#GalaxyDigital& #39;s the BEST listed global peer for #KR1 & both are UNIQUE in the #crypto stk universe for their #VC/ #merchant banking approach to crypto inv& #39;t...

https://wexboy.wordpress.com/2020/11/21/kr1-plc-the-crypto-alpha-bet/

...https://wexboy.wordpress.com/2020/11/2... href="https://twtext.com//hashtag/Galaxy"> #Galaxy wears the crown in N America, so #KR1 is & #39;Europe& #39;s leading digital asset inv& #39;t co& #39;!
& #39;Course, I& #39;m alrdy upsetting the #Galaxy #fanboys making such a cheeky comparison... https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙄" title="Gesicht mit rollenden Augen" aria-label="Emoji: Gesicht mit rollenden Augen">https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen">

...but hey, let& #39;s press on & expose the dumb #biases tht (almost inevitably) prompt punters (& even fund managers) to opt for (& PAY UP for) #Galaxy rather than #KR1!?
Cos it feels really comfortable buying/paying up for #Galaxy...

...a #pureplay offering exposure to incredible #crypto upside pot& #39;l, a bet on #MikeNovogratz who& #39;s on CNBC/Bloomberg every wk & a stk tht alrdy boasts an $8.2B mkt cap.

So why wd you buy some unknown tiddler #KR1?!
All the usual silly #biases:

Any price/multiple& #39;s worth paying for $BRPHF, cos you know...incredible #crypto upside pot& #39;l!https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤑" title="Gesicht mit Geld-Mund" aria-label="Emoji: Gesicht mit Geld-Mund">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf">

I won& #39;t dispute tht...I& #39;ll jst point out #KR1 obviously offers the SAME incredible #crypto upside pot& #39;l!

As do all #crypto stks...apparently!?https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧐" title="Gesicht mit Monokel" aria-label="Emoji: Gesicht mit Monokel">https://abs.twimg.com/emoji/v2/... draggable="false" alt="😆" title="Lächelndes Gesicht mit geöffnetem Mund und fest verschlossenen Augen" aria-label="Emoji: Lächelndes Gesicht mit geöffnetem Mund und fest verschlossenen Augen">
And I get it, watching #Novo wax #crypto-lyrical is both exciting & reassuring!

Except his chopper cd go down in flames tomorrow...who else in #Galaxy has tht magic touch?

And TV pitches are worthless if he/ #Galaxy don& #39;t deliver...intrinsic val gains are ultimately wht matter!
And #sizeeffect is the dumbest (& laziest) bias:

Actually, $BRPHF does NOT boast the $8.2B mkt cap you see on BBG & many other fin& #39;l screens/websites!

Tht $8.2B& #39;s actually the grossed up reval. of the underlying private Galaxy LP tht $BRPHF invests in...at $BRPHF& #39;s mkt price!?!
An entirely notional metric..!?

$BRPHF listed mkt cap& #39;s actually $2.4B...and extraordinary absolute/relative valuation (differences) can be very ephemeral.

In reality, on a far more tangible NAV basis, #KR1& #39;s almost TWO THIRDS the size of $BRPHF!

So much for tht #sizeeffect...
Challenge is to derive a current/apples-to-apples #Galaxy NAV...

...again I& #39;ll prob piss off #fanboys, who i) don& #39;t seem to pay any att& #39;n/realize all #crypto inv& #39;t & mining co& #39;s are ultimately anchored by their bal shts, and ii) thk #Galaxy& #39;s some super-charged #BTC https://abs.twimg.com/hashflags... draggable="false" alt="">/ #crypto bet!
Actually, it& #39;s pretty simple:

- Abt 40% of #Galaxy portfolio is in #BTC https://abs.twimg.com/hashflags... draggable="false" alt="">

- #crypto inv& #39;ts usually remain at #cost til next funding round/are sold/start trading (SAME for #KR1& #39;s unlisted inv& #39;ts)

- Loans...held at face val

- Bal. allocated to trading/asset mgmt operating units.
And those units are still nascent biz #Galaxy& #39;s still building...NOT saying trading isn& #39;t profitable, bt personnel/infrastructure req& #39;d is REALLY expensive!

So #Galaxy& #39;s 14% expense ratio& #39;s a HUGE hurdle for its P&L/bal sht...while #KR1& #39;s fixed expense base is now sub-0.5%!https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen">
And so, it was/is entirely logical to expect its qtrly NAV gain to be maybe 40-50% of #BTC https://abs.twimg.com/hashflags... draggable="false" alt="">& #39;s gain...

...EXACTLY wht we saw in Q4, i.e. 50% of BTC& #39;s gain:

#BTC https://abs.twimg.com/hashflags... draggable="false" alt=""> up +165% from $10.8K to $28.6K

$BRPHF NAV up +83% from $1.39* to $2.54

*Adj to exc. non-controlling interests.
And same approach obv yields a pretty reliable NAV as of today:

#BTC https://abs.twimg.com/hashflags... draggable="false" alt=""> up +109% YTD from $28.6K to $59.9K

$BRPHF NAV up +55% from $2.54 to (say) $3.93

And in line with my NAV approach/tweets YTD, #KR1 NAV today is $223M (123.5p/share)...almost TWO THIRDS of #Galaxy& #39;s $359M NAV!
And now #Galaxy& #39;s broken $25+ & lks ready to blow MUCH HIGHER:

https://uk.finance.yahoo.com/quote/BRPHF?p=BRPHF&.tsrc=fin-srch

While">https://uk.finance.yahoo.com/quote/BRP... #KR1& #39;s still tracing out the SAME #ascendingtriangle consolidation pattern:

https://www.aquis.eu/aquis-stock-exchange/member?securityidaqse=KR1

BUT">https://www.aquis.eu/aquis-sto... tht leaves #KR1 on a 1.5 P/B vs. #Galaxy on a 6.7 P/B!?!
BUT BUT BUT... #fanboys be #biasing again! https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤪" title="Dummes Gesicht" aria-label="Emoji: Dummes Gesicht">https://abs.twimg.com/emoji/v2/... draggable="false" alt="😆" title="Lächelndes Gesicht mit geöffnetem Mund und fest verschlossenen Augen" aria-label="Emoji: Lächelndes Gesicht mit geöffnetem Mund und fest verschlossenen Augen">

Which is pretty dumb, esp. when we look at some hard no& #39;s, & #39;cos if #Galaxy, #KR1 & ALL #crypto stks boast such incredible upside pot& #39;l...

...why on earth wdn& #39;t you bet on the team/co tht& #39;s actually delivered ALREADY!? https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧐" title="Gesicht mit Monokel" aria-label="Emoji: Gesicht mit Monokel">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤑" title="Gesicht mit Geld-Mund" aria-label="Emoji: Gesicht mit Geld-Mund">
#Galaxy& #39;s initial NAV was $1.91...

...so, presuming a $3.93 NAV today, we& #39;re actually looking at a +106% cumulative gain!

Not bad at all...

EXCEPT for the fact tht #KR1 started out with a 0.67p NAV...for a +18,326% cumulative gain today!

https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤑" title="Gesicht mit Geld-Mund" aria-label="Emoji: Gesicht mit Geld-Mund">https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen">
  #Galaxy& #39;s initial NAV was $1.91......so, presuming a $3.93 NAV today, we& #39;re actually looking at a +106% cumulative gain!Not bad at all...EXCEPT for the fact tht   #KR1 started out with a 0.67p NAV...for a +18,326% cumulative gain today!https://abs.twimg.com/emoji/v2/... draggable=https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤑" title="Gesicht mit Geld-Mund" aria-label="Emoji: Gesicht mit Geld-Mund">https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen">" title=" #Galaxy& #39;s initial NAV was $1.91......so, presuming a $3.93 NAV today, we& #39;re actually looking at a +106% cumulative gain!Not bad at all...EXCEPT for the fact tht #KR1 started out with a 0.67p NAV...for a +18,326% cumulative gain today!https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤑" title="Gesicht mit Geld-Mund" aria-label="Emoji: Gesicht mit Geld-Mund">https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen">" class="img-responsive" style="max-width:100%;"/>
BUT BUT BUT, tht& #39;s not fair...

#KR1& #39;s been around a lot longer than #Galaxy (2016 vs. 2018), so obviously we shd compare CAGRs...

...EXCEPT #KR1& #39;s actual +202% CAGR alone is almost double #Galaxy& #39;s total cumulative +106% gain!

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙄" title="Gesicht mit rollenden Augen" aria-label="Emoji: Gesicht mit rollenden Augen">https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤑" title="Gesicht mit Geld-Mund" aria-label="Emoji: Gesicht mit Geld-Mund">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤪" title="Dummes Gesicht" aria-label="Emoji: Dummes Gesicht">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf">
Yep, #fanboys will throw some mysterious #Galaxy #secretsauce in the mix to justify such an absurd 6.7 vs. 1.5 P/B val& #39;n spread.

EXCEPT I& #39;ve written 1,000s of words abt #KR1& #39;s actual #secretsauce since 2017...

...and happily documented the resulting/incredible NAV gains since!
And as #Munger (& #LiLu last night) will always remind us...

...it& #39;s not the price/multiple you pay for a stk tht matters, ultimately it& #39;s the #compounding, i.e. it& #39;s the actual #RoI the co has & will deliver/earn.

So it& #39;s simple, jst bet on the BEST..... #KR1!
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