Feb 06, 2026

Subject: Money Stuff: Cracking Open the DATs

Content:

– Digital Asset Treasury companies (DATs) initially allowed selling $1 of Bitcoin for $2 on stock exchanges, offering huge premiums.

– This trade collapsed; today $1 of crypto might trade at 80 cents on the stock exchange, presenting a new investment opportunity.

– Buying shares at a discount means you don’t get underlying crypto immediately unless you own all shares; price convergence to NAV is uncertain.

– Activist investing aims to realize intrinsic value by pushing for company liquidation at NAV.

– Empery Digital Inc., a crypto treasury company, bought Bitcoin near peak prices and now trades at a discount to NAV.

– Empery is using share repurchases funded by bitcoin sales; activists like ATG Capital and Tice Brown are calling for management changes and immediate Bitcoin liquidation.

– Summary: In 2025, profits came from premiums on crypto assets; in 2026, profits can come from liquidation of crypto assets at NAV.

– The newsletter also discusses faster IPO inclusion rules proposed by Nasdaq to allow companies like SpaceX to join indexes earlier.

– Addresses delay in index inclusion post-IPO and discusses challenges related to SpaceX and other major IPOs.

– Notes that prediction markets like Kalshi show early user losses higher than traditional gambling platforms.

– Kalshi and Polymarket promote free groceries as customer incentives.

– Discusses complex portfolio allocation approaches likened to ‘Gesamtkunstwerk’ in investing.

– Covers various recent headlines in finance, politics, and tech.

Subject: Need to Know: Don’t short AI stocks until you see this red flag, says short sellers

Content:

– Carson Block from Muddy Waters Capital advises against shorting AI stocks now due to strong momentum.

– The market currently rewards momentum stocks; mistimed shorts can cause big losses.

– Shorting speculative companies should wait until supply overwhelms demand, similar to patterns seen in 2021 SPAC boom and 2001 tech bubble.

– Muddy Waters has diversified into quantitative momentum strategies with strong returns.

– Palantir, Western Digital, Micron, and Seagate were prominent in their momentum portfolio.

– Market summary: modest gains expected for Nasdaq and S&P 500 futures; Bitcoin below $70,000.

– Highlights mixed earnings: Alphabet beats forecasts but shares slip due to high capex; Broadcom gains; Qualcomm guidance disappointing.

– Covers topics such as SpaceX IPO plans, executive insider buying analysis, and Social Security data breach.

– Features insights into government spending’s potential uneven impacts on consumer spending.

– Lists most searched tickers: NVDA, TSLA, GME, GOOGL, AMD, PLTR, MU, MSFT, TSM, INFY.

– Provides lighter content including Super Bowl fans learning Spanish and unusual cultural stories.

Subject: Axios Pro Rata: MAGA SPACs

Content:

– Colombier Acquisition Corp. III raised $260 million, likely $300 million total after greenshoe, focused on MAGA economy investments.

– Prominent figures include Donald Trump Jr., Laura Ingraham, Chamath Palihapitiya, and Blake Masters on board.

– Past Colombier SPACs merged with Public Square and GrabAGun, performing poorly with shares below initial prices.

– SPAC investors tend to flip shares quickly, often leaving retail investors exposed.

– Potential political risks if Democrats control Congress by 2027 affecting merger outcomes.

– Highlights European fundraising: Mundi Ventures’ €750 million first close for deep-tech fund, largest EIF commitment ever.

– Numerous venture funding and acquisition deals in AI, biotech, blockchain, robotics, cybersecurity, and enterprise software sectors.

– Notable IPOs: Bob’s Discount Furniture, Eikon Therapeutics, Forgent Power Solutions, Generate Biomedicines.

– KKR to acquire Arctos Partners for $1.4 billion, gaining stakes in professional sports teams.

– Includes career promotions and key financial market data.

– Promotes Goldman Sachs 2026 M&A Outlook report.

Subject: Money Stuff: Five Bananas Won’t Pay the Rents

Content:

– Bilt Technologies created a rent payment system with a credit card offering rewards to encourage landlord adoption.

– Landlords had resisted credit card rent payments due to interchange fees; Bilt partnered with Wells Fargo to cover fees, paying rent rewards from other transaction fees.

– The initial rewards model was unsustainable, with Wells Fargo losing millions monthly.

– A “five bananas” rule (making five transactions monthly aside from rent) was introduced to qualify for rewards, leading to customer frustration.

– Bilt revamped the program with complex points and “Bilt Cash,” confusing users and resulting in backlash.

– Despite challenges, Bilt retains many customers due to credit card stickiness and broad landlord relationships.

– Discusses SpaceX’s impending IPO and index fund inclusion strategy aimed at reducing stock price volatility by synchronizing lockup expirations with index additions.

– Highlights regulatory and enforcement challenges of insider trading in prediction markets like Kalshi, noting expanded surveillance partnerships.

– Bitcoin dropped below $70,000 amid leveraged sell-offs and competition from legalized sports gambling and prediction markets.

– Bitcoin continues to act more like a speculative high-risk asset than a stable store of value or inflation hedge.

– Brief news roundup: Hims & Hers’ Wegovy competitor, AI deployments by OpenAI, hedge fund splits, mining acquisitions, bonuses at UBS Investment Bank, Social Security data issues, and notable legal controversies.

Stay Well!