Core Insights - Bitcoin has shown a negative year-to-date performance, leading to skepticism about its investment potential [4] - The volatility of Bitcoin undermines its argument as a stable alternative currency, with significant price drops observed [6] - The correlation between Bitcoin and equity markets is high, challenging its role as a portfolio hedge [10][11] - The argument for Bitcoin's scarcity is weakened by its divisibility and the emergence of competing cryptocurrencies [17] - Frequent changes in the investment rationale for Bitcoin suggest instability in its investment thesis [18] Investment Performance - Bitcoin has experienced six collapses of 70% or greater over the past twelve years, indicating high volatility [6] - The drop from Bitcoin's October high is over 25%, reflecting its unstable nature [6] Market Correlation - Bitcoin's correlation with the Nasdaq Composite and S&P 500 has been exceptionally high over the past decade, questioning its effectiveness as a hedge [10][11] Volatility Comparison - The Purpose Bitcoin ETF has shown extraordinary volatility compared to the SPDR S&P 500 ETF, highlighting the risks associated with Bitcoin investments [13][15] Scarcity Argument - The argument for Bitcoin's scarcity is challenged by its infinitely divisible nature and the presence of numerous competing cryptocurrencies [17]

Core Viewpoint - Digital Commodities Inc. has increased its Bitcoin holdings through the purchase of units in the Purpose Bitcoin ETF, reflecting its strategy to invest in scarce, non-fiat assets as a hedge against monetary debasement [1][2][4]. Investment Details - The company acquired 17,023 units of the Purpose Bitcoin ETF at an average price of C$20.79 per unit, totaling approximately C$354,000, which adds the equivalent of 2.2 Bitcoin to its holdings [1][2]. - The average underlying Bitcoin purchase price for this transaction is approximately US$115,000 per BTC, inclusive of all costs and fees [2]. Total Bitcoin Exposure - Following this transaction, Digital Commodities' total Bitcoin exposure, both directly and via exchange-traded funds, now exceeds 13 Bitcoin [3]. Strategic Focus - The investment aligns with the company's ongoing strategy of building exposure to scarce, non-fiat assets that serve as stores of value and hedges against monetary debasement [2][4]. - The CEO of Digital Commodities expressed confidence in Bitcoin's long-term relevance as a resilient asset class and its role as a core digital store of value [4]. Company Overview - Digital Commodities Inc. focuses on investments in Bitcoin, gold, and selective public and private companies, aiming to build long-term value through disciplined exposure to non-fiat assets [4].