{"id":347,"date":"2024-12-20T16:30:40","date_gmt":"2024-12-20T17:30:40","guid":{"rendered":"https:\/\/valentinefranc.com\/?p=347"},"modified":"2025-06-03T11:41:14","modified_gmt":"2025-06-03T11:41:14","slug":"the-infinite-money-loop","status":"publish","type":"post","link":"https:\/\/valentinefranc.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\u2026<\/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\u2019s 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\u2019s 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\u2026<\/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\u2019s 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":"

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