As anticipated over the past few issues, cryptos are (mostly) moving in tandem with wider markets and reacting to Fed jawboning that this time, they really really really mean it when they say they’re going to stop printing money and normalize interest rates.
This will not happen and when the market realizes it, all of this will reverse very sharply. It may be in a week, maybe a month, but I can’t see the Fed continuing this charade past the spring.
Even if they do, thus destroying the capital markets and hastening a global economic depression, we’re going to use that as our last opportunity, brought on by the gasp of globalism, USD-hegemony to buy up every crypto and anti-fiat asset in sight.
Once the Everything Bubble has popped or the dollar has been destroyed and CBDCs are implemented globally, it’s game over for anybody trapped within the centralized, banking system.
With this in mind, we’re releasing a couple new positions and an option trade ahead of next week’s portfolio update. Sure, cryptos may continue to weaken into next week and beyond, but I want to get this out to you now (because I want to buy them myself, today).
If you’re worried about this pullback, you must be new around here. Make sure you’ve read the the overall investment thesis that answers the question “Why Crypto”. If you have read it and you’re still worried, read it again.
New Positions:Tokens.com (NEO:COIN PINK: SMURF – yes, really): Is another DeFi play that is moving into Metaverse with a heavy investment in Decentraland. They also hold Ethereum, Solana, Luna (Terra) and Ankr. Tokens is trading at about 10X DAV (Digital Asset Value), which doesn’t make it dirt cheap, but it’s not an unreasonable price to pay to have some exposure to a Metaverse play and garner exposure to SOL and LUNA, a couple of Layer 1 blockchains that have gained inertia over the past year (Ankr I need to look into more).
The share price is just dipping below their 50 DMA now, so this is a good place to step in during weakness, I’m setting it as “speculative” and would assign 1% to 1.5% of your crypto allocation.
Action: Buy Tokens.com at market or on further weakness
BTCS Inc (Nasdaq: BTCS) – made waves this week on the announcement that they will be the first ever crypto company to declare a dividend and pay it out in Bitcoin. They’re calling the world’s first Bividend (cute). Granted, the stock went vertical on the news, but it’s given a bit back on the overall weakness.
Shareholders of record on March 16, 2022 are eligible for the Bividend and in the portfolio update I’ll take you through how to collect it (you’ll have to make their trustee the custodian for your share certificates).
On it’s own, this wouldn’t be enough for me to put out a Buy on this stock, as interesting as the world’s first Bividend is. It was when I quickly read through their SEC filings
I realized we want to own this company. There’s some issues and a shareholders deficit, but we can live with that. They’re actively running validator nodes earning about $1M/year at today’s prices, which makes them 10X sales right there. Expensive?
On its own, maybe, but then I looked at the digital assets on the balance sheet:
They’re trading at a price/DAV of 1.25. Should we wait to see if the price comes off some more after this week’s pop? I’m not.
If I make my entry and the price comes off again I’ll just buy more. Right now this looks more like a closed end digital assets fund that pays out a dividend in Bitcoin than a stock.
Action: Buy BTCS at market before March 16 and accumulate on weakness.
WonderFi Technologies: (NEO: WNDR PINK: WONDF) WonderFi is already in our portfolio, they were speculative, then accumulate, I am now moving them up to super-mondo-accumulate.
They just announced that they’re acquiring BitBuy, one of Canada’s largest crypto currency exchanges. I use BitBuy, I know their execs, they are a client of one of my companies (Domainsure). In the back of my mind I have always wondered “How can I invest in or somehow become a shareholder in BitBuy?” Now I know. I just have to buy more WonderFi, who is making all kinds of moves in the Canadian DeFi and crypto space and it’s pretty clear we’re all in near the very beginning.
Action: Buy more WonderFi
If you’re fully invested and don’t have any dry powder to allocate to these new positions, I’m reducing our exposure to Bitfarms from 15% to 10% on heavy insider selling. It could be innocuous, end of lockup, get some liquidity type transactions by the CEO, the Chairman and other founders. Or it could signal a lack of conviction. We still have HUT, which looks to be the premiere Bitcoin mining play and we still have BITF, just at a slightly lower level. Not to mention HIVE.
Option Trade: HUT8 December 2022 Calls look pretty good here:
Canadians: HUT.TO DEC 2022 $9 @ $3.50 ea
US: HUT DEC 2022 $7.50 @ $2.94 ea
The mid-month portfolio update will be out in a little over a week.
Thanks again for saying “yes” to Crypto Capitalism.
Sincerely,
Mark E. Jeftovic
