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GM. This is Milk Road, the crypto newsletter that's like noise-canceling headphones for crypto Twitter. |
βHereβs what weβve got for you today: |
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OUR PRO ANALYSTβS LATEST TRADE π |
Nubank (the crypto-integrated neo bank) just printed its best quarter ever, and the market barely flinched. |
That mismatch caught the eye of our lead analyst, M0xt - and now he's buying. |
Here's what dropped in Q1: |
Revenue over $5B for the first time. Net income jumped from $557M to $871M (up 56% year-over-year). Diluted EPS (earnings-per-share) climbed from $0.11 to $0.18. ROE (return on equity, basically how much profit a bank squeezes from every dollar of shareholder money) held at 29%.
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For a bank, 29% ROE is bonkers. Most U.S. banks sit around 10-12%. |
And Q1 isn't a one-off - check out the 2025 backdrop: |
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Behind all that is a customer machine that keeps printing. |
Nubank crossed 135M global customers as of March 2026, with 4M added in Q1 alone. |
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In Brazil alone (where theyβre based) they're sitting at 115M customers - making them the largest private financial institution in the country. |
The part that actually makes the trade interesting? Mexico: |
15M customers. Third-largest financial institution in the country. Hit break-even in Q1. Customer base up 7x in four years. ARPAC (average revenue per active customer) has nearly doubled since launch.
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If Mexico works, country three works⦠and country four⦠(i.e. the playbook travels). |
Which is important, given what happened in January⦠|
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OUR PRO ANALYSTβS LATEST TRADE (P2) π |
In January, the OCC (Office of the Comptroller of the Currency - the U.S.'s main banking regulator) granted Nubank conditional approval for a U.S. national bank charter. |
A whole new growth leg on a company already growing 45% on a $15B base. |
Which brings us to why M0xt is buying right now⦠|
Nubank trades at roughly 22x trailing P/E (price-to-earnings - aka: what investors pay per dollar of profit), down from around 26.5x. |
I.e. The business is accelerating, yet somehow the business just got cheaper? |
That gap closes in one of two ways: |
1. The multiple re-rates higher. |
The market catches up to how good the business is, and the stock pops. |
2. Earnings catch up to the price. |
The business keeps printing, and you end up owning it cheaper than the run rate implies. |
(Either route path pays you.) |
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Stack it all up and youβve got: |
45%+ top-line growth, bank-level profitability with consumer-tech margins, a proven second-country playbook, U.S. optionality from the OCC nod, and a massive underbanked market across Latin America. |
All while the multiple keeps getting cheaper as the business gets better. |
Thatβs why M0xt is building a position. |
He's already dropped his exact entry, his sizing, and where this slots into the broader portfolio inside Milk Road PRO. |
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BITE-SIZED COOKIES FOR THE ROAD πͺ |
There is one big problem with Bitcoin: Payments. We just released a review on GoBTC thatβs making Bitcoin easier to use for everyday payments.* |
First in, best dressed: SpaceX is reportedly targeting a June 12 IPO at a $1.75T valuation, and onchain perp markets are already running price discovery on it. |
Wild numbers: Global liquid assets are around $480-490T today. If Bitcoin gets to 1% of that, it's a 6-8x from here. |
Draining the global gas tank: Countries are aggressively draining their emergency crude reserves. |
Higher earnings rates. Lower borrowing costs. Up to 0.5% cashback. New U.S. clients get these benefits on Nexo for 30 days.** |
*this is sponsored content. **this is partner content. |
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