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Looks like the BTC Inc equity holders are eating the NAKA decline since it was originally papered at 400M
don't think so, they just printed more NAKA shares for it
The deal went from 400M to 107M, so any BTCI equity holders are getting 1/4 of what they originally approved. The would have been issued regardless, just they're now being issued at the lower val.
The dilution all but assures BTCI will realize even less than 100M... I have no idea what their revs or balance sheet look like so whether thats reasonable or not I'd have no idea, but the fact they're taking 75% less though does imply it was always arbitrary.
UTXO Management
This might have a significant, but illiquid, balance sheet... so it may not be preposterous.
Seems basically the same as this: #1436018
This public treasury co's are basically public roll-up vehicles, Robinhood copying it.
"roll-up vehicle" is a nice phrase
Very common with VC's, I think started with AngelList... managers start a company, people invest in that (in the manager basically), manager deploys... takes carry as a performance incentive.
I think the problem with carry is managers earn something regardless of perf, they just earn more if they do perform well. Might explain everybody and their cousin identifying as a VC in the last 20 years.
Robinhood, and maybe NAKA, I don't understand how they even have that same performance incentive... it could even be worse than private VC. Management may only be incentivized to self-deal.
In theory large equity holders in the fund then vote for management, maybe that's the difference... but if retail is issuing blank checks then the damage is done by the time activism comes together.
Will be important to follow the managers equity stake in the fund for these things.
Something something, floor ebitda earnings of BTC Inc.
(I gotta be careful with what I say, since I suspect some of it may fall under NDA)
Yea don't risk a suit.
I can't imagine their earnings are meaningful, if they are why bother going public in this fashion? I suspect this is to get liquidity out of the illiquid assets under UTXOM.
Again, I gotta stay somewhat quiet here.
Glancing through the SEC info, I suspect your initial take is correct... that it's off that $1.12 share price, which would "overvalue" the deal 4x as you said
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001946573/000149315226006959/form8-k.htm
If you come across anything about UTXOM's assets (once public) will be interested to see it.
if and when I do, you will (unfortunately) not hear about it here... first.
also, @justin_shocknet, Di says it's wrong.
no wait, it's the inverse... they're receiving shares overvalued 4x, I think
They were, but the dump of NAKA corrected much of it. The number of shares didn't 4x to keep pace with the decline.
Bechler's reaching a bit in his obsession with Bailey
That's always been intimated, that he was going to use NAKA to acquire Bitcoin companies... then changing the BTC Inc CTO pretty much confirmed that'd be first.
Looks like the BTC Inc equity holders are eating the NAKA decline since it was originally papered at 400M
Whether BTC Inc is worth $100M is another matter... but then again they'll be underwater on that as the dilution should tank the price further
I assume they'll have to do a reverse stock split soon, IIRC they were already served notice for the price being under $1/share