Bloomberg Audio Studios, podcasts, radio news.
Let's stick with the digital currency space and bringing Chris Marslik. He's the CEO of crypto dot com, which last week announced the partnership with Trump Media and a blank check vehicle to launch a new crypto treasury business. It's focus buying up crypto dot COM's own token, known as Chronos or Crow. I think, Chris, it's one of those stories where we start with the basics. Where did the idea come from to do this of a Kronos treasury company? Where did it originate?
I think it's a little bit of a trend by now and pioneered by micro seller of micro Strategy, and I think every single blockchain from the top, say twenty will have a leading treasury company that will be focusing on driving demand for it and acquiring as much as physically possible. And we thought that with Trump Media to do so, it's just the perfect match.
So there are a number of initiatives between Crypto dot com and Trump Media or the broader Trump family. Where did that relationship start, Who did you first meet and how long have you held those relationships?
So I think it dates back a couple of years. And you know, we always look forward to working with people who are procrypto, who want to help drive this industry forward. And I think it has to be said that both the current administration and specifically Trum Media Technology Group has probably done it out in this space. We've helped them execute on their bid contrast strategy with a
multi billion dollar a bit coin purchase. We help them consider coins, so we provide infrastructure, and this new play on cr is just an extension of the relationship.
Extension of a relationship that broads out to ETFs, that brought out to payments, a subscription creation, but it also broads out the conversation that people are having about more broadly benefits to the Trump's broader family when it comes to crypto, Chris, when you're having those conversations with friends with family, how do you talk about whether or not
there might be any conflicts of interest? Which I will reiterate the family and indeed spoke to you for the administration would say there are none.
And you know you have to agree with their statement because everything is held in Briad trusts and this is a published company that operates independently and we are still a privately held company, but we love partnering with people
who want to really take this industry forward. So I think people need to understand that the administration has a certain agenda which places cryptocurrency industry at the very center of it, with setting out a very ambitious role for America in this space, and anything we can do to help, we'll do, so we'll support it.
What's interesting is you say you're still privately held, what are the plans of crypto dot com? More broadly, we're just hearing of IPOs of Gemini, and they're like, would you ever think of an ipo? Would you ever think about selling parts of the business?
Right? I have to admit it's quite tempting to consider these options, given how richly the market value scypto companies these days. We certainly have the numbers to do so. We've done about one point five billion in revenue last year, about a billion in gross profit, reinvested about seven hundred million of it. So let's say a three on a million net profitability this year. I think it's going to be better, especially if we see the Federate cut and
a strong Q four following. So we have the numbers and we've been approached by all the top names in them of the investment banks. We want to be a very well run company, so we are working on preparing everything, but no decisions have been made at this point. We think that we actually enjoy operating as a private company. It alls us to move really fast. We've got a solid, solid balance street, so we don't have to make any decisions in a short term.
Some breaking news this morning that you're looking at starting sports prediction markets, particularly for the NFL. That's so interesting. There was market reaction from some of the established players that in that space. Right, explain how it's going to get It's going to work, but why.
Look, we think that prediction markets are going to be huge and sports is a part of it, but it's not the whole thing. And if there is any company out there, a large business that wants to build out a prediction market operation, we are the perfect infrastructure partner. We are regulated by the CFTC. We've got battle tested trading technology, very robust, APIs all the best market makers.
We want to be the liquidity center for prediction markets on shore in the US, so we'll play very aggressively in that space.
And you're someone who's comfortable perhaps in markets that regulation is always trying to catch up with. Chris, it's interesting that the CFTC federal courts is still debating whether ultimately sports prediction markets counter is gambling. How do you think about the regulation process having given what you've lived through when it comes to crypto.
I think it's news space and it's going to evolve, and the regulatory setup is going to have to evolve with it. We've gone through this journey of cryptocurrency, so we are used to being the role of being in the role of a trusted counselor to regulators and helping them understand how they can do their job effectively while allowing market participants to make use of these wonderful instruments.
Just very quick, Chris, do you expect that this could be some sort of meaningful contribution to revenues this year? You kindly gave us your financials for last year. Just model it out for us.
I think it's still it's not gonna be a massive contributor this year, but we're also very aggressive and pricing for our partners, like it's all about building liquidity right now. But if you look at what's going to be in like five years time. I think it's going to be a massive business line for US.
Crypto dot com C Chris Maslak is great speaking with you.