Been definitely neglecting my treasury-companies-reporting duties for ~~econ
So here's this:
you’ve decided to start a bitcoin treasury. And why not? Everyone else seems to be doing it. This year dozens of companies have announced they plan to buy and hold the digital token. The strategy seems to works magic for some, yet not for others. Perhaps counter-intuitively, the losers might be the more appealing investment.
We all know of Strategy's great discovery to sell $1 worth of bitcoin for more than a dollar to stupid/trapped Wall Street capital. Ingenious.. and not very cypherpunky (#1201352)
Some companies, though, when embarking on this journey, don't get a magic boost (Empery, Sequins) . Lex is telling us that, actually, they might make excellent investments for the big guys — since some of the shitty treasury companies trade at below NAV gobbling them up is like buying bitcoin on discount.
Assuming such NAV discountees are happy to buy their shares rather than more bitcoin, they are a better bet for investors. After all, they represent a way of buying tokens more cheaply than an investor can in the bitcoin market. If corporate hoarders get sick of being under-appreciated they might decide to throw in the towel and sell their coins, at which point the discount ought to close
There'll definitely be some consolidation as some of these companies collapsing are (probably??) currently spitting out coins by the thousands.
Funky, funky.
Archived
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