The Man Who Owns 1% Of ALL Bitcoin

Intro (00:00:00)

• The speaker discusses a strategy involving borrowing $900 million at a low-interest rate and investing it in Bitcoin, which has historically appreciated by an average of 100% annually over the past ten years.

Bitcoin going up? (00:00:25)

• The price of Bitcoin has surged from $37,000 to $69,000 in the past four months, driven by the approval of Bitcoin spot ETFs, which provide easier access to the asset for many investors.
• Over $10 billion has flowed into Bitcoin ETFs, and the price has set a new all-time high within two months of the ETF launch.
• Bitcoin's long-term thesis remains unchanged, with a scarce supply and increasing demand, particularly from large institutions.
• The upcoming Bitcoin halving, where the daily supply of new Bitcoins is cut in half, is expected to further increase the price due to reduced supply and increased demand.
• Despite the significant increase in the value of his crypto holdings, Anthony Pompliano has not sold any and continues to hold a majority of his net worth in crypto-related assets.
• Michael Saylor, who owns 1% of all Bitcoin and purchased it in 2019, considers it a sound investment and believes the media should label everyone as a "future billionaire" instead of using clickbait titles.

Michael Saylor's bet-the-company, burn-the-boats strategy (00:05:26)

• Michael Saylor, the CEO of MicroStrategy, made a significant bet on Bitcoin starting in July 2020, personally investing $250 million and convincing the board to invest 85% of the company's cash reserves into Bitcoin.
• As of today, MicroStrategy owns more than 210,000 Bitcoin, representing over 1% of the total Bitcoin network and currently valued at over $10 billion.
• Saylor's decision was driven by MicroStrategy's stagnant stock price from 2007 to 2020, leading him to seek an alternative strategy to boost investor interest and drive up the stock price.
• Saylor's strategy involves using Bitcoin as a hedge against currency volatility and inflation, considering it a more stable asset compared to traditional fiat currencies.
• Despite Saylor's success, no other major companies have followed MicroStrategy's lead in adopting Bitcoin as a treasury reserve asset.
• Saylor's ability to execute this strategy is facilitated by his significant ownership and voting control within MicroStrategy, allowing him to make bold decisions without immediate pressure for short-term profits.

Pomp's take: genius or insane? (00:15:48)

• Pomp believes it is riskier for a company to hold $500 million in US Dollar Cash than $500 million worth of Bitcoin for long-term oriented companies that don't need the cash for day-to-day operations.
• Bitcoin will likely do better in protecting purchasing power over the next 10-20 years compared to the US Dollar.
• Pomp expects shareholders to criticize public companies with large cash reserves, questioning the opportunity cost of not investing that cash.
• The transition from being a tinkerer to a proper capital allocator is rare, and it's fascinating to see someone like Michael Saylor make that transition.

Product manager to people manager to money manager (00:18:12)

• Sean and Pomp discuss the transition from product manager to people manager to money manager.
• Warren Buffett believes being a businessman makes him a better investor and vice versa.
• Pomp agrees with Buffett's statement, as building companies helps in analyzing them better than just analyzing spreadsheets.
• Business builders tend to have a healthier skepticism and don't get caught up in herd psychology like the worst investors do.
• Many successful angel investors today are also running companies or building things themselves.
• Founders Fund is an example of a company that invests by operating day-to-day, which makes them better investors.
• To succeed in the dynamic world, one needs to be a "ball player" who can do all different positions like building, investing, hiring, managing, and firing.
• Warren Buffett, Jeff Bezos, Elon Musk, and Michael Saylor are examples of "ball players" who have figured out not only building things but also capital markets.
• Pomp has expanded his brand from being known as a Bitcoin and crypto guy to also investing in real estate and other businesses.
• It is unclear whether this is a hedge or simply a result of his curiosity.

Pomp's weird side businesses (00:22:05)

• The speaker, who owns 1% of all Bitcoin, sees potential in line striping businesses due to the increasing demand for well-marked roads for self-driving cars.
• Small businesses often struggle to scale beyond $1 million to $1.5 million in earnings before interest, depreciation, and amortization (EBITDA) due to factors such as prioritizing personal compensation and lifestyle over growth.
• Generational and cultural factors can influence business management styles, with some owners relying on personal networks and informal structures rather than formal management practices.
• Finding the right balance between ambition and market fit is crucial for businesses to achieve optimal success, as excessive ambition may not always align with the potential rewards.
• The speaker emphasizes the importance of technology adoption for small businesses and expresses concern about people not understanding its significance.

The truth about buying blue-collar businesses (00:30:21)

• Small businesses make up 50% of jobs in America and contribute significantly to GDP growth.
• Many small business owners, like a family member with a chemical business, personally handle various aspects of their operations, such as mixing products and shipping them.
• Unlike tech companies where code operates 24/7 and generates passive income, blue-collar businesses require hands-on involvement and effort.

You can't put rocket fuel in a car (00:31:31)

• Investing in industries that are not subject to rapid change and have less competition is important for long-term success.
• A successful venture capitalist advised investing in railroads despite the rise of AI because railroads benefit from technological advancements without facing direct competition from AI.
• Finding undervalued industries and bringing fresh ideas to them can lead to success, as demonstrated by Philip Anschutz, who found value in undervalued assets such as railroads, oil and gas, local sports teams, and movie theater chains.
• An entrepreneur realized that moviegoers were a captive audience for 20 minutes before a movie starts and revolutionized the movie theater industry by selling ads during that time, saving Regal Cinema.
• This approach of finding and capturing ideas can be applied to other industries and has become easier with the advent of podcasts, Twitter, and other platforms.

The prolific ownership of Philip Anschutz (00:36:36)

• Philip Anschutz is a prolific owner of various businesses and assets.
• He started in real estate and oil, but now owns AEG, the second-largest ticketing service provider behind Live Nation.
• AEG owns music events like Coachella, sports magazines, sports teams, and entertainment parks.
• Anschutz is also the author of a book about America expanding into the West.

Pomp's List: Startups You Should Work For (00:38:05)

• Anthony Pompliano and his wife created a list of companies where employees could potentially become millionaires through stock ownership and salary.
• The criteria for the list included companies with around 500 employees, offering competitive salaries and stock options, and having a tangible product or service.
• Pompliano was asked to create his own version of the list, focusing on later-stage private or public companies where employees could potentially gain significant wealth through stock appreciation.

10X reputation: Anduril or OpenAI (00:40:28)

• OpenAI and Anthropic have potential for financial gain but may not offer significant upside due to high valuations. Joining these companies can provide a good salary and reputation boost, but the primary value lies in resume-building.
• The speaker joined Facebook for its unique culture and the opportunity to work with talented individuals, rather than primarily for financial reasons.
• When evaluating job opportunities, it's important to consider both financial and reputational factors.
• After the first three to five years of a business career, the college a person attended becomes less relevant, unless the person was one of the first 200 to 500 employees of a prestigious company like Facebook.
• As of the end of last year, there were 880,000 people working at Facebook, which dilutes the exclusivity and prestige of having worked there.

Shaan interviews at Facebook (00:45:07)

• Facebook's interview process involves real-world problem-solving scenarios rather than abstract riddles or pre-prepared character questions.
• Despite feeling like they were making things up, the interviewee received the highest feedback rating among all mergers and acquisitions at Facebook.
• Facebook used flattery to influence the interviewee's decision, as they were more interested in closing the deal than in the interview itself.
• There are many impressive but lesser-known individuals at Facebook, such as Sam Lon, Vij Raji, and Vivek.
• The author was impressed by the talent at Facebook during a visit to the company and learned about a successful project that generated $500 million annually.
• The author highlights the story of an employee who created Microsoft Office 365 against initial skepticism.

10X Potential: Eight Sleep, Varda, Figure.ai, Traba, Placer.ai, Rainmaker, Galvanick (00:52:05)

• Eight Sleep is a hardware and software company focused on improving sleep quality and health, while VAA creates space manufacturing facilities to produce drugs in zero gravity, potentially leading to cheaper and more efficient drug manufacturing.
• The YouTuber is launching a new podcast called "MoneyWise," where they break down people's financials and dive into the psychological aspects of spending. The first episode features an individual who spends approximately $250,000 per month.
• Figure AI is developing humanoid robots to address the shortage of human labor in warehouses, emphasizing the importance of robotics and demographic shifts when making investment decisions.
• Trax is a rapidly growing company that provides on-demand labor to light industrial manufacturing facilities, addressing the inefficiencies of traditional temp work providers.
• Placer.ai, an Israeli company that uses cell phones to create better mobile analytics, is doing $100 million in annual revenue and has a valuation of $1 billion.
• Rainmaker, a company that uses drones to drop chemicals in clouds to make it rain, is a risky investment but has the potential for high returns.
• Galvanic, a cybersecurity company founded by a former Trump Administration official, aims to protect public infrastructure from cyberattacks.
• Cloud seeding, a weather modification technique, is being used in China and the Middle East, with Make Rain aiming to induce rainfall and potentially prevent hurricanes from making landfall.

How Pomp thinks about trade positions (01:06:15)

• The speaker successfully traded Ethereum for Solana, buying at key price points of $48, $55, and $80.
• Solana is gaining attention and development activity, and the speaker believes it has short-term potential.
• The speaker plans to hold Bitcoin indefinitely, while a friend holds a significant amount of Solana, anticipating its rise in a bull market.
• The investment strategy involves buying assets that others will buy in the future, as selling at the beginning of a bull market in crypto can be disadvantageous.
• Solana's smaller market cap compared to Bitcoin and Ethereum presents the potential for higher returns, although timing the market remains challenging.

A simple thesis on Solana (01:11:58)

• The speaker believes that selling in the crypto market is more cyclical than in traditional markets.
• Selling is more about where we are in the cycle than the value of the asset.
• It's difficult to determine the value versus price of crypto assets, making it challenging to decide when to sell based on price targets.
• The speaker prefers to think in terms of time frames, such as the end of the coming year or the summer of 2025, and sells when it feels like the right time in the cycle, regardless of valuations.

Being early on Andrew Tate (01:12:52)

• Andrew Tate, a four-time world champion kickboxer with an online presence, was interviewed before his rise to significant popularity.
• Tate's initial interview was considered controversial and was put on hold due to societal changes.
• Tate's business at the time was Hustler University, an online course platform.
• Tate's viral success can be attributed to his understanding of human psychology and effective communication strategies.
• Despite disagreements, Tate's marketing tactics have become standard in modern marketing.
• It is important to evaluate individuals, understand their perspectives, and learn from them, even if there are disagreements.
• The speaker reflects on the concept of becoming the "main character" and the associated consequences, emphasizing the importance of self-awareness and understanding one's personal goals and comfort levels with privacy and notoriety.
• Different individuals have varying preferences and priorities, and it's essential to find a balance that aligns with one's own values and aspirations.