Today’s Letter is brought to you by Arch Public!

Unlock unparalleled returns with Arch Public’s algorithmic trading tools. Our Bitcoin Algorithm Arbitrage Strategy has delivered an astounding 247% annual return over the past three years. The entries, and exits speak for themselves; precision that drives success. Trusted by more than 15,000 customers and industry leaders, we’ve partnered with Gemini, Kraken, Coinbase and Robinhood to bring you cutting-edge solutions. Whether you’re a seasoned investor or just starting, our proven strategies maximize your potential. Join the ranks of those who trust Arch Public to navigate the markets with confidence. Talk to us today and discover why our expertise sets us apart.

To Investors,

The American economy is booming. At least that is what the GDP numbers are telling us. US GDP grew 3.8% year-over-year in Q2 and the Atlanta Fed is estimating Q3 growth to be between 3.5% - 3.8%.

Historical context is important to understand the magnitude of these numbers. The average GDP growth for countries around the world is approximately 2.9% and the United States has outperformed for the last 80 years by growing GDP on average 3.2% annually from 1947 to 2025.

So what is driving the good times right now?

The answer is very simple: artificial intelligence. Adam Kobeissi shows that approximately 63% of all GDP growth is coming from AI-related spending. This means that without the AI CAPEX boom, the US economy would be in a significantly worse position.

This AI-related spending can be best visualized by looking at data center spending since 2020. Kobeissi writes “spending on data centers in the US has tripled since the release of ChatGPT in November 2022. Spending on structures excluding data centers is down ~20% since the 2023 high. The strength of technology companies has created two “economies” in the US.”

Speaking of two economies, compare the explosion in AI-related spending with the fact that US small business bankruptcies reached a record 2,221 year-to-date. This is up 83% over the last five years. These bankruptcies reflect high borrowing costs, cautious consumer spending, and economic pressures disproportionately affecting smaller businesses.

This second economy also saw US employers announce 1.2 million job cuts in 2025, which is the second-highest in 16 years. These job cuts create a paradox where labor market deterioration coincides with the S&P 500 adding $17 trillion since April.

Think of how crazy that is.

Small businesses are going bankrupt and more than a million people lost their job, but US corporate profits hit record highs in Q4 amid strong demand and pricing power.

If you looked up the definition of opposing outcomes, you would find these data points front and center as they expose inequality between corporate performance and worker outcomes. Plenty of people will use this information to rail against the system. They will stoke populism and claim that the only path forward is socialism.

But we know that is not true. In fact, history shows us over and over again that economic incentives drive outcomes. Programs like Invest America will give people a stake in the capitalist system, while providing a financial head start for millions of young people.

And the data shows that young people, particularly Gen Z, may be more enthusiastic about financial markets than you would think.

Gen Z is starting to invest earlier than previous generations. About 54% of this cohort are beginning by age 21 compared to 31% of millennials and 27% of Gen X.

Additionally, 63% of young adults view the stock market as an excellent wealth-builder. Gen Z favors stocks and millennials lean more into crypto as their primary investment. What is maybe most interesting, younger generations are nearly 3x more likely to hold speculative assets, including crypto-related stocks and day trading.

So what is my big takeaway from all of this?

There are pockets of great data in the economy and financial markets, but those big trends like AI are covering for areas of weakness. That is normal. There are people claiming everything is great or everything is horrible…both of the groups are right.

But maybe the real lesson here is that we should trust the kids. They are enthusiastic. They are pouring capital into financial markets. They see value in AI, bitcoin, crypto, and robotics. These young people are predicting the future. We all should just make sure we are listening.

Hope you all have a great day. I’ll talk to everyone tomorrow.

- Anthony Pompliano

Founder & CEO, Professional Capital Management

Is the Fed About to Trigger the Next Bitcoin Boom?

I recently sat down with John Pompliano to dig into what’s really at stake at the upcoming Federal Reserve meeting - whether the move should be 25 bps, 50 bps, or nothing at all.

We breakdown how those decisions ripple through markets and why bitcoin’s unique monetary policy is becoming impossible for the world to ignore. Plus, discuss the shift as bitcoin miners move into AI infrastructure - why it’s happening, how they’re doing it, and what it means for investors.

Enjoy!

Podcast Sponsors

* Figure - Need liquidity without selling your crypto? Figure’s Crypto-Backed Loans allow you to borrow against your BTC, ETH, or SOL with 12-month terms and lowest rates in the industry at 8.91%. Access instant cash or buy more Bitcoin without triggering a tax event. https://figuremarkets.co/pomp

* Abra - This podcast is sponsored by Abra. Abra is the secure way to access crypto and crypto based yield and loan products through a separately managed account. www.abra.com.

* Bitizenship – Get Italian Residency with €250k investment in Bitcoin Startup Italy , maintaining Bitcoin exposure. Book a free strategy call at bitizenship.com/pomp.

* BitcoinIRA - Buy, sell, and swap 75+ cryptocurrencies in your retirement account. Pay less taxes. Earn up to $1,000 in rewards.

* Arch Public - Arch Public’s cutting-edge algorithm tools ignite profits, harnessing razor-sharp data analytics to nail perfect entries, exits, and risk management. Turn volatility into opportunity and do it hands free with Arch Public. (Oh, and yes, try us out for FREE too!)

* Defi Development Corp - DeFi Development Corp. (Nasdaq: DFDV) is building the first Solana-focused public treasury, giving investors exponential exposure to Solana’s growth.

* Uphold - Uphold is the all-in-one platform to trade, earn, stake, and swap across 300+ assets with real-time proof-of-reserves and any-to-any conversions. Manage your entire crypto portfolio in one place at www.uphold.com

* Bitwise Asset Management - Crypto specialist asset manager with more than $10 billion client assets and more than 30 crypto solutions across ETFs, index funds, alpha strategies, staking, and more. Learn more at bitwiseinvestments.com

* Xapo Bank: Fully licensed private bank and virtual assets services provider that integrates traditional finance and Bitcoin. Earn up to 3.5% in BTC over USD Savings. Spend globally with a debit card that gives up to 1% cashback in BTC. The Pomp Audience Exclusive: Receive $150 discount when they join with this link.

* Simple Mining offers a premium white-glove Bitcoin mining service. Want to grow your Bitcoin stack? Visit https://www.simplemining.io/

* Bitlayer - Bitlayer is powering Bitcoin beyond just a store of value, making Bitcoin DeFi a reality while staying true to its core principles of security and decentralization. Learn more about Bitlayer at https://x.com/BitlayerLabs

🚨READER NOTE: If you want to sponsor The Pomp Letter, you can fill out this form and someone from our team will get in touch with you.

You are receiving The Pomp Letter because you either signed up or you atte...