January 10, 2025
Buy into the Next 'Big Bang'
Dear Subscriber,
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| By Michael A. Robinson |
Not to brag, but I witnessed the “big bang.”
Now, I know my hair isn’t dark anymore, but I wasn’t around 13.8 billion years ago.
However, I saw with my own eyes the dawn of a then-new and now fast-growing asset class.
You see, in May 2013, I attended what’s considered the very first Bitcoin conference.
At the time, no member of big media or Wall Street was interested in the world’s first decentralized digital currency.
But I sure was …
In fact, this conference was where I met several of the sector’s earliest investors.
That includes the Winklevoss twins, who launched the Gemini crypto exchange in 2014 and became Bitcoin billionaires.
I was also introduced to the CEO of a startup that would go on to become a crypto powerhouse.
And today, I’ll give you the details on why his company is set to grow its earnings by more than 1,500%.
Even if you wouldn’t consider yourself a “crypto person,” I think you’ll agree that we’re at the start of another brand-new era.
Just like we all look back at the advent of the internet … or when ETFs opened up the world of simple sector, currency and country investing … or even when Apple unveiled the first iPhone …
We’re all going to remember where we were when we witnessed …
The Rise of Bitcoin
Twelve years ago, Bitcoin had very little attention — and even less value.
At the time, what would become the dominant digital currency was trading for around $100 a coin.
By the time I had a chance to begin telling investors about Bitcoin’s potential, its value had jumped to around $300.
And of course, that was merely the beginning. Recently, Bitcoin hit a high of $106,000 per coin.
It’s given up some of those recent gains. Even so, just imagine the potential returns you could be sitting on if you’d bought just 10 Bitcoins at $1,000 each.
Your $10,000 investment would be worth $1 million — for a stunning gain of 9,990%.
The rise of Bitcoin has been partly due to its legitimacy and acceptance everywhere from Main Street to Wall Street.
But its most recent rally is at least partly due to support from a man we’re all familiar with at this point …
Trump’s Foray into Crypto
That man is Donald Trump.
Trump is headed back to the White House next week and had branded himself the pro-crypto candidate on the campaign trail.
That may seem strange given he wasn’t exactly Bitcoin’s biggest fan.
But Trump relied on support — both financial and political — during the election from names like Elon Musk, Robert F. Kennedy Jr. and Cantor Fitzgerald CEO Howard Lutnick.
And what do those three have in common? Interest in cryptocurrencies!
Getting their donations required Trump to make big promises to the crypto industry.
Last July, Trump headlined the biggest Bitcoin conference of the year. There, he said that, if re-elected, he’d make sure the federal government never sells its Bitcoin holdings.
Later in the campaign, Trump discussed a $20 billion Bitcoin Reserve — similar to the U.S. Strategic Petroleum Reserve but for crypto.
When asked about the idea’s legitimacy, he told CNBC’s Jim Cramer, “We’re going to do something great with crypto.”
When Trump secured re-election in November, Bitcoin’s banner year took another leap forward.
And now, it’s not just that Bitcoin is here to stay. It’s that cryptos in general are finally getting their time in the sun because of it.
The thing is, even with its involvement in Washington and on Wall Street, Bitcoin and other cryptos can be a bit challenging to trade, or even understand.
How does it work? Where can you buy or sell Bitcoin? How do you know what its value is?
With so many questions, creating a platform that facilitated the answers and crypto-related transactions became critical.
And the rise of one such platform is why it’s become so valuable …
You Can Invest in What
Crypto Enthusiasts Invest on
The platform I’m referring to is called Coinbase (COIN).
Coinbase is the largest crypto exchange platform in the U.S.
But you don’t have to look any further than the Nasdaq to access it!
Founded in 2012 by CEO Brian Armstrong — one of the men I met at the conference I mentioned earlier — Coinbase caters to retail and institutional investors alike.
In fact, more than 245,000 people use Coinbase in more than 100 countries. And the platform facilitates $185 billion in quarterly volume traded.
Coinbase’s main retail product is a mobile app. This enables users to buy, store and trade various cryptos.
There’s also Coinbase Pro, a professional asset trading platform used for trading digital assets.
The firm also offers products like Coinbase Card, a debit card that enables customers to spend their crypto.
Coinbase Wallet is redefining crypto. You can set up a wallet to store and self-manage your digital assets. And you can sidestep financial intermediaries to send and receive peer-to-peer transfers. You can also use the Wallet’s features to tap into a wider universe of digital assets beyond what Coinbase already offers.
Coinbase Earn, a learning platform, rewards users with small amounts of coins for watching videos and taking quizzes to learn about them.
On the platform, you’ll find plenty of trading activity for Bitcoin. But you’ll also find activity for plenty of lesser-known cryptos — close to 250 of them, in fact.
And that’s important. It’s what makes Coinbase such a unique investment option.
You see, cryptos can be volatile. The value of any coin can rise or fall instantly and sometimes without much reason behind it. It’s easy to get into hot water with this asset class.
But investing in a company like Coinbase gives you a sort of backdoor way to invest in cryptos.
Rather than invest in a specific coin, you can invest in a portfolio of them by taking stock in Coinbase.
Earnings on Fire
As you can see, Coinbase offers us the opportunity to target the fast-growing market for cryptos.
And over the past few years, it’s invested heavily in building out its franchise.
That explains why per-share profit growth was fairly anemic just a couple of years ago.
But that’s set to change.
In the most recent quarter, Coinbase grew earnings per share by 2,900%. And it’s expected to close the year with gains of more than 1,500%, according to data from Investors Business Daily.
Taking a conservative approach, let’s use just 5% of that figure.
At that rate, we’d still see Coinbase’s earnings double in just about a year.
And remember, as earnings rise, stock prices usually do as well.
Add it all up, and you can see why I say this is a great way to invest in the cryptocurrency market with a single play.
Best,
Michael A. Robinson
P.S. Of course, a lot has changed since I attended that first Bitcoin conference. And it’s not just all the new coins that pop up every year. It’s also how to invest in them.
Marija Matić — who wrote to you yesterday — is revealing her own strategy on Tuesday, Jan. 14 for how she is able to collect “supersized crypto royalties.” I urge you to grab your seat.
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