ON MIKE’S MIND: 5 Lesson from Crypto Land
I have, as you know, long been a value investor, in the school of Buffet and Munger.
But this last month, I’ve had a front row seat to see what happens when a company that has done basically nothing for a very long time switches strategies and rockets over 3000% in a month.
And it has nothing to do with traditional value investing.
Here’s what happened…
BitMine Immersion Technologies (BMNR) raised $250 million to buy Ethereum as a treasury reserve asset, mirroring Michael Saylor’s wildly successful Bitcoin strategy - but with Ethereum.
The bet is on ETH’s growing role in stablecoin infrastructure.
The stock exploded from roughly four and half bucks to $135 before settling at roughly $40 by the end of the week on Friday.
It’s a funny world when 10x feels like a let down.
Ok, now that the euphoria is over (for the weekend), what do we learn from this?
Narrative > Numbers (For Now)
Investors are chasing stories, not earnings. BitMine’s valuation rose astronomically without profit, driven by belief in Ethereum and the Saylor playbook. This signals a market still deeply influenced by meme dynamics, social sentiment, and FOMO.Crypto Still Commands Speculative Power
Despite regulatory uncertainty, crypto assets—especially Ethereum—remain powerful financial instruments. Their dual utility (e.g., powering stablecoins and DeFi) keeps them attractive, even as fundamentals lag behind hype."Treasury as Strategy" Is the New Growth Model
In a yield-starved, inflation-hedged environment, companies are using crypto not just as a hedge—but as a branding and investor magnet. Ethereum is becoming a treasury asset not for stability, but for speculative leverage on ecosystem growth.Market Volatility Is a Feature, Not a Bug
BitMine’s 3,000% surge and drop in a matter of days illustrates the risk inherent in crypto-aligned plays. For long-term investors, it’s a reminder: volatility creates opportunities, but it's no substitute for margin of safety.Speculation Can Outrun Sanity—But Not Forever
BitMine’s current valuation assumes Ethereum’s success, BitMine’s strategic execution, and bullish macro conditions—all aligning. That’s a lot of “ifs.” As always, price is what you pay; value is what you get.
Bottom line: If you’ve got friends in the right places, and can move quickly, in and out, quick fortunes can be made.
BitMine’s rise is a bet on potential, not performance. It’s a speculation wrapped in a strategy, dressed up as a balance sheet play.
ETH is not the same as BTC. It’s functional, not a reserve currency.
As always, don’t bet your home on trends, but if you have “play money” you can afford to lose, take your shot.
Caveat Emptor.
Today and everday.
Mike and The Co/Investor Club Team
Investing Together. Building Legacy.
******
THE MARKETS
There was a big push in Small Cap Value Stocks this week, spurred on by the
S&P 500: +0.01%, DJI: -0.96%, NASDAQ Composite: +0.46%
The 2-year rose a basis point to 3.81, while the 10-year rose 9 basis points to 4.42
Crypto rockets as Trump pressures Fed, market eyes $4 trillion milestone!
BTC: +8.45%, ETH: +17.12%, XRP: +23.4%
WISE WORDS
“Sometimes you have to take a leap of faith first. The trust part comes later.”
-The Man of Steel (2013)
In Case You Missed It!
This week we sent out a special edition of the Co/Report. Co/Investor Premium Member, Charles Allen, wrote a primer on Crypto and wanted to share it with the rest of the club. After such a big run up on Crypto this week, you don’t want to be falling behind.
Reflections on the Week
With the release of James Gunn’s Superman, it has me all nostalgic for the world of heroes, villains, and some of the collectibles collecting dust in my house.
Now, I haven’t seen the movie yet, so no spoilers, but from what I’ve heard, this might be a return to good-natured superhero storytelling, stepping back from the sprawling, tangled web Disney spun with the Avengers. And honestly, that’s a refreshing shift.
All this nostalgia got me reaching out to a few friends and poking around the current state of collectibles. What I found was a whirlwind of stories: a bankruptcy shaking up the industry, a new FOMO-fueled toy that’s being dubbed the modern-day Beanie Baby, and a surprisingly compelling stock pitch that shows what a well-defended niche business can look like in today’s market.
Let’s start with Labubu dolls. If you haven’t heard of them, think gremlin-core meets designer toy craze. These tiny creatures have exploded in popularity across Asia and are now whipping up FOMO stateside. It’s a perfect example of how scarcity, design appeal, and internet hype can collide into something that people are lining up and paying huge premiums for.
Originally priced between $9 and $28 in blind boxes, they’re now flipping for hundreds or even thousands of dollars. In the U.S., some are going for $143–$310 on StockX, and in the U.K. rare editions are hitting over £1,000. The exceptionally rare variants? Auctioned at $170,000 for a jumbo four-foot edition in Beijing.
The blind-box model taps directly into the same dopamine-driven mechanics behind gambling and loot boxes, making it not just a collectible, but a recurring event.
Every purchase is a chance at a jackpot, and that uncertainty drives repeat buying, lineups, and secondary-market speculation. But there’s more at play here: adult collectors (“kidults”) are now the dominant force in the toy economy, and Labubu's blend of nostalgic design, exclusivity, and social media virality hits their sweet spot. Keep on the lookout for other products like these in the future, you never what’s going to hit jackpot.
But not all corners of the collectible world are built on hype, some rest on aging infrastructure now beginning to crack. Diamond Comic Distributors, the longtime gatekeeper of comic book distribution, filed for bankruptcy earlier this year, sending shockwaves through the industry.
For decades, Diamond served as the primary pipeline between publishers and retailers, but years of shipping delays, mounting complaints about damaged product, and the late-2024 closure of its Plattsburgh fulfillment center steadily eroded trust.
The company’s dominance had already started to fade as major publishers like DC, Marvel, IDW, and Dark Horse began migrating to newer distributors like Lunar and Penguin Random House between 2020 and 2022.
Still, Diamond’s collapse leaves a vacuum, one that could ultimately lead to a more open, competitive market.
What’s stirred the most concern, is that their consigned goods have been seized as assets to be liquidated to pay creditors, sparking outrage and fear among mid-sized and independent publishers who stand to lose both product and revenue.
This legal and logistical mess doesn’t just spell the end of a legacy player; it’s a warning to the entire industry. Mid-tier publishers now face a painful reckoning with the risks of centralized distribution and blurred ownership lines.
As the dust settles, the restructuring of this system may open the door for new entrants, but not without significant casualties along the way.
Amid all of this, I came across a thoughtful piece from Finding Moats about Games Workshop (GAW)—the company behind the successful Warhammer franchise. It’s not a flashy stock, but it tells a great story about how niche businesses can quietly build wide economic moats. Games Workshop has scaled globally by doubling down on community, brand loyalty, and margin discipline. Licensing deals, a growing digital presence, and tight control over product releases have helped it become a powerhouse without ever chasing mass-market status. In a world chasing scale at all costs, GAW is a case study in doing less but doing it exceptionally well.
Whether it’s a viral toy, a fallen giant, or a quiet category leader, the collectibles world reflects the broader market truth: success is rarely about scale alone. Timing, trust, and execution matter just as much as buzz. Some trends catch fire and fade, others quietly build for decades before getting their due. And in today’s market, where culture, community, and commerce increasingly overlap, understanding why something resonates can be just as important as what it earns.
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