Plus: My Goose-and-Gander Theorem Explained.
News out of Norway today, which probably means nothing to nobody. But it should—because a much bigger message hides within.
You’ve probably heard of Norway’s Sovereign Wealth Fund—the world’s largest such fund with assets approaching $1.7 trillion.
That’s a lot of dinero, all derived originally from a very forward-thinking federal government that wisely set aside some profits from its vast oil wealth to build a nest egg for all Norwegians when the oil finally runs dry.
America has no sovereign wealth fund, if you’re wondering.
Why, seems sadly obvious.
Washington D.C. metaphorically, gets paid on Thursday and is out of cash before the paycheck even hits the bank. Heck, the way D.C. manages money, a string of loan sharks has already garnished all of D.C.’s wages from now until pretty much the end of time.
But back to Norway…
The sovereign wealth fund, which invests in the name of the government, has increased its exposure to bitcoin indirectly through various tech investments. The country now owns indirect exposure to nearly 2,250 BTC, equal to more than $155 million.
That marks a sizeable increase from the 938 BTC the fund owned when 2023 closed out.
Though the exposure is “indirect,” it seems clearly calculated. The fund dumped tech assets such as Meta (né, Facebook) to snap up MicroStrategy, Coinbase, Block, and Marathon Digital. Each of those is a pure play on the growth of crypto.
Ambcrypto, an online publication tracking the industry, notes that the fund’s move “highlights a growing trend of institutional interest in digital assets, with governments worldwide holding substantial Bitcoin reserves.”
Uncle Sam himself holds more than 200,000 BTC, all collected through seizures in criminal proceedings.
All in, governments around the world cumulatively hold about 2.2% of the entire bitcoin supply. That’s almost 500,000 BTC.
This brings me to the real point of today’s dispatch: Sometimes when your mom says, “Are you gonna jump off a bridge just because everyone else is,” the answer is “Yes! Yes I am, lady!”
And then you run outside and find the nearest bridge…
To me, this is the Goose-and-Gander Theorem, which I am completely making up here on the spot. This fabricated theorem holds that, “What’s good for the goose of government, is even better for the gander of everyday investors and consumers.”
I share this message all the time relative to the gold market, but if Asset X is such a crummy investment, why in the world does the government own a bajillion dollars’ worth of Asset X, and why are governments around the world buying Asset X hand over fist?
The hypocrisy is rich.
Gaslighting in its most devious form… the government telling you an asset is a scam and worthless, yet the government owns that asset or is buying it.
Make it make sense…
There are some who will say, “But, El Jefe, Uncle Sam only owns bitcoin because he confiscated it for being part of nefarious activity.”
And that is correct.
But one might rightly think that if bitcoin was a dog with fleas, then Uncle Sam’s minions and mandarins would have quickly dumped the fleabag and turned it into cash that Congress could spend on some boondoggle du-jour.
Yet Sammy’s handlers have not parted with the bitcoin the country owns.
That says something.
It says government sees utility in an asset that, oddly, no government or entity can control. It sees profit opportunity. Otherwise, why own it? Why not make a show of dumping it onto the market while claiming it’s a totally stupid and worthless digital artifact that only goobers and goombahs would own?
Hmmm?
Because that would be disingenuous.
And it would rob Uncle Sam of the vast wealth he’s going to gather up as bitcoin’s price races higher.
Certainly, that’s what Norway expects.
There’s literally no other reason anyone would buy MicroStrategy, Coinbase, et al. unless one had absolute conviction that BTC and crypto have a very bright future. Those stocks live and die based singularly on crypto’s success.
Side note: I recently added to my Coinbase holdings when the crypto market soiled the sheets a few weeks ago. That was the second time I’ve loaded up on Coinbase during temporary negative events. My initial investment (made when the SEC’s lawsuit against Coinbase scared the market about 18 months ago) is up 316%; my second purchase is up 5%, but I’ve only owned it for two weeks. This is not specifically a recommendation, since I don’t print those here in Field Notes, but if you asked me whether Coinbase is a great buy at its current price, I would tell you, “Those crazy Norwegians sure do win a lot of winter Olympics medals…”
(For more on my specific recommendations and ways to play the crypto market… take a look at my Crypto Profits Workshop here.)
My message here at the bottom is simple: Governments around the world—not to mention a treasure trove of companies—aren’t being stupid when they buy bitcoin.
They’re looking into their perfectly functioning crystal ball and they clearly see the very bright future bitcoin has before it, and the very big prices bitcoin will achieve.
I’d probably follow the Norwegians, if I were you…
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