Transcription
My, you know, 2028 target is in the, you know, 100x plus sort of return if we get this sort of massive move into stable coins.
On hype. On hype. That's what I went on stage.
So, you think there'd be like a a $5,000 token?
Yeah.
For the last 9 years here on YouTube, I've experimented with a lot of different types of content. And let me tell you, some are more popular than others. But none, absolutely none, have been more popular than the type of video that I'm going to be doing for you today. What I know for a fact is the most popular type of video I've ever done. And that is when the market supports the growth of low cap altcoins and low cap investments. That is by far the most important thing that this audience always wants to flock to.
Now, of course, the usual caveats as we talk about riskier, lower cap stuff. You should also be warned that this potential for increased gains comes with increased risk. But as always, you know what you're doing. And if you're excited for the first low cap gem video here on this channel in almost 4 years where we're just going to be talking about a new investment opportunity that has come to my attention and I think it is worthy of your attention and it's something that I'm going to be putting quite a bit of money into, not just in the short term, but I'm going to look to average into this as long as the thesis holds. So, if you guys are excited for my first low cap gem in what feels like forever, go ahead, destroy that like button and let's dive in.
Now, first and foremost, let's talk about what I'm going to be discussing today. If you're not familiar with altcoin investing or with crypto portfolio design, this is not the video for you. This is a more advanced video. Go watch my other videos on how to set up a portfolio, how to allocate to different sectors, and make sure you understand that when we're talking about investments like the one I'm going to be talking about today, it's got to be understood as a risky investment, a higher risk investment that should only be max, a couple of percent of your portfolio, maybe 5% max, but likely less than that because it is extremely high risk and has potential for high rewards. So, you should keep it sized smaller.
But the type of investment that we're going to be talking about today is a treasury company that was pioneered, this model was pioneered by none other than Michael Sailor with Micro Strategy. And we'll be hearing from Michael Sailor in just a minute. But there's a lot of confusion. A lot of people think these treasury codes on the stock market are actually just vapor and that there should never ever be a premium in price to the value of the assets underneath them. For example, Micro Strategy, there's a school of thought that they should just be priced at the value of their Bitcoin, no more, no less, because that's the real output of Micro Strategy.
However, what you hear here is an interesting explanation from none other than Tom Lee about why that is not true. And I think this is one of the more important pieces of discussion, which obviously, if you know this frumpy-haired gigachad, you know that Tom Lee has been the captain of promoting Ethereum and actually really reviving the altcoin spirit that we know and love. So, check this out. This is really important because he's going to explain to you why it's not the same to buy the underlying asset and the actual treasury company. Listen to this. This is actually really important.
As of August 24th, Bitine held $40 of Ethereum per share. So, it rose by 10 times. But if someone bought the Ethereum itself or they bought the Ethereum ETF, they'd still only have $4 of Ethereum per share. So you can see that a treasury company is growing your Ethereum holdings per share. That's why Micro Strategy stock did better than Bitcoin. So in this case, if you take the same increment of time where you could have just bought Ethereum or bought Bit Miner, which is Tom Lee's Ethereum treasury company, if you would have just bought the ETH, ETH hadn't moved all that much. However, based on the raise, the structure of the raise that Bitmine was able to pull off, they were able to increase their holdings of Ethereum by many orders of magnitude. So, not only did they hold and grow in price alongside of Ethereum, but your actual ownership per share went up 10fold.
Now, you could say the market had already priced this in, was forward-looking, etc. But in the end, the treasury company is actively trying to magnify your ownership of the underlying per share as well as experience price appreciation with levered upside. So essentially, they are working for you to multiply your exposure to this asset. And that's why it will be more explosive on the way up and more destructive on the way down, which is why we do not want to be holding treasury companies on the way down in the bare market. We want to get the f out of them. However, on the way up, it can be very glorious. And one might actually be able to make the argument that it's a superior form of investment to the underlying asset itself because you have this vehicle essentially actively managing that investment and that capital to create the best outcome per share for the shareholders.
Micro Strategy stock was $13. Today it's $335.
It's gone up by more than 25 times. The price of Bitcoin has gone from 10,000 to 110,000. So, it's gone up by 11 times, but Micro Strategy stocks gone up by 25 times.
Again, this is just showing the math on how a well-run treasury company can multiply your exposure to the asset and the value that you get back as a shareholder. And that's because Micro Strategy as a treasury company has grown your Bitcoin per share and Bitine is growing your Ethereum held per share every week. So, like we said, we're big fans of Bitine and I've been covering this for the last few weeks, for the last few months, actually. And I was able to precisely call the bottom pretty much of the Bitine chart in about the low30s before it blasted off to 70 and now it's sitting just below 60 bucks.
Well, I think we have another massive Treasury Co. opportunity on the horizon. And in many ways, we're getting ahead. We're getting way ahead of the hype in Treasury Co because it's starting with Ethereum as it should be. These big Treasury Co. vehicles are going to start first with Bitcoin and then with Ethereum. But then I think we should be looking at other major assets that will be extremely attractive to Wall Street. It's important to understand this is a moving target. Listen to Michael Sailor explain how this target moves and then we'll get to the opportunity at hand.
We're just in this uh epic of institutional adoption. You've got the right accounting, you've got the right guidance, you've got the right law, you've got the right tone at the top. And that just means large riskaverse bureaucratic organizations are going to take their time to work through it. But it's not like every single week I don't have a conversation with the president or the CEO of a bank or some other large financial organization where I point out that they're about to miss out on trillions of dollars of opportunities and this is why the private bank, the commercial bank, the investment bank should get involved. If you have the, you know, I couldn't have those conversations four years ago. Now we're going to have those conversations every day for the next four years. is we're going to commence 10%. 20%. And so we're we're in this uh transition.
Now I think this is really really important because the asset that we're going to be talking today is going to benefit tremendously from this transition in multiple ways. This is to me obviously one of the most important assets in crypto. You've heard of it. You know about it. But I don't think you quite realize how big the potential is for this asset cuz I believe that just like we'll see a massive alt season, we will also see a major season before that. And this is not how the DAT sort of landscape will end up looking. There will be a lot more presence of alts, especially the major alts that appeal to Silicon Valley.
And which alt am I talking about? None other than Hyperlid, which is of course having an amazing day today. I mean, just look at this chart. Absolutely insane. Now, you know about Hyperlid. One of the things you might not know about Hyperlid is that the potential for this asset, if it does fulfill its goals, is much higher. In fact, this is an insane clip from Kyle Chassis's broadcast with Arthur Hayes where he puts what is to me a mind-bending price target. But when you think about it, compared to Ethereum and compared to Bitcoin, no, this wouldn't be a mind-bending price target. But listen to this. Listen how big Mr. Arthur Hayes thinks the hyperlquid asset can become.
You mentioned, you know, hype. And uh at that point, I felt like I'd already missed the boat. I think it's probably up, I don't know, maybe almost 2x since that point. This is particular relevant if you feel like you've missed the hyperlquid train. I know a lot of people feel like they have. It's already a huge valuation like $55 billion in asset in FTV. A lot of people are like, you know what? I just can't buy a $55 billion coin. I don't care if it's the greatest thing since sliced bread. I can't do that. So, this is the play for you. But first, let's hear from Mr. Arthur Hayes. Listen to this.
But it's something that I keep giving me my attention back to. I still haven't bought any yet. Do you think at this valuation? It's currently sitting at FDV almost 57 billion right now. There's still a lot of room left to grow. Absolutely. The amount of energy that we've seen on these proposals for the uh USDH from every major stable coin issuer tells you how integral Hyperlquid is to the trading ecosystem within crypto within basically 18 months if you want to think about it.
So the forward on this is amazing and as more people learn about this it's only going to get better. Uh the one thing that is that gives me a bit of pause is the massive unlock of the team tokens in November. So, we're going to have to see how that sort of um plays out in terms of positioning. But, you know, as I said in the presentation, my you know, 2028 target is in the, you know, 100x plus sort of return if we get this sort of massive move into stable coins. So, that's sort of why I think.
Yeah.
On hype. On hype. That's what I went on stage. And.
So, so you think there'd be like a a $5,000 token?
Yeah.
So, there you hear it. Arthur Hayes thinks that Hype could be a 100x play from here. Meaning that Hyperlid, if it fulfills its goals and actually goes into stable coins and dominates there because it's the number one platform for speculation and open speculation with the permissionless listings, he sees that this could be the everything speculation platform, the one exchange to destroy them all. And if that's the case, it's 100x from here, meaning a $5,000 token, which would seem absolutely crazy, but we've seen multi-thousand tokens out of Ethereum and out of Bitcoin. Of course, this would mean that it FDV was in the trillions. But then again, we're talking about monopolizing the most important sector of crypto and having a total victory.
You might not even need to believe in that because the truth is that I see a new opportunity coming up, which is of course combining what we've just talked about in the efficiency of a Treasury Co. to manage and expand your actual ownership per share as well as the value acrruel of the hyperlquid platform that Arthur Hayes believes is possible. You don't even need to believe that you could go to $5,000. You could say, "Hey, if we even go three, four, 5x from here, then a Treasury Co. can deliver maybe 10 or 20x valuation."
And that brings us to Sonnet Biootherrapeutics holdings which is of course the new digital asset treasury which will be the largest treasury focused on hyperlquid and hype tokens. This was recently announced and the merger will go forward to create a new holding called Hyperliquid Strategies or HSI. And so this right now is the chart uh since they announced here in July. You can see there was a massive spike up and then a drop all the way down from $30 here all the way down to uh $2.40 and now it's just been steadily grinding up.
Now, I will say there is potential that when this merger actually takes effect, I think there might be some insider allocations that get unlocked into liquid stock which would probably cause a little bit of a temporary drop and that is the moment. So, I'm not saying to rush in and buy Sonnet Biootherrapeutics right now. In fact, I am barely exposed to it now because I believe that when this merger does go into effect that this will create a momentary but significant drop and I'll be looking to buy that dip as a way to get into this asset, especially when it changes tickers over to HSI. And that's when I'll be looking to load up and go super hard on this.
Now, I will say this is a very small stock. It's only like a $30 million market cap stock. So this is a a micro cap stock by all means. But it's important to realize regulated financial institutions have also heard tell of hype but they cannot buy it. The types of entities that micro strategy appealed to those massive money bags those big banks those huge institutional players that will totally understand being the dominant derivatives dex player. They will understand hype's business model better than anyone because that is the most traditional financial model you've ever heard being a national exchange. Right? So those big players cannot buy Hype legally. they cannot do it. The only way that they'll be able to buy Hyperlid is via these treasury companies. And at least at first, that will be the main spigot of new liquidity into the Hyperlid ecosystem.
Hype has barely been listed on major tier 1 crypto exchanges because it presents a huge point of competition for mainstream exchanges like Coinbase, like Binance, like Bybit, you name it. So, they did not want to list hype at first. However, once this Treasury company vehicle goes through, I'm going to be loading up. This is going to be one of my more aggressive plays. And I just want to take a second to shout out Capital Flows here. Follow Global Flows at Global Flows. This is one of the best accounts, period, on Twitter, and they're the ones who put me onto this trade. And I've been looking for a catch-up trade to get more exposure to hype. Obviously, I've been holding and accumulating hype, but this has been my feeling is that I can't bring myself to buy big clips in the 30s, 40s, and 50s. I want to get a better way to get into this asset. And I think I finally have it here with the Sonnet Biotechnologies aka soon to be hyperlquid strategies. So shout out Capital Flows here.
But I just wanted to put this out with some very big bold disclaimers. This could go horribly wrong. I do not know if this is going to go well. But if this is accurate and this becomes the dominant hyperlquid digital asset treasury and hyperlquid goes up into the hundreds of dollars and maybe higher, I think that that Treasury Co. will go up more than 10x, potentially 20, 30x or more. That is the opportunity that I think is possible. I'm not going to be waiting till 20 or 30x. I will be obviously taking profits as the thing grows, but I'm going to be sticking some nice clips into this once the merger goes live. I'm going to be keeping you up to date on that. And that's going to be my strategy here to get into Hyperlid.
I sincerely hope you guys have enjoyed this episode, the first low cap gem, not your traditional low cap gem. It's actually a low cap gem based upon a high cap gem, which is hyperlquid through this new phenomenon called digital asset treasuries. And I think that this one is unlike the rest because of course the underlying is one of the most exciting tokens in crypto. As always, you know what to do. If you enjoy this one, make sure to smash that like button. Make sure to check out Soore Launchpad, which is about to launch on Salana, a friend of the channel and a sponsor. So, shout out to them. And of course, if you want some absolutely massive cash back for trading, make sure to sign up on my link for Blofen, who are the official exchange partner of the channel. As always, if you enjoyed this one, click on this video popping up right now, and I'll see you very soon on the next episode.