Treasury allocation, ROI, and profits from investments from August 2022
Financial strategies are created and most successful when you have a diversified and knowledgeable team balancing them out. The difference between winners and losers in financial markets oftentimes comes down to the tools at your disposal and the team backing your efforts.
“Even though August was filled with market crashes, currency manipulations, and common dirty tactics by the 'too big to fail' institutions, we still managed to turn an incredibly healthy profit for XETA Capital and its community. "
"In effect, we beat the market.”
The CPI data on Tuesday, September 13th, 2022, revealed an 8.3% increase in inflation, causing at least an 8% decrease in purchasing power, and likely a higher number than that. This means that if you did not make at least an 8.3% return on your cash in the past 12 months, you have lost purchasing power to inflation.
In an increasingly inflationary world where central banks continuously print money that is backed by nothing, then use that money to pass off to retail, to then tax them on that money they printed, then bail out "too big to fail" financial institutions with more printed money and tax dollars, it is becoming more difficult by the day to stay ahead of this monetary corruption.
The Defi space has been filled with projects where founders know the above problem, and have attempted to utilize blockchain tech and cryptocurrency in an attempt to solve it. Many of tried, and most have failed, much of the time due to the inability to make money and turn a profit for its community.
August Profit Report - A Breakdown
At XETA Capital, we see the problem with the current monetary system, as well as the failed Defi space, and in an attempt to solve it, have partnered with projects in the space that are putting the community and their interests first.
Even though August was filled with market crashes, currency manipulations, and common dirty tactics by the "too big to fail" institutions, we still managed to turn an incredibly healthy profit for XETA Capital and its community.
In effect, we beat the market.
Here are quick summarized highlights of the August profits for the XETA Capital Fund:
$183,055.00 was deposited into HFT (High-Frequency Trading) on June 6th, 2022
$251,160.00 was deposited into HFT on July 23rd, 2022
$1,132,655.00 was allocated to the following areas on August 3rd, 2022:
$500,000.00 was deposited into HFT
$249,866.18 was deposited into Monzo, Starlink, Stripe, Discord, and Impossible Foods Private Equity (breakdown summarized below)
$150,000.00 was deposited into low-risk liquid Bonds
$232,655.00 was deposited into Blue-Chip trading equities
$75,000.00 was withdrawn from HFT on August 19th, 2022, and used for $XETA token buybacks
$50,000.00 was withdrawn from HFT on August 26th, 2022, and used for $XETA token buybacks
$120,000.00 was deposited into HFT on August 31st, 2022
Based on these deposits and withdrawals into various investments vehicles, here is a quick breakdown of the ROI and P/L (Profits & Losses):
HFT (High-Frequency Trading) Profited $276,645.00. This returned an ROI of 29.77%, despite the $125,000.00 withdrawals for token buybacks.
Private Equities Profited $20,716.36. This contains an unrealized ROI of 8.29%. These are equities that are still being held and have not been liquidated.
Low-Yield Bonds Profited $2,250.00. This returned an ROI of 1.50%.
Blue-Chip Equities Lost $2,326.55. This is a loss of 0.99%. There was a week in August when currencies were accused of being manipulated, and we had multiple different crashes in FX, equities, etc. These crashes caused a loss of less than 1%. At the time this profit report was shown in our AMA Video on September 8th, the Blue-Chip equities were back in profit.
The overall XCF (XETA Capital Fund) account Profited $276,568.45. This returned an ROI of 30.28%. This does not include the unrealized gains from the Private Equity appreciation.
Let's show a summary breakdown of the Private Equity (PE) positions, including entry points, share quantities, and overall appreciation, losses, etc:
Monzo 4,562 shares were purchased for $49,999.52, or $10.89 per share. The value of these shares has Appreciated to $11.47. This PE has created an unrealized Profit of $2,490.77, or an ROI of 4.98%. The current value in Monzo is $52,490.29.
Starlink 95 shares were purchased for $49,875.00, or $525.00 per share. The value of these shares has Appreciated to $556.00. This PE has created an unrealized Profit of $2,945.00, or an ROI of 5.90%. The current value in Starlink is $52,820.00.
Stripe 1,829 shares were purchased for $50,004.86, or $27.34 per share. The value of these shares has Appreciated to $32.05. This PE has created an unrealized Profit of $8,614.59, or an ROI of 17.22%. The current value in Stripe is $58,619.45.
Discord 8,928 shares were purchased for $49,996.80, or $5.60 per share. The value of these shares remains Unchanged at $5.60. This PE has created an unrealized Break-even position of $49,996.80, or an ROI of 0%. The current value in Discords remains unchanged at $49,996.80.
Impossible Foods 3,333 shares were purchased for $49,995.00, or $15.00 per share. The value of these shares has Appreciated to $17.00. This PE has created an unrealized Profit of $6,666.00, or an ROI of 13.33%. The current value in Impossible Foods is $56,661.00.
The total amount invested in these Private Equities is $249,871.18. The total balance, including amounts invested and value created, is $270,587.54. This creates an unrealized Profit of $20,716.36, or an ROI of 8.29%.
The vast majority of cryptocurrency projects in Defi are incapable of making sound investments that can return a profit in the short, medium, and long term.
When balancing this lack of ability with emissions and daily rewards from Nodes, XŌNs, or other daily reward mechanisms, it's no wonder why many projects that engage with this level of complexity in balancing tokenomics, emissions, business, and profitability end up failing.
At the onset of XETA Capital, it was vital that we opened up a presale only when we were already post-profit. When the doors first opened for the community to enter, we already had a track record of profitability, thanks to our partnership with Gaxsys Holding AG.
The report shown here was not a full 30 days for many of the investments. Given the lack of a full month, and even during one of the worst months on record for the global economy, where trillions were erased from equities markets, Forex manipulation occurred, and cryptocurrency markets crashed, XETA Capital was still able to turn a profit. This is a testament to the sound wealth management, made by professionals, on behalf of the community who have entrusted their confidence in our ability to make good on our promises.
The difference between professional wealth management and investments made by unqualified founders in Defi projects is often the delta between sound economics that result in profitability and poorly modeled business planning that results in the failure of Defi projects due to the inability to do the one thing the community has trusted them with: Make Money.