Speaker 1: 0:00

Felix, there is one stock that is rallying like nothing else and most stock investors are missing it sort of. It falls outside of the traditional stock investing space. I want to walk you through that here, and it is crypto related. So if you hate crypto, run but this is becoming mainstream and I'm going to show you why in just a second, with the real authority from people who are typically loathing crypto and are now really, really really putting some money here. Let me share my screen with you.

Speaker 1: 0:30

President Trump is out of another $5 million in ETH Ethereum. Now. 96% of his holdings in World Liberty are in Ethereum. That is $451 million. So I kind of pay attention when the guy says buy stocks or buy Ethereum. Friday was also the worst day for Ethereum shorts in history. $350 million of shorts got liquidated. These are people who are betting on Ethereum just being a loser. Why? Because Ethereum has underperformed Bitcoin for absolute ages and there was this whole thing we no longer needed, and so on, and therefore they're all short. Now they're getting burned pretty badly because Ethereum is rocketing, rallying up just 10% last week.

Speaker 1: 1:23

This is what I was talking about, ray Dalio not exactly your Bitcoin-loving you know 20-year-old guy in a black T-shirt. He is saying every investor should have 15% of their portfolio in Bitcoin. I'm not telling you to do that. Obviously, this is what he is saying. But Bitcoin, investment, theorem, investment it's very closely related. It's typically the same kind of investors and right now, yes, I actually like Bitcoin right now and I think if you want to have a simple, simple investment there, then look at this ETF which is called iBit, and I have a position in that I should disclose. I also have a position in the stock we're about to talk about, but I'm not pumping it. It's too big for that. I don't have the power to move the market. I'm sharing with you transparently what I see as an opportunity right now, now.

Speaker 1: 2:12

Why now? Why here? Because crypto moves with liquidity. What does that mean? Well, the central bankers that we have they tend to print money, they tend to shred money, they tend to print money and they also do it by lowering interest rates. Right now, we're going into an easing phase. We've had relatively high interest rates for a couple of years and now we're going into an easing phase. All the world's central banks are cutting rates. They're all printing money. And what does that do? Well, we get more liquidity and, okay, somebody predicts Bitcoin at 200k. Maybe, maybe not, but what it means is that Ethereum will very likely move somewhat alongside it.

Speaker 1: 2:56

Now you could just go out and buy Ethereum. You could buy an Ethereum ETF. Again, I'm not telling you to do that, I'm just throwing out some thoughts and some research here. Or you could buy what I'm buying and again, please don't just buy it because I'm buying it. What I'm buying is S-B-E-T. Now what the heck is S-B-E-T? Well, I'll dive a little bit deeper into that, because I think that is worth going through.

Speaker 1: 3:12

First of all, stay up to date with the news, especially on stocks like this, which are very, very news-driven. In Trade Vision, we have the best news there is. Not only do we update this live, you're going to get notifications on your mobile phone very soon. I already get them better version, but you can see what they're actually doing. You can see their buybacks. You can see that they've appointed a co-founder. He's a former BlackRock Digital Asset Leader. He's called Joseph Chalong. He's a co-CEO, so they're kind of like got some pretty good people in there. So let's dive a little bit deeper into this.

Speaker 1: 3:52

And what is SBED? What is SharpLink Gaming? Yeah, it's an online gaming company and they have pivoted to become a treasury company to hold Ethereum. Now what the heck does that mean? It basically means they do a little bit of smart financial engineering. They basically sell shares, sell shares, and then they take that money and then they buy ethereum okay, but it doesn't end there. They then take that ethereum and they stake it. You don't know what staking is. That makes you into a normal human being who probably has friends. Staking means you essentially lend out your ethereum and you can collect interest on that something like four percent, which is quite good because you're actually making a profit on it.

Speaker 1: 4:45

So the business model is twofold. The business model is one actually generate a return on money you basically got for free from your shareholders. And then, secondly, you are betting on Ethereum prices going up, and that is one of the advantages of Ethereum. You can stake it and basically earn interest. It's not 100% risk-free, by the way. No staking or lending out of your stuff ever is, but that's basically the business model. And then, on top of that, because it's a company and we project and forecast how much Ethereum they're going to buy, what the Ethereum price is going to be, and so on, it becomes a leveraged play on Ethereum, which sounds mad, because crypto in itself is pretty risky and this is a very risky setup. I completely agree with you on that. It's a very risky setup, so it might not be for everybody, but they've basically done exactly that and it's a playbook they've taken from MicroStrategy and many of the other Bitcoin treasury companies who've had a pretty impressive run up.

Speaker 1: 5:49

Now the stock chart I like. Why do I like the stock chart? Because, my friends, we have just done the feat that I look for, which is we've taken out that yellow line there, which is the 50-day moving average line, and we're just above that, which is sort of a trader's potential entry point. Now there's going to be some resistance at 24 and 25 and a bit higher up here. Volume is very good on Friday and the weekend also looked pretty good for Ethereum. So that's one of the reasons I'm liking it, and what we're, of course, looking for is zoom a little out on MSTR, which is up, say, since 2024 by some 400%. That's the sort of gains we're looking at here as a target. That doesn't mean it's guaranteed. Nothing is ever guaranteed. You don't take risk, you don't make any money, but what really matters more is that you keep your money.

Speaker 1: 6:43

So what are they doing? Well, they're selling stocks. They're called at-the-market equity offerings, and it means when their share price goes a little higher, they're quite likely to sell a bit of stock, which will make it a little bit harder for the stock price to go up very, very rapidly. But that's what they all do. And then they take that money and then they buy crypto with Ethereum, and then everybody gets excited because now they hold more Ethereum than the stock price tends to go up as long as Ethereum keeps going up. So in a single week they raised $500 million and then they used that to buy Ethereum, which means their guys are pretty efficient, and these kind of treasury companies often traded a premium to the actual Ethereum that they hold. Why is that? Because the stock market factors in some sort of additional enterprise value, as in how much are they going to buy in the future, how much is Ethereum going to go up by and how much are they going to collect from staking.

Speaker 1: 7:41

So something like SBET the stock here, s-b-e-t provides potentially amplified returns compared to just owning Ethereum. And you also don't need a wallet or anything like that. Of course. You could just buy an ETF. To date this year, the stock's done quite nicely.

Speaker 1: 8:01

Where are we? First of January? Somewhere here? It's up about 160%, right. Ethereum's up 26%. You can see the multiplier in there, right, and that's the way stocks work. So the advantage is it's a leverage proxy by using raised capital to buy more Ethereum than they can, and it potentially therefore compounds growth through the staking buybacks. Yeah, they've actually announced buybacks, which is kind of extraordinary, so that the company that's issuing shares like that all the time, they actually now have authorized 1.5 billion in buybacks.

Speaker 1: 8:40

When prices trade at or below Ethereum net asset value, signaling confidence in its intrinsic values. They're basically saying, when our stock gets really, really cheap, we're going to buy it back. When it goes higher, we're going to issue more so we can buy more Ethereum. So it's kind of like that sort of trading thing that they got set up there. So is this mad? Is this crazy? Well, you let me know in the comments down below.

Speaker 1: 9:02

As always, highly risky positions, small positions, is what makes you money and what protects you from going bust. So I don't want to be reading in the comments next week some loon who said it's down and I'm all. I'm all still my money. Okay, just don't do that. Don't be that, don't be that loon. And what I'm looking at here, like with any stock, I'm looking at smart entry points, and smart entry points is something that Wall Street has been using for decades, something you can learn if you go to fredericksfrenzorg slash, get free. There's a 15-minute lesson on where the smart entry point sits. You spot the right breakouts, because the problem is, most people buy up here, right, and you definitely don't want to be doing that. You also don't want to be buying up there. You want to be buying at the opportune moments, right? So there we are. Short and sweet is a crypto play.

Speaker 1: 9:46

I am continuing to be very, very happy about Bitcoin and Ethereum's performance while, at the same time, also buying really, really boring businesses, and I think both works, and I don't think you need to commit to one or the other. I think we just follow the money. At the moment, institutional money is pouring into this, so I'm following the money. That's always all it is. Just follow the money. That's the strategy, and when the money leaves, we sell. No conviction, no love of let's hold Ethereum till death, do us part or any of that. Nope, we just make money where we can make money. That's what it's all about.