The Wolf Den #1095 - The Perfect Pitch
And 100K all day....
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In This Issue:
The Perfect Pitch
Bitcoin Thoughts And Analysis
Legacy Markets
An Open Market Reflection
Putin Speaks On Bitcoin
Alex Mashinsky Gets The Hammer
New York Mayor Brags About Bitcoin
Altcoin Season: Ethereum Approaches $4K, Tron & BNB Skyrocket | Bitcoin's Next Inning
The Perfect Pitch
I wrote this newsletter last night, before Bitcoin smashed through $100K. As you know, my view was that this was inevitable and would come sooner than later. Although it is simply another number, it feels meaningful to the community, and will likely be a huge mainstream news story.
Congrats to all of you!
Now back to our regularly scheduled programming.
Earlier this week, Michael Saylor, CEO of MicroStrategy, revealed the pitch he delivered to Microsoft's board of directors and CEO about Bitcoin. For those unfamiliar with the backstory, Saylor was invited to speak after shareholder activists requested he address the board. However, regulatory constraints limited him to a mere three minutes to make his case.
In those brief moments, Saylor delivered what might be the quintessential 3-minute Bitcoin pitch for corporations. Remarkably, it took him 21 attempts to perfect the presentation before sharing it publicly—a testament that even the best among us strive for refinement. And here’s the kicker: the pitch involved an astonishing 44 slides!
The orange pill has now been offered to Microsoft. The decision to embrace it rests with the company and its shareholders.
The vote on whether Microsoft will act on Bitcoin is set to take place in just five days, on December 10. The document below (two images) includes the information Microsoft provided to its shareholders about Bitcoin. Notably, the National Center for Public Policy Research submitted a supporting statement for voters to consider.
In a Schedule 14A filing with the SEC dated October 24, Microsoft’s board recommended against adopting Bitcoin. However, this recommendation was made prior to Michael Saylor’s presentation. Perhaps opinions have shifted since then—I'm cautiously optimistic.
Vanguard, Microsoft’s largest shareholder with a 9% stake, will almost certainly vote no. Other major shareholders might vote yes, making the outcome a toss-up. As far as I understand (though I’m not a corporate lawyer), a simple majority is sufficient for the vote to pass. Speculating on how each party will vote seems futile—we’ll know the outcome soon enough.
The supporting statement in favor of Bitcoin is compelling. Much like Saylor’s presentation, which you’re about to read, it feels like the strongest possible case given the constraints of the format. If Microsoft chooses not to take the orange pill, other companies inevitably will—it’s that simple. Bitcoin sells itself as its message continues to spread.
Before diving into the 3-minute presentation, I want to provide some context from a longer talk Saylor gave a few days later. Keep this perspective in mind as you review his concise pitch.
The context: “It turns out that this is not really a presentation just for Microsoft; this is a presentation for every company on Earth—every big tech company. It wouldn’t be any different if I were talking to Apple, Meta, or Google. It wouldn’t be different if I were talking to IBM, General Electric, or Disney. It wouldn’t be different if I were talking to one of the 2,000 zombie companies in the Russell 2,000. It wouldn’t be different if I were talking to any of the 50,000 public or private companies.
I would say the same thing to 400 million companies that I am going to say here today about Microsoft. It’s the same exact idea. The idea starts with this observation: great companies are defined by catching the wave. Whether it’s the personal computer wave, the internet wave, the GUI wave, the mobile wave, the cloud wave, or the AI wave, what happens characteristically is that when the wave is happening, there are some people who notice it, are sensitive to it, and realize everything is going to change—whether that’s Marc Andreessen, Jeff Bezos, or Steve Jobs—and then there is everyone else who dismisses it and refuses to accept that it’s even happening. Right now, the wave is digital capital. Most people don’t even know it’s a wave; they don’t even know digital capital exists.”
What you’re about to read is a universal 3-minute pitch that could easily substitute the word “Microsoft” and swap in a few tailored data points. Michael Saylor has effectively given the world the blueprint for Bitcoin advocacy. While countless boards remain unaware that Microsoft is even holding a vote, this presentation stands as the definitive example—the perfect pitch.
“Microsoft can't afford to miss the next technology wave, and Bitcoin is that wave.
Bitcoin represents the greatest digital transformation of the 21st century. It represents digital capital. The global wealth is distributed across assets that provide utility and others that preserve capital, but risk is destroying trillions of dollars of that capital every single year. Investors are turning to digital capital in the form of Bitcoin in order to avoid that risk.
Digital capital is economically and technically superior to physical capital, and it represents a revolutionary advance in capital preservation. The asset class itself is growing from trillions to hundreds of trillions of dollars, and it is backed by digital power along with political and economic power.
It makes sense for Microsoft to be powered by digital capital. Bitcoin's the best asset you can own—the numbers speak for themselves. It makes a lot more sense to buy Bitcoin than to buy your own stock back or to hold Bitcoin rather than holding bonds. If you're going to outperform, you're going to need Bitcoin.
Those bonds are undermining your options market and your equity liquidity. Luckily, you have an alternative. Public support for Bitcoin is surging, as is political support, as is support for the US Bitcoin Strategic Reserve, as is Wall Street support. And the President of the United States says: Never sell your Bitcoin.
That's why we're entering year one of the crypto Renaissance. And you have a choice to make: cling to the past or embrace the future. Divest billions of dollars and slow your growth rate, or invest billions of dollars and accelerate your growth rate.
You've surrendered hundreds of billions of dollars of capital over the past five years, and you've just amplified the risks that your own shareholders face. If you want to escape that vicious cycle, you're going to need an asset without counterparty risk.
What if you could buy a hundred-billion-dollar company growing faster than Microsoft for one times revenue? What if you could keep doing it every single year?
It's time for Microsoft to evaluate its Bitcoin strategic options. We've created an open-source model—you can plug in your own assumptions. You can convert your cash flows, your dividends, your buybacks, and your debt into Bitcoin. If you do that, you'll add hundreds of dollars to the stock price. You can create trillions of dollars of enterprise value. You can strip away risk from your shareholders, and you can prosper on the Bitcoin standard.
So, do the right thing for the world—and adopt Bitcoin.”
If you want to look over the 44 slides in PDF form, you can do that HERE.
If you want to watch the presentation, you can do that HERE.
Keep in mind, this pitch is expertly tailored for companies, targeting top-level decision-makers and major shareholders. If you’re presenting Bitcoin to your uncle or grandma, you’ll need to adapt the approach to suit their perspective. Saylor knew exactly who his audience was and delivered his presentation with precision and impact.
In other news, Paul Atkins is officially on board. This is a significant win for the industry..
Also, Jerome Powell, Chairman of the Federal Reserve, made the following statement at the DealBook Summit yesterday: “Bitcoin is just like gold, except it's digital. Bitcoin is used as a speculative asset; it's a competitor with gold, not the US dollar.” Frankly, I don’t care if this was mentioned at the end of an unrelated monologue—this is astonishing. The fact that Bitcoin is not seen as a threat to the U.S. dollar by the very institution that controls its supply is profoundly bullish.
You can watch that video HERE.
Before wrapping up, I want to keep a running tally of where the top coins stand in terms of their all-time highs from previous cycles. Pretty soon, I think the first list will be bigger than the second, at least when it comes to the top 15 coins by market cap.
The following coins have broken previous cycle all-time highs:
BTC (#1), BNB (#5), SOL (#6), TRX (#11), TON (#14)
The following coins have NOT broken previous cycle all-time highs:
ETH (#2), XRP (#3), DOGE, (#7), ADA (#8), AVAX (#12), SHIBA (#13), DOT (#15)
Coins I did not include in this list:
USDT (#4), USDC (#9), STETH (#10)
I know I sound like a broken record, but the world is changing—and it’s happening very fast. I can barely keep up. To everyone who’s made it this far and stuck around, I’m proud of you. You’ve earned this.
Bitcoin Thoughts And Analysis
100K all day.
Enjoy the moment.
Legacy Markets
US equity futures fluctuated after a record-breaking rally, with the S&P 500 on track for its best year since 2019, while Bitcoin surged past $100,000 following President-elect Donald Trump’s nomination of a crypto advocate as SEC chair. French assets recovered slightly after political upheaval led to the ousting of Michel Barnier’s government, with the CAC 40 index rising 0.3% and the euro strengthening by 0.2%. Federal Reserve Chair Jerome Powell emphasized the resilience of the US economy, suggesting caution in rate adjustments, as markets await key jobless claims and payroll data. In Asia, markets were mixed, with Korea facing political uncertainty amid potential impeachment proceedings. Meanwhile, oil prices steadied as OPEC+ discussed delaying a production increase, and US business sentiment improved significantly following Trump’s election victory.
Key events this week:
Eurozone retail sales, Thursday
US initial jobless claims, Thursday
Eurozone GDP, Friday
US jobs report, consumer sentiment, Friday
Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 5:51 a.m. New York time
Nasdaq 100 futures fell 0.1%
Futures on the Dow Jones Industrial Average were little changed
The Stoxx Europe 600 rose 0.2%
The MSCI World Index was little changed
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro rose 0.2% to $1.0527
The British pound rose 0.1% to $1.2720
The Japanese yen rose 0.3% to 150.16 per dollar
Cryptocurrencies
Bitcoin rose 4.6% to $102,400.9
Ether rose 2.2% to $3,930.1
Bonds
The yield on 10-year Treasuries advanced two basis points to 4.20%
Germany’s 10-year yield was little changed at 2.06%
Britain’s 10-year yield was little changed at 4.25%
Commodities
West Texas Intermediate crude rose 0.2% to $68.71 a barrel
Spot gold was little changed
An Open Market Reflection
My friend Nebraskangooner shared this post on X, and it was too good not to repost here—this is from the mind of a master.
“I prefer to look at my Crypto account growth in percentages. Don't look at the gains other people are making and gigantic PNLs being posted with leverage. Just focus on myself.
Focusing on trying to double an account quickly is more likely to lose money from over-exposure. Just focus on growth with good risk management and you'll likely see better and more consistent gains over time and through any market conditions.
Biggest thing that I see happen is people who constantly over-expose get absolutely smashed on big red days when they happen and this can wipe out a large portion (or all) of bull market gains.
I've been adding no more than 10% exposure to any position in my main portfolio this week and it's up 10% in 3 days. That's really good growth in my opinion. Especially if you consider most growth focused stock accounts expect 7% returns in a YEAR. Could it be up more? Probably but could it be down more? Definitely. Also some positions I may have sold at a loss on drawdown if I were overexposed.
I just keep focused on the goal and hand and drown out any outside factors. Only way to keep from getting carried away. And over years and years I can maintain consistent upside in a portfolio even on red days or weeks or months and in very bullish conditions the growth is just expedited but drawdowns are always contained. Drawdowns are part if it and you have to expect some red days but also have to be graceful on those days.”
Putin Speaks On Bitcoin
“Who can ban Bitcoin? Nobody. And who can prohibit the use of other electronic means of payment? Nobody. Because these are new technologies. And no matter what happens to the dollar, these tools will develop one way or another, because everyone will strive to reduce costs and increase reliability.”
The world is changing. Putin is coming around to Bitcoin. A Shanghai court just ruled that Bitcoin should be treated as property. Trump wants the U.S. to lead the industry. Brazil’s Congress is proposing a Bitcoin strategic reserve. Vancouver’s Mayor Ken Sim is backing Bitcoin. Morocco is planning to do a complete 180.
And here’s the crazy part—you’d think this happened over a year, but it’s all just from the past few weeks or months.
Alex Mashinsky Gets The Hammer
The Celsius saga is finally coming to a close and justice has been served. The former CEO of Celsius, has pleaded guilty to fraud and market manipulation charges, agreeing to a 30-year prison sentence. Indicted in July 2023 on seven counts, including conspiracy and token manipulation, he admitted to misleading customers and inflating the value of Celsius’ token, CEL, for personal gain. Prosecutors allege he profited $42 million from token sales while deceiving investors with false promises. I’m surprised Mashinsky got more years than SBF (25 years), but who knows. Either way, I’m glad these two are paying for what they stole.
New York Mayor Brags About Bitcoin
New York City mayor Eric Adams said the following at a press conference yesterday, “Remember y’all laughed at me when I first got my Bitcoin — who’s laughing now? Go look at my Bitcoin now. You all mock me. ‘You’re taking your first three paychecks in Bitcoin. What’s wrong with you?’ Now you wish you would have done it.”
I don’t think Adams meant much by the statement—he was probably just feeling vindicated after being doubted for taking his first three paychecks in Bitcoin and wanted to call out his critics. That said, it probably wasn’t the best way to get people on board with Bitcoin.
Altcoin Season: Ethereum Approaches $4K, Tron & BNB Skyrocket | Bitcoin's Next Inning
I am joined by David Duong, the Head of Institutional Research at Coinbase, to discuss the latest in crypto amid a massive altcoin bull run!
Chris Inks will join us in the second part to share some interesting trades in crypto and beyond.
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.