“Zombie companies that have no viability to exist can prepare for the future by having Bitcoin on their balance sheets. My message: Buy Bitcoin unless you see opportunities to spend that asset in a way that will outperform Bitcoin,” Cole said. “When companies own cash, they put it in short-term treasuries or spend it on stock buybacks or dividends … but Bitcoin has actually gone up in real purchasing power over the last few years.”
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Are a bunch of zombie/useless companies going to buy bitcoin and just use that to survive?
Turn into a company like Microstrategy and become an exchange?
Survival is the bare minimum every company must do.
Isnt a company supposed to put out a product people actually want to buy?
If you hold bitcoin, will the company want to spend it if it is doing so well as an investment?
I feel they would probably suffer long term if they are just investing in bitcoin instead of their own company.
Hard to do that if your company doesn't exist because you stored the fruits of your last innovation in fiat.
You can't deploy lots of capital well and fast. At least, it's harder than it looks.
That is true.
I guess the ceo and boards need to find a healthy balance.
Yes indeed! This is how you go quadruple long Bitcoin. Why hold cash for long term reserves?
Honestly, Cole’s hitting on something real here. If you're a company just barely staying afloat no real innovation, no strong fundamentals holding onto cash might not save you. Inflation eats it, and most traditional “safe” plays like treasuries or buybacks just don’t keep up anymore.
Bitcoin, on the other hand, has gained real purchasing power. So if you don’t have better opportunities that can beat Bitcoin’s long-term performance, why not park some of your balance sheet in it? It's not just about survival it's about having a shot at relevance in the future.
Basically: adapt or fade out. Bitcoin might just be the lifeline.