{"id":351,"date":"2024-12-20T16:30:40","date_gmt":"2024-12-20T17:30:40","guid":{"rendered":"http:\/\/www.pacific-hydro.com\/?p=351"},"modified":"2025-02-28T22:59:05","modified_gmt":"2025-02-28T22:59:05","slug":"the-infinite-money-loop","status":"publish","type":"post","link":"http:\/\/www.pacific-hydro.com\/index.php\/2024\/12\/20\/the-infinite-money-loop\/","title":{"rendered":"The Infinite Money Loop"},"content":{"rendered":"

We did it again!<\/p>\n

Pete and I went live again last night to bring you important details about a MAJOR move that\u2019s about to happen in the crypto space this coming Monday.<\/p>\n

There\u2019s still time for you to rewatch\u00a0last night\u2019s urgent Zoom briefing<\/strong><\/a>\u00a0here \ud83d\udc47.<\/p>\n

\"Turn<\/a><\/p>\n

The last time we did this bitcoin (BTC<\/span><\/span><\/span><\/span><\/span><\/span>) rocketed up nearly 10% in only one week<\/strong>.<\/p>\n

\"Turn<\/p>\n

And I believe an even bigger move\u00a0move could happen as soon as next week…<\/p>\n

So I thought I\u2019d use today\u2019s issue to prepare you for what\u2019s coming.<\/p>\n

Let\u2019s start with MicroStrategy (Nasdaq: MSTR<\/span><\/span><\/span><\/span><\/span><\/span>) a business-intelligence software company that\u2019s been around for over three decades.<\/p>\n

You might have seen MicroStrategy in the news recently, but it\u2019s not for anything the company is doing in the software sector.<\/p>\n

That\u2019s because MicroStrategy is barely a software company anymore.<\/p>\n

Remember how big a deal it was last week when Microsoft shareholders voted on whether the company should buy bitcoin as an asset class?<\/p>\n

Well, MicroStrategy has been buying bitcoin for nearly five years.<\/p>\n

Back in 2020 MicroStrategy\u2019s then-CEO Michael Saylor made the bold decision to start acquiring bitcoin as a potential hedge against inflation.<\/p>\n

And the company kept buying bitcoin \u2014 even as its price fluctuated.<\/p>\n

It was a risky move. But so far the decision has paid off in spades for MicroStrategy.<\/p>\n

As chairman, Saylor has overseen a\u00a0massive<\/em> surge in the company\u2019s stock price over the past five years.<\/p>\n

\"Turn<\/p>\n

This year alone the company\u2019s shares are up as high as\u00a0521%<\/strong>.<\/p>\n

Of course, this incredible stock story has nothing to do with the company\u2019s software business.<\/p>\n

By one estimate, MicroStrategy\u2019s value per share of its software business represents only 0.3% of the stock price.<\/p>\n

But the company\u2019s\u00a0bitcoin<\/em>\u00a0business is booming!<\/p>\n

It\u2019s so important to MicroStrategy\u2019s business that the company had to come up with a new performance indicator.<\/p>\n

It\u2019s called \u201cbitcoin yield.\u201d<\/p>\n

And it tracks the percentage change over time in the ratio of the company\u2019s bitcoin holdings to its assumed diluted shares outstanding.<\/p>\n

But you don\u2019t need to understand how \u201cbitcoin yield\u201d works to understand why I urged Pete to join me for another\u00a0live briefing<\/strong><\/a>\u00a0last night.<\/p>\n

All you need to know is that MicroStrategy now owns\u00a0more than 2% of bitcoin\u2019s total supply<\/strong>\u2026<\/p>\n

A supply that\u2019s capped at 21 million coins.<\/p>\n

And that brings me to Monday\u2019s big move\u2026<\/p>\n

What\u2019s Happening On Monday?<\/h2>\n

On December 23, MicroStrategy will enter the Nasdaq-100.<\/p>\n

It\u2019s a stock market index reserved for the largest 100 nonfinancial companies in the full Nasdaq Composite Index by market capitalization.<\/p>\n

And it\u2019s a big deal.<\/p>\n

You see, MicroStrategy became eligible to join the\u00a0Nasdaq-100<\/a>\u00a0because it\u2019s\u00a0technically<\/em>\u00a0a software company.<\/p>\n

But as I just showed you, it owes most of its market cap to the company\u2019s bitcoin investment strategy.<\/p>\n

MicroStrategy\u2019s market cap is up from around $1.4 billion on August 11, 2020 when the company first bought bitcoin to around\u00a0$93.9 billion<\/strong>\u00a0as of Monday.<\/p>\n

That\u2019s a gain of over 6,600%.<\/p>\n

Obviously, one of the main factors behind this huge gain is bitcoin\u2019s recent surge to over $107,000.<\/p>\n

MicroStrategy’s impending Nasdaq-100 Index membership announcement also lifted the stock.<\/p>\n

But it\u2019s HOW the company acquired bitcoin that we should focus on.<\/p>\n

Because MicroStrategy was able to make all those bitcoin purchases by leveraging debt.<\/p>\n

It sold stock and other convertible-debt offerings to help finance its bitcoin purchases.<\/p>\n

In other words, the company has created a kind of infinite money loop.<\/p>\n

As its stock price goes up\u2026 it\u2019s able to buy more bitcoin.<\/p>\n

As bitcoin\u2019s price goes up\u2026 it\u2019s able to buy more bitcoin.<\/p>\n

And now that the company is joining the Nasdaq-100 a lot of institutions with ETFs that mirror the Nasdaq-100 will start buying MicroStrategy\u2026<\/p>\n

And that will cause its stock price to go up.<\/p>\n

As its stock price goes up\u2026\u00a0 it\u2019s able to buy more bitcoin.<\/p>\n

Do you see what\u2019s going on here?<\/p>\n

It’s like an infinite money loop.<\/p>\n

Here\u2019s My Take<\/h2>\n

MicroStrategy has the biggest corporate portfolio of digital assets in the world.<\/p>\n

Its explosive growth shows how a cryptocurrency-driven corporate strategy can work…<\/p>\n

And its entry in the Nasdaq-100 proves that its high-risk bitcoin approach can gain market acceptance.<\/p>\n

Like I told you last week about Microsoft\u2019s vote\u2026<\/p>\n

It\u2019s not a matter of if, it\u2019s a matter of when buying bitcoin as an asset appeals to a major corporation.<\/p>\n

Maybe it\u2019s Amazon or Apple. Maybe Microsoft\u2019s shareholders eventually relent.<\/p>\n

But it will happen.<\/p>\n

In the short term, I see Microstrategy\u2019s big move to the Nasdaq-100 doing two things.<\/p>\n

One is that it could cause a massive spike in bitcoin like we saw last week.<\/p>\n

Second \u2014 and more important over the long term \u2014 is that it proves that bitcoin is a legitimate form of collateral.<\/p>\n

We entered 2004 with a new bitcoin ETF that showed folks it\u2019s OK to invest in bitcoin now.<\/p>\n

We\u2019re ending the year by showing folks it’s not just something you can invest in\u2026<\/p>\n

But something that you can borrow against.<\/p>\n

Either way, I see bitcoin going up and to the right.<\/p>\n

And as we\u2019ve seen before\u2026<\/p>\n

When bitcoin goes up smaller coins tend to make\u00a0even bigger<\/strong>\u00a0moves.<\/p>\n

My concern is that if you wait until Monday you might miss out on the four altcoins I\u2019ve identified that could make the biggest moves.<\/p>\n

So if you haven\u2019t seen it\u2026 make sure to\u00a0click on this link to watch last night\u2019s urgent Zoom briefing<\/strong><\/a>.<\/p>\n

Regards,<\/p>\n

\"Ian
\nIan King
\nChief Strategist,\u00a0Banyan Hill Publishing<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

We did it again! Pete and I went live again last night to bring you important details about a MAJOR move that\u2019s about to happen in the crypto space this coming Monday. There\u2019s still time for you to rewatch\u00a0last night\u2019s urgent Zoom briefing\u00a0here \ud83d\udc47. The last time we did this bitcoin (BTC) rocketed up nearly […]<\/p>\n","protected":false},"author":1,"featured_media":353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/posts\/351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/comments?post=351"}],"version-history":[{"count":2,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/posts\/351\/revisions"}],"predecessor-version":[{"id":357,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/posts\/351\/revisions\/357"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/media\/353"}],"wp:attachment":[{"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/media?parent=351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/categories?post=351"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/tags?post=351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}