Stock Trade Alerts:
$MGTI added another 5% here @ $3.85 brining out entire allocation back to 20% total of the stock portfolio.
$OSTK added / bought the June $40 strike call options for $18.50 with a 5% allocation bringing our entire OSTK allocation now to 15% of the stock portfolio.
$GBTC bought @ $2280 for a 5% allocation; GBTC is the Bitcoin Trust that gives us exposure to Bitcoin on a pairing ratio of about 7:1.
UPDATE → * $MGTI is now bringing it's mining arsenal to 5000 total S9 Antminers with this additional purchase of Bitcoin mining rigs. They are the uncontested largest bitcoin mining farm in North America presently, slated to produce revenue of $4 million gross & $2 million net per month: New release here
Now that hedge funds can hedge bitcoin, the entire digital currency sector is exhibiting new behaviors. The Winklevoss twins (Facebook founders), who have gained notoriety as the first bitcoin billionaires, are making the rounds on financial television preaching all things bitcoin. They correctly explain that the launch of this CBOE bitcoin future (XBT) is ‘a starting gun for a whole new phase of liquidity and price discovery’. Even though individual investors cannot yet access it, it is enabling hedge funds to now buy stocks in a basket of crypto companies with the protection of XBT puts. Bitcoin futures have ‘enabled a sophisticated entrance to the market’.
Let me quickly interrupt this conversation by just highlighting what 'Price Discovery' really means in the context of Bitcoin. This is an imperative distinction that I implore you to be in sync with....and also just 1 of the many variables of how Bitcoin went from $1k at the beginning of January 2017 to nearly $20k by this December month, in less than a year...again this is just ONE variable tailwind...keep in mind that the contents of this video are at the forefront of the crypto anthem of what is really believed on the basis of fundamental innovation by many global leaders & of course the crypto community at large. It's by no means beyond the realm of possibility that Bitcoin can reach a price target of $1 million per bitcoin in our lifetime. In fact, it's actually fundamentally probable. If Bitcoin ever displaced foreign currencies all together, as a one-world currency, then you can bet that market cap to appreciate into the trillions. What then would Bitcoin's price / coin be? That's the ultra aggressive consideration. Conservatively however, let's just consider the possibility that Bitcoin simply "captures between 1% to 10% of the global forex market which implies a price of $100,000 to $1 million per Bitcoin." I understand this sounds asinine to the stock side of the world...we all don't have a reference point, or benchmark comparison that really demonstrates how an asset class can move so quickly in such a short time-frame. I'm asking you to stretch your imagination of what's really possible. Do not forget that Bitcoin once upon a time traded as low as $.003 cents on the US dollar which is already a +658,333,233% gain thus far
Analyst Tom Lee is calling this blockchain craze the ‘millennial story’. Just as demand from baby boomers fueled an equity rally in the 1980’s and 1990’s, millennials are now beginning their own 20-year bull market for digital currency. They don’t trust the old guard. They don’t trust their government. They don’t trust banks. They desire money to be technologically independent. Guys like Jim Cramer don’t understand it yet. I appreciate Jim Cramer, but this discussion is an embarrassment to their profession as they have nearly no clue how Bitcoin mechanics work or what the fundamental tailwinds really are:
I've been to a number of bitcoin conferences and trust me, these millennials don’t even know who Jim Cramer is. For many of these millennials, this is a revolution to escape the mismanagement and abuse of debt by previous generations. Young people do not want to be left holding the bag. Where is it headed? Likely towards the collapse of existing fiat currencies. It’s really the only way to start over. An across the board wipe out of debt. Imagine a chapter 11 bankruptcy filing for the entire global financial system. That’s what’s coming. When the system re-emerges from bankruptcy, all debt will be forgiven and digital currency will replace fiat. The process has already begun. Venezuela, Russia and Iran are each floating rumors of oil-backed digital currency in order to circumvent U.S. sanctions. Every once in a while something comes along and it changes everything…the Internet did that. This is similar. The new digital platform is poised to usher in a complete rotation into a debt-free financial system over the next three to five years. Establishment institutions can’t stop it. They’ve tried. If you’re not ready for this movement, it will run you over.
So what should we own now that bitcoin futures are live? Until brokerages are confident they can handle volumes and volatility of bitcoin options ... we will stick with a core basket of three that includes stock in the Bitcoin Trust (GBTC), stock in MGTI and call options in Overstock. Those 3 are our best Bitcoin proxy vehicles for exposure to Bitcoin on the stock side of the fence. For our Stock members who have not yet taken the plunge, we've been repeating the message ad nauseam...go grab your Bitcoin on coinbase.com You don't have to buy the full coin, you can buy $5000 worth or $5 worth...again, Bitcoin is divisible so you can buy any amount you'd like. The BotTrigger Crypto portfolio is up over 700% thanks in large part to how we have been trading around (in/out) Bitcoin. However, we will likely never sell off more than 50% of our holding unless an electromagnetic bomb wiped out all the servers on earth & somehow took the satellites with it ... in which case we couldn't sell anyways. Bitcoin is a HODL position (origin of another lexicon of the crypto anthem). Be very guarded to ever let it go.
Over the weekend it was announced Morgan Stanley has taken an 11% stake in Overstock ahead of its December 18th tZERO ICO. With all the hoopla surrounding blockchain, we anticipate demand for this tZERO ICO will be better than expected as it’s backed by Morgan Stanley. An SEC-approved platform to launch and trade digital coins should do well between now and 2020. We allowed the stock cool down and consolidate, now it’s time to get back in by lowering the momentum purchase point from $58. Same thing has happened with MGTI. The company will have more than 5,000 Antminer S9’s mining bitcoin in Q1, generating $4 million in monthly revenue and $2 million in monthly profit. Management is currently searching for more cost effective locations around the world for its next mining project. MGT’s ascent is in its infancy.
Today we purchased a new position of 5% allocation on $GBTC, added 5% allocation of $MGTI and also added another 5% allocation of OSTK June 2018 $40 calls. Note* Our current position on $OSTK are the June 20 Call options. We are increasing aggression by adding the $40 strike calls here. Anyone who wanted to taper that aggression might consider the $20 strike calls or just adding exposure via common stock.
Don't you think for a second we have forgotten about AAPL & TSLA opportunities. We are long on both already. But we will be modeling new call spread opportunities when the chart patterns are at ripe conditions. For now, we are comfortably long just where we're at.