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The 58th Hoot
Who Owns All the Bitcoin? 🤔
Scatt's Weekly Seeds:
🌱Who Owns All the Bitcoin? 🤔
🌱Bitcoin Layer 2? 🫡
🌱How Much do BTC Miners make? ⛏️
🌱Private Credit Deal Volume Goes… 🚀
Meme of The Week
Year-to-Date Performance:
S&P 500: 2.54%
Dow: 1.11%
Nasdaq Comp: 2.96%
Bitcoin: 0.92%
Ethereum: 0.75%
Scatt Capital’s Fortune Strategy: 7.89% (Since Inception (12/22): 41.72%
News Breakdown:
Crypto Market:
7-DAY CRYPTO MARKET CAP CHANGE: $1BN
CRYPTO INVESTMENT PRODUCT FLOW: $21M
FTX SOLD $1BN OF GRAYSCALE BTC
DONALD TRUMP DOUBLES DOWN AGAINST CBDCs
EDX MARKETS (BACKED BY FIDELITY & CITADEL) BUILDING A SINGAPORE EXCHANGE
SEC DELAYS DECISION ON BLACKROCK ETHEREUM ETF
BTC ETFs SEE FIRST NET OUTFLOWS
UK BEGINS DESIGN WORK FOR DIGITAL VERSION OF POUND
Credit & Debt Markets:
10-YR TREASURY YIELD: 4.841%
SYNOPSIS PLANS TO REFI ITS $34BN ANSYS ACQUISITION THROUGH TERM LOAN & BOND
PLUG POWER FINALIZING $1.6BN FROM US ENERGY DEPT.
HBC, OWNER OF SAKS 5TH AVE., REFINANCING A $1.3BN LOAN
BROOKFIELD RAISING $1.2BN OF DEBT TO FUND AMERICAN TOWER INDIA ACQUISITION
BLACKSTONE SEEKING $250M IN PRIVATE DEBT TO FUND $2.3BN IN ROVER GROUP ACQUISITION
This Week’s Economic Calendar:
Job Openings (Tuesday)
Fed Interest Rate Decision (Wednesday)
U.S. Unemployment Rate (Friday)
U.S. Nonfarm Payrolls (Friday)
Who Owns All the Bitcoin? 🤔
The absolute irony.
But it’s a solid question… who owns all the Bitcoin?
A few points:
There is 2x as much ‘lost’ Bitcoin as there is held by govts. and companies
Governments own a TON of Bitcoin
Satoshi Nakamoto (creator of Bitcoin) is pretty wealthy
The irony is that governments say they HATE Bitcoin… but here is how much they own:
The U.S. owns 215,000 Bitcoin
China owns 190,000 Bitcoin
Ukraine owns 46,350 Bitcoin
So don’t always believe what you hear on the news about crypto and politics… its likely all BS.
Bitcoin Layer 2? 🫡
We’ve heard of ETH L2’s… lets dive into Bitcoins.
When we think of Bitocin, we need to think of it as 2 things:
Bitcoin as an asset (the coin), and Bitcoin as a network (the underlying blockchain).
The network has always been regarded as the safest, most-secure, and reliable of the choices out there.
But it came at a price: speed & cost.
Enter Layer 2’s…
Essentially these are protocols built ON TOP of the network to enhance transaction efficiency and scalability.
Right now, Ethereum L2s dominate the market.
But builders are starting to shift towards the ‘original’ crypto network.
This could present some pretty interesting and unique investment opportunities.
Keep an eye out for these.
How Much do BTC Miners make? ⛏️
Bitcoin mining is seriously lucrative.
How lucrative you ask?
Miners average about $12.3bn in annual revenue.
Below shows you how this compares to some other large public companies:
Wild.
From a ‘side hobby’ to making more than some large public companies…
We’ve come a long way!
Private Credit Deal Volume Goes… 🚀
“The Golden Age”
I can’t tell you how many times I’ve heard that statement about the private credit market in the last 2 years.
But I never fully realized the growth in the numbers…
In the space of about 10 years, we went from about ~50 deals/year to almost ~800 deals/year.
That’s 800% growth.
It’s still more expensive though, so why the increase?
We believe that as the market has grown, its allowed lenders to become more competitive with their rates AND…
More importantly, the flexibility that comes with a private lender is TOTALLY different to what you get at a bank.
Whether it’s a refi, a workout, or whatever the situation is… it’s generally a whole lot easier to work through it with a private lender than a Wells Fargo, BOA etc.
We’re big credit fans at Scatt, so expect more analysis to come!
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.