Weekly Roundup 12/20/24 (No SBR?, Prometheum, Crenshaw) (EP.585)

Bullish:

• $BITCOINRESERVES - Nick suggests that Bitcoin reserves make sense for states as a diversification strategy, citing Texas as an example of a Bitcoin-friendly state.

  • “For states, totally makes sense. Diversify, good interesting portfolio characteristics. Texas is a Bitcoin state, you know, makes a lot of sense.”

    Nick·31:58

Bearish:

• $BITCOINMINERS - Nick strongly advises against investing in Bitcoin mining companies, describing them as 'capital incinerators' and criticizing their strategy of buying Bitcoin, which he claims led to bankruptcies in the previous market cycle.

  • “Bitcoin mining companies are capital incinerators. They're now doing this thing where they themselves are buying Bitcoin like Mica strategy lite. And you might be like, oh, wouldn't it an innovative interesting strategy, you know, that's smart. It's not smart. Okay? They did it last cycle, and they all went bankrupt doing that.”

    Nick·24:39
• $MSTR - Nick points out that MicroStrategy is trading at a significant premium to its Net Asset Value (NAV), suggesting it's overvalued as a Bitcoin proxy.

  • “MicroStrategy is trading at 2x premium to NAV. So if you're buying MicroStrategy for the Bitcoin, you're buying the Bitcoin at double the price.”

    Nick·23:32