Bitcoin (BTC)

• The speaker notes that Bitcoin recently "coughed" after a large sell order of around 40,000 Bitcoin was placed on the market.
• Despite the large sell pressure, the price drop was minimal, which the speaker views as a sign of underlying strength and resilience.
• Bitcoin is described as a "perfectly volatile asset," and recent price movements are considered normal and not a cause for concern.

Takeaways

• The speaker's sentiment on Bitcoin is bullish. The asset's ability to absorb a significant sell-off without a major crash suggests strong demand.
• Investors should expect and be comfortable with volatility as a natural characteristic of Bitcoin.

MicroStrategy (MSTR)

• The speaker refers to the company as "strategy" and calls it the "blue chip" of Bitcoin Treasury Companies.
• It is the speaker's #1 portfolio position and is considered the core and most stable holding among its peers. On a day when Bitcoin dropped slightly, MSTR was only down -2%.
• The company's stock returns have been driven by its successful "treasury operations" (accumulating more Bitcoin) rather than by "multiple expansion" (the market paying a higher premium for the stock).
• It is currently trading at a premium, or "Price to NAV," of approximately 2x based on market cap, or 1.7x based on enterprise value. The speaker notes these are "fairly low levels" compared to its historical premium.
• MicroStrategy recently surpassed 600,000 Bitcoin on its balance sheet. The speaker speculates that if it reaches 1 million Bitcoin in the next 1.5-2 years, it could become one of the most valuable companies in the world.
• The speaker believes the market doesn't know how to value the company, suggesting a hypothetical P/E ratio of 2-3x, implying it is significantly undervalued.

Takeaways

• Bullish Sentiment: MSTR is presented as a premier, relatively stable way to gain leveraged exposure to Bitcoin.
• Valuation Insight: The current Price to NAV premium is considered low, suggesting a potential entry point before the market assigns it a higher multiple. The value is derived from its aggressive and effective Bitcoin accumulation.
• Risk Profile: Considered the least volatile of the "Bitcoin Treasury Companies" discussed, making it suitable as a core holding for investors interested in this theme.

MetaPlanet (OTC Stock)

• This is a Japanese company that trades Over-The-Counter (OTC) in the US, which the speaker finds "annoying."
• It is described as the "second fastest horse" in accumulating Bitcoin and is more volatile than MicroStrategy, having dropped -10% on the day of the recording.
• The speaker views the current valuation as a "steal." Its Price to NAV has fallen significantly from a high of 9x down to 4x (based on market cap) or 3x (based on enterprise value).
• The company's strategy is to use its high stock premium to raise capital (via methods like moving strike warrants) to buy more Bitcoin. This purchase announcement often boosts optimism and the stock price, allowing them to repeat the cycle.
• The speaker notes that its accumulation of Bitcoin has been "exponential."

Takeaways

• Bullish Sentiment: The speaker is very positive on MetaPlanet, especially at its current valuation, calling it "cheap."
• Potential Opportunity: The sharp decrease in its Price to NAV premium could represent a significant buying opportunity for investors with a high risk tolerance.
• Risk Profile: This is a high-volatility stock. Investors should be prepared for large daily price swings (e.g., +/- 10-25%). It is a more aggressive play than MSTR, focused on rapid Bitcoin accumulation.

SmarterWebCompany (OTC Stock)

• This is another OTC stock in the speaker's portfolio, described as the "fastest horse" in accumulating Bitcoin.
• It is the most volatile of the three companies discussed, dropping -17% on the day of the recording. This high sensitivity to Bitcoin's price is expected.
• Its Price to NAV is currently just under 6x. The speaker notes this is "very close to as cheap as it's been," suggesting a favorable valuation.
• Despite its volatility, the company's pace of Bitcoin acquisition has recently "accelerated just a tad," showing no signs of slowing down.

Takeaways

• Bullish Sentiment: The speaker is confident in the company due to its unmatched speed in Bitcoin accumulation.
• Potential Opportunity: The combination of a recent -17% price drop and a valuation near its historical lows (on a Price to NAV basis) may present an attractive entry point.
• Risk Profile: This is the most aggressive and volatile investment discussed. It is suitable only for investors with a very high risk tolerance who want maximum exposure to the "Bitcoin Treasury" accumulation strategy. Expect extreme price swings.

Investment Theme: Bitcoin Treasury Companies

• The core investment thesis is that companies holding Bitcoin on their balance sheet and actively accumulating more (referred to as "Bitcoin Treasury Companies" or BTCs) are a leveraged way to invest in Bitcoin.
• The volatility of these stocks is presented as a positive feature. A higher stock price premium allows the companies to raise more capital to buy more Bitcoin, creating a virtuous cycle of accumulation.
• The speaker categorizes these companies by their speed of accumulation and volatility:
  • Stable: MicroStrategy (MSTR)
  • Fast: MetaPlanet
  • Fastest: SmarterWebCompany
• The speaker believes the market "does not understand Bitcoin treasuries companies just yet," suggesting they are currently undervalued.

Takeaways

• This is a high-conviction, niche investment strategy focused on companies whose primary business is acquiring and holding Bitcoin.
• Investors can choose their level of risk based on the company's volatility and speed of accumulation.
• The key metric to watch is the Price to Net Asset Value (NAV) premium. A lower premium, especially after a price drop, is presented as a potential buying opportunity.