Sirwin
Sirwin

My Crypto Stock Portfolio (at Feb 26/21)

By Raymo | Raymo Investment Blog | 1 Mar 2021


(DISCLAIMER - This is not financial advice; this post is for entertainment purposes only.)

Like I mentioned I would do on the previous post, the first thing Monday I entered into a fresh Tesla position with another account so to better reflect their recent bitcoin purchase since my original Tesla shares had already gone up 827% before the purchase.

This was the week when both MicroStrategy and Square made their $1B and $170M, respectively, bitcoin buys. The updated list of publicly-traded stocks with bitcoin treasuries is currently showing that 6.43% of total BTC are held by corporations/funds and growing.

The significant BTC price drop did cause me to make a mistake. Last post I mentioned I would harvest some positions by taking out my cost. I did sell half of my Galaxy Digital (GLXY) shares since it had doubled but after a news release the next day detailing what appeared to be a blowout quarter, I bought back in but now at a higher cost base. Hence, my total returns have been reduced. Maybe that was a mistake in selling in the first place? GLXY is a diversified company and will only be getting bigger. They have their fingers in so many pieces of the crypto pie - merchant banking, co-advisors to many bitcoin funds, venture capital, mining operation, etc.

In the meantime, here are my returns for the last sixteen weeks based on the percentage gain/loss on the valuation tab on my discount brokerage summary page.

 

Name   Ticker BV Price Mkt Price Return

MicroStrategy MSTR $172.94 $750.41 334%

Tesla   TSLA $979.64 $847.82 -13%

Square   SQ $220.28 $230.03 4%

Mogo MOGO.wt $2.60 $7.95 206%

Banxa  BNXA $2.42 $2.55 6%

Galaxy Digital GLXY $8.03 $16.65 107%

Bigg Digital   BIGG $0.38 $1.17 209%

Voyager Digital VYGR $0.78 $19.07 2348%

Hut 8 HUT.WT $0.27 $8.19 2979%

Hive Blockchain HIVE $0.83 $4.80 476%

Bitfarms BITF $0.48 $5.90 1122%

Riot Blockchain RIOT $29.25 $54.90 88%

Marathon MARA $30.44 $37.84 24%

Fortress    FORT $0.22 $0.61 172%

Cypherpunk HODL $0.18 $0.34 93%

Mechanical Tech MKTY $5.30 $7.29 38%                        

3iQ Bitcoin Fund QBTC $30.64 $61.31 100%

Purpose BTC ETF BTCC $9.74 $9.80 1%

Evolve BTC ETF EBIT $22.72 $22.70 0%            

Ether Capital ETHC $1.11 $3.25 193%

3iQ Ether Fund QETH $14.63 $32.00 119%

Defi Holdings   DEFI $1.09 $2.58 137%

 

Ethereum Stocks

Ether Capital (ETHC): +193.1% (Feb 26/21) +225.6% (Feb 19/21) +231.9% (Feb 12/21) +249.0% (Feb 5/21) +170.6% (Jan 29/21) +233.7% (Jan 22/21) +238.2% (Jan 15/21) +277.0% (Jan 8/21) +197.6% (Dec 31/20) +57.8% (Dec 24/20) +68.7% (Dec 18/20) +38.9% (Dec 11/20) +38.0% (Dec 4/20) -17.0% (Nov 27/20)

3iQ The Ether Fund (QETH): +118.7% (Feb 26/21) +190.5% (Feb 19/21) +230.0% (Feb 12/21) +234.9% (Feb 5/21) +139.2% (Jan 29/21) +119.5% (Jan 22/21) +94.2% (Jan 15/21) +117.7% (Jan 8/21) +39.0% (Dec 31/20) +11.6% (Dec 24/20) +10.4% (Dec 18/20) -3.9% (Dec 11/20)

Defi Holdings (DEFI.neo):+137.2% (Feb 26/21) +175.9% (Feb 19/21) +49.0% (Feb 12/21) -9.9% (Feb 5/21)

The Ethereum stocks all fell during the week. I bought a relatively unknown company that has been renamed Defi Holdings.  It's almost like 2017 when every company had 'blockchain' in their name. Now it's 'DeFi'.  At least, I'm early, so there's that.

Enterprise

MicroStrategy (MSTR): +333.9% (Feb 26/21) +457.3% (Feb 19/21) +498.1% (Feb 12/21) +366.1% (Feb 5/21) +256.9% (Jan 29/21) +233.7% (Jan 22/21) +234.3% (Jan 15/21) +207.4% (Jan 8/21) +124.7% (Dec 31/20) +86.5% (Dec 24/20) +74.2% (Dec 18/20) +65.3 (Dec 11/20)+89.7% (Dec 4/20) +56.9% (Nov 27/20) +28.4%  (Nov 20/20)  +11.2% (Nov 13/20)

MSTR stock price has now dropped back two weeks in a row as they continue their plan to buy more bitcoin. That was another $600 M (expanded to $1B) convertible notes financing at 0% coupon rate. Their stock price is now back to its price in early February.

Their BTC holdings were up 87% vs the stock being up 334% . Over the last few months, MSTR stock has risen faster than its BTC holdings but one factor is that MSTR has continued to purchase more bitcoin, buying at ever increasing prices. They were a major beneficiary of their own event; they now hold over $4B in BTC.

Interesting that MSTR market cap is only $7B, way down from their $11B high during the internet era.

Tesla (TSLA): -13.5% (Feb 26/21)

The market does not seem to like the bitcoin purchase so far.

Fintech

Square (SQ): +4.4% (Feb 26/21) +25.6% (Feb 19/21) +23.8% (Feb 12/21) +9.1% (Feb 5/21) -2.0% (Jan 29/21) +1.2% (Jan 22/21) +3.4% (Jan 15/21) +9.6% (Jan 8/21) -1.2% (Dec 31/20) +3.6% (Dec 24/20) +6.9% (Dec 18/20) -1.7% (Dec 11/20)

Finally, Square added more bitcoin ($170M) to their stash but their return is only +4.4% since I bought SQ.

Mogo (MOGO.wt): +200.0% (Feb 26/21) +329.4% (Feb 19/21) +262.3% (Feb 12/21) +92.5% (Feb 5/21) +20.8% (Jan 29/21) +40.4% (Jan 22/21) +66.4% (Jan 15/21) +58.5% (Jan 8/21) -1.5% (Dec 31/20)

Finally, Mogo showed up on the bitcoin treasury list as I predicted they would. I bought these warrants two months ago and this week the MOGO warrants fell back a little, now up only 200%. Mogo is a Canadian fintech company with a crypto division. (My first $100 bitcoin buy on the platform is now over $400.)

Banxa (BNXA): +5.5% (Feb 26/21)

Self-described as the Paypal of crypto and I have encountered that name before - in trying to make a deposit on Binance, Banxa was one of 2 names involved in their payment processing.

Bitcoin Miners

Bitfarms (BITF):+1121.7% (Feb 26/21) +1542% (Feb 19/21) +804.9% (Feb 12/21) +676.5% (Feb 5/21) +573.0% (Jan 29/21) +537% (Jan 22/21) +786.0% (Jan 15/21) +717.9% (Jan 8/21) +415.6% (Dec 31/20) +334.8% (Dec 24/20)+175.4% (Dec 18/20) +32.5% (Dec 11/20) +49.1% (Dec 4/20) +49.1% (Nov 27/20) +42.9% (Nov 20/20) +22.12% (Nov 13/20)  

Hut 8 Mining (HUT.wt): +2980.8% (Feb 26/21) +3240.4% (Feb 19/21) +2552% (Feb 12/21) +1352% (Feb 5/21) +1145.1% (Jan 29/21) +1258% (Jan 22/21) +1660.5% (Jan 15/21) +2243.6% (Jan 8/21) +524.5% (Dec 31/20) +411.6% (Dec 24/20) +249.8% (Dec 18/20) +39.2% (Dec 11/20) +50.5% (Dec 4/20) -4.1% (Nov 27/20) -6.0% (Nov 20/20) -32.3% (Nov 13/20)

Hive Blockchain (HIVE): +476.6% (Feb 26/21) +710.8% (Feb 19/21) +376.9% (Feb 12/21) +233.9% (Feb 5/21) +190.7% (Jan 29/21) +208.7% (Jan 22/21) +241.1% (Jan 15/21) +302.4% (Jan 8/21) +187.1% (Dec 31/20) +154.7% (Dec 24/20) +201.5% (Dec 18/20) +55.0% (Dec 11/20) +49.0% (Dec 4/20) +16.0% (Nov 27/20)

Cypherpunk Holdings (HODL):+93.4% (Feb 26/21) +93.4% (Feb 19/21) +90.5% (Feb 12/21) +62.1% (Feb 5/21) +19.4% (Jan 29/21) +22.3% (Jan 22/21) +45.0% (Jan 15/21) +76.3% (Jan 8/21) +19.8 %(Dec 31/20) +10.1% (Dec 24/20) +0.4% (Dec 18/20) -2.8% (Dec 11/20)

Fortress Blockchain (FORT):+171.9% (Feb 26/21) +136.2% (Feb 19/21) +27.0% (Feb 12/21) -4.2% (Feb 5/21) -10.9% (Jan 29/21) -1.9% (Jan 22/21)

Marathon (MARA): +24.3% (Feb 26/21) +77.0% (Feb 19/21) +58.3% (Feb 12/21) -6.8% (Feb 5/21)

Riot Blockchain (RIOT): +87.7% (Feb 26/21) +203.6% (Feb 19/21) +111.1% (Feb 12/21) +0.6% (Feb 5/21)

Mechanical Technology MKTY:+37.6% (Feb 26/21) +122.7% (Feb 19/21) +69.9% (Feb 12/21)

Miners all dropped this past week but still generating great returns.

Check out this tour of the Hut 8 facility in Alberta.

Seeking Alpha story may have sparked some price movements in MKTY the previous week but the kicker could be an imminent NASDAQ up-listing, which according to the company, could be forthcoming within the next couple months.

At some point there has to be some M&A action in the miner space. You can build an arms race for only so long. Either miners merge with each other or a larger entity like Galaxy (which has started a mining operation) takes them out. To do that, GLXY needs to have a much larger market cap.

Crypto Trading Platform

Voyager Digital (VYGR): +2348.8% (Feb 26/21) +2327.0% (Feb 19/21) +2158.8% (Feb 12/21) +2018.8% (Feb 5/21) +922.1% (Jan 29/21) +766.8% (Jan 22/21) +874.6% (Jan 15/21) +648.6% (Jan 8/21) +534.4% (Dec 31/20) +441.9% (Dec 24/20) +366.1% (Dec 18/20) +181.2% (Dec 11/20) +129.9% (Dec 4/20) +99.0% (Nov 27/20) +40.0% (Nov 20/20) +45.1% (Nov 13/20)

VYGR continued its torrid pace upwards with a stellar 2348% gain since the November 20, 2020 week. Price still went up this week, possibly due to the expected earnings report and conference call this coming Monday. There's so much good news for the company - valuation comparisons to the imminent Coinbase Direct Listing, a revised loyalty program, a soaring VGX token .

CEO Steve Ehrlich continued to spread the news all over the place (especially their Loyalty Program), appearing before both stocks and crypto crowds. (I noticed a language change in one of his presentations - sounds like the Canadian offering of the Voyager app might now be the first half of the year instead of Q1. Hope it's faster as I want access to the Voyager app and to buy the VGX token and other cryptocurrencies.

Now that the financing is done, what can we expect? Well, one thing is that they are expecting 100 M users on the platform - from Canada, New York in the first half of the year and Europe in the second half. Also expect more acquisitions as CEO Ehrlich was involved in 8 acquisitions in 7 years, while at ETrade and Lightspeed. The future is looking good.

BIGG Digital Assets (BIGG): +100.4% (Feb 26/21) +109.0% (Feb 19/21) +61.0% (Feb 12/21) +69.0% (Feb 5/21) +22.8% (Jan 29/21) +17.5% (Jan 22/21) +32.0% (Jan 15/21) +53.1% (Jan 8/21) +32.0% (Dec 31/20) +24.1% (Dec 24/20) +21.4% (Dec 18/20) -12.9% (Dec 11/20)

One of BIGG's subsidiaries is netcoins.ca, a Canadian crypto exchange where I might start trading on. I did buy more BIGG shares after watching their presentation with Adelaide Capital.

I like their Qlue product offering - comparable to product at Chainalysis, which has privately raised $100M.

Bitcoin Funds

3iQ The Bitcoin Fund (QBTC): +100.1% (Feb 26/21) +124.2% (Feb 19/21) +120.1% (Feb 12/21) +78.0% (Feb 5/21) +59.6% (Jan 29/21) +57.4% (Jan 22/21) +80.2% (Jan 15/21) +109.9% (Jan 8/21) +54.5% (Dec 31/20) +24.7% (Dec 24/20) +21.7% (Dec 18/20) -16.8% (Dec 11/20) -10.1% (Dec 4/20) -15.0% (Nov 27/20) -5.1% (Nov 20/20) -11.1% (Nov 13/20)

Galaxy Digital (GLXY): +44.7% (Feb 26/21) +99.3% (Feb 19/21) +136.3% (Feb 12/21)+67.1% (Feb 5/21) +13.8% (Jan 29/21) +18.8% (Jan 22/21) +29.9% (Jan 15/21) +37.6% (Jan 8/21) +34.5% (Dec 31/20) +15.3% (Dec 24/20) +20.0% (Dec 18/20) -10.5% (Dec 11/20) -9.9% (Dec 4/20) -10.8% (Nov 27/20) -6.6% (Nov 20/20) 

Both the 3iQ Bitcoin Fund and GLXY went down. Galaxy presented at the MicroStrategy event and despite some early increase, the stock price fell back this week. They should be a major beneficiary of the MSTR event as they presented on the second day, pitching their 'white glove' services to 8000 executives. Only time will tell when all the value in their various divisions begin to unlock.

I took out my cost in GLXY but then bought back in after a news release mentioning a blowout quarter - 650% increase in comprehensive revenue - increasing my cost base and decreasing my returns. In the table above, I forgot to increase the book value of GLXY due to the re-purchase but it does show that had I had done nothing, my return would be 107% instead of 44%.

Exchange traded funds - ETF

Purpose Bitcoin ETF - (BTCC): +0.6% (Feb 26/21)

Evolve Bitcoin ETF - (EBIT): -0.1% (Feb 26/21)

For the heck of it, I decided to dip my toes into the world's first two Bitcoin ETFs - both Canadian-based and debuting on the same week. Already a battle is brewing.

Actual Bitcoin

BTC purchased off Coinbase: +165.8% (Feb 26/21) +241.5% (Feb 19/21) +183.7% (Feb 12/21) +146.1% (Feb 5/21) +119.2% (Jan 29/21) +121.7% (Jan 22/21) +159.1% (Jan 15/21) +177.5% (Jan 8/21) +114.1% (Dec 31/20) +79.7% (Dec 24/20) +76.0% (Dec 18/20) +44.8% (Dec 11/20) +52.7% (Dec 4/20) +49.3% (Nov 27/20) +59.7% (Nov 20/20) +39% (Nov 13/20)  (using https://www.bitcoindollarcostaverage.com/)

 

Conclusion:

 This week saw the debut of the world's first two Bitcoin ETFs and continued BTC purchases by corporate treasuries. Despite a down week for crypto,, my returns have been quite good.  I still have 3 stocks with four digit returns - VYGR, HUT.wts and BITF.

One needs to prepare for both a BTC super cycle and giant crash in the near future.

The goal for next couple weeks - wait for earnings on VYGR, BNXA, continue harvesting stock positions.

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Raymo
Raymo

Crypto/microcap/domain investor.


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