Willy Woo Sells Bitcoin, Bets on Bitcoin Infrastructure Companies
Willy Woo, a well-known market analyst, has revealed that he has sold all of his Bitcoin holdings. He explained to his followers that he believes there are better investment opportunities within the Bitcoin ecosystem itself.
Instead of investing in other cryptocurrencies, Woo is focusing on companies directly related to Bitcoin. He anticipates a period of unprecedented growth for the industry over the next decade.
This shift in strategy, according to Woo, may explain the absence of a traditional “altcoin season.” Investors are reinvesting profits from Bitcoin sales back into the Bitcoin infrastructure.
Woo emphasizes the importance of self-custody and “hodling,” but also acknowledges the potential risks posed by large Bitcoin holders, or “whales.” He views gradual selling during market peaks as a positive development.
“I’m not even a whale, but the concentration I have is better utilized to reinvest in the BTC infrastructure. I’ll do very well investing in the ‘picks and shovels’,” Woo stated.
Companies Poised to Outperform Bitcoin?
This trend is already visible among market participants. Tether, the company behind USDT, is a prime example. In addition to establishing a Bitcoin accumulation firm, Twenty One Capital, Tether aims to become the world’s largest Bitcoin miner.
Woo believes that traditional markets are eager to gain exposure to the Bitcoin sector. Coupled with Bitcoin’s increasing adoption, these companies are likely to offer higher returns and potentially lower risks.
“The next decade will be unprecedented. BTC infrastructure companies will outperform Bitcoin’s own 30% compound annual growth rate (CAGR).”
“Since these startups hold Bitcoin as treasury, their downside risk is backed by a stack of BTC,” Woo continued. He pointed out that Coinbase’s 2012 seed round underperformed Bitcoin until its IPO, while Exodus’s 2016 seed round yielded two to three times more. He expects these returns to increase in the coming years.
Examples of Success
Strategy’s stock has surged 3,200% since its initial Bitcoin purchase. Similarly, shares of the Japanese company Metaplanet have increased by 6,400%.
Criticism and Rebuttal
Woo’s decision has drawn criticism from some followers, who claim he has lost credibility. However, Woo defended his strategy, asserting that he is even more heavily invested in cryptocurrency through this approach.
“Today I learned that many Bitcoiners don’t understand what it is to have exposure to BTC. Which is strange, because this cycle is being defined as the great BTC treasury company bubble. The way I see it is: I’m 500% long on BTC.”
“I love BTCTCs [Bitcoin Treasury Companies] because their put options act as very cheap insurance for Bitcoiners in the next bear market. What do you have against them?” Woo asked, responding to a follower who called these companies “Trojan horses.”
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