Bitcoin Treasuries in Publicly Traded Companies

hd49728

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Not your keys, not your coins!

Quote from: dkbit98 on February 21, 2021, 09:33:43 AM

This is all positive for Bitcoin price and I expect more companies to join soon, but I also see potential danger in most of this companies that have their own shareholders who will want to see profits in dollars during this year and only way for that would be selling good amount of BTC.
If we exclude MicroStrategy and Michael Saylor with few other companies who are true believers in Bitcoin, others are mostly not true believers and I expect that at the end of this year we may see a big correction for Bitcoin and all crypto markets after they make some profits.

Some companies buy bitcoin on behalf of their customers and not all of their customers will have demand to take profit at the same time. Bitcoin are traded and changed hands on the market and on those publicly traded companies too.

Sellers sell their bitcoin to buyers and if they are from the same companies, the amount of bitcoin is hold by one company will not change too much.

They take profit and will join again later with corrections as they know how good bitcoin is as an investment and the next halving will make bitcoin scarcity is higher and higher. As rules of demand and supply, price will be higher.

dkbit98

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It is interesting to see how BTC holdings for Bitcoin Treasuries in Publicly Traded Companies changed in just several months since October of last year.
From 510,462 BTC in total to currently 1,317,386 BTC or 6.27% of Bitcoin supply with MicroStrategy almost doubling amount of Bitcoins they hold, and Tesla showing up in second place with 48,000 BTC.

This is all positive for Bitcoin price and I expect more companies to join soon, but I also see potential danger in most of this companies that have their own shareholders who will want to see profits in dollars during this year and only way for that would be selling good amount of BTC.
If we exclude MicroStrategy and Michael Saylor with few other companies who are true believers in Bitcoin, others are mostly not true believers and I expect that at the end of this year we may see a big correction for Bitcoin and all crypto markets after they make some profits.
That doesn't mean that long term bitcoin will not go even higher in value after this correction, maybe much more than 100k but let's wait and see, nobody knows what Bitcoin top really is but follow the signs.

harding

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Quote from: gmaxwell on October 09, 2020, 01:18:26 PM

I wonder if these companies are considering that this move may make them attractive targets for asset stripping in the future?

For anyone curious about this idea, perhaps read: https://en.wikipedia.org/wiki/Leveraged_buyout . I had learned about the wave of leveraged buyouts that occurred in the 1980s (taught in the context of how it may have made large organizations more fragile and short-term focused) but hadn't myself connected that with the idea of companies holding significant amounts of bitcoin.

Lordhermes

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company holding huge amount of bitcoin as a reserve? Actually, its going to be a risky one if the company store that amount of bitcoin on a custodial exchange, I really like the fact that the company name and the specific amount holding went public, about 4 days ago, twitter owner Jack Dorsey bought $50m worth btc, I'm really seeing some great liquidity providers on bitcoin either from individual or company bodies.

Quote from: ?? on ??

I'm going to stack as much as I can as a normal person. Sucks cause I'll prob never make it to a full coin now but at least I started before the mega corps.

I think the right time to stack btc is now in as much as you can in preparation of the upcoming bull run although there's no exact date and time but I'm pretty sure it going to come base on the incidence above.

dothebeats

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Quote from: gmaxwell on October 09, 2020, 01:18:26 PM

I wonder if these companies are considering that this move may make them attractive targets for asset stripping in the future?

Bitcoin price goes up 20x... now most of the companies value is the bitcoin but their profits haven't increased... take over the company just to strip it of the bitcoin.

Reducing the incentive to asset strip is one of the reasons public companies often prefer to return funds to investors ASAP and finance operations via debt.

This is also true. There might be a time that these companies see a huge price increase in bitcoin overnight, overshadowing their profits for the whole year by just the gains of their bitcoin alone tenfold, and would rely solely on bitcoin gains rather than the profits that they gain from their company's independent operation. Companies that have other money-making capabilities and not just rely solely on a single front might survive the asset stripping rage, though of course those companies are yet to acquire bitcoin for their funds or savings since most still believe that bitcoin is nothing but an overhyped novel investment asset.

gmaxwell

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I wonder if these companies are considering that this move may make them attractive targets for asset stripping in the future?

Bitcoin price goes up 20x... now most of the companies value is the bitcoin but their profits haven't increased... take over the company just to strip it of the bitcoin.

Reducing the incentive to asset strip is one of the reasons public companies often prefer to return funds to investors ASAP and finance operations via debt.

Maus0728

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Quote from: GreatArkansas on October 08, 2020, 08:17:07 PM

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Actually this is a risk especially if they would use such amount to sell it to others in a much lower price (in which is less possible as they wouldn't make that profit). But still, having a huge percentage of BTC's volume on a single company or market (esp Grayscale) can make them control the market, its ups and downs, and they can even win many trades with it. But on the other side, there can be a good thing with this, as the world would slowly adopt it being those companies getting much profit with crypto, the more popular, the better. Nonetheless, companies holding huge amounts of BTC doesn't change the fact that BTC would and always will be a decentralized crypto no matter how huge a company can hold.

mk4

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Paldo.io 🤖

Quote from: GreatArkansas on October 09, 2020, 12:08:53 AM

This is also on my thoughts. For me, tech companies got more influence here or majority will make this kind of action.

Definitely. I mean, imagine if Elon Musk actually buys bitcoin? Regardless if it's through his personal buying or through Tesla's balance sheet. That'd be a good amount of price pumping no doubt.

Quote from: ?? on ??

Sucks cause I'll prob never make it to a full coin now but at least I started before the mega corps.

Just stack anyway. In the first place, no one knows when the next bull market will come. Sure it could be this year or next year, but it could also be 5 years from now.

GreatArkansas

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Quote from: mk4 on October 08, 2020, 10:37:44 PM

Quote from: GreatArkansas on October 08, 2020, 08:17:07 PM

What do you think about this? For sure there will be a lot of companies are coming! We are just starting!

While Square wasn't the first, this move by them probably started the domino effect due to the fact that a lot of people are a fan of the Square business(check out investing communities, $SQ is frequently mentioned), and anything that Jack Dorsey touches in general.

This is also on my thoughts. For me, tech companies got more influence here or majority will make this kind of action. Since for me, there is kinda more public relation since people will start talk about them especially some of people using Bitcoin or into Bitcoin.
Most of the company listed now are tech companies, they really know the value of Bitcoin.

mk4

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Paldo.io 🤖

Quote from: GreatArkansas on October 08, 2020, 08:17:07 PM

What do you think about this? For sure there will be a lot of companies are coming! We are just starting!

While Square wasn't the first, this move by them probably started the domino effect due to the fact that a lot of people are a fan of the Square business(check out investing communities, $SQ is frequently mentioned), and anything that Jack Dorsey touches in general.

GreatArkansas

legendary

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With the recent trend on Bitcoin, which Square a known company for payment services bought 50 million USD worth of Bitcoins.

So, NVK created a website that tracks or list companies that hold or already bought Bitcoin for their company, or used as company reserved fund.

The website is: https://bitcointreasuries.org/

As of now, there are 6 companies listed. There is also way to add a company there, just visit the Add Company Page of said website -> https://bitcointreasuries.org/add.html

What do you think about this? For sure there will be a lot of companies are coming! We are just starting!

P.S. I am glad that the source code of the website is open for public and anyone can contribute (https://github.com/nvk/bitcointreasuries.org)

Topic: Bitcoin Treasuries in Publicly Traded Companies (Read 260 times)