Beat The Denominator

Consider re-evaluating Bitcoin miners not just as a proxy for Bitcoin, but as AI infrastructure plays leveraging their cheap power contracts and land. Companies leading this pivot, like IREN and Cipher Mining (CIFR), are outperforming the sector and represent a high-conviction trade on this theme. Riot Platforms (RIOT) is a potential "sweet spot" investment that could offer dual exposure to both a large Bitcoin treasury and a future AI business. In contrast, pure-play miners like CleanSpark (CLSK) and Marathon Digital (MARA) are currently underperforming, making them a more direct bet on the price of Bitcoin itself. The core appeal of the AI pivot is that it allows these companies to generate new revenue without being forced to sell their valuable Bitcoin holdings.

Nebius (NBIS) has secured a massive $19.4 billion, five-year AI cloud contract with Microsoft (MSFT), fundamentally altering its growth prospects. This single deal is larger than the company's entire market cap before the announcement and could dramatically increase its annual revenue. Despite a significant price surge, the stock is still considered potentially undervalued given the scale of this new, long-term revenue stream. The company also has potential for future growth by signing similar deals with other tech giants or expanding its other business units. This landmark agreement signals immense demand for AI infrastructure, suggesting a bullish outlook for the entire GPU cloud services sector.

The recent drop in MicroStrategy (MSTR) stock due to its exclusion from the S&P 500 is considered a buying opportunity based on a market overreaction. The primary reason to own MSTR is its unique and profitable strategy of issuing new shares to acquire more Bitcoin. This strategy is actively being deployed, as evidenced by the company's recent $217 million purchase of Bitcoin. Therefore, the current dip could be an attractive entry point for investors who believe in this long-term Bitcoin accumulation model. Investors should view MSTR not as a simple leveraged bet, but as a Bitcoin acquisition vehicle.

MicroStrategy (MSTR) is presented as a high-conviction investment due to its aggressive strategy of accumulating Bitcoin (BTC), making its stock a leveraged play on the cryptocurrency. This relentless buying, combined with expected Federal Reserve rate cuts, could create a path for Bitcoin to reach a $140,000 price target by year-end. A key short-term catalyst to monitor is MSTR's "Stretch" preferred equity instrument; a price break above $99 would likely signal the company is raising significant new capital for more BTC purchases. Investors should also watch for announcements of new capital-raising products from CEO Michael Saylor, which could serve as a major catalyst for the stock. The long-term theme of tokenization could further benefit MSTR by attracting crypto-native capital, while also boosting underlying platforms like Ethereum (ETH) and Solana (SOL).

Consider small-cap biotech CorMedix (CRMD), which is viewed as undervalued after the market misinterpreted its recent strategic acquisition of Melinta. TG Therapeutics (TGTX) offers a compelling growth opportunity with its MS drug Briumvi, which has market exclusivity until 2042 and targets a potential 10x revenue increase by 2030. A recent 20% price drop in AI-powered beauty company Oddity Tech (ODD) may present a buying opportunity, given its strong recurring revenue model. Look into real estate disruptor The Real Brokerage (REAX), which is rapidly gaining market share in a weak housing market and is positioned for significant growth. Finally, watch Hims & Hers (HIMS) for a catalyst from its expected mid-September launch of testosterone and menopause treatments, though an entry below $40 is suggested due to high volatility.

For diversified exposure to the growing digital asset economy, consider the Bitwise Crypto Industry Innovators ETF (BITW), which is presented as a potential benchmark of the future. A top holding in this ETF, MicroStrategy (MSTR), is highlighted as a high-conviction individual stock for its significant Bitcoin holdings and leadership in the space. The core thesis suggests Bitcoin (BTC) itself is a foundational savings technology with massive long-term growth potential as it captures value from traditional assets. The BITW ETF offers a simple way to invest in a basket of key crypto companies, including MSTR, Marathon Digital (MARA), and Coinbase (COIN). This strategy is based on the major investment theme of capital shifting from legacy financial systems to a new, decentralized digital economy.

The recent drop in MicroStrategy (MSTR) following its S&P 500 exclusion is viewed as a buying opportunity for those bullish on Bitcoin and Web3. For long-term growth, consider allocating to a NASDAQ-tracking fund (QQQ) over an S&P 500 fund, as its rules-based system has historically captured innovative companies more effectively. The core long-term investment theme is the rise of Web3 and tokenized stocks, which are expected to attract new pools of global capital. Key companies positioned to lead this trend include MicroStrategy (MSTR) and Coinbase (COIN). Investors can monitor which stocks are being tokenized on major platforms as a signal of future capital flows and potential outperformance.

Consider the current market weakness a buying opportunity for MicroStrategy (MSTR), which is presented as the premier "blue chip" for Bitcoin exposure. The core investment thesis is MSTR's unique ability to perpetually issue its stock to acquire more Bitcoin, creating a long-term growth cycle. A key catalyst to watch is the Federal Reserve meeting on September 17th-18th, as an anticipated rate cut could ignite a new liquidity cycle beneficial for growth assets. Investors are advised to build a long-term position in MSTR equity and avoid using leverage or chasing smaller, riskier crypto stocks. For those seeking income, MSTR's preferred shares like Stride offer a high-yield alternative that could become more attractive post-rate cuts.

Consider an investment in Hims & Hers Health (HIMS), as its high short interest of 35% creates significant potential for a short squeeze on any positive news. A major upcoming catalyst is the rumored launch of a testosterone product, which could happen as soon as September and unlock a large new revenue stream. The market's fear of lawsuits from Eli Lilly (LLY) and Novo Nordisk (NVO) over compounded GLP-1s appears to be overstated, with the legal risk potentially being priced in. While GLP-1s are a key driver, the company's strategy extends to the broader, durable trend of peptide-based medicine. Investors should be prepared for volatility but focus on the long-term growth story and near-term catalysts.

Consider MicroStrategy (MSTR) as a leveraged investment in Bitcoin, as the company is viewed as significantly undervalued. MSTR strategically issues its own stock at a premium to acquire more Bitcoin at an effective discount, creating a powerful compounding effect. This unique strategy generates a "yield" in the form of accumulating Bitcoin faster than simply holding the asset. The analyst is extremely bullish, highlighting the company's history of high annual returns and its potential for long-term growth. For investors seeking aggressive Bitcoin exposure, MSTR may offer a more advantageous position than a direct investment.

MicroStrategy (MSTR) is a high-conviction investment for leveraged Bitcoin exposure, as it strategically uses its stock premium to continuously acquire more BTC. The core bullish thesis is the "MSTR put," the idea that large entities will buy MSTR stock for massive Bitcoin acquisition, justifying its premium valuation. Investors should be prepared for potential short-term price weakness in Bitcoin through mid-September, which may present a buying opportunity. Due to its dominant scale, MSTR is favored over smaller competitors like MetaPlanet for this investment theme. Do not invest in MSTR with the sole expectation of a near-term S&P 500 inclusion, as this is viewed as an unlikely short-term catalyst.

Consider CleanSpark (CLSK) as an undervalued Bitcoin mining stock, currently trading at a low valuation relative to its assets despite efficient, low-cost operations. A major potential catalyst is the AI optionality of its data centers, and investors should watch for any strategic pivot towards AI from the new CEO. This investment is fundamentally a leveraged play on the price of Bitcoin, which is the primary driver of the company's value. The long-term thesis is supported by a bullish outlook on Bitcoin, with some analysts projecting a price of $500,000 to $1 million by 2030. For a less leveraged investment, consider a direct holding in Bitcoin (BTC) itself.

Consider MicroStrategy's preferred stock, STRC, as management plans to increase its dividend to help push the price towards a $99 target. Reaching this price is a key catalyst that would allow the company to issue more shares and accelerate its Bitcoin acquisition strategy. This makes STRC a tactical play on the broader, long-term bullish strategy of its parent company, MSTR. For direct crypto exposure, a short-term bullish outlook is suggested for Bitcoin (BTC), anticipating a potential market recovery. The key timeframe to watch for this potential upward move in Bitcoin is the last two weeks of September.

Consider MetaPlanet (MTPLF) as a compelling investment, as its stock price has fallen to around $6 despite the company more than doubling its Bitcoin holdings in under three months. This price drop has created a significant disconnect between the company's operational success and its stock valuation, presenting a unique entry point. Upcoming catalysts include a September 1st shareholder vote and a planned international share offering, which could collectively raise over $6 billion to aggressively acquire more Bitcoin. This strategy is a leveraged bet on Bitcoin (BTC), which is viewed with bullish sentiment for the second half of the year. The investment is positioned as a long-term hold with the ultimate goal of capitalizing on Bitcoin potentially reaching $1 million.

Consider adding Super Micro Computer (SMCI), a pure-play on liquid cooling for AI data centers, as it is a favorite pick being actively accumulated. NVIDIA (NVDA) is viewed as a core long-term holding with a reasonable valuation for its high growth, making it a better choice than its competitor. Investors should avoid AMD (AMD), which is considered more expensive and has a weaker growth profile compared to the industry leader. For those with a higher risk tolerance, Nebius (NBIS) offers explosive growth but is currently unprofitable, so waiting for a better entry point is advised. Lastly, Micron (MU) presents a potentially cheap investment in AI memory chips, but be mindful of its historically cyclical and volatile stock performance.

Consider Hims & Hers Health (HIMS) as a long-term investment due to its high 34% short interest, creating a significant "short squeeze" opportunity. The company is viewed as a pharmacy disruptor with a potential 10x return over the next 4-5 years, driven by new product launches and international growth. Another high-conviction opportunity is The Real Brokerage (REAX), a fast-growing digital real estate company considered undervalued with 10x potential. REAX is poised to benefit from an improving housing market, especially if expected interest rate cuts begin in September. In contrast, be cautious with Opendoor (OPEN) at its current price due to its recent massive run-up and riskier business model.

MicroStrategy (MSTR) appears to be in the early stages of a rebound that has historically lasted one to three months, presenting a leveraged opportunity on Bitcoin. For a valuation-based trade, consider Marathon Digital (MARA), as its valuation premium tends to bounce quickly when it approaches the 1.0 level. Income-focused investors may find Stride attractive for its high 12.6% yield. Alternatively, Strike offers a unique way to gain exposure to MSTR's upside through its embedded call option feature. Overall, these Bitcoin proxy stocks are currently outperforming Bitcoin, signaling renewed market confidence.

MicroStrategy (MSTR) is presented as a high-conviction, leveraged investment for those bullish on Bitcoin. The company's primary strategy is to sell its own stock at a premium to acquire more Bitcoin, effectively generating a "yield" on its holdings. The recent resumption of its stock offering program is a significant bullish catalyst that enables this accumulation strategy to continue. Investors should monitor MSTR's stock premium, as a sustained value above 1.5 times its underlying assets is key to the thesis. For direct, non-leveraged exposure, the iShares Bitcoin Trust (IBIT) serves as a simpler alternative and a useful benchmark for MSTR's performance.