00:00 Speaker A
Correct me if I’m wrong. Galaxy, Hut 8 and strategy. Yes. Is there is there a theme or common themes that sort of join those together, Mark?
00:10 Mark
Well, with the first two, with Galaxy Digital and Hut 8, you know, these are hybrid uh firms. Now Galaxy Digital is actually our top pick in the space and that’s because it provides two ways to win. Uh the the company’s base, what it has built since its founding, uh has been an institutional platform focused on crypto. They’re basically trying to build a merchant bank, ala Goldman Sachs around crypto and they’ve been able to uh get a significant first mover advantage as a as a consequence of that.
00:50 Mark
Um, so as we see institutional adoption of crypto uh increase uh with the Clarity Act being uh a near-term positive catalyst in that regard, you know, that business should do very well as should the uh the institutional platform at Coinbase. Um, at the same time, Galaxy Digital by virtue of buying uh a Bitcoin mining plant in Texas back in December of 2022 when we had just seen the FTX collapse and, you know, people were thinking this was the end of crypto. They bought this facility for Bitcoin mining. As it turns out, it was convertible into an AI data center. And so now, uh the company is uh sitting on uh 3 and a half gigawatts of capacity in Texas. It’s already signed uh contracts for the first 800 megawatts with Core Weave. Uh and the value of that according to our some of the parts is at least at this point greater than the value of the institutional platform. But you put the two together and there’s an awful lot of upside. again, a couple of different shots on goal.