The Bitcoin Treasury Company Hype is Getting Ridiculous
Hope this isn't out of line and not the wrong place to post this - this is rather just me venting. I'm always going to be rooting for companies that acquire Bitcoin to do well. I like Michael Saylor, Metaplanet, etc. I have no problem with people buying these stocks and I can see how they're bringing trapped capital into the ecosystem. BUT, some of the comments I am now seeing by prominent X Bitcoiners is getting ludicrous. The latest is thinking that because Strategy is issuing Preferred stock and not common stock, somehow that doesn't dilute the total equity base. People are paying many multiples of the Bitcoin being held by these companies. If you question the logic, you're told, "you don't understand capital markets mannn!", or even better, "you're just jealous because you don't own any braaahhh!" They absolutely sound like Alt Coiners, and it's, frankly, embarrassing to them. (BTW - I do understand capital markets, but it doesn't take an expert at all to question the underlying assumptions here. Taken to the logical conclusion, there is no way that a company whose sole business model is buying BTC can have a premium to the BTC indefinitely. If so, they'd just be incentived to keep issuing stock (or preferreds, or debt) to keep buying BTC until they have 21 million. Obviously, at some point, the price of BTC on the open market HAS to come up to meet the value of these companies. The argument is the companies can increase the BTC per share in the meantime. Fine, but can they double that, 6x that, etc? That's what you're betting on by buying these stocks. And you pay the overhead, and don't have the benefit of having actual BTC) It would be QUITE different if a cash cow company whose sole purpose wasn't just to buy BTC started to buy it, as a true Treasury strategy and not an entire business model. It's likely some are, now that do many are coming in, but those aren't the big names being pumped by people.. submitted by /u/Thomsbluebeenie [link] [comments]
Hope this isn't out of line and not the wrong place to post this - this is rather just me venting.
I'm always going to be rooting for companies that acquire Bitcoin to do well. I like Michael Saylor, Metaplanet, etc. I have no problem with people buying these stocks and I can see how they're bringing trapped capital into the ecosystem.
BUT, some of the comments I am now seeing by prominent X Bitcoiners is getting ludicrous. The latest is thinking that because Strategy is issuing Preferred stock and not common stock, somehow that doesn't dilute the total equity base. People are paying many multiples of the Bitcoin being held by these companies. If you question the logic, you're told, "you don't understand capital markets mannn!", or even better, "you're just jealous because you don't own any braaahhh!" They absolutely sound like Alt Coiners, and it's, frankly, embarrassing to them.
(BTW - I do understand capital markets, but it doesn't take an expert at all to question the underlying assumptions here. Taken to the logical conclusion, there is no way that a company whose sole business model is buying BTC can have a premium to the BTC indefinitely. If so, they'd just be incentived to keep issuing stock (or preferreds, or debt) to keep buying BTC until they have 21 million. Obviously, at some point, the price of BTC on the open market HAS to come up to meet the value of these companies. The argument is the companies can increase the BTC per share in the meantime. Fine, but can they double that, 6x that, etc? That's what you're betting on by buying these stocks. And you pay the overhead, and don't have the benefit of having actual BTC)
It would be QUITE different if a cash cow company whose sole purpose wasn't just to buy BTC started to buy it, as a true Treasury strategy and not an entire business model. It's likely some are, now that do many are coming in, but those aren't the big names being pumped by people..
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