Episode Details

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Many thanks to all the new subscribers who have joined this week, both paid and unpaid. I put this video of my recent North Sea Oil piece up on YouTube, X et al and it generated something of a flurry.

So welcome. I hope you both enjoy and benefit from The Flying Frisby.

Before we get started I just wanted to note that Comstock Lode seems to be catching a nice tail wind, which is good. Enjoy the ride. The AGM is later today for the keener of you out there.

But we are looking at bitcoin today, and exploring an alternative way to invest in it.

I’m going through one of those phases where I feel like I don’t own enough bitcoin.

So I’ve bought more.

And I’ve bought it in my SIPP - UK-speak for my retirement account.

I’ll explain how in a second.

Let’s just have a quick look at the bitcoin price, and note that we are once again breaking out to new highs.

I know it feels like you are late to the bitcoin story, and yes we all wish we bought it at $10, when we first heard about it. But we didn’t. We are where we are, and this story is a long way from being over.

The next chapter in the odyssey is corporate adoption, and that story is just getting started.

I explained the bitcoin corporate treasury model a fortnight ago here, and I’ve made the article freely available to all, so please take a look, but the TLDR is this.

Following a template set by billionaire genius Michael Saylor, more and more companies are converting their treasuries to bitcoin as a means to store value and escape currency debasement. Not only that, they are issuing paper—stock, debt, convertible notes—and using the capital raised to buy more bitcoin. In effect, they are creating fiat money from nothing—it is a debt-based system, after all—and using it to buy a finite digital resource (one that, of course, cannot be created through debt).

Many are scratching their heads and saying, “How can this be? It’s not possible! It’s a bubble.”

What Saylor is actually doing, among other things, is exposing the flaws of debt-based fiat currency. There are now some 70 companies employing this strategy. This will eventually be a stampede, which I urge you to front-run. Corporations have much deeper pockets than private investors, meaning this latest cycle in bitcoin’s mass adoption could become a mega mania.

Shareholders welcome dilution if it means more bitcoin.

The problem of corporate dilution has been flipped on its head. Once, if a company issued 20% more stock, you would expect the stock to fall by a concomitant amount to reflect the dilution. But if you’re using paper to buy bitcoin, the reverse applies. You can’t dilute enough. The purpose of a bitcoin treasury company is to acquire as much bitcoin as possible on behalf of all shareholders, by whatever means.

Here is a case in point.

Japanese hotel company Metaplanet (3350:TYO) had a small chain of low-budget hotels across Southeast Asia. Covid decimated the business, and it never fully recovered.

A year ago, seeking a new direction, CEO Simon Gerovich