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The title of the video is the meltdown is coming. Great title. And in it, you've been talking about um SpaceX IPO being an indicator of how frothy the markets are going to get. I'll let you comment on why you think there's going to be a market meltdown. I mean, so far we've seen the complete opposite of a market meltdown, uh but something's brewing.
What is it, Peter? Well, it's been melting up. Eventually, it's got to melt down. But yes, I mean, the valuations are at extremes that have never existed before. I mean, we've had excess valuations, and they've always ended the same way with a major decline. Uh this time, the valuations are even more extreme than they've been at prior peaks.
And that doesn't mean that we can't go any higher. I mean, obviously, we can. Uh but the question is how much room is really there uh left to go uh before the whole thing implodes. I I thought the SpaceX IPO was potentially a bellwether. Hey, you know, this is peak insanity with a company trading at over 100 times a revenue of this size.
I mean, yeah, maybe you can have a small biotech company that really doesn't have any revenue, uh but a major company with a trillion-dollar plus market cap trading at over 100 times revenue. And you know, they only uh sold about 4% of the company in the IPO, even though it was a record breaking IPO in how much money they raised, they barely sold any stock.
So, we're determining the price of all the shares based on the 4% that are available to trade. So, it really uh allows for an excess valuation. But I think what's a really good harbinger of what's going to happen with these bubbles that have really yet to pop or maybe have, but we just can't tell yet is what's happening in crypto because that was really the peak of the bubble.
That was the the most insane part of the bubble was crypto. Because you know, AI stocks they at least have some underlying value. We can argue over how much they're worth, but they're worth something. I mean, they're viable businesses. The question is what do you pay for those businesses? What are those What is the present value of their future earnings?
But Bitcoin and most of crypto, I mean, they have no earnings. They have nothing. They have no underlying value. It's all just hype. It's all greater fool. And that bubble has already popped. And Bitcoin which peaked at 126,000 is down at around 64,000. So, it's down about 50%. But Bitcoin is lower than it was in April of 2021.
So, for 5 years Bitcoin's gone nowhere. Uh meanwhile, strategy stock, the the the poster boy, the big buyer of Bitcoin and the creator of so-called digital credit, which is really an oxymoron, but that whole thing is imploding before us. Strategy is now down, I don't know, 70%. It's trading at a 25 to a 30% discount now to the value of the Bitcoin per share.
Yet Sailor keeps liquidating shares to buy more Bitcoin. Uh when he should be selling Bitcoin to buy back stock. But he can't sell Bitcoin because he tried to sell 23 Bitcoin and the markets collapsed. So, he's sitting on um you know, 800,000 some odd Bitcoin that he can't sell. Mhm. And so, he's selling what he can, which are his own shares, despite the fact they're at a massive discount.
And stretch his preferred creation that pays 11% is now paying like 12 and 1/2% if you buy it because the shares are trading below 90 when par is 100. And he can't issue those anymore without raising the dividend, which he doesn't want to do. So, he's stuck. I think this whole thing is imploding. And once this one goes, it's going to be like dominoes.
You know, the Bitcoin bubble and the crypto bubble, and now, you know, more are going to go. If you liked this clip, then like the video and share it with your friends. And if you want to watch the entire full-length long-form video, then check out the link in the description down below.
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