Summary of the Evolving Landscape of Digital Money and Payments Industry Overview - The report focuses on the evolving landscape of digital payment systems, specifically examining stablecoins, central bank digital currencies (CBDCs), and public fast payment systems [2][5][6]. Key Insights Stablecoins - Stablecoins' market capitalization reached $270 billion in August, but transaction volumes remain small relative to global payments, with retail transactions accounting for only $6 billion, or 0.01% of retail payments [22][25]. - The majority of stablecoin transactions occur in international payment flows, often used for remittances and saving in stable currencies [22][30]. - The market is dominated by two issuers, Tether (USDT) and USD Coin (USDC), with over 95% of stablecoins pegged to the US dollar [23][29]. - Stablecoins provide faster and cheaper settlement than traditional systems, but their adoption is hindered by the need for on/off-ramping to traditional payment rails [13][14]. Central Bank Digital Currencies (CBDCs) - Only three countries have fully launched CBDCs: the Bahamas, Nigeria, and Jamaica, all of which have seen low adoption rates [42]. - Many central banks are researching or piloting CBDCs, but projects in countries like the US have been abandoned due to low take-up and privacy concerns [43][42]. - CBDCs do not typically pay interest and require accounts at commercial banks or payment service providers [46]. Public Fast Payment Systems - Countries like Brazil and Thailand have developed successful public fast payment systems that have quickly become the main form of non-cash payment [44][51]. - Successful systems feature widespread participation from banks and nonbanks, user-friendly interfaces, and low costs for consumers [47][62]. - The adoption of public fast payment systems in developed markets (DMs) is slower due to entrenched card networks, which provide consumers with incentives to remain on existing platforms [56][62]. Additional Important Points - The report highlights the significant network effects in the payments sector, where new technologies struggle to gain traction against established incumbents [20][62]. - The success of new payment methods in emerging markets (EMs) is attributed to less entrenched card networks, which allows for greater financial inclusion [62]. - The report emphasizes the need for new payment methods to be user-friendly, safe, and compatible with existing financial infrastructure to overcome network effects and achieve widespread adoption [62]. Conclusion - The evolving landscape of digital payments presents both opportunities and challenges, with stablecoins, CBDCs, and public fast payment systems each playing distinct roles in the future of financial transactions. The report underscores the importance of addressing network effects and fostering user-friendly solutions to drive adoption in both emerging and developed markets.

https://t.co/SMJk7fXTuiToken Terminal 📊 (@tokenterminal):🌊🔁 LIQUIDITY HAS NETWORK EFFECTS: 12 of the top 20 stablecoin deployments by supply are on @ethereum. https://t.co/PWMR4TEZuL ...

Stablecoin Deployment - Liquidity exhibits network effects, with 12 out of the top 20 stablecoin deployments by supply located on Ethereum [1]

Stablecoin Deployment - Ethereum holds a dominant position in stablecoin deployments, hosting 12 out of the top 20 stablecoin deployments by supply [1] Network Effects - Liquidity demonstrates network effects within the stablecoin ecosystem [1]

Financial Data and Key Metrics Changes - The company reported revenue of $7.4 million for Q2 2025, marking a 31% increase year over year [31] - Adjusted EBITDA for Q2 was negative $2.5 million, an improvement from negative $3.1 million in Q2 2024 [32] - Gross margin on IFRS basis was approximately 67%, up from 65% in Q2 last year [32] Business Line Data and Key Metrics Changes - Platform revenue reached $2.5 million, up 23% year over year, marking the fourth consecutive quarter of growth exceeding 20% [31] - Solutions revenue increased by 36% year over year to $4.9 million, reflecting proactive expansion of product capabilities [31][24] Market Data and Key Metrics Changes - The air cargo market saw a 3% increase in volumes compared to Q2 last year, despite challenges from tariff changes [14] - Ocean freight rates rose 43% from Q1 but were still 11% lower than last year, indicating capacity growth and potential overcapacity [15] Company Strategy and Development Direction - The company aims to digitalize international freight, positioning itself as a leading global freight platform [10][11] - Strategic expansion includes adding new carriers, with a total of 75 carriers now on the platform, enhancing coverage on critical routes [19] - The company is focused on increasing liquidity in ocean capacity and modernizing IT among ocean carriers [21][23] Management's Comments on Operating Environment and Future Outlook - Management noted that while tariffs have created some headwinds, the overall impact is minor compared to the trend of digitalization driving long-term growth [17] - The company remains on track to achieve breakeven adjusted EBITDA by the end of 2026, with confidence in sustaining growth rates [33][75] Other Important Information - The company has a strong balance sheet with $34 million in cash and cash equivalents [33] - The company plans to participate in several investor events, including the H. C. Wainwright Annual Investment Conference in September [4] Q&A Session Summary Question: Why did the company raise full year GBV guidance but keep revenue largely unchanged? - Management indicated that the mix of transactions affects revenue, with some lower take rate transactions growing faster [38][39] Question: How is the ShipStar position helping drive solutions revenue? - The integration of ShipStar has enhanced the product portfolio, enabling cross-sell opportunities and improving data offerings [41][42] Question: What is driving the pressure for modernization in the ocean freight sector? - The need for digital connections is being driven by customer demand for efficiency, moving away from traditional methods like Excel sheets [52] Question: Are there any strategic changes or new growth areas being evaluated? - Management is continuously reviewing resource allocation but does not expect any major changes at this time [60][61] Question: How much did FX fluctuations impact Q2 profitability? - FX fluctuations significantly affected adjusted EBITDA, but the company has managed to hedge nearly 100% of its exposure [62][64] Question: How does the company expect to achieve breakeven by the end of next year? - Management is confident in reaching breakeven with current growth trends and operational expense management [75][76]

Investment Strategy - The company focuses on identifying high-potential winners before they break out, emphasizing asymmetric opportunities with an upside potential of 2-3 times outweighing the downside risk [1] - The investment methodology includes leadership and management analysis, market disruption and competitive positioning, financial health and risk management, valuation and asymmetric risk/reward, and portfolio construction and risk control [1] Leadership & Management Analysis - Proven track record in scaling businesses is essential, along with smart capital allocation and insider ownership [1] - Consistent revenue growth and credible guidance are critical factors for evaluation [1] Market Disruption & Competitive Positioning - A strong technology moat and first-mover advantage are key competitive advantages [1] - Network effects that drive exponential growth and market penetration in high-growth industries are prioritized [1] Financial Health & Risk Management - Sustainable revenue growth with efficient cash flow is a focus area [1] - Maintaining a strong balance sheet and long-term survival runway is crucial [1] - Avoiding excessive dilution and financial weakness is emphasized [1] Valuation & Asymmetric Risk/Reward - Revenue multiples compared to peers and DCF modeling are used for valuation [1] - Institutional backing and market sentiment analysis are part of the evaluation process [1] - Ensuring downside protection while maximizing upside potential is a priority [1] Portfolio Construction & Risk Control - Core positions (50-70%) consist of high-confidence, stable plays [1] - Growth bets (20-40%) are allocated to high-risk, high-reward opportunities [1] - Speculative investments (5-10%) are made in moonshot disruptors with massive potential [1]

Core Platform Strategy - Blockchains, excluding Bitcoin, function as platforms [1] - Platform success hinges on attracting developers to build applications [1] - Applications drive user adoption for the platform [1] Crypto Industry Dynamics - The central question in crypto is platform's ability to attract developers [1]

Core Viewpoint - Uber Technologies has transitioned from a cash-burning disruptor to a profitable global platform with diverse growth engines, including mobility, food delivery, logistics, and advertising, but its stock valuation has raised questions about sustainability [1][12]. Financial Performance - Uber achieved its first annual profit in 2023, with operating income more than doubling from $1.1 billion to $2.8 billion in 2024, and free cash flow also more than doubling from $3.4 billion to $6.9 billion [3]. - In Q1 2025, Uber generated $1.2 billion in operating income on $11.5 billion of revenue, with free cash flow expanding 66% year over year to $2.3 billion, indicating a sustainable profitability trend [4]. Business Diversification - Uber has evolved from a ride-hailing operator to a diversified platform, with mobility as its core business still showing growth and solid margins [5]. - The delivery segment has become profitable and is expanding into higher-value areas like groceries and alcohol, while freight contributes to long-term logistics options [6]. - Uber is also scaling smaller businesses like Uber Ads and Uber One, leveraging its large user base of 150 million monthly active users for monetization [7]. Network Effects and Data Utilization - Uber's platform benefits from powerful network effects, where increased user participation attracts more drivers and merchants, driving transactions and enhancing customer appeal [8]. - The growing pool of first-party data allows for better targeting and higher-margin monetization across Uber's ecosystem [8]. Future Growth Opportunities - Potential growth areas include autonomous ride-hailing and delivery, as well as international expansion, which could rival or exceed the growth of Uber's core businesses [9]. Valuation Context - Uber's trailing price-to-sales (P/S) ratio is 4.6, which is not considered a bargain but is reasonable given its profitability and market opportunities, especially compared to peers like DoorDash and Lyft [10][11]. - DoorDash has a higher P/S ratio of 9.1 but with thinner margins, while Lyft trades at a steep discount with less scale and international reach [11]. Investment Implications - Uber's stock is no longer a value play or solely a growth story; it has established a track record of solid earnings and multiple growth levers [13]. - The focus for long-term investors should be on Uber's ability to execute across its segments to sustain growth and expand margins, making the current share price reasonable if successful [13].

Company Overview - Triumph's market capitalization was $1.5 billion as of July 11, 2025 [9] - The company's revenue for the trailing twelve months (TTM) ending June 30, 2025, was $419 million [9] - Net income to common shareholders for the same period was $10.4 million [9] - The U S freight and logistics industry represents a $990 billion market based on gross freight revenue from U S trucking on primary shipments [14] Factoring - Triumph is the 2 transportation factor in the U S [17] - The factoring portfolio turns 10.4x annually [17, 36] - The average discount rate for factoring is 1.37% [17, 33] - Triumph purchased $11 billion in transportation accounts receivable over the last 12 months [33] Payments & Intelligence - Triumph handles payments for 41 of the top 100 freight brokers [24, 44] - Triumph disburses over $155 million every day [24] - Triumph's Network Engagement touches over 63% of all brokered freight [44, 54] - Triumph Intelligence processes $70 billion in annual, verified freight transaction data [28, 54]

Core Insights - True value in investments is derived from growth rather than short-term gains, emphasizing the importance of a long-term perspective [1] - Great businesses provide significant societal value and demonstrate durability, which is a key factor in their valuation [1] - Companies that offer products and services significantly superior to competitors are positioned for substantial growth [1] Business Characteristics - Selection, convenience, and value are critical attributes sought in businesses [1] - Durability acts as a multiplier for value, with a preference for non-cyclical businesses [1] - The ability to innovate and maintain competitive advantages through unique product features is essential [1] Revenue and Structure - Companies should aim to develop multiple revenue streams and possess anti-fragile business structures [1] - Complex operations can be advantageous, particularly if the business can recover from adversities [1] - Uniqueness is identified as the primary driver of value [1] Cost and Investment Strategy - Low costs associated with maintaining existing business operations allow for high leverage in reinvestment and growth [1] - Minimal marketing expenditures are required for sustainable growth [1] - Trust and network effects are valuable indicators of a company's durability [1] Management and Leadership - Effective management is crucial, with a preference for executives who have aligned interests and a strong focus on the business [1] - Companies led by seasoned CEOs, founders, or family businesses are favored [1] - A culture that empowers employees and attracts talent is indicative of a good business [1] Market Timing and Investment Philosophy - The best investment opportunities arise when negative news is already priced in, revealing true value [1] - Companies that initiate layoffs may signal a turning point where real value becomes apparent [1] - A strategy of buying more shares during price declines is recommended for long-term investors [1]