S. FORCES BEGIN STRIKING TARGETS IN IRAN AT NOON EASTERN TODAY. A POST FROM U.S. CENTRAL COMMAND. WHAT ELSE CAN YOU TELL US? TYLER: THERE ARE REPORTS THAT CENTCOM'S INTENDED TARGETS WERE NEAR THE STRAIT OF HORMUZ, CONTINUING A TIT-FOR-TAT ESCALATION SO FAR THIS WEEK. KEEPING IN MIND THIS WEEKEND MARKED THE FIRST CONNECTICUT ACTION TAKEN BY THE U.S. -- KINETIC ACTION TAKEN BY THE U.S. WE HAVE NOT SEEN MOVEMENTS AS IN ATTACKS ON EACH OTHER. THIS WEEK IN THE U.S. TARGETED ROCKET LAUNCHERS THAT THEY SAY WERE INTENDED TO LAY MINES IN THE STRAIT OF HORMUZ AFTER THE U.S. I JUST CONFIRMED ON FRIDAY THEY HAD DETONATED AND CLEARED ALL MINES IN THE WATERWAY. THAT STARTED WHAT WE HAVE BEEN SEEING, INCLUDING IRAN GOING AFTER U.S. FORCES IN THE REGION. MULTIPLE TARGETED WHEN IT COMES TO JORDAN AND BASES IN THE U.S. T -- IN THE UAE. WE GOT ESCALATION WITH TWO OIL SUPERTANKERS HIT IN THE STRAIT OF HORMUZ. WHILE NO ONE HAS CLAIMED RESPONSIBILITY FOR THE ATTACKS, IT DOES CONTINUE WHAT HAS BEEN THE ESCALATION IN RECENT DAYS. TIM: HAVE WE GOTTEN -- SCARLET: HAVE WE GOTTEN COMMENTS FROM THE WHITE HOUSE OR RON MAKING STATEMENTS? -- HAS IRONIC AND STATEMENTS -- IRAN MADE STATEMENTS/ ? TYLER: THEY HAVE GONE AFTER CRITICAL AMMUNITION DOCKS, LAUNCHERS THAT SIT AROUND THE STRAIT OF HORMUZ. THIS COMES AMID LAST WEEK WHEN HAD HEARD FROM IRAN THEY STRUCK A DEAL WITH THEM ON TO REOPEN THE WATERWAY. IRANIAN OFFICIALS HAVE REPEATEDLY SAID THAT WOULD NOT MEAN THAT THE U.S. WOULD ACTIVELY BE ABLE TO USE IT. IT DID APPEAR PERHAPS THEY WERE GETTING CLOSE TOWARDS ANNOUNCING THAT. THAT COULD GIVE US A LITTLE BIT OF INSIGHT ABOUT WHAT STARTED THIS LATEST FLAREUP. SCARLET: THAT IS IMPORTANT CONTACT. THANK YOU SO MUCH. TYLER KENDALL JOINING US FROM THE D.C. BUREAU. THE HEADLINE HERE AS WE ARE TOLD BY U.S. CENTRAL COMMAND, IT BEGAN STRIKES ON TARGETS FOLLOWING IRAN'S ATTACK ON COMMERCIAL SHIPPING IN THE REGION. EXPLOSIONS WERE HEARD IN SOUTHERN IRAN. YOU CAN SEE OIL PRICES SHOOTING UP. STOCKS HAVE COME IN AS WELL WITH THE NASDAQ DOWN MORE THAN 1%. A LOT OF GREEN ARROWS FOR OIL PRICES AND FOR THE DOLLAR AS WELL. TIM: MUCH MORE BLOOMBERG CRYPTO AND THE LATEST ON YOUR RON RIGHT LATEST ON IRAN RIGHT AFTER THIS. ♪ TIM: TIME FOR A LOOK AT THE GROWTH OF THE REDUCTION MARKETS. WHILE PRESIDENT TRUMP HAS BEEN INTERESTED IN THE PASSAGE OF THE CLARITY ACT, DONALD TRUMP, JR. HAS HIS OWN VENTURES. HE'S A PARTNER AT THE 1789 CAPITAL AND THEY ARE LEADING A NEW FUNDING ROUND FOR POLYMARKET TO GET THE PLATFORM A $21 BILLION VALUATION. TODD GILLESPIE HAS BEEN FOLLOWING THE STORY AND HE JOINS US NOW. THE LATEST IS THIS POTENTIAL $21 BILLION VALUATION. WHAT CAN YOU TELL US ABOUT 1789 CAPITAL'S INVOLVEMENT? TODD: IT IS A PARTNER OF HIM AND DONALD TRUMP, JR.. THEY ARE LOOKING TO LEAVE THE ROUND AND PREPARED TO COMMIT ABOUT $300 MILLION OF CAPITAL, WHICH IS PART OF A ROUGHLY $1 BILLION RAISE POLYMARKET IS TRYING TO MAKE. ONCE THEY HAD THAT, THEY SHOULD BE VALUING AT $21 BILLION POST-MONEY VALUATION. THEY ARE LOOKING TO GET EXISTING INVESTORS ON THEIR SIDE. THEY ARE TALKING TO NEW OUTSIDE INVESTORS. THIS IS A KEY STEP FOR POLYMARKET WHICH HAS LANGUISHED A LITTLE BEHIND HIS RIVAL KALSHI THAT HAS OVERTAKEN IT IN TERMS OF MOMENTUM IN THE PAST YEAR OR SO. POLYMARKET WAS FOUNDED BY SHANE COPELAND WHO'S KIND OF AN ECCENTRIC GUY, TRIED TO PUSH HIMSELF INTO INSTITUTIONAL INVESTING AND BRING THE TRUST OF THESE BIGGER FIRMS, GET THEM TO TRADE ON POLYMARKET. SOMEONE KNOWN FOR TURNING UP TO MEETINGS IN BARE FEET. WE KNOW THERE HAS BEEN SOME RATHER INTERESTING DEBATES WITH HIM AND POLYMARKET AND SOME TURMOIL BEHIND THE SCENES THEY ARE TRYING TO SMOOTH OUT NOW. SCARLET: I'M GLAD YOU BRING UP THE RACE WITH KALSHI BECAUSE THEY ARE THE OG PREDICTION MARKETS. KALSHI IS LEADING A LITTLE BIT AND POLYMARKET IS TRYING TO PLAY CATCH-UP. WHAT IS KALSHI'S VALUATION? TODD: THEY HAVE RAISED ABOVE THIS VALUATION EARLIER THIS YEAR. THERE'S BEEN REPORTS OF THE LOOKING AT HIGHER VALUATION AND EARLY TALKS ACCORDING TO THE FINANCIAL TIMES TO NEARLY DOUBLE THEIR VALUATION. THEY HAVE CERTAINLY HAD MORE MOMENTUM IN THE PAST YEAR AS WELL. POLYMARKET WAS ALSO HAVING DRAGGED FROM THE CFTC INVESTIGATION, THE KEY COMMODITIES REGULATOR IS LOOKING AT THE BUSINESS BROADLY, HOLISTICALLY, AND IT IS TRYING TO WIN BACK THAT TRUST IT HAD AT THE BEGINNING OF THIS RACE WITH KALSHI. TIM: TODD GILLESPIE, THANK YOU FOR DOING THIS. CHECK OUT TODD'S REPORTING ON THE BLOOMBERG TERMINAL AND AT BLOOMBERG.COM. WE WENT TO GET BACK TO BREAKING NEWS THAT IS MOVING MARKETS. YIELDS MOVE AND STOCKS MOVE AND WE ARE SEEING THE OIL MARKET MOVE. ATTACKS ON IRAN WERE CONFIRMED BY THE U.S.. TENSIONS REMAIN HIGH AFTER STRIKES ON TWO TANKERS IN THE STRAIT OF HORMUZ. WE ARE SEEING SCARLET MOVE HIGHER ON THIS WILL STEP SCARLET: STOCKS AT THEIR DECLINES RIGHT NOW, OFF THE WORST LEVELS BUT ENERGY STOCKS NOTABLY ARE THE BEST PERFORMERS IN THE S&P 500. AS THEY FALL FOR A THIRD DATE, ENERGY STOCKS CONTINUE TO OUTPERFORM. CRUDE OIL MOVING HIGHER. WHETHER IT IS NEW YORK CRUDE AT $89.50 A BARREL OR BRENT CRUDE AT JUST BELOW $94 A BARREL. FROM NEW YORK, THIS IS "BLOOMBERG CRYPTO" ON BLOOMBERG TELEVISION. UP NEXT IS "BALANCE OF POWER" IN WASHINGTON.