"You can just do things," Jack Mallers snuck into a primetime Bloomberg clip yesterday when he announced the new Twenty One Capital pure bitcoin play... bitcoin-per-share, bitcoin yield, accumulating stash, tradfi-fluent bitcoin acquisition model.
So MicroStrategy on stilts.
Today, then, Matt Levine has a field day:
The basic situation is that US public equity markets will pay about $2 for $1 worth of Bitcoin. I don’t know why this is, and I am not especially happy about it, but it’s true. If you have one Bitcoin, you can sell it on a crypto exchange for about $93,000, or you can sell it on a US stock exchange for about $186,000. Therefore, you should sell Bitcoins on the stock exchange, so people do.
and here, the Cantor-Bitfinex-Tether-Jack Mallers news (#955110, #955827):
At noon today, Cantor Equity Partners was trading at about $28.34 per share, almost triple its pre-deal price. That implies a value for Twenty One’s 36,210 Bitcoins of about $9.8 billion, [4] or about $270,000 per Bitcoin. Again, Bitcoin is trading at around $93,000 today on crypto exchanges. If you can sell Bitcoin for $270,000 on the Nasdaq, you’d be crazy to sell it for $93,000 on a crypto exchange
Their SEC schematics also seemed weird... more pure play than MSTR; less insiders, more "new" debt
MAX IRONY:MAX IRONY:
lot of people in traditional finance, certainly including me, like to make fun of crypto. There is a lot to make fun of. But who is traditional finance to talk? The uncomfortable fact is that the stock market will pay much more for crypto than the crypto market will: Packaging Bitcoin into a stock makes it much more valuable. The crypto enthusiasts on the stock market are more enthusiastic about crypto than the crypto enthusiasts in crypto. It looks a little bit like crypto keeps playing a prank on the stock market, and the stock market keeps falling for it.
even funnier?
The acquisition vehicle SPAC itself, doing nothing but holding bitcoin and using financial engineering to acquire more, itself saw its share triple in value (#957031). My god, this is a joke... efficient funny-market hypothesis.
When they said "Bitcoin breaks all the models" it wasn't this I had in mind...When they said "Bitcoin breaks all the models" it wasn't this I had in mind...
Oh, also funny (sort of related) quote in the next story re: $Trump dinner (largest token-holders of Trump's shitcoin get a dinner with the man himself:
It is the democratization of … bribery? Now everyone can compete on a level playing field to hand the president money, and whoever hands him the most money gets dinner with him. I mean! Okay!
non-paywalled here: https://newsletterhunt.com/emails/186052
Sometimes when I think we've hit peak clown world, I have to remind myself to actually check the historical records. I'm sure there are lots of examples of crazy stuff going on in markets in the past too. (Or at least, i tell myself that to try and feel better about the present.)
lots indeed
Maybe that can be the topic of your book. A History of Financial Tomfoolery :)
It's been done
Shouldn't they be buying up tons of Bitcoin at $93k if they can "sell" it at $270?
Either that's not quite right or they're very very stupid.
I think they are? that's the financial engineering they're engaged in, no
(just limits to arbitrage etc kicking in)
Is it just literally the time required to make the required financial moves?
The assertion is that a 3x is just sitting around staring everyone in their stupid faces, while we fail to capitalize on it.
Yes.
Again, plenty of trapped capital in fiatland and limits to redemption and shorting. Makes some semblance od sense to me
Ok, it makes some sense to me too.
What does this do for your bearish thoughts on bitcoin price?
Not sure yet... It's things like these that make me wonder why on earth the price isn't 500k or something
Maybe it's as simple as not enough capital being controlled by people who are comfortable holding their own keys.
All these just seem like levered long Bitcoin ETFs. I don't see how this ends well
True. Very scary
So they are doing basic arbitrage? That's the business model?
In some sense, yeah.
Does bitcoin actually break all models?
In some kind of way
I believe so. Is there a model it doesn't break?
I don't know, that's why I asked
it certainly breaks the models that are based on Keynesian hocus pocus-nomics
Between the stock and crypto market, which is more profitable?
It just shows the premium of freedom. Money locked in pension funds and other non-sensical regulatoty frameworks badly want to escape dollar debasement.
Can you invest? and can it promise our future?
Yahz
They are owned mostly by tether, will they push USDT on lightning ?
Possibly
LOL!!
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