Mark Moss: The Truth About Bitcoin’s Next Move | AI + BTC Will Obliterate Old Finance

Summary

In this episode, market strategist Mark Moss reveals a massive transformation in the financial world driven by AI and Bitcoin. With over 125 companies now holding 3.5% of Bitcoin’s total supply, traditional metrics like PE ratios and DCF models are becoming obsolete. Instead, new KPIs focused on Bitcoin and AI efficiency are emerging, enabling companies like MicroStrategy and Metaplanet to thrive. As businesses evolve to leverage these technologies, the opportunity for investors is huge. This is a complete reset of the economic system, where AI efficiency and Bitcoin scarcity will determine future winners.

Takeaways

• 😀 Over 125 publicly traded companies now hold more than 721,000 Bitcoins, representing 3.5% of the total supply.
• 😀 These companies are aggressively acquiring Bitcoin, signaling a shift away from traditional financial metrics.
• 😀 Traditional business evaluation models, like P/E ratios and discounted cash flow (DCF), are becoming obsolete.
• 😀 New key performance indicators (KPIs) such as Bitcoin per share, MNAV (market value per Bitcoin), and premium compression velocity are emerging.
• 😀 AI is driving down labor costs, while Bitcoin acts as a hedge against government-induced currency devaluation.
• 😀 MicroStrategy (now Strategy) leveraged Bitcoin-backed balance sheets to raise $8.2 billion, holding nearly 600,000 Bitcoins.
• 😀 Companies adopting Bitcoin strategies are seeing massive valuation shifts, outpacing traditional metrics and financial models.
• 😀 The Bitcoin-powered economy is growing rapidly, with companies like Metaplanet raising funds to scale their Bitcoin holdings.
• 😀 Global infrastructure, including the $300 trillion bond market, is failing, providing opportunities for Bitcoin-driven companies to thrive.
• 😀 AI and Bitcoin work together in a 'flywheel effect,' increasing operational efficiency and boosting profit margins.
• 😀 Companies embracing Bitcoin and AI are building the future economy, while traditional businesses may be left behind if they fail to adapt.

Q & A

What percentage of the total Bitcoin supply do the 125 publicly traded companies own?

The 125 publicly traded companies own over 721,000 Bitcoin, which amounts to 3.5% of the total Bitcoin supply.

How are companies like MicroStrategy leveraging Bitcoin to enhance their business models?

MicroStrategy, under Michael Saylor, leveraged Bitcoin by raising funds through public debt and equity markets, using Bitcoin as a balance sheet asset. This strategy allowed the company to accumulate nearly 600,000 Bitcoin, increasing their equity multiple to 2.5 times.

What key metrics are emerging as more relevant for companies investing in Bitcoin?

Instead of traditional metrics like PE ratios or discounted cash flows (DCF), companies are now focusing on Bitcoin per share, MNAV (Market Net Asset Value), days to cover, and premium compression velocity.

How does AI contribute to the transformation of businesses in the current economic environment?

AI increases business operational efficiency, helping companies improve profit margins by driving down the cost of labor, which compensates for the devaluation of currency caused by governments.

What is the new survival strategy for companies in the current economic environment?

Companies need to embrace AI and Bitcoin to survive. This includes increasing operational efficiency with AI and accumulating Bitcoin through public debt and equity markets to gain a competitive edge in the evolving economy.

What is the significance of Metaplanet's Bitcoin strategy?

Metaplanet has grown its Bitcoin holdings from 117 BTC to 10,000 BTC within a year by utilizing the public debt and equity markets. They now yield 1.5% daily Bitcoin, allowing them to cover their market cap in 168 days, which positions them as a fast-growing company in the Bitcoin ecosystem.

Why are traditional metrics like PE ratios becoming obsolete?

Traditional metrics like PE ratios are no longer relevant because they don't reflect the true value of companies that are heavily invested in Bitcoin. Instead, new metrics like Bitcoin per share and market net asset value (MNAV) provide a better understanding of a company's value in the new economy.

What is 'premium compression velocity' and why is it important?

'Premium compression velocity' refers to how quickly a company can reduce the premium between its market valuation and the Bitcoin it holds. It's important because it helps investors understand how efficiently a company is accumulating Bitcoin relative to its market value.

What is meant by 'economic escape velocity' in the context of Bitcoin-powered companies?

'Economic escape velocity' refers to the accelerating speed at which Bitcoin-powered companies can grow. As these companies continue to reinvest profits into Bitcoin and benefit from AI efficiencies, their growth becomes exponential, allowing them to escape the devaluation of fiat money.

How are markets like Japan, Europe, and Korea adapting to the rise of Bitcoin-powered businesses?

Markets around the world are adopting Bitcoin-powered business strategies. For example, in Japan, companies like Metaplanet are planning major Bitcoin investments. In Europe, Bitcoin-backed bonds are being issued, and in Korea, companies like Bitmax are embracing similar strategies to integrate Bitcoin into their operations.