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Trump Backs Crypto Boom

U.S. President Donald Trump has announced significant investments and initiatives aimed at accelerating the adoption and integration of digital assets within mainstream financial systems. This move coincides with the U.S. Securities and Exchange Commission’s recent repeal of Staff Accounting Bulletin No. 121, paving the way for banks to offer crypto custody services under the newly established Staff Accounting Bulletin No. 122.

The SEC’s decision to rescind SAB 121 marks a pivotal change in the regulatory landscape for digital assets. Issued initially in 2022, SAB 121 mandated that companies holding cryptocurrency assets on behalf of customers record these assets as liabilities on their balance sheets. This stringent requirement was widely criticized for making crypto custody services financially untenable, leading many banks and financial institutions to shy away from offering such services due to the associated economic burdens.

You can read more on the matter here.

What’s going on?

• Energy East Pipeline Debate Resurfaces Amid Push From Premiers (theDeepDive)

• Canadian government may review relationship with Amazon following Quebec closures (CTV)

• Doug Ford To Call Snap Election For February (theDeepDive)

• Trump for first time talks to international venue about making Canada a state (CBC)

• ‘Time to Make a Deal’: Trump Threatens New Trade Restrictions on Russia Over Ukraine War (theDeepDive)

• Mexico President Says Trump Labeling Cartels Terrorists Won’t Reduce Crime (Bloomberg)

• We Will See $50 Silver This Time | David Morgan (theDeepDive)

• U.S. Homes Sales in 2024 Fell to Lowest Level in Nearly 30 Years (WSJ)

• Is Saudi Arabia Poised to Profit from a US Imposing Tariffs on Canada Oil? (theDeepDive)

• How China’s new AI model DeepSeek is threatening U.S. dominance (CNBC)

• Freeland Makes a U-Turn on Capital Gains Tax (theDeepDive)

• Trump tells World Economic Forum U.S. doesn’t need Canadian oil, gas, autos or lumber (CTV)

What’s the latest?

• AI: Chinese AI lab DeepSeek has released advanced AI models built in just two months for under $6 million using less-powerful Nvidia H800 chips, outperforming leading U.S. models like Meta’s Llama 3.1 and OpenAI’s GPT-4o in key benchmarks. DeepSeek’s new reasoning model, r1, also surpassed OpenAI's latest offering in third-party tests, highlighting its compute efficiency. Despite strict U.S. chip export controls, DeepSeek’s breakthroughs suggest effective workarounds or limitations in the sanctions' impact.

• Politics: Ontario Premier Doug Ford has called an early provincial election for late February, citing the need for a strong mandate to combat potential 25% U.S. tariffs under President Donald Trump. Ontario, contributing 40% of Canada’s economy, faces risks to its manufacturing and automotive sectors, tightly linked to the U.S. Ford has proposed retaliatory trade measures, border security enhancements, and a critical minerals supply chain to address the crisis. The Progressive Conservatives lead in polls, while opponents Bonnie Crombie (Liberal) and Marit Stiles (NDP) criticize the election timing as politically motivated.

• UK: The U.K. Treasury announced adjustments to its planned non-dom tax changes to address concerns of a millionaire exodus. Non-doms, who avoid U.K. taxes on foreign income for up to 15 years, will benefit from an enhanced Temporary Repatriation Facility (TRF) allowing them to bring money into the U.K. with reduced tax burdens. Critics argue the changes, part of a broader crackdown on wealth, may not stop the ongoing departure of high-net-worth individuals, with 10,800 millionaires leaving the U.K. last year—a 157% increase from 2023.

• Economy: The Conference Board of Canada projects 1.5% economic growth in 2025, citing U.S. tariff threats and slower immigration as key challenges despite lower interest rates. Growth is expected to rise to 1.9% in 2026. A weaker Canadian dollar and strong U.S. demand could aid exporters, but trade uncertainty looms. Slower population growth is also expected to impact the labor market.

• Meta: Meta CEO Mark Zuckerberg announced plans to invest $60–$65 billion in 2025 to expand its AI infrastructure, including a large data center and over 1.3 million GPUs by year-end. He described 2025 as “a defining year for AI,” with efforts focused on powering core products, innovation, and extending U.S. technology leadership. Meta AI, the company’s digital assistant, is projected to serve over 1 billion users, while an AI engineer will aid R&D efforts.

Gold: Best Drill Results We've Seen in Years

The stock market and stuff

• Agnico Eagle Acquires 94.1% Stake In O3 Mining Via Take-Over Bid (theDeepDive)

• Meta to spend up to $65 billion this year to power AI goals, Zuckerberg says (Reuters)

• Novo Nordisk shares pop 14% on early-stage weight loss drug trial results (CNBC)

• First Majestic Drills 113,000 Metres At San Dimas In 2024 (theDeepDive)

In the juniors

• Gran Tierra Energy Guides To 44% Production Increase In 2025 (theDeepDive)

• IsoEnergy-Purepoint Joint Venture Budgets $5.0 Million For 2025 Exploration Programs (theDeepDive)

• Global Atomic To Raise $30 Million After Raising Funds In October (theDeepDive)

FULL DISCLOSURE: Sonoro Gold is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Sonoro Gold. The author has been compensated to cover Sonoro Gold on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.