TL;DR
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 finest!
Full Story
So, Reddit is planning on going public, which implies a complete bunch of beforehand personal 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 one of the compelling pitches in company historical past.
Right here’s how we acquired there…however first, bear in mind this:
Traditionally, anybody that has purchased and held Bitcoin for 5 or extra years has made cash (at the least on paper).
Let’s say Reddit began shopping for Bitcoin in 2021 — shortly after Michael Saylor popularized the thought of company BTC treasuries.
That might imply it’s 3 years into its 5 yr break even interval.
The following 12 months look promising for BTC, with potential new all-time-highs on the horizon.
This might imply there’s an excellent probability Reddit’s BTC buy will probably 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 finest, we’re solely going to see a 1-2x worth improve over 5 years, from right here on out…
That’s nonetheless one 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 finest!
Right here’s why you need to care:
Company adoption of Bitcoin ought to improve costs over time, and what’s good for Bitcoin, is sweet for your complete crypto trade.
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