Hardest Money Torque
Jed Bridges@jed
−28.6%
since Sep 30
The idea
I believe bitcoin is the hardest money made and that it keeps winning over the next year or two. Instead of holding the coin, I want the torque, so this basket leans into treasury companies that hoard it and miners that produce it, since these stocks tend to move two to three times bitcoin's swings. It is spread across scale miners, smaller challenger miners, and a slice of the rig supply chain, with 12% held back in cash to buy into the sharp drawdowns this kind of basket regularly serves up.
What it owns
- The biggest producers of new bitcoin, whose profits swing far harder than the coin's price does. · MARA HoldingsIt mines at scale while holding the bitcoin it produces, so it gets paid twice when bitcoin rises: from growing output value and a rising coin stack., Riot PlatformsIt mines at scale with some of the cheapest power in the industry, which means more of every bitcoin price gain drops through to profit., CleanSparkIt runs efficient mining machines with no side businesses to water down the bitcoin torque, keeping costs well below the coin's price., Hut 8It mines and also sits on a meaningful pile of bitcoin it already produced, so it amplifies the coin's moves from two directions.37%
- Smaller, hungrier miners where the same bitcoin move hits an even smaller stock, adding torque. · IREN LimitedIt grows its mining power fast at low cost, and fast growers in this space move harder than the big miners when bitcoin runs., TeraWulfIt is a smaller miner sitting on abundant, cheap power, the scarcest input in this industry, which means big swings on bitcoin's moves., Cipher MiningIts edge is unusually cheap electricity contracts, which is the single biggest cost in mining, making it a leveraged bet on bitcoin's price., Bitdeer TechnologiesIt mines and builds its own mining machines, so it doesn't pay the middleman markup on rigs that other miners do., HIVE Digital TechnologiesIt mines on green power at a small enough size that bitcoin's moves get magnified in the stock.29%
- Companies that pile bitcoin onto their balance sheets, so their stock moves like a leveraged claim on the coin. · Strategy IncIt holds more bitcoin than any other public company and keeps buying, so its stock tends to move harder than the coin in both directions., Twenty One CapitalIt is close to a pure bitcoin balance sheet with a stock wrapped around it, so it amplifies the coin's moves with little else diluting the effect., Nakamoto HoldingsIt is a newer, smaller treasury hoarder, and small plus new means bigger swings per unit of bitcoin move.21%
- The companies selling rigs and hash power to miners, a side bet on the whole industry expanding. · Cango IncIt pivoted into mining by buying up hash power, so the market hasn't fully priced it as a bitcoin play yet.2%
- Cash12%