TL;DR
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BTC treasuries is perhaps probably the most compelling pitch in company historical past — an asset that, over 5 years, holds its worth at worst and doubles at greatest!
Full Story
So, Reddit is planning on going public, which suggests an entire bunch of beforehand non-public company info is now being made public.
And seems…
Reddit has been holding Bitcoin, Ethereum, and Polygon.
Which begs the query — why aren’t extra firms doing so? Trigger we simply did some tough math, and managed to persuade ourselves that:
Bitcoin treasuries are some of the compelling pitches in company historical past.
Right here’s how we bought there…however first, bear in mind this:
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Traditionally, anybody that has purchased and held Bitcoin for 5 or extra years has made cash (not less than on paper).
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Let’s say Reddit began shopping for Bitcoin in 2021 — shortly after Michael Saylor popularized the concept of company BTC treasuries.
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That might imply it’s 3 years into its 5 yr break even interval.
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The following 12 months look promising for BTC, with potential new all-time-highs on the horizon.
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This might imply there’s an excellent likelihood Reddit’s BTC buy might be in revenue very quickly, if it isn’t already.
Alright, now for some again of the serviette math…
Whereas 5 years is the ‘protected zone’ for a break even Bitcoin funding — that boundary downplays issues fairly a bit.
Trigger proper now, BTC is at $51.5k. However 5 years in the past, it was sitting at ~$3.8k.
(That’s a tidy 13.5x improve).
So let’s sand bag these numbers, assuming these sorts of worth will increase are lengthy gone, and at greatest, we’re solely going to see a 1-2x worth improve over 5 years, from right here on out…
That’s nonetheless some of the compelling pitches in company historical past:
A treasury asset that, over a 5 yr interval: holds its worth at worst — and doubles at greatest!
Right here’s why it’s best to care:
Company adoption of Bitcoin ought to improve costs over time, and what’s good for Bitcoin, is sweet for the whole crypto business.