Hi Jeff, the highly touted Republic NOTE was listed last December and has traded down ever since. More worrying is that not one word has been published about potential dividend payments, let alone any dividends distributed. Can you provide any information on where the NOTE is at? Or a place we can go to get more information? The only information on Republic is how to sell it. Thank you. — Dan F.
Hi Dan,
Thanks for writing in about the NOTE. I received quite a few questions about the Republic NOTE from other subscribers, so I’m happy to review the exciting developments around this digital asset.
For those that aren’t familiar with the Republic NOTE, it is a breakthrough financial instrument in the world of digital assets. It was a project that started about five years ago that I recommended to my past subscribers, but for slow-moving regulatory reasons, it took years to get the NOTE listed and trading on an exchange.
To be very clear, this was not a fault of Republic, it was all related to the regulatory environment for digital assets that we’ve experienced over the last few years.
What made the Republic NOTE so exciting is that it is a digital asset that is backed by the equity of high-growth private companies. It is a digital security. The NOTE was the first of its kind. Owning a NOTE is like owning part of a diversified venture capital fund.
And the best part is that it was possible for normal, non-accredited investors to participate in purchasing the initial NOTE tokens using Reg CF crowdfunding regulations. My subscribers played a very big part in the success of the initial offering of the NOTE.
Dan — there is some extensive information about the NOTE and all of its holdings on Republic’s website which you can find right here.
As of the fourth quarter of 2023, the NOTE is backed by 769 assets from 623 different companies. And all of those companies are listed transparently on the Republic NOTE website.
Equity in companies like SpaceX are in the NOTE, which has grown more than 3X since becoming part of the NOTE. Blockchain giant Dapper Labs is also in the NOTE, which has grown more than 88X since becoming part of the NOTE.
The equity (or tokens) from Robinhood, Relativity Space, Avalanche, K2 Space, Gnosis, Space Perspective, and hundreds of other companies are all part of the NOTE. And with each quarter that passes, new names are added to the list.
When holdings within the NOTE exit — due to change of control, a sale, or an IPO — those proceeds go into a profit pool.
And once the profit pool reaches $2 million or more, then dividends are paid out to all NOTE holders. As of the fourth quarter of 2023, the profit pool was $920,000.
There are two ways to profit from the NOTE. Investors can sell the NOTE, or trade the NOTE, for a higher price than they paid for it. And they can collect dividends as they are distributed.
The NOTE started trading on INX, which is a U.S.-regulated digital asset exchange, on December 6, 2023. Here’s what the chart looks like since then.
Republic NOTE 1-Year Chart
It’s important to mention that the list of the NOTE was kind of like an IPO for a digital asset.
It hit the market at a level that was a few multiples from where my subscribers bought in.
All of my subscribers got in at $0.12 a NOTE, and by January the NOTE was trading around $0.38, representing more than a 3X gain from the initial investment.
I know that a lot of investors sold and took profits off the table in the first month of trading. Congratulations to those that did.
The NOTE has since pulled back to about $0.12 — the same level of the initial investment — in the last month. The NOTE currently has a market cap of about $31 million and is tradable on INX.
Why has the NOTE price pulled back? From my perspective, there are two primary reasons.
On the second point, as more and more exits occur, the amount and regularity of dividend payments will increase for NOTE holders. This will help “the market” better determine a fair price for the NOTE. This should also increase interest in, and liquidity of, the NOTE.
I hope that helps. And again, detailed information about the Republic NOTE and its current profit pool can be found right here.
