Sup, nerds!

Here’s what you’re getting in today’s edition:

• 💅 This is cool: Bitcoin is being outpaced by Bitcoin-centric companies

• 🔎 This seems important: We're SO NOT back (in a good way)

• 🤝 Partner: We're up 1257 Big Macs right now 🫃 🍔 🤢​

• 🔪 Let's dissect this: The crypto ecosystem is healing 🥲

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Bull Market, Bear Market.

💅 This is cool:

Bitcoin Is Being Outpaced by Bitcoin-Centric Companies (How Does That Work?)

In one sentence: Four BTC related stocks ($COIN, $MARA, $CLSK, $MSTR) moved up by a greater % than BTC in Feb, all with less investment, because they have lower total values.

Alright, get this:

In February, the value of Bitcoin increased by 40%+, but there were a handful of stocks that outperformed Bitcoin…and each of those stocks were Bitcoin related…

How does that work?? Something like this: 

1. Coinbase ($COIN +56%)
   
   In Q4 of ‘23, Coinbase reported a positive net income (for the first time in a long time).
   
   But what kept the stock moving up was the approval of the Bitcoin ETFs. Coinbase has partnered with 8/11 of them, buying BTC on their behalf.
   
   The assumption being that in Q1 of 2024, income from BTC ETF transaction fees will help outpace expectations.
   

2. Marathon Digital ($MARA +75%) and CleanSpark ($CLSK +125%)
   
   These two are both publicly traded Bitcoin mining stocks that have been vocal about their pre-halving planning.

   
   CleanSpark, specifically, has bought three more mining facilities in preparation. These types of stocks have been very popular for traders looking to diversify their exposure to crypto, so we aren’t surprised. 
   

3. MicroStrategy ($MSTR +92%)
   
   ICYMI: MicroStrategy is a software company that just so happens to own over $10B in Bitcoin. Why? Cause their founder/former-CEO is obsessed with it. 

“Ok, but why/how did they outperform Bitcoin?”

Bitcoin’s all grown up (it’s a $1.2T asset), which means it takes a whooole lot more investor dollars to move its price.

A +10% move in BTC’s price right now would add ~$120B worth of value to it.

(That’s greater than the market caps of Solana, Ripple, and Cardano combined!).

Long story longer: these Bitcoin related stocks can move up by a greater percentage with less investment, because they have a lower total value.

Now you know!

🥇 Want the news before anyone else?

🔎 This seems important:

We’re SO NOT Back (In a Good Way) — It’ll Make Sense When You Read It...

In one sentence: We’re in stage 2/4 of the bull market (we’re close to ATHs, but folks outside of crypto haven’t noticed) meaning we should still have ~18 months of fun ahead.

Have you ever had an experience where you ask yourself a question, and the world immediately answers you.

Not in like a ‘I read my horoscope → attached my own meaning to it → called it an answer,’ kinda way…

But a situation where you: ask a direct question → get a direct answer.

That just happened to us (and it was kinda spooky).

It went something like this:

We were playing around with Google Trends, looking at the keywords ‘Bitcoin’ and ‘crypto’ over the past five years…

We assumed search volume would be at/near all time highs right now (what with Bitcoin’s price going bonkers) — but they’re not even close!

So we asked the question: ”How could that be? (It doesn’t make sense).”

And within 2 mins, we’d opened X/Twitter and (by total chance) been served our answer by Yano (an American with a deceptively Australian nickname, who is also a co-founder of Blockworks).

The basic gist of it being…

There are 4 stages to a bull market:

1. Rebirth
   Folks are talking about the bear market crash (what happened/why), but prices are quietly recovering under everyones noses.

2. Excitement
   The bear market is officially over! Your holdings are toying with all time highs — but (somehow) folks outside of crypto are still yet to notice.

3. Euphoria
   All time highs are blown past, your cousin's mate's drinking buddy is texting you for investment tips, new money is pouring into the space.

4. Disconnection
   Prices/people get stupid, forward estimates disconnect from reality, pushing prices/valuations to breaking point.

Turns out — even though these current market gains are making us feel Euphoric — we’re still in the Excitement stage.

Which means we should have a solid 18 months of fun ahead of us yet!

🤝 Partner:

We're up 1257 Big Macs right now 🫃🍔🤢

Remember when we said we wanted to see if we could turn $5k into $10k by investing in crypto projects?

Well, we damn done did it, folks!

We invested an average of $100 per week, into 25 crypto projects, over 12 months - and turned $5 into $10k, all in under 18 months!

What’s better: we documented our exact research framework for you to learn from.

(Which tokens we bought, why we bought them, how we valued them, and the tools/platforms we used to do it all).

This ain’t some shiny crypto masterclass, featuring pros that have millions of dollars to play with, but instead — a rough and ready learning experience, played out in public.

If you want to learn our research framework hit the big red button below 👇

🔪 Let's dissect this:

The Crypto Ecosystem Is Healing 🥲

In one sentence: $1.1B of crypto funds are about to be returned to the users of the Gemini ‘Earn’ program.

Good news!

A lot of those crypto companies that went bankrupt as prices collapsed back in 2022, are starting to repay their customers.

(Probably cause prices are finally returning to their 2021 highs).

For example:

The New York-based/Winklevoss twin-owned crypto exchange Gemini just announced that they’re due to get their money back from Genesis (one of their lending partners).

Which means $1.1B of crypto funds are about to be returned to the users of the Gemini ‘Earn’ program.

(The crypto ecosystem is healing 🥲).

Now, if we could just get everyone who lost money in FTX reimbursed, we’d be off to the races.

What is Bitcoin Mining?