News broke on Friday that Boston-based insurance firm MassMutual invested $100 million in the world’s first cryptocurrency.
The firm also forked over $5 million for a stake in crypto fund manager NYDIG. NYDIG manages about $2.3 billion of bitcoin and other cryptocurrencies.
Think about that…
MassMutual was founded in 1851. It’s been insuring Americans for 169 years. It’s one of the country’s most venerable financial firms.
And it just plonked $100 million down on a cryptocurrency that, as recently as four years ago, was seen as a fringe asset… only for computer geeks, libertarians, and wild-eyed speculators.
As you’ll see today, this is one sign among many that bitcoin adoption is going into hyperdrive.
It’s why world-renowned cryptocurrency investor Teeka Tiwari predicted in these pages that bitcoin would smash through $60,000 sooner than most folks realize.
Today, one bitcoin changes hands for $19,140…
And Teeka doesn’t see $60,000 as the end… but rather a milestone in a much bigger rally.
So if you still haven’t taken action on bitcoin, now’s the time to get your first grubstake.
It’s easier than you may think. And as I’ll show you at the end of today’s dispatch, you need only a couple hundred bucks to get started.
First, it’s important you grasp how quickly mainstream adoption is coming.
MicroStrategy (MSTR) is also making waves with its bitcoin purchases.
It’s a Nasdaq-listed tech firm that turned over $1.4 billion last year and booked $12 million in profits making analytics software for businesses.
This year, it has scooped up $475 million worth of bitcoin as part of its cash reserves.
Thanks to the bitcoin bull market that’s been underway in 2020, those bitcoin are now worth $783 million. And on Friday, MicroStrategy confirmed it had taken a step further…
It sold $650 million worth of a type of bond called a convertible senior note and announced it would use the proceeds to buy more bitcoin. Convertible notes allow the holders to convert their debt (bonds) into equity (shares) at a future date.
As I type, $650 million buys you 33,960 bitcoin. That’s a huge haul.
Once one company does this… it’s easy to see others following suit and issuing bonds to buy bitcoin.
This year, three Wall Street legends – Stanley Druckenmiller, Paul Tudor Jones, and Bill Miller – endorsed bitcoin on TV.
And last month, Rick Rieder – BlackRock’s chief investment officer of global fixed income (aka bonds) – said on CNBC that bitcoin was “here to stay.”
BlackRock is the world’s largest investment manager. Rieder is one of the top guys at the firm. This is a green light if ever there was one for other wealthy Wall Street money managers to buy bitcoin.
Teeka – or Big T, as his followers call him – has been bullish on bitcoin since April 2016.
That’s when he first recommended bitcoin to our Palm Beach Letter and Palm Beach Confidential subscribers. It was trading at $428 then.
Kudos if you’re one of the readers who acted on his recommendation.
Bitcoin has risen to $19,140 since then… a 4,372% gain.
That’s enough to turn every $1,000 stake into $44,720. A more substantial stake of $23,000 would now be worth $1 million.
And although it won’t be a straight shot higher, those gains are nowhere near over. Next year, we can expect other companies to follow MassMutual and MicroStrategy and add bitcoin to their portfolios. Teeka…
After MicroStrategy bought $425 million worth of bitcoin in August and September, the company’s stock price has doubled.
Corporate board members across the world are paying attention. They’re looking at their companies, and they’re thinking their stock prices are moribund or stuck in a low-growth gear.
They’re thinking, “We’ve got all this cash. Do we do another share buyback? Do we pay out a higher dividend? Or do we buy a bunch of bitcoin and not only see it soar in value, but also see our stock price soar?”
This is happening across boardrooms everywhere – from large companies, to mid-sized companies, to small companies.
The speed of adoption has surprised even Teeka…
Even in my most wildly bullish dreams, I didn’t think corporate treasurers would use bitcoin as a reserve asset this early on.
I figured we’d probably have to see $40,000-50,000 bitcoin before they’d even consider it. Because then the bitcoin market would be big enough. It would be about a $1 trillion market then. This would make it sufficiently liquid for them.
As I (Chris Lowe) covered in more detail here, bitcoin is the world’s “hardest” currency.
In other words, it’s the hardest to produce more of.
Tamperproof computer code fixes the supply of bitcoin at a maximum of 21 million coins. That’s a stark contrast with government-issued currencies, which central banks can create out of thin air. It makes bitcoin a better store of value over time.
But Teeka sees an even deeper shift in attitude at the top echelons of power when it comes to bitcoin…
Just a few days ago, I was watching BlackRock CEO Larry Fink and Bank of England Governor Mark Carney talk about bitcoin. It was extraordinary for me, a guy who’s been pounding the table on bitcoin long before it started to go mainstream.
They weren’t saying, “Oh, this is some money-laundering nonsense. It’s a fraud.” They were discussing bitcoin’s trajectory to becoming a global asset class.
These are the types of men who pull the levers in the world. Five years ago, the word “bitcoin” wouldn’t have entered their minds, let alone come out of their mouths in a public forum. But here they were suggesting bitcoin could be a legitimate asset class.
Teeka’s is one of the most astonishing forecasts I’ve witnessed in the two decades since I started my career as a financial analyst. And it wasn’t easy to be bullish on bitcoin as a newsletter editor in 2016.
He had to fight tooth and nail at Legacy Research to get the green light to recommend bitcoin to his readers. The cryptocurrency world was still very fringe at the time, and our publisher had reservations about recommending something so new and untested.
Thankfully, Teeka is a persuasive guy. He got the go-ahead. And he gave his readers the chance to make 4,372% on bitcoin… and close wins on other cryptos as big as 2,050%… 11,004%… and 14,354%.
MassMutual and MicroStrategy are pioneers. They’re just the start of a much wider trend.
We’ll see more high-profile announcements next year from large corporations buying bitcoin… and new record highs as these multimillion-dollar buyers pile in.
That’s why I’m urging you to follow Teeka’s advice and at least dip a toe in the water.
You can find out how to make your first investment in bitcoin in our complimentary special report.
Just remember to keep your position size reasonable… and don’t bet the farm. Teeka recommends an initial stake of $200 to $400 for smaller investors and $500 to $1,000 for larger investors.
Regards,
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Chris Lowe
December 14, 2020
Bray, Ireland