Saylor and Tom Lee Are Locking It Up. Am I?

MSTR, BMNR, and what I’m doing with my kids’ money.

Saylor and Tom Lee are locking it up.

One is sitting on 4 to 5% of all bitcoin. The other is at 5% of all Ethereum.

I’ve traded MSTR before. Bought the low and sold the high. I’ve been in BMNR before too, and took some losses.

So am I back in?

Not telling anyone what to buy. Whatever I do here is with my own money. The money I invest for my kids’ future. It’s a journal for them, not investment advice.

Below I’ll tell you if I bought, why Saylor’s buys under $100k will be laughed at a decade from now, what MSTR could be worth if bitcoin hits $250k or $500k, and how Tom Lee gets paid hundreds of millions a year just for holding ETH. Subscribe so you don’t miss it.

Yes. I’m back in both.

Finally back in MSTR and BMNR.

Back in October I wrote it in Fear Is Priced In. Buy when others fear. Sell when they are hysterical.

People are afraid right now. So I’m buying.

Took some good bites at the lows. Happy with them. Left some dry powder in case they fall further.

And I’m excited to be back into BMNR. I want to see if Tom Lee’s vision comes to fruition. I’m going to trust him here with some of my money.

Saylor is just taking advantage of these lows and these beginning cycles to load up on bitcoin.

Because once he’s done, it’s over. And he’s already at 4 to 5% of all bitcoin.

Everything he’s doing now will seem distant in the future. Forgotten. Even mocked.

His purchases before $100,000, before $150,000, they’ll be laughed at a decade from now when bitcoin is trading well above $500,000.

So I’m throwing some of my kids’ money in this again. I rode the wave last time and locked it in. Now he’s locking in 4 to 5% of bitcoin, and I’m locking it up with him.

Here’s what I think Strategy is in the future.

The modern day financial bank. Bigger and stronger than many. One of the most powerful, savvy, modern, and valuable companies in the world.

One that offers credit lines, banking, loans, and much more using their bitcoin. Especially for bitcoin holders.

The future is orange.

And once that’s done, and Saylor stops diluting shares to buy bitcoin, because that will come, the sky’s the limit.

Here’s the rough math. Not a forecast. Just the numbers.

Strategy holds about 849,000 bitcoin. After the debt and preferred stock, about $20 billion, and roughly 400 million shares:

At $250k bitcoin, the coins alone are worth about $475 a share.

But that’s just the coins. That’s no premium.

The premium is what the market pays on top of the bitcoin Strategy holds. If it’s just a pile of coins, why pay more than the coins are worth?

You pay more because it’s a bank. Credit lines, loans, banking, all of it backed by bitcoin. That’s a business that makes money on top of the stack. That’s what earns the premium.

In past bull runs the market paid 1.5 to 2 times the bitcoin value.

At $250k bitcoin with that premium, you’re at $700 to $950 a share.

At $500k bitcoin, it’s about $1,000 a share before any premium. With the premium, $1,500 to $2,000.

It trades around $115 today.

It swings hard both ways. Size it right. I’m not selling.

Now BMNR. This one is even more interesting.

I’ve loved some of Tom Lee’s predictions. I’ve hated some of them. But he’s got something beautiful cooking here.

Those BMNR losses I took before? That was because I had to move some money around for other trades.

Now he’s almost at 5% of all Ethereum, just like Saylor with bitcoin. 6.07 million ETH. 4.97% of the supply as of November 8.

So I’m locking in my investment for the kids’ future, just like Tom Lee locked in his Ethereum.

This one is wilder, because BMNR makes money just for holding.

It’s called staking. They lock up their ETH to help run and secure the Ethereum network, and the network pays them in more ETH for doing it.

They have about 5.2 million ETH staked. That’s 86% of the pile.

At about 2.65% a year, that’s about $309 million a year coming in right now. About $359 million once it’s all staked. Tom Lee says closer to $400 million.

No debt to pay down. Nobody to pay dividends to like Saylor does.

And he’s done buying soon. Tom Lee calls 5% a hard cap. He said Vitalik Buterin and Justin Drake, the Ethereum founders, didn’t want any one company holding too much ETH.

So what does he do instead? He said it himself. He buys back BMNR stock.

Less shares out there. Every share holds more ETH every year without buying another coin.

And when the cycle turns and we get back into a bull market, BMNR might be an absolute behemoth for the next decade.

Look at the numbers.

Today that pile is worth about $13.5 billion at $2,234 ETH.

At $7,500 ETH, it’s worth about $45 billion. The staking alone pays about $1.2 billion a year.

At $15,000 ETH, it’s about $91 billion. The staking pays about $2.4 billion a year.

That money goes to buybacks first.

Mind-altering numbers.

ETH is still below what they paid on average. Tom Lee’s targets have missed before. I know that. That’s why it’s a slice, not the whole thing.

Here’s what nobody is talking about.

Two of the biggest buyers in crypto are about to go quiet in the same cycle.

Saylor is at 4 to 5% of all bitcoin. Tom Lee is at 5% of all Ethereum. Tom Lee is about to stop buying. Saylor will get there.

Both of these guys loaded up at the lows. Both are fully prepared for the next cycle.

Saylor locked in his bitcoin. Tom Lee locked in his Ethereum.

I’m locking in my kids’ money right next to them.

This isn’t a trade for me this time. I’m not here to flip it. I’m holding it with them, for the next cycle and the one after that.

Kids, if bitcoin is over $500,000 when you read this, these buys will look like Saylor’s buys under $100,000.

Laughed at.

Your dad locked in with them.

God bless.