The New Guard is Here

If you look up the analyst reports for crypto-facing companies like Coinbase $COIN ( ▼ 4.33% ) , Robinhood $HOOD ( ▼ 1.39% ) , and Strategy $MSTR ( ▼ 7.65% ) , the resounding answers you will find are that they are considered “one star,” “strong sell,” or “not recommended.” Since 2022, these stocks have performed +522% for Coinbase, +765% for Robinhood, and over 1,780% for Strategy.

If you had listened to Wall Street, you would have missed all of these gains. Wall Street and traditionalists would rather you stick to the S&P 500 ($SPY ( ▼ 0.03% ) up over 56% in the same timeframe) and traditional, historical companies. These companies, and the larger crypto industry as a whole, reflect an entirely new market and a paradigm shift for what is occurring in the world. A market and paradigm shift that Wall Street told you was dead, risky, or a bubble for years.

This is no longer the case.

Bitcoin is one of the biggest assets in the world and people everywhere are waking up and realizing they do not have enough of the bitcoin pie.

This trend will only accelerate.

We have seen recently that companies that adopt Bitcoin Treasury strategies have outperformed nearly every other asset.

Companies like:

• Strategy $MSTR ( ▼ 7.65% )  

• Semler Scientific $SMLR ( ▼ 8.57% )  

• Metaplanet $MTPLF ( ▼ 4.5% )  

Additionally, these companies have enacted further paradigm shifts because if you use the traditional financial models to evaluate them, you may reach different conclusions. Since the name of the game for these companies is securing funding to then purchase more bitcoin, this means that oftentimes they issue common equity shares to raise funds. When this happens, the common stock is diluted and shares tend to decrease in value from a fiat (dollar) perspective. However, if you view these companies using bitcoin-facing financial metrics such as bitcoin yield or bitcoin per share, you view them differently. The companies deploying these tactics realize the game theory of bitcoin and understand that it is a game to secure as much bitcoin as possible before it is too late.

I am not here to predict the future share price of any bitcoin treasury company. I will predict, and by all accounts, this is already true, that more and more people and companies are going to realize the value proposition for bitcoin and do anything they can to get as much as they can. I will also predict that the traditional way of doing things as it relates to finance will very much be seen as the “old way” in a matter of years. I predict that bitcoin will officially move beyond just being a “nice to have” and will become essential for every portfolio. In the context of companies, I believe in a matter of years that companies who choose to not add bitcoin to their balance sheet will face extinction-level pressures and circumstances.

We saw Microsoft shareholders resoundingly vote down the idea of adding bitcoin to the balance sheet even after Michael Saylor pitched the idea.

Meta and Amazon have also voted down similar propositions. The companies listed are all part of the “Magnificent 7” and I argue they come from a place of privilege where they do not believe they need bitcoin. This viewpoint may age like milk over the coming years, just like Germany selling its 50,000 bitcoin in the summer of 2024.

The world is changing, bitcoin is a technology that shifts the paradigms of the world as we know it.

Everyone and everything needs bitcoin, even if they don’t know it yet.

Stack SATs.

The views and opinions expressed here are for entertainment purposes only and should, in no way, be interpreted as financial or investment advice. Always conduct your own research when making an investment or trading decision, as each such move involves risk. I am not a financial advisor and do not claim to be qualified to convey information or advice that a registered financial advisor would convey to clients as guidance. Nothing contained in this e-mail/article constitutes, or shall be construed as, an offering of financial instruments, investment advice, or recommendations of an investment strategy. If you are seeking financial advice, find a professional who is right for you.