Digital Currents

In this election special, we look at how the midterm results may affect AI infrastructure and digital assets. Topics include Core Scientific's plan to exit Bitcoin mining by year-end to focus on AI hosting, as well as other sector developments since the Binance hack, including the industry's response, stablecoin wallet freezes, and the FBI's attribution to North Korea. We also discuss Google's backstop of Anthropic's $19 billion TeraWulf lease, Meta's comments on data center buildout after the midterms, Palantir's latest quarter and enterprise bookings trends, and Leuthold Group data on how small caps have historically performed after midterm elections.   The Chart of the Week, Data Centers on the Ballot, examines voters' rejection of data centers in 40 of 41 local measures across 10 states.   Remember to Stay Current!   To learn more, visit us on the web at https://www.morgancreekcap.com/morgan-creek-digital/. To speak to a team member or sign up for additional content, please email [email protected] Legal Disclaimer This podcast is for informational purposes only and should not be construed as investment advice or a solicitation for the sale of any security, advisory, or other service. Investments related to the themes and ideas discussed may be owned by funds managed by the host and podcast guests. Any conflicts mentioned by the host are subject to change. Listeners should consult their personal financial advisors before making any investment decisions.

This week we look at the spooky season of digital assets, big tech, and macro. In our "Grave Robbers" section, we discuss reports that Binance suffered what has been described as the largest crypto exchange hack on record, and what that means for custody and exchange risk. Our "Body Snatchers" discussion covers a reported security breach at prediction market Kalshi and the questions it raises about operational safeguards in a fast-growing category. In "Headless Horseman," we look at the sharp decline in Alphabet shares, which market data shows erased roughly $500 billion in market value. "Ghosted" then examines reports that Microsoft offered voluntary buyouts to about 60,000 employees as part of an AI-driven efficiency effort, while "Dead Chip Walking" looks at the roughly 30% decline in Intel shares and the competitive pressures behind it. Finally, in "Frozen Solid," we discuss the Federal Reserve's decision to hold rates steady, how markets reacted, and our outlook going forward.    For the Chart of the Week, "Rise of the Machines," we trace Anthropic's valuation through its private funding rounds and what that path may suggest about investor demand for frontier AI.    Remember to Stay Current! To learn more, visit us on the web at https://www.morgancreekcap.com/morgan-creek-digital/. To speak to a team member or sign up for additional content, please email [email protected] Legal Disclaimer This podcast is for informational purposes only and should not be construed as investment advice or a solicitation for the sale of any security, advisory, or other service. Investments related to the themes and ideas discussed may be owned by funds managed by the host and podcast guests. Any conflicts mentioned by the host are subject to change. Listeners should consult their personal financial advisors before making any investment decisions.

This week, we look at JPMorgan's latest crypto report and Sam Altman's World, which is rolling out World IDs to banks and financial firms. Altman describes its proof-of-human technology as essential infrastructure for the AI era. We also cover Mike Cagney's launch of Navra and the $45 billion compute deal announced by Anthropic and Nscale. We then turn to the episode's main theme: how special purpose vehicles are being used to fund AI infrastructure outside of corporate balance sheets, and the considerations this may raise for investors. Our Chart of the Week examines global private debt assets under management.    Remember to Stay Current!  To learn more, visit us on the web at https://www.morgancreekcap.com/morgan-creek-digital/. To speak to a team member or sign up for additional content, please email [email protected]  Legal Disclaimer  This podcast is for informational purposes only and should not be construed as investment advice or a solicitation for the sale of any security, advisory, or other service. Investments related to the themes and ideas discussed may be owned by funds managed by the host and podcast guests. Any conflicts mentioned by the host are subject to change. Listeners should consult their personal financial advisors before making any investment decisions. 

This episode explores recent macroeconomic developments affecting bitcoin and technology stocks, including inflation concerns and newly reported economic data. We examine White House crypto adviser Patrick Witt's departure, Cerebras AI's potential role in the home, Apple's reported plans for a new home device, and Ledger's anticipated smartphone featuring an embedded secure crypto wallet.   Our chart of the week reviews International Data Corporation's latest forecast for Open Compute Project (OCP) infrastructure spending, which could reach $892 billion by 2030 as AI demand accelerates.   Remember to Stay Current! To learn more, visit us on the web at https://www.morgancreekcap.com/morgan-creek-digital/. To speak to a team member or sign up for additional content, please email [email protected] Legal Disclaimer This podcast is for informational purposes only and should not be construed as investment advice or a solicitation for the sale of any security, advisory, or other service. Investments related to the themes and ideas discussed may be owned by funds managed by the host and podcast guests. Any conflicts mentioned by the host are subject to change. Listeners should consult their personal financial advisors before making any investment decisions.

ChatGPT Misses, Firmus Flops, and Bitcoin Shrugs    This week's episode includes a review of the bitcoin market before turning to the macro backdrop, where the latest Fed minutes point to the possibility of another rate increase this year, but no urgency for an October move. The conversation also covers reports that ChatGPT fell short of its revenue targets, as well as Nvidia-backed Firmus Grid's decision to shelve a planned $5 billion IPO in Australia after investors pushed back on its proposed $30 billion valuation. Together, these raise the question of whether investor appetite is starting to test the limits of the AI buildout.     Also on the docket is SpaceX's agreement to acquire cellular spectrum licenses from Grain Management for roughly $8 billion. The episode closes with the Chart of the Week, which traces five waves of US innovation from personal computing to AI.     Remember to Stay Current!  To learn more, visit us on the web at https://www.morgancreekcap.com/morgan-creek-digital/. To speak to a team member or sign up for additional content, please email [email protected]  Legal Disclaimer  This podcast is for informational purposes only and should not be construed as investment advice or a solicitation for the sale of any security, advisory, or other service. Investments related to the themes and ideas discussed may be owned by funds managed by the host and podcast guests. Any conflicts mentioned by the host are subject to change. Listeners should consult their personal financial advisors before making any investment decisions. 

This episode examines whether September's stronger-than-usual Bitcoin performance may signal the start of an "Uptober" or a temporary head fake, alongside a broader shift in traditional markets as bonds reach multi-decade highs. The discussion explores whether falling yields and improving bond returns could revive the traditional 60/40 stock-bond portfolio, potentially reshaping asset allocation and competition for capital across public and alternative markets. The episode includes a discussion on OpenAI's reported $30 billion in fundraising at a $1.4 trillion valuation and its strategy to position ChatGPT as a new app distribution layer, potentially changing how consumers discover, access, and interact with software.     The Chart of the Week highlights the potential growth of crypto industry lobbying, illustrating the sector's increasing engagement with policymakers and Washington.    Remember to Stay Current!  To learn more, visit us on the web at https://www.morgancreekcap.com/morgan-creek-digital/. To speak to a team member or sign up for additional content, please email [email protected]  Legal Disclaimer  This podcast is for informational purposes only and should not be construed as investment advice or a solicitation for the sale of any security, advisory, or other service. Investments related to the themes and ideas discussed may be owned by funds managed by the host and podcast guests. Any conflicts mentioned by the host are subject to change. Listeners should consult their personal financial advisors before making any investment decisions. 

This week on Digital Currents, we examine Bitcoin's continued rally despite persistent regulatory uncertainty and discuss what the market may be signaling as legislative efforts to provide digital asset clarity continue to stall. We also explore emerging risks within the AI infrastructure boom, including customer concentration concerns highlighted by Nscale'a IPO and growing resistance to large-scale data center development, most recently affecting Oracle. We review Alibaba's ambitious full-stack AI strategy spanning chips, models, cloud infrastructure, and AI agents, and consider what it reveals about the intensifying global competition for AI leadership. In the Chart of the Week, we highlight the extraordinary concentration of value creation in today's technology markets, examining how just three companies (Open AI, Anthropic and Space X) are now worth more than the cumulative value generated by approximately 45 years of tech IPOs.    Remember to Stay Current!  To learn more, visit us on the web at https://www.morgancreekcap.com/morgan-creek-digital/. To speak to a team member or sign up for additional content, please email [email protected]  Legal Disclaimer  This podcast is for informational purposes only and should not be construed as investment advice or a solicitation for the sale of any security, advisory, or other service. Investments related to the themes and ideas discussed may be owned by funds managed by the host and podcast guests. Any conflicts mentioned by the host are subject to change. Listeners should consult their personal financial advisors before making any investment decisions. 

This week on Digital Currents, we discuss the implications of rising interest rates, examine the failure of the CLARITY Act and what it means for the future of digital asset regulation, and reflect on the end of an era as Warren Buffett steps away from leadership at Berkshire Hathaway. We also explore NVIDIA CEO Jensen Huang's call for a light regulatory touch on artificial intelligence and how it breaks with industry calls for more regulation amid safety concerns. Finally, we examine the Misery Index, which combines inflation and unemployment data. What does it suggest about the current economic backdrop and consumer sentiment? Remember to Stay Current! To learn more, visit us on the web at https://www.morgancreekcap.com/morgan-creek-digital/. To speak to a team member or sign up for additional content, please email [email protected] Legal Disclaimer This podcast is for informational purposes only and should not be construed as investment advice or a solicitation for the sale of any security, advisory, or other service. Investments related to the themes and ideas discussed may be owned by funds managed by the host and podcast guests. Any conflicts mentioned by the host are subject to change. Listeners should consult their personal financial advisors before making any investment decisions.

This episode covers growing congressional attention to potential AI-related risks following reports involving an Anthropic whistleblower, including whether concerns about advanced AI systems could inform future policy discussions on safeguards such as AI "kill switches." The episode also looks at Apple's newly unveiled $1,999 foldable iPhone and initial impressions of the device. On the macroeconomic front, the conversation explores higher oil prices and the European Central Bank's recent rate decision; elevated private-market technology valuations, including recent financing activity involving Ayar Labs, Cognition, Harvey, and Positron; and what these transactions may indicate about investor appetite for advanced computing. Finally, we conclude with the decline in AI token prices alongside changes in power consumption in this week's chart. Remember to Stay Current! To learn more, visit us on the web at https://www.morgancreekcap.com/morgan-creek-digital/. To speak to a team member or sign up for additional content, please email [email protected] Legal Disclaimer This podcast is for informational purposes only and should not be construed as investment advice or a solicitation for the sale of any security, advisory, or other service. Investments related to the themes and ideas discussed may be owned by funds managed by the host and podcast guests. Any conflicts mentioned by the host are subject to change. Listeners should consult their personal financial advisors before making any investment decisions.

This episode examines Bitcoin's strong monthly performance, the potential long-term implications of quantum computing for digital assets, and emerging proposals aimed at strengthening Bitcoin's security. We also discuss Morgan Creek Digital portfolio company Pasqal's public-market debut and OpenAI's latest AI developments. The conversation then turns to macroeconomic conditions, including shifting expectations for inflation, economic growth, and the Federal Reserve's future rate path. Finally, we explore the growing tension between rapid AI data center expansion and available power infrastructure, including recent developments in Texas and what increasing electricity demand could mean for the AI industry and broader energy markets.   Remember to Stay Current! To learn more, visit us on the web at https://www.morgancreekcap.com/morgan-creek-digital/. To speak to a team member or sign up for additional content, please email [email protected] Legal Disclaimer This podcast is for informational purposes only and should not be construed as investment advice or a solicitation for the sale of any security, advisory, or other service. Investments related to the themes and ideas discussed may be owned by funds managed by the host and podcast guests. Any conflicts mentioned by the host are subject to change. Listeners should consult their personal financial advisors before making any investment decisions.