| | | Good Afternoon. This week, gold (the second-hardest asset 😉) hit new all-time highs in 4 consecutive trading sessions. | Today’s Stories:
💳️ The largest crypto acquisition to date
🏦 Earning BTC with cash deposits
🚂 PTJ: “All roads lead to inflation” | Today's newsletter is 1,215 words, a 5.5-minute good read. |
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Stripe Acquires Bridge For $1.1 Billion in Largest Crypto Acquisition To Date |
Payments company Stripe has officially made its largest acquisition to date, purchasing stablecoin platform Bridge for $1.1 billion. |
The purchase values the 2 ½ year-old company at $1.1 billion, ~90x revenue according to The Information. |
What they do: Bridge provides a software platform that helps companies accept payments in stablecoins. |
Thanks to stablecoins, businesses around the world will benefit from significant speed, coverage, and cost improvements in the coming years. Stripe is going to build the world’s best stablecoin infrastructure… | | | | - Patrick Collison, Stripe CEO |
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Nice return: Bridge raised a $40 million Series A round that valued the company at $200 million. |
This $1.1 billion acquisition rivals CoinShares’ acquisition of Valkyrie Funds for $530 million and Robinhood’s purchase of Bitstamp for $200 million. |
Why it matters: Stripe had notoriously paused its crypto payments endeavors in 2018, citing technical difficulties and high transaction rates. The company now seems to be going all-in on crypto. |
Stripe reinstated crypto payments for US businesses via USDC on Ethereum, Solana, and Polygon in April. Stripe also partnered with Coinbase (COIN) to incorporate Base into its crypto payout products in June. |
Why $1.1 billion? Here’s why. |
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At the heart of the Space Monkeez ecosystem is the $SpaceM token, which powers governance and rewards. Users can earn $SpaceM through various activities, including content creation, social engagement, and minting nodes. |
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River Launches Bitcoin Interest on USD Deposits |
Bitcoin trading platform River Financial has introduced a new product that gives investors interest on cash deposits, which can be paid in BTC or USD. |
Interest rates will be variable, starting at 3.8% and based on standard bank rates rather. Like traditional bank accounts, customers will be protected by FDIC insurance up to $250,000. |
Why it matters: When most people think of yield in crypto they think of crazy DeFi lending rates that ultimately end in tears for investors. River is bucking this trend by providing investors yield on their cash to stack sats. |
DIY: While we applaud River’s offering, investors at home that want a do-it-yourself version could easily set up this trade themselves: |
Add excess cash to an interest bearing account at a trading institution Set up a scheduled recurring buy of your favorite bitcoin ETF. |
Fidelity’s SPAXX money market fund for example is currently paying a 4.6% yield. Use that yield to buy BITB for example, and even after it’s .20% fee you still come out net ahead of River’s rate. |
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PTJ Double Downs on Gold & BTC Allocations |
Driving the news: In an interview with CNBC’s Andrew Sorokin (full clip here), the legendary investor Paul Tudor Jones sounded the alarm about the US government's soaring fiscal deficit, which topped $1.8 trillion in 2024 (8% higher than 2023). |
We are going to be broke really quickly unless we get serious about dealing with our spending issues. |
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Concerned about a potential selloff in the bond market and spiking interest rates, he's steering clear of fixed income and betting against long duration treasuries. Positioning for a potential Trump victory, Jones is still long Bitcoin, gold, and commodities as hedges against inflation. |
I think all roads lead to inflation. I’m long gold. I’m long Bitcoin. I think commodities are so ridiculously under-owned, so I’m long commodities. |
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| Anthony Pompliano 🌪 @APompliano | |
| Paul Tudor Jones just said he is long bitcoin and gold because the only way to solve the debt problem is to inflate our way out of it. Probably nothing. | | | 3:31 PM • Oct 22, 2024 | | | |
| | 2.67K Likes 288 Retweets | | 92 Replies |
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Between the lines: Jones believes that continued government spending by either presidential candidate could trigger a "Minsky moment" – a sudden market collapse following the exhaustion of credit expansion. |
Will we have a Minsky moment where all of a sudden there’s a point of recognition that what they’re talking about is fiscally impossible, financially impossible? |
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Catch up: We are far past Jones's first endorsements around bitcoin. Since 2020, PTJ has been bullish, joining other notable investors like Larry Fink and Stanley Druckenmiller. Almost exactly a year ago, in another CNBC interview, Jones for the first time advocated increasing allocations to both gold and bitcoin: |
I would love gold and bitcoin together. I think they probably take on a larger percentage of your portfolio than historically they would because we’re going to go through both a challenging political time here in the United States, and… we’ve obviously got a geopolitical situation. |
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Mind you, since then, gold and bitcoin are up roughly 40% and 119%, respectively. |
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Strange new catalyst for gold ($5,000 possible?) |
Many are wondering why so many countries are frantically buying gold right now. The truth is this is just the beginning of a much larger story. One that could send gold soaring to even bigger highs in the coming months. But the best way to cash in on gold’s upside might surprise you. One firm says this $6 stock could be the best way to get started. |
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Other Content You Might Enjoy |
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| Porter Stansberry @porterstansb | |
| “I own zero fixed income” says one of the best investors of all time. “All roads lead to inflation.” So, what about the $2T of 1% bonds owned by our banks and now down $500 billion? If you keep money in banks, you are going to be wiped out. Best trade of the next year: long… x.com/i/web/status/1… | Hedge Vision @HedgeVision Paul Tudor Jones has began positioning for a Trump victory and is long Bitcoin and gold as an inflation hedge. "I think all roads lead to inflation. I’m long gold. I’m long Bitcoin. I think commodities are so ridiculously under-owned, so I’m long commodities. I think most… x.com/i/web/status/1… |
| | | 4:50 PM • Oct 22, 2024 | | | |
| | 449 Likes 72 Retweets | | 33 Replies |
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