FTX, the cryptocurrency exchange founded by Sam Bankman-Fried, remains well capitalized and has been stepping in to provide liquidity to other firms such as Voyager Digital and BlockFi. The FTX US exchange continues to be a great option for our traders to utilize. Other exchanges that I recommend are Coinbase and Binance. These “big three” crypto trading platforms have significantly less liquidity issues and better risk profiles when compared to other niche players.
Kevin O’Leary, speaking on the Bankless podcast, called for positive regulation of the crypto industry. O’Leary owns 32 cryptocurrency positions, including BTC, ETH, and MATIC that he expects to outperform other assets over the next 10 years. O’Leary believes that with increased regulatory frameworks, institutional investors will be able to better embrace and gain exposure to digital assets. Here at Cabot, we share these views.
Market Update
With many market-leading growth stocks down over 50% YTD, much of the anticipated negative macro news is now very much priced in. It is our expectation that forward five-year returns for our portfolios will now significantly outpace the average annualized S&P return of 10%.
We are focused on market leaders. Companies and defi projects that have demonstrated pricing power, significant competitive advantage, and are growing their incremental margins as they scale.
Crypto “Pure-Play” Portfolio
Ethereum (ETH) – BUY A QUARTER, PRICE TARGET $2,000
Ethereum Naming Service (ENS) – BUY A HALF, PRICE TARGET $30
Polygon (MATIC) – BUY A QUARTER, PRICE TARGET $1
| Ticker | Original Weight | Price | Price at Rec | Performance | Rating |
| ETH | 15.0% | 1,196.69 | 3,444.22 | -65.26% | BUY A QUARTER |
| ENS | 2.50% | 9.28 | 10.22 | -9.20% | BUY A HALF |
| MATIC | 1.25% | 0.53 | 0.678 | -21.68% | BUY A QUARTER |
| APE | — | 4.90 | — | — | WATCH |
| SOL | — | 38.33 | — | — | WATCH |
| HNT | — | 10.64 | — | — | WATCH |
| STEPN | — | 0.9491 | — | — | WATCH |
“Picks and Shovels” Equity Portfolio
Bitcoin ProShares ETF (BITO) – BUY A QUARTER, PRICE TARGET $28
Okta, Inc (OKTA) – BUY A QUARTER, PRICE TARGET $200
Nvidia (NVDA) – BUY A QUARTER, PRICE TARGET $255
Arista Networks (ANET) – BUY A QUARTER, PRICE TARGET $120
| Ticker | Original Weight | Price | Price at Rec | Performance | Rating |
| Proshares Strategy Bitcoin ETF (BITO) | 2.50% | 12.87 | 25.93 | -50.37% | BUY A QUARTER |
| Arista Networks (ANET) | 2.50% | 98.87 | 105.00 | -5.84% | BUY A QUARTER |
| Nvidia (NVDA) | 2.50% | 168.69 | 188.20 | -10.37% | BUY A QUARTER |
| Okta Inc. (OKTA) | 2.50% | 97.26 | 95.00 | 2.38% | BUY A QUARTER |
| Concord Acquisition (CND) | — | 9.94 | — | — | WATCH |
| CrowdStrike (CRWD) | — | 181.93 | — | — | WATCH |
| Galaxy Digital (GLXY.TO) | — | 6.66(CAD) | — | — | WATCH |
| Unity (U) | — | 44.44 | — | — | WATCH |
New Recommendations
We are actively monitoring the Helium Network (HNT). HNT is the native token of the Helium blockchain. This project is launching two new tokens on their blockchain this summer – MOBILE and IOT. The intent of these tokens is to further incentivize node operators to contribute coverage to Helium’s 5G network. On the Helium network, participants turn on their own hotspots. This is like Comcast or Verizon, however, these set-ups also mine for HNT. The Helium network is aiming to increase connectivity speeds between devices on the internet and return utility and monetary reward to hot-spot owners and node operators.
Another publicly traded cybersecurity company that we are watching is CrowdStrike (CRWD). The company’s Falcon platform has over 19 different modules and has become very adept at cross-selling these offerings to enhance incremental margins and annual recurring revenue. CrowdStrike is building a holistic security ecosystem, one that offers endpoint protection, cloud workloads, and identity. This process is creating a compelling moat – displacing legacy vendors and leading to increased adoption by Fortune 500 firms.