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?!
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.
Fantastic
Modern finance is a marble. God, I can't wait for fiat to die.
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