Now we know that at least one treasury company premium bonus story (the one about discounted future Bitcoin banking) is total fake. Flawed. Incorrect. Debunked. Saylor's sats may be worth more than mine (#984224) but not because Wall Street is front-running the future banking system.
WHAT?!WHAT?!
Yeah, because a reverse-merger blah-blah company just added gold to its balance sheet and had the same effect. Background:
The basic idea is that the US stock market will pay $2 or more for $1 worth of Bitcoin. If a company buys $1 of Bitcoin, its market capitalization will go up by $2. Companies want to increase shareholder value, and this is a free-money way to do it, so lots of companies do.
PARASITES WANT THE FREE MONEY (oh, like Stackers?? #1038665 yeahyeah)
Matt Levine, crushing it:
It is at least possible that there are diminishing returns to this, and the 20th company announcing a Bitcoin treasury strategy will not get the same premium that the first gets. (The evidence is mixed.) So companies have branched out into other cryptocurrencies to keep things interesting; there are Ethereum and Tron and Solana and BNB and Trumpcoin treasury companies.
Trade getting crowded:
If you want to do this trade now, you might try something else.
OF COURSE somebody found it!
What about gold? Gold is a big market, it has some spiritual overlap with crypto, but it is not actually crypto. Obviously there are gold mining companies, but never mind that; there are Bitcoin mining companies too, and that doesn’t stop the Bitcoin treasury strategy from working. If a company just bought gold, would its stock trade at a premium to the value of the gold? If it also put out big crypto-flavored announcements about how buying gold on the blockchain is the future of finance? Sure, maybe, why not.
I repeat:
one of Nasdaq’s largest public holders of gold bullion.
my god, whyyyyy?
In May, BioSig, then a medical technology company, announced its merger with Streamex, “a privately held company specializing in the tokenization of real-world assets,” and the stock has gone up since; I am sure I do not need to tell you that it has no revenue. Its market capitalization at yesterday’s close was $1.1 billion (before this new investment), suggesting that the market is putting a premium on its notional stash of gold. The system works.
FantasticFantastic
Modern finance is a marble. God, I can't wait for fiat to die.
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HMMM... you wrote it yourself: Prices Know Something You Don’t
Maybe in a world where everyone kinda sees the writing on the wall, that fiat is a game of musical chairs running outta chairs, that the companies smart enough to stockpile real assets, whether bitcoin, gold, or whatever, are smarter than those who don't?
Or maybe we're just all crazy, which seems an equally compelling explanation
I'm mostly just astonished at this whole process. What am I missing?
Are people just this desperate for fiat offramps?
What if a logging company pivots to being a timber treasury company by just not chopping down trees anymore?
it's been done.
It's called carbon credits, and negative emission permits
https://www.bloomberg.com/opinion/articles/2023-10-17/you-can-t-sell-trees-no-one-cuts-down
But a version dummies will want to invest in
It’s uh carboncoin yeah it’s on solana very fast low gas
That exchange made me laugh a lot until I realized you're being serious.
Oh I’m not serious
I honestly have no idea. Sounds plausible.
The custody cost of the gold alone will start eating into any gains in market value. I give it a year or a 10% gold downturn, whichever comes first, for them to abandon the “strategy”.
Probably less than the cost of an active mutual fund, and people do buy gold and silver ETFs
This is wild. The fact that a reverse-merger medical tech–turned–“tokenized RWA” company can pump its market cap just by buying gold — and not even crypto — shows how ridiculous and fragile the narrative premium has become. It’s not about conviction or long-term strategy anymore, it's just vibes and headlines.
Saylor got in early, sure, but let’s not pretend every company following suit is building the future of finance. Some are just chasing premium hopium. The fact that gold — not Bitcoin — is getting the same treatment? Proof that this isn’t a Bitcoin thesis… it’s a “number go up” thesis.
Modern finance really is a marble. Can’t wait for the fiat illusion to crack.
@k00b @ek get the free goldback I posted about on the thread I started and add it to your balance sheet (1/2000th oz of gold)