The $100 Trillion Upgrade Is 3 Weeks Away

Strategy (formerly MicroStrategy) is blowing up.

The flagship Strategy product, the variable rate preferred shares, which are supposed to maintain a peg to $100 have collapsed and traded as low as $81 on Thursday.

I've been saying for over a year this company is a failing capital structure.

I have zero doubt in my mind that Strategy is a terrible investment, despite all of Saylor's charisma.

But the real story here is something a lot larger: the digital asset market often pushes boundaries and when the dust settles, the adults in the room pick what remains and they build on it.

And at the center of this is one stock I think can 10x in value over the next three years.

But first, to let you in on this I need to go back in time to 2017.

This was when the idea of "tokens" first became popularized thanks to cryptocurrencies. Do you remember that period? Bitcoin was up more than 10,000% in two years from 2015-2017. And in this cycle, there were hundreds of new tokens in what is now known as the "ICO Craze".

This period was full of speculation, scams, and many people jumped on too late and lost their money.

But this didn't mean that tokens were a bad concept -- not at all. It's just that the crypto casino turned into something a bit ugly. Because nearly a decade on from this craze, tokens are what the AI super cycle is being built off. Every time you use an AI, it uses tokens behind the scenes.

Token usage has skyrocketed.

This is because tokens are a perfect way to represent value digitally.

It was introduced by crypto, but perfected elsewhere.

The same goes for "perpetual futures", which are futures that never expire and run 24/7. This is crypto's most successful trading product of all time, but it didn't come without it's fair share of controversy also. 

Introduced in 2017 by BitMEX, the founder of the exchange pleaded guilty to Bank Secrecy Act and would often trade against his own customers using these products. In an infamous leaked internal message back then, the founder said to run the stops of his clients so he could buy himself a Ferrari, lol.

A reason why the 2022 bear market sucked so bad was because there was an incredible amount of leverage in the system from these perpetual futures that it took a garden variety bear market into an 80-90% collapse.

Billions have been lost from "auto deleveraging events" where these products can cause major market crashes because they automatically liquidate traders.

But yet, like tokens, they are being integrated into the financial system beginning with the CME, which is introducing perpetual-style futures for oil and gold. Additionally, the S&P Dow Jones have officially licensed perpetual futures meaning traders can now trade the S&P 500 outside of business hours, 24/7.

It's another trend where Wall Street has watched crypto traders fight in the trenches like apes, and then take the best parts of the technology for themselves.

When it comes to MicroStrategy, I think the bubble has popped in these digital asset treasuries (stocks that just buy and hold crypto).

The only reason for them to exist was before there were ETFs. Now I can go buy a BlackRock Bitcoin ETF, there's no reason to buy MSTR when it holds Bitcoin but is trapped under layers and layers of preferred obligations. Even Saylor himself has pretty much admitted that there's no reason to buy MSTR now over these preferred shares like STRC, which have just crashed and lost their $100 peg.

I think MSTR will never touch its all time high again and the bubble has truly popped for these things.

Again, these digital asset treasuries all came about because there was no other way to buy crypto in the stock market. Then that paved the way for all these crypto ETFs and funds to do a better job.

So here's the thing.

This is the track record of crypto.

The casino and crypto traders experiment with the technology like monkeys, then Wall Street quietly sits back, observes, and when the time is right they take the best parts of the technology and integrate it for themselves.

That same exact setup is playing out in tokenization.

For years now, I could buy traditional assets on-chain like stocks, funds, and bonds. Even BlackRock launched a fund in this space.

This stuff was cool, but it was always built for crypto traders, so it's impact to regular people was always going to be limited.

But that's changing in less than three weeks.

The DTCC, the most important entity in all of global finance, is launching their tokenization service which will allow every financial institution in the U.S. to convert their $100 trillion of security entitlements into tokenized entitlements.

This is, unequivocally, the largest technological upgrade to the financial system since the 1970s where centralized clearing houses were mandated.

Every corner of capitalism is about to be touched by this upgrade, from:

• Hundreds of trillions of capital that aren't mobile enough, costing institutions billions in inefficiencies.
• Billions of reconciliation expenses are about to slashed across the board as we move from a messaging based financial system to a composable system.
• Trillions are about to be freed from 

You may not see these inefficiencies in your day to day life. When you send money or buy stocks, it feels smooth.

But behind the scenes, institutions need to set aside trillions of capital to make this all work. That's money that can't be allocated productively, and costs a lot of money.

And that cost is passed down to you in the form of fees and lower returns.

While all the other technological upgrades crypto has brought into the mainstream, from tokens, perpetual futures, and decentralization -- tokenization is larger than all of them combined.

This is crypto's single best product market fit, and it's flying toward the financial system like a meteor.

That's why I've personally allocated my entire trading account to this one idea.

I want as much exposure to the companies building out this technology, from the custodians, settlement layers, the exchanges, and networks where these funds will be put on.

This weekend I'll be dropping a report of one company that holds billions of dollars for institution. And in a week's time when Europe enacts it's MiCA rule changes, virtually every company or institution in Europe that needs to hold tokenized assets or cryptocurrencies will need to work with this company.

Yet, the market doesn't see this and the stock is essentially trading at book value...

I'm buying the stock next week and I think it could go 5-10x over the next three years.

If you want that report, you can sign up for my new platform, The Tokenization Report, where I cover the single best opportunities playing out in this major $100 trillion upgrade to the U.S. financial system beginning in just three week's time.

Click here to join and get my report when I publish it this weekend.