[00:01] strategy recently selling Bitcoin and what they're doing and oh, it's a scam, All capital markets operations are exactly the same. So, this is Google or build out AI. And they've underwritten 30 billion in
[00:18] uh 40 billion, uh this is for class A and C, and then Berkshire. Private placement. So, Berkshire got a discount to the market price, a little bit of a discount, straight cash for new
[00:32] Uh the AI companies are diluting their stock right now in order to invest in something that is growing above the cost of capital, which is AI. Now, that's what Strategy are doing.
[00:44] markets can only do one thing, which is raise dollar cash through equity, preferreds, or debt, and then invest in something that outgrows the cost of that capital. Now, if you're raising equity, the cost is zero.
[00:57] Strategy, their uh cost is currently 11 and 1/2%, maybe that goes down and up. It's the same game. It's exactly the same game. It's exactly the same. Right? Raise capital basically for free, invest in something that's growing at a faster
[01:10] That's it. It's really, really simple. Alphabet are doing it, Strategy are doing it, every other public company is doing it in the S&P 500, that's what they do. That's the game, right? In terms of Bitcoin, who cares, right? This
[01:24] thing is in a bear market, 50% down from a high, 70,000 a coin. to 40%. Uh Bitcoin is kind of underperforming now,
[01:38] which is where all the all of the actual excess returns come. So, it's really as simple as that, right? Professionals are professional because has gone home. They do the right things over and over, right?
[01:53] There's a huge economic boom because of AI and everything like that. Dollars are being debased. US manufacturing activity is rising. That's fantastic news. Bitcoin, when you buy it in a bull
[02:06] not the best, right? When you buy it in a bear market, it outperforms. So, we're in a bear market right now. Right, this is um kind of recession indicators. The
[02:19] durable goods equipment going up, you see the PMIs going up. We're in a the start of a massive economic expansion driven by AI, driven by all of this And the public markets are the same. You raise capital, either you you just
[02:32] debt and you invest in something that outruns the debt. That's it. Bitcoin's 200-week moving average. It's underperforming other assets right now. it's like difficult, right? It's like, "Ah, I want to put money in. I'm not
[02:47] while." That's the game. So, anything but kind of positive right here. If you do trade crypto, Bitcoin, all on Bybit. Click the link in the description, make a deposit, they'll
[03:00] give you a deposit bonus up to $30,000 to trade with. It's not interesting or investing, but this is one of those times where your strategy over the long growth rate. You know the Nasdaq has a growth rate. Right? So, you've got
[03:14] basically a few like a handful of basic investments. Bitcoin, gold. What do you percentage of your portfolio is it? You have Nasdaq, S&P. the outperformance cuz AI is the growth, right?
[03:28] That's pretty much it. Now you've got cash management. Do you want something Want to take a bit more risk on that one because well strategy, you don't really know. Okay, great, but they're paying 11 and 1/2%
[03:41] price. And they keep paying the dividends. You you. Or if you just want, you know, more certainty but way less return, then mean there's nothing else to invest in, right?
[03:55] years, the growth rates, you have to you stay when the growth comes. Look, they sold some Bitcoin right here. This is what companies do. 200 week moving average,
[04:11] this is where you get the performance, right here. This was the FTX flop. We're at a similar point in relation to the overall growth trend. Not many people invest here. It's kind of a little bit strange. But,
[04:23] bear market. Everyone's given up and it's at 70,000 a coin. It's right on trend. It's going well, right? It's going well. Institutional penetration of ETFs and digital asset treasuries. I mean look at
[04:37] don't worry about the price, right? If you have a shorter time horizon, maybe don't put everything in Bitcoin because Bitcoin usually has these long bear markets and then suddenly it
[04:49] re-rates, right? That's how it works. If you don't want that volatility, then that's like S&P, money market fund, but you'll be reducing, I think, longer term results, right? Because Bitcoin does have typically much higher returns
[05:02] over the long term, right? Market cap by asset, these are all the We're seeing a huge growth phase. It's all the money is being sucked up by AI and all of that, right? Anthropic, SpaceX. These are the biggest IPOs in
[05:15] history, right? Anthropic, SpaceX, OpenAI, all of the other ones, right? Google now, basically an IPO. $80 billion they're raising. That is more than strategy has raised in their entire history to buy Bitcoin. Or at one and a
[05:28] their knickers in a twist about, "Oh, strategy and Google raising 80 billion." So, it just shows us how small we are and how how we're still actually in the early stages of of BTC. So, it's going
[05:40] on underperformance for a while and then suddenly like this it re-rates. That We all know that now. It's an asset. People own it. It's not going away. So, If you trade Bitcoin crypto, you can trade them all on Bybit. Click the link
[05:55] they'll give you a bonus to trade with. I'm James from Invest Answers, cheers for watching, and I'll see you in the next one.