Planting Coins: Fifth report

Management Summary 

• Our crypto garden portfolio has now been invested for 120 days and has achieved a return of 26.7%. 
• After the significant price gains in January, there was another significant rise in February before the market entered a consolidation.  
• We are curious to see whether we can continue the upward trend already now at the beginning of March or whether the sideways phase will drag on. 

What is the crypto investing series?  

This blog post is the fifth report since the initiation of our crypto portfolio, and the sixth part of our crypto investing series Planting Coins. Read more about our crypto portfolio framework here. Don't forget to sign up for our newsletter to get the next reporting straight in your mailbox!  

Healthy consolidation in the crypto market 

The portfolio was launched on November 2, 2022 at 7 p.m. CET, just before the events surrounding the FTX crypto exchange. The data of this report is as per March 1, 2023 at 8am. CET. 

Figure 1: Consolidation in Feburary. 

Our portfolio value increased by another more than 20% at the beginning of the month before the various coins entered a consolidation and the portfolio ended the month with a positive performance of 4.8%. Looking at the staged investment process we used to invest in the falling market, we outperformed by 22.5% compared to a one-off investment at the beginning of November. 

Figure 2: Mina Protocol is the new top performer 

Mina Protocol made it to the top of the portfolio with a 60% contribution, ahead of Polygon Matic, Solana and Bitcoin. On the other hand, Cardano was the least successful cryptocurrency with a contribution of only 5%.  

Figure 3: Six cryptos are staked generating cashflows… 

The staking rewards of the six staked coins are also relatively constant and contribute a yearly gross return of between 2.56% and 14.67%. In this context, the returns on selected cryptocurrencies could be additionally increased, as Kraken has expanded its staking offering and, in addition to liquid staking, now also offers illiquid staking in compliance with the lock-in periods. 

Staking rates are calculated on an annual basis based on the effectively realized staking rewards on a daily basis. Thus, they vary on a daily basis, but give an approximate indication of what to expect. 

Figure 4: …contributing already 2.1% of performance to the portfolio 

As figure 4 shows, the portfolio could already achieve 2.1% performance with the decision to stake the six currencies.  

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