Alternative Investing Report - March 27, 2025

*as of 3/26; Sources: S&P, BTC, FTSE, DJRE, GOLD

The first jersey ever worn by Michael Jordan in the NBA sold at Sotheby’s for $4.2 million, becoming the fifth-most expensive NBA jersey ever sold at auction. The jersey is signed and inscribed by Jordan and was photo-matched to Jordan’s first preseason game as well as two other preseason games. Jordan’s first NBA regular season jersey has not yet surfaced and perhaps never will.

➨ TAKEAWAY: The jersey was last sold publicly in 2009 for $66,000, showing just how far the sports memorabilia market has come. There were thoughts that it could sell for $10 million or more, but that was unlikely for a preseason jersey, and the final result was still a strong one. In April, Sotheby’s is selling the jersey that was worn in both Kobe Bryant’s preseason and regular season debuts, and the auction house also believes that could sell for $10 million or more.

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Earlier this week, the Ttrump-backed crypto project World Liberty Financial launched its own stablecoin, a coin pegged to the value of the U.S. dollar that makes it easier to transact in the digital space. It is just the latest entry into a crowded marketplace, and now, the state of Wyoming and the investment giant Fidelity are poised to follow.

➨ TAKEAWAY: Stablecoins are now a $230 billion asset class and the market cap has grown by more than 45% in the past year. The major players include Tether’s USDT and Circle’s USDC, but stablecoins backed by governments could end up dominating the market depending on legislation that might end up getting passed. In any case, with more mainstream players entering the fray, it is just another step in the legitimization of the crypto market.

🏡 New home sales rebound: Sales of new single-family houses rose by 1.8% monthly and are up 5.1% year-over-year, with the relatively affordable South and Midwest regions leading the way.

🚀 Napster sells for $207 million: The file-sharing pioneer that you probably didn’t know still existed was sold to 3D technology startup Infinite Reality, which plans to use Napster’s official licenses to stage virtual concerts in the metaverse.

🎨 Hong Kong art week: The major art auction houses are turning to established blue-chip modern artists such as Basquiat, Chagall, and Magritte for their upcoming Hong Kong auctions, as China’s art market has slowed down.

🏢 SmartStop IPO: The self-storage company with more than 200 locations filed for an IPO on the NYSE and is planning to raise up to $972 million at a valuation of $1.8 billion.

📉 Indoor farm bankruptcy: In the latest example of a hyped vertical farming company going bust, the startup Plenty filed for bankruptcy, following its now-defunct rival Bowery Farming. Plenty has raised more than $900 million in venture funding and had a $1.9 billion valuation as recently as 2022.

🎬 Star Wars props: A “bowcaster” that was used by Chewbacca in the original Star Wars trilogy sold for $768,600, above the high estimate of $500,000, while a medal worn by Luke Skywalker with a high estimate of $600,000 ended up going unsold.

We all better get ready - Bill Gates believes that within the next ten years, AI will advance so rapidly that humans will no longer be needed for “most things” and replace even doctors and teachers. This came in an interview on “The Tonight Show” and echoed what Gates said in an interview last month with Harvard Magazine. The vast potential of AI does come with existential concerns about how humanity will adjust if AI does develop the ability to take over many jobs. In some ways, this has led to the rapid valuation growth of AI startups, as there is an element of FOMO (fear of missing out) among investors who do not want to be left behind.