(DISCLAIMER - This is not financial advice; this post is for entertainment purposes only.)
In a week in which my regular stocks took a beating, my bitcoin stocks portfolio saved my bacon. The bitcoin stocks had a very good week as things are falling into place, what with the imminent Coinbase direct listing, Morgan Stanley clients onboarding, etc.
My bad week with my regular stocks ended with both my top 2 positions (IPA, XBC) taking a drubbing. The former, I added more. The latter, I got out at 2x when the stock was 5x the week before. It sucked but I did get out at a double. Translating that to my bitcoin stock portfolio, I feel I should be able to get out okay when a crash happens because I've done my homework and have positioned properly.
While on a webinar last week, it dawned on me that I knew more than the crypto expert guest and found myself contradicting him on the chat. I also noticed that I'm explaining my bitcoin stocks strategy to more people each week
Regarding my bitcoin stock portfolio, I see that the Galaxy Digital (GLXY) stock finally started going into overdrive. Good price increase; value being unlocked. Also, I bought more VYGR and BNXA for my trading accounts.
Looking at the updated list of publicly-traded stocks with bitcoin treasuries - it now shows 46 treasuries owning 6.45% of total BTC. Although not official, it gives a good idea of the amount of BTC held by these entities. (I wonder if there might be double counting but then again, not all companies with bitcoin treasuries have been identified.) Still waiting for more European and Asian treasuries to be added to the list.
In the meantime, here are my returns for the last eighteen weeks based on the percentage gain/loss on the valuation tab on my discount brokerage summary page.
Enterprise
MicroStrategy (MSTR): +349.2% (Mar 19/21) +353.3% (Mar 12/21) +258.6% (Mar 5/21) +333.9% (Feb 26/21) +457.3% (Feb 19/21) +498.1% (Feb 12/21) +366.1% (Feb 5/21) +256.9% (Jan 29/21) +233.7% (Jan 22/21) +234.3% (Jan 15/21) +207.4% (Jan 8/21) +124.7% (Dec 31/20) +86.5% (Dec 24/20) +74.2% (Dec 18/20) +65.3 (Dec 11/20)+89.7% (Dec 4/20) +56.9% (Nov 27/20) +28.4% (Nov 20/20)
MSTR stock price was down from last week. On this Friday, they did not buy more BTC to add to their stockpile, which is now worth over $5.2B.
Interesting that MSTR market cap is only $7.5B, way down from their $11B high during the internet era (which was mentioned in this Charlie Rose interview in 2000.)
Tesla (TSLA): -11.0% (Mar 19/21) -12.9% (Mar 12/21) -23.8% (Mar 5/21) -13.5% (Feb 26/21)
Still negative returns since my Feb 26 purchase. The market does not seem to like the bitcoin purchase weeks after original purchase despite TSLA making $1B on it so far. I did average down a bit.
Fintech
Square (SQ): +2.1% (Mar 19/21) +9.9% (Mar 12/21) -1.7% (Mar 5/21) +4.4% (Feb 26/21) +25.6% (Feb 19/21) +23.8% (Feb 12/21) +9.1% (Feb 5/21) -2.0% (Jan 29/21) +1.2% (Jan 22/21) +3.4% (Jan 15/21) +9.6% (Jan 8/21)-1.2% (Dec 31/20) +3.6% (Dec 24/20) +6.9% (Dec 18/20) -1.7% (Dec 11/20)
After adding more bitcoin ($170M) to their stash, Square's returns have been up and down (up 2.1% this week) since I bought SQ.
Mogo (MOGO.wt):+357.7% (Mar 19/21) +258.5% (Mar 12/21) +149.2% (Mar 5/21) +200.0% (Feb 26/21) +329.4% (Feb 19/21) +262.3% (Feb 12/21) +92.5% (Feb 5/21) +20.8% (Jan 29/21) +40.4% (Jan 22/21) +66.4% (Jan 15/21) +58.5% (Jan 8/21) -1.5% (Dec 31/20)
Mogo.wts were up again (358%). Mogo is a Canadian fintech company with a crypto division. (My first $100 bitcoin buy on the platform is now worth over $600.) They are readying up a cashback MOGO visa card.
Banxa (BNXA):+207.8% (Mar 19/21) +108.9% (Mar 12/21) +3.0% (Mar 5/21) +5.5% (Feb 26/21)
Self-described as the Paypal of crypto, I have encountered this name before. While trying to make a deposit on Binance, I remember Banxa was one of 2 names involved in their payment processing. BNXA was up another 100% this week.
I have bought second and third positions for trading purposes.
Bitcoin Miners
Bitfarms (BITF): +1281.1% (Mar 19/21) +1212.8% (Mar 12/21) +1055.4% (Mar 5/21) +1121.7% (Feb 26/21) +1542% (Feb 19/21) +804.9% (Feb 12/21) +676.5% (Feb 5/21) +573.0% (Jan 29/21) +537% (Jan 22/21) +786.0% (Jan 15/21) +717.9% (Jan 8/21) +415.6% (Dec 31/20) +334.8% (Dec 24/20)+175.4% (Dec 18/20) +32.5% (Dec 11/20) +49.1% (Dec 4/20) +49.1% (Nov 27/20) +42.9% (Nov 20/20)
Hut 8 Mining (HUT.wt): +3172.6% (Mar 19/21) +3037.2% (Mar 12/21) +2570.7% (Mar 5/21) +2980.8% (Feb 26/21) +3240.4% (Feb 19/21) +2552% (Feb 12/21) +1352% (Feb 5/21) +1145.1% (Jan 29/21) +1258% (Jan 22/21) +1660.5% (Jan 15/21) +2243.6% (Jan 8/21) +524.5% (Dec 31/20) +411.6% (Dec 24/20) +249.8% (Dec 18/20) +39.2% (Dec 11/20) +50.5% (Dec 4/20) -4.1% (Nov 27/20) -6.0% (Nov 20/20)
Hive Blockchain (HIVE): +462.2% (Mar 19/21) +482.6% (Mar 12/21) +432.1% (Mar 5/21) +476.6% (Feb 26/21) +710.8% (Feb 19/21) +376.9% (Feb 12/21) +233.9% (Feb 5/21) +190.7% (Jan 29/21) +208.7% (Jan 22/21) +241.1% (Jan 15/21) +302.4% (Jan 8/21) +187.1% (Dec 31/20) +154.7% (Dec 24/20) +201.5% (Dec 18/20) +55.0% (Dec 11/20) +49.0% (Dec 4/20) +16.0% (Nov 27/20)
Cypherpunk Holdings (HODL): +121.8% (Mar 19/21) +84.8% (Mar 12/21) +79.2% (Mar 5/21) +93.4% (Feb 26/21) +93.4% (Feb 19/21) +90.5% (Feb 12/21) +62.1% (Feb 5/21) +19.4% (Jan 29/21) +22.3% (Jan 22/21) +45.0% (Jan 15/21) +76.3% (Jan 8/21) +19.8 %(Dec 31/20) +10.1% (Dec 24/20) +0.4% (Dec 18/20) -2.8% (Dec 11/20)
Fortress Blockchain (FORT): +229.8% (Mar 19/21) +203.1% (Mar 12/21) +176.3% (Mar 5/21) +171.9% (Feb 26/21) +136.2% (Feb 19/21) +27.0% (Feb 12/21) -4.2% (Feb 5/21) -10.9% (Jan 29/21) -1.9% (Jan 22/21)
Marathon (MARA): +74.4% (Mar 19/21) +64.4% (Mar 12/21) +23.2% (Mar 5/21) +24.3% (Feb 26/21) +77.0% (Feb 19/21) +58.3% (Feb 12/21) -6.8% (Feb 5/21)
Riot Blockchain (RIOT): +155.7% (Mar 19/21) +104.1% (Mar 12/21) +72.0% (Mar 5/21) +87.7% (Feb 26/21) +203.6% (Feb 19/21) +111.1% (Feb 12/21) +0.6% (Feb 5/21)
Mechanical Technology (MKTY): +102.5% (Mar 19/21) +52.9% (Mar 12/21) +25.9% (Mar 5/21) +37.6% (Feb 26/21) +122.7% (Feb 19/21) +69.9% (Feb 12/21)
Good Works Acquisition Corp (GWAC): -6.9% (Mar 19/21) +0.1% (Mar 12/21)
Virtually all the miners were up save HIVE and GWAC. The valuation gap between the Canadian miners (HIVE, HUT, BITF) and the American miners (RIOT, MARA, MKTY) is still widening. The Canadian miners are so undervalued.
My newest purchase was the Good Works SPAC. It will merge with Cipher Mining, a subsidiary in the BitFury Group, which happens to hold a large amount of Hut 8 shares. Could this be the one that starts a M&A spree?
At some point there has to be some M&A action in the miner space. You can build an arms race for only so long. Either miners merge with each other or a larger entity like a Galaxy (which has started a mining operation) or a SPAC takes them out. (To do that, GLXY needs to have a much larger market cap, which is now happening.)
Crypto Trading Platforms
Voyager Digital (VYGR):+3805% (Mar 19/21) +2570.9% (Mar 12/21) +2092% (Mar 5/21) +2348.8% (Feb 26/21) +2327.0% (Feb 9/21) +2158.8% (Feb 12/21) +2018.8% (Feb 5/21) +922.1% (Jan 29/21) +766.8% (Jan 22/21) +874.6% (Jan 15/21) +648.6% (Jan 8/21) +534.4% (Dec 31/20) +441.9% (Dec 24/20) +366.1% (Dec 18/20) +181.2% (Dec 11/20) +129.9% (Dec 4/20) +99.0% (Nov 27/20) +40.0% (Nov 20/20)
VYGR continued its torrid pace upwards with a stellar 3805% gain since the November 20, 2020 week. There's still so much good news for the company - valuation comparisons to the imminent Coinbase Direct Listing, a revised loyalty program, network effects.
Check out latest update - some good nuggets of information.
Actually, this is the latest update - Analyst Pat Ackerman on the Alex Mascioli show on Youtube. They talk among other things, the idea of a takeout in the far future - not from a Robin Hood but a traditional finance type like a JP Morgan, Morgan Stanley. Also noted mention of an eToro $10B valuation upon IPO.
The only thing I did not like was that it sounds like the Voyager app offering to Canadians might now be in the first half of the year instead of end of Q1. Hope it's faster as I want access to the Voyager app so I can buy the VGX token and other cryptocurrencies.
BIGG Digital Assets (BIGG):+263.2% (Mar 19/21) +179.2% (Mar 12/21) +165.5% (Mar 5/21) +100.4% (Feb 26/21) +109.0% (Feb 19/21) +61.0% (Feb 12/21) +69.0% (Feb 5/21) +22.8% (Jan 29/21) +17.5% (Jan 22/21) +32.0% (Jan 15/21) +53.1% (Jan 8/21) +32.0% (Dec 31/20) +24.1% (Dec 24/20) +21.4% (Dec 18/20) -12.9% (Dec 11/20)
BIGG had a big week - nice price increase.
One of BIGG's subsidiaries is netcoins.ca, a Canadian crypto exchange where I might start trading on if the Voyager app doesn't come through sooner. Previously I did buy more BIGG shares after watching their presentation with Adelaide Capital.
I like their Qlue product offering - comparable to product at Chainalysis, which has privately raised $100M.
Bitcoin Funds
3iQ The Bitcoin Fund (QBTC):+154.3% (Mar 19/21) +145.2% (Mar 12/21)+111.4% (Mar 5/21) +100.1% (Feb 26/21) +124.2% (Feb 19/21) +120.1% (Feb 12/21) +78.0% (Feb 5/21) +59.6% (Jan 29/21) +57.4% (Jan 22/21) +80.2% (Jan 15/21) +109.9% (Jan 8/21) +54.5% (Dec 31/20) +24.7% (Dec 24/20) +21.7% (Dec 18/20) -16.8% (Dec 11/20) -10.1% (Dec 4/20) -15.0% (Nov 27/20) -5.1% (Nov 20/20)
Galaxy Digital (GLXY):+142.7% (Mar 19/21) +54.3% (Mar 12/21) +49.9% (Mar 5/21) +44.7% (Feb 26/21) +99.3% (Feb 19/21) +136.3% (Feb 12/21) +67.1% (Feb 5/21) +13.8% (Jan 29/21) +18.8% (Jan 22/21) +29.9% (Jan 15/21) +37.6% (Jan 8/21) +34.5% (Dec 31/20) +15.3% (Dec 24/20) +20.0% (Dec 18/20) -10.5% (Dec 11/20) -9.9% (Dec 4/20) -10.8% (Nov 27/20) -6.6% (Nov 20/20)
What I said last week : QBTC returns have been consistent, however, GLXY have had some surprisingly mediocre returns, given their fingers in so many crypto pies.
This week: GLXY on fire. Market cap: $2.6B CAD. It's obvious they will be on a bigger exchange in the near future and just might be a longer term hold for me.
I'm of the opinion that GLXY should have a market cap above VYGR ($4B) although they are are serving different areas within the crypto ecosystem.
I re-watched the MicroStrategy summit video, where Galaxy's presentation revealed that they should be a major beneficiary of the MSTR event as they pitched their 'white glove' services to 8000 executives.
GLXY is involved in direct investments in 90 start-up ventures, a trading desk, derivatives, investment banking, asset management and a $300M fund investing in the virtual space (ie. NFTs, virtual worlds). The value of these various divisions are beginning to unlock.
Exchange traded funds - ETF
Purpose Bitcoin ETF - (BTCC):+25.3% (Mar 19/21) +20.5% (Mar 12/21) +4.7% (Mar 5/21)+0.6% (Feb 26/21)
Evolve Bitcoin ETF - (EBIT):+23.1% (Mar 19/21) +18.3% (Mar 12/21) +4.2% (Mar 5/21) -0.1% (Feb 26/21)
CI Galaxy Bitcoin ETF - (BTCX): -1.5% (Mar 19/21)
Meanwhile, the two Canadian ETFs continued their steady rise. So far, BTCC, the world's first BTC ETF, has eked out a small lead despite their rival EBIT initiating a price war by reducing their management fee. Already a battle is brewing.
However, a third ETF has entered the fray - CI Galaxy Bitcoin ETF - whose major selling point - a tiny 0.4% management fee, is further exacerbating the price war.
Of course, I had to buy this 3rd ETF for my portfolio.
Actual Bitcoin
BTC purchased off Coinbase: +220.7% (Mar 19/21) +248.7% (Mar 12/21) +196.7% (Mar 5/21) +165.8% (Feb 26/21) +241.5% (Feb 19/21) +183.7% (Feb 12/21) +146.1% (Feb 5/21) +119.2% (Jan 29/21) +121.7% (Jan 22/21) +159.1% (Jan 15/21) +177.5% (Jan 8/21) +114.1% (Dec 31/20) +79.7% (Dec 24/20) +76.0% (Dec 18/20) +44.8% (Dec 11/20) +52.7% (Dec 4/20) +49.3% (Nov 27/20)+59.7% (Nov 20/20) (using https://www.bitcoindollarcostaverage.com/)
Conclusion:
One needs to prepare for both a BTC super cycle and giant crash in the near future.
The goal for next couple weeks - the stimulus bill has passed, which should be good for the market.
My long term holds - all the ETFs, GLXY, VYGR, BNXA.
