Unrivaled Investing Overview

Introduction

• Channel focuses on potential multi-baggers: stocks that can increase significantly in value.
• Example: MicroStrategy (MSTR) increased by 2,000% in recent years, outperforming Bitcoin, major US indices, gold, silver, and tech stocks.
• Disclosure: Daniel owns shares in App, another company with potential.

MicroStrategy's Unique Strategy

• MicroStrategy aims to be the first Bitcoin treasury company.
• Strategy involves issuing debt and equity to purchase Bitcoin.
• Plans to raise $42 billion through $21 billion in equity and $21 billion in fixed income.
• Inspired by "Hitchhiker's Guide to the Galaxy"'s concept of the meaning of life (42).

MicroStrategy's Software Business

• Legacy operations include a software business.
• Recent quarters show declining revenue and profitability.
• Software segment valuation hard to justify beyond $1-2 billion.

Bitcoin Holdings

• As of Q3 2024, MicroStrategy's Bitcoin cost around $10 billion for 252,000 coins.
• Aggressive increase in Bitcoin purchases with $21 billion stock offering.
• Billion-dollar debt issuance at low interest due to convertible notes.
• Convertible notes strategy aligns with expected Bitcoin price increases.

Recent Developments

• Significant Bitcoin purchase during November-December period.
• Acquired 1.5 billion in Bitcoin at $96,000 per coin.
• Total Bitcoin holdings as of December 1: 402,000 Bitcoins ($23.4 billion purchase price).

Market Perspective and Strategy

• Not financial advice; Daniel does not own MicroStrategy shares.
• Evaluation of membership benefits in the Unrivaled Investing community.

Thoughts on Bitcoin

• No current Bitcoin holdings; educated on its asymmetric bullish potential.
• "Broken Money" book highlights Bitcoin's value against authoritarian regimes and currency devaluation.
• Fixed supply of 21 million coins viewed as hedge against fiat currency issues.
• Potential for Bitcoin to increase and become a more significant global asset.

MicroStrategy's Valuation

• Current market cap: ~$103 billion.
• Bitcoin holdings valued at ~$38 billion, showing a $60 billion premium in market cap.
• Premium suggests investor belief in Bitcoin's future growth.

Investment Alternatives

• Value investing strategy contrasts with MicroStrategy's premium.
• Suggestion to buy Bitcoin through brokers, avoiding premium.
• Interactive Brokers noted for lower trading costs.

Conclusion

• MicroStrategy's premium suggests buying Bitcoin directly may yield better returns.
• Consider Bitcoin as part of a diversified portfolio.

Final Thoughts

• Importance of open-mindedness in investing.
• Encouragement to explore Bitcoin as a potential asset.