About Eykol

Eykol is a portfolio of domains and related online assets, owned and managed by Three Arrows Capital. We are based in Iceland.

Domains as an Asset Class

We see domains as an asset class and suitable for passive investing. We are not in the business of flipping domains. We acquire domains and other online assets (content, backlinks, etc) that add value to our domains. 

The Art Dealer Analogy

Murray Stahl of Horizon Kinetics wrote a fantastic essay about art dealers from the standpoint of portfolio management, called Art Dealers: The Other Vincent van Gogh. In the essay, Stahl makes a very astute observation:

"The great art dealers of the 19th and 20th centuries amassed enormous fortunes. At first glance, you might have thought that such a feat was impossible, because the great art dealers didn’t handle the bulk of the art volume. In other words, they didn’t make the money through their business. The great auction houses to this very day facilitate by far the bulk of the art sales. Those auction houses include Sotheby’s, Christie’s, Phillips de Pury, Tattersalls, Lyon & Turnbull, Hôtel Drouot, (owned by BNP Paribas) and Bonham’s, which was established in 1793. The oldest auction house in the world is Stockholm’s Auktionsverk, established 1674. Other auction houses are the Swedish company called Bukowskis, established in 1870, and the famous Dorotheum in Vienna, established in 1707. 
Those auction firms do the bulk of the business in art, but the dealers, small as they are, accumulate the fortunes."
According to Stahl, the great art dealers of the 19th and 20th got their wealth from holding on to appreciating assets, not by flipping them. A common trade amongst these art dealers was that they approach their business from a portfolio standpoint. And for good reason.

The fact is, that they could not know which of their artworks would be masterpieces. Even the painters themselves could not identify the winners amongst their collection. Pablo Picasso, for example, pre-sold his painting in a given period to his dealer. According to the agreement, he was allowed to pick a certain amount of painting to keep for himself. There is no evidence that he kept the most valuable pieces.

As a result, the astute art dealers would work with a selection of artists and acquire a portfolio of their works.

The Real Estate Developer Analogy

Domains aren't exactly like art though. Domains aren't created by artists. But they do the characteristic of exclusiveness as each domain is unique.

Perhaps domain investing is more akin to real estate development. A top-level domain is like land on which you can develop a property. Some land is more valuable than other lands, due to its location and other characteristics. And those characteristics are dynamic and subject to change. Domains that included the words Bitcoin or Crypto had next to no value a few words back.

The Value Investing Analogy

We approach domains and online assets from the methodology of value investing. We want to find and identify domains that have an implied value attached to them that is higher than the cost of registry or the cost of acquiring them.

In many cases, these are domains with history. Domains that have been dropped but still carry value.

Once we acquire a domain, we try to salvage that value and then keep developing it by taking steps that make them more valuable to a new owner.


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