Trade Alert: Bitcoin Bull

Taking advantage of today's market downturn to bet on two undervalued, Bitcoin-related names.

Zigging When The Market Zags

In my post earlier today, I mentioned having a few more bearish trades teed up on companies likely to be negatively impacted by tariffs.

With stocks down sharply today, I have put those trades on hold for the next bounce. Instead, I took profits on a couple of bearish options positions expiring Friday,

Options

1. Puts on Apple (AAPL 1.18%↑). Bought for $1.81 on 4//14/2025; sold for $2.71 on 4/21/2025. Profit: 50%.

2. Puts on Nvidia (NVDA -2.83%↓). Bought for $1.56 on 4/9/2025; sold for $4.02 on 4/21/2025. Profit: 158%.

And placed bullish bets on two undervalued Bitcoin-related names.

Why Bitcoin?

Because it’s starting to behave like its own asset class, instead of like a more volatile version of the Nasdaq. While the NASDAQ 100-tracking Invesco QQQ Trust (QQQ 0.00%↑) is down about 3% as I type this, Bitcoin is up about 2.5%.

Why These Two Stocks?

Because they are both profitable and cheap, with most of their market caps backed by cash and crypto:

Company A

• Bitcoin Holdings: 742.1 BTC, valued at approximately $69.3 million

• Ethereum Holdings: 27,623.9 ETH, valued at approximately $92.1 million

• Cash and Cash Equivalents: Approximately $98.6 million

• Total Market Capitalization: Approximately $325 million

Asset Composition Relative to Market Cap:

• Bitcoin and Ethereum: ~50%

• Cash: ~30%

• Combined Liquidity (BTC + ETH + Cash): ~80%

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Company B

• Bitcoin Holdings: 2,298 BTC, valued at approximately $214.6 million

• Cash and Cash Equivalents: Approximately $8.9 million

• Total Market Capitalization: Approximately $295 million

Asset Composition Relative to Market Cap:

• Bitcoin: ~73%

• Cash: ~3%

• Combined (BTC + Cash): ~76%

With that in mind, I placed bullish, longer term trades on both. The maximum downside risks on these are losses of 100%, and our maximum upsides could be much higher if Bitcoin revisits its previous high later this year.

Details below.

Today’s Bullish Company A Bet

The stock is Bit Digital (BTBT 0.00%↑), and our trade is buying the $2 strike puts calls expiring on January 16th, 2026, for $0.60. The max gain on 6 contracts is uncapped, the max loss is $360, and the break even is with BTBT at $2.60. This trade filled at $0.56, but you may be able to get it for less now.

Today’s Bullish Company A Bet

The stock is Semler Scientific (SMLR 0.00%↑), a healthcare technology company using Michael Saylor’s Bitcoin Balance Sheet strategy, and our trade is buying the $40 strike calls expiring on December 19th, for $5.40. The max gain on 2 contracts is uncapped, the max loss is $1,080, and the break even is with SMLR at $45.40. This trade filled at $5.31, but you may be able to get it for less now.

Exiting These Trades

For both, I am going to open GTC orders to sell half of my calls for 3x what I paid, and aim to sell all of them before expiration.