- GRIT
- Posts
- The Crypto Craze Continues
Hi Everyone 👋,
Is it Sunday again already? Welcome to your GRIT Sunday newsletter, and HELLO TO ALL OUR NEW SUBS! 🫡
GRIT’s BIG News of the Week:
Stock Deep Dive 👉 MARATHON DIGITAL, SNEAK PEEK
Matt’s Corner 👉 A LOOK IN TO CRYPTO: WHAT ARE ALT COINS?
Comin’ Up 👉 EARNINGS AND ECONOMIC DATA
GRIT’s Stock Market Madness celebrates the March Madness season! Check out our stock bracket here and follow along. 📈 Who do you think will be the winning stock on April 1st? 🏆
1. Stock Deep Dive Teaser
SNEAK PEEK: MARATHON DIGITAL
The first time someone told me something about Bitcoin, I thought:
a) You are just talking about fake internet money and
b) it will never compete with the American Dollar.
Thank goodness I went down the rabbit hole years ago to understand Bitcoin, the blockchain, cryptography, and, ultimately, Bitcoin mining.
In the summer of 2020, I researched a stock called Marathon Digital, which was at $0.95. I would argue that my newsletter was probably the first to cover Marathon Digital, and my subscribers became obsessed with it.
My thesis was straightforward at the time: A) The Bitcoin bull market historically starts after the halving. B) This Bitcoin mining stock always correlates with Bitcoin.
A+B= If the Bitcoin bull market starts, Marathon Digital will correlate with Bitcoin, causing the stock to soar with Bitcoin.
The thesis was ultimately proven correctly, and at the peak of the 2021 Bitcoin cycle, Marathon Digital hit $68.
This brings us to 2024, a month from the next Bitcoin halving. The research I sent out in the Summer of 2020 differs entirely from Marathon Digital's current position.
It is currently the leading Bitcoin miner, and I am incredibly impressed with its CEO, Fred Theil.
In this newsletter, I will explore Marathon Digital in 2024 in depth. At the time of this newsletter, the stock is trading at $21.80.
Overview 👉 What Does Marathon Digital Do?
Bitcoin 👉 How Does Bitcoin Work?
How Do They Make Money? 👉 Business Segments
Where Does AI Fit in? 👉 NVDA/DGX Partnership
By The Numbers 👉 Key Metrics
Risks 👉 Potential Pitfalls
Overview 👉 What Does Marathon Digital Do?
Marathon Digital specializes in Bitcoin mining and data centers. The company was formerly known as Marathon Patent Group but changed its name in 2021 to Marathon Digital Holdings.
Marathon Digital plays a crucial role in the Bitcoin ecosystem. It uses its powerful computers to validate and record transactions, ensuring the network remains secure and efficient. Their mining efforts aim to profit and fortify Bitcoin's infrastructure, keeping it robust and trustworthy for everyone involved.
In Matt Allen's terms, Bitcoin miners make money using computers to solve complex puzzles. When they solve a puzzle first, they get to add a new block of transactions to the Bitcoin blockchain and are rewarded with newly minted Bitcoins and transaction fees. Think of it like a race where the prize is Bitcoin, and the faster your computer, the better chance you have to win. The more you win, the more Bitcoin you are rewarded.
An important note to remember is that the name of this game is scale and efficiency. Mining each Bitcoin costs a lot of money, and the team at Marathon Digital is looking for ways to make this cheaper daily. The price of Bitcoin is also significant because it directly impacts their margins.
Let’s give you a simple example: Let’s say it costs them $30,000 to mine ONE Bitcoin. They lose money for each Bitcoin mined if the current price is $25,000. However, Bitcoin's current price is around $65,000, so they profit from each mined.
Bitcoin 👉 How Does Bitcoin Work?
Before exploring Marathon further, we must review how Bitcoin works and the role Bitcoin miners play….
TO KEEP READING, click here, and check out our deep dives resources 📚 in Monthly Premium!
2. Matt Allen’s Corner
A LOOK INTO CRYPTO: WHAT ARE ALT COINS?
Hi Everyone! Today, I’m highlighting one of our sections in GRIT VIP! Below, I share part of my article, What Are ALT Coins?
Altcoins are digital currencies that are not Bitcoin. They were created to offer different features or improve upon Bitcoin's design.
There are many altcoins, each with its unique purpose, such as faster payments or more privacy. Altcoins are essential to the cryptocurrency world, offering various options for users and investors.
Understanding Alt Coins
Understanding altcoins requires delving into cryptocurrencies' vast and varied landscape beyond the pioneer, Bitcoin. Altcoins encompass many digital currencies offering alternative digital transaction approaches, privacy, scalability, and functionality.
The genesis of altcoins can be traced back to the desire to improve upon the original Bitcoin protocol. Some sought faster transaction speeds, while others focused on enhanced privacy features, reduced transaction costs, or more democratic consensus mechanisms such as proof of stake (PoS) instead of Bitcoin's energy-intensive Proof of Work (PoW).
This innovation has led to the creation of categories within altcoins, including but not limited to utility tokens, security tokens, stablecoins, and governance tokens, each serving distinct purposes within digital economies.
Utility tokens, for example, grant holders access to a specific product or service within a platform, acting as a form of digital coupon.
Security tokens represent an investment contract into an underlying asset, like real estate or company equity, providing a digital, blockchain-based representation of traditional financial instruments.
Stablecoins aim to tackle cryptocurrency volatility by pegging their value to more stable assets such as the U.S. dollar, gold, or other cryptocurrencies. Governance tokens offer holders voting rights on decisions that affect the future direction of a blockchain project, emphasizing community involvement and decentralized decision-making.
To read the full resource and get access to all of our premium resources like LIVE investor portfolios, digital resources in the VIP Member Hub, and 3+ stock deep dives per month, upgrade to GRIT VIP! 💫
Get 50% off your first year with VIP now for March Madness!
Cheers,
Matt Allen
3. Comin’ Up
EARNINGS AND ECONOMIC DATA
💰 Earnings:
Monday: N/A
Tuesday: GameStop
Wednesday: Cintas, Paychex, Carnival
Thursday: Walgreens
Friday: AST
📈 Major Economic Events:
Monday: New Home Sales
Tuesday: Durable-goods orders
Wednesday: Fed Gov. Christopher Waller speaks
Thursday: Initial Jobless Claims, GDP (2nd revision)
Friday: PCE
Do you think Bitcoin will keep rising? 📈 |
Invest for the long haul. Don’t get too greedy and don’t get too scared.
Our weekly newsletters are designed to give you a detailed review of the week's news, plus our unique perspectives on what to do next. 📣 We want to hear from you! Fill out our feedback survey here to improve our newsletters for our free and GRIT VIP subscribers! We love your feedback. 💪
Interested in being featured in our GRIT Newsletters? Click below!
The author of this newsletter owns ETF’s (exchange traded funds) that may hold ownership interests in the companies discussed in this newsletter as of the published date of this newsletter.
Disclaimer: Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
The author of this post and an insider to Grit Capital Corporation (“Grit”) currently holds an ownership interest in PURPOSE BITCOIN U$NON-HDG (BTCC-U) as of the published date of this post. The author of this post and an insider to GRIT does not guarantee that they will maintain their ownership interest in PURPOSE BITCOIN U$NON-HDG (BTCC-U) and may increase or sell such interest at any time. Be aware that as result, the author and/or Grit may be in a conflict of interest with the viewer as a result.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
The author of this newsletter owns a long position in Bitcoin (BTC) and Ethereum (ETH) in their portfolio. There is no guarantee that the author will maintain such a position in the future. An insider to GRIT currently holds ownership positions in Bitcoin (BTC) and Ethereum (ETH). The insider to GRIT Capital Corporation does not guarantee they will maintain their ownership interest in Bitcoin (BTC) and Ethereum (ETH) and may increase or sell such interest at any time.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Please read: Terms of Use, Privacy Policy, Disclosure Policy, State Disclosure Policy, and Disclaimer Policy
If you have any questions please contact us at help@gritcap.
Join the conversation