We continue the standing, recurring order of OldFi journos shitting on bitcoin treasury companies. (Bitches, that's my job!). It is the hottest story of the year, of the cycle, and maybe even of all Bitcoin times. Who saw this coming?!
Also a little bit hyperbolic: The BTCs hold like 3-5% of outstanding BTC(!), depending on how you count: #1004175.
"Companies around the world are on a bitcoin buying spree, as executives — often in industries that have nothing to do with cryptocurrency — mimic a stockpiling strategy that has produced explosive share price growth."
A total of about 130 listed firms hold a combined $87bn of bitcoin, according to data from BitcoinTreasuries.net
Many of these firms — like Strategy — are worth much more than the value of the crypto they own. That premium is a sign of investors’ faith that these companies can raise money to buy bitcoin, drive their stock prices higher and raise more money
Yes, that we know: we're wondering why, and getting better and better answers from the bitcoin treasury peddlers on Twitter. #1007029, #1010082, #984224, #991218, #1003308
But bitcoin treasuries are yet to be tested by a prolonged downturn in the cryptocurrency’s price, which could leave some firms struggling to repay debt they have taken on to build up their stockpiles.
Yep, that'd all be fun.
Few took Michael Saylor, co-founder and then chief executive of MicroStrategy, seriously when in August 2020 he said his company would sell new equity to buy and hold bitcoin as its primary reserve asset. To the surprise of many, Strategy’s market capitalisation soared faster than bitcoin itself as its bet paid off.
Yeah, agreed... and:
bitcoin treasuries are yet to be tested by a prolonged downturn in the cryptocurrency’s price, which could leave some firms struggling to repay debt they have taken on to build up their stockpiles.
Yup, double-agreed. (Saylor "has said he was confident that Strategy would not collapse even if there was a 90 per cent fall in the bitcoin price and it then stayed around those levels for four years.")
Metaplanet,
... has inspired other small companies to use new shares to accumulate bitcoin, including KindlyMD, a US firm that is merging with BTC Inc to form Nakamoto Holdings.
Some very nice charts (in order: Strategy, Metaplanet, XXI, Tesla, Block)
Some I've never heard of here, like Chinese Next Technology.
It's very nice to see neutral, normal stuff about bitcoin in the premier finance newspaper of the world. Inevitable.
archive linked: https://archive.md/QjIa5