TL;DR
BTC treasuries could be 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 personal company data 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 probably the most compelling pitches in company historical past.
Right here’s how we bought there…however first, keep in mind this:
Traditionally, anybody that has purchased and held Bitcoin for 5 or extra years has made cash (not less than on paper).
Let’s say Reddit began shopping for Bitcoin in 2021 — shortly after Michael Saylor popularized the concept of company BTC treasuries.
That may imply it’s 3 years into its 5 12 months 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 a very good probability Reddit’s BTC buy shall be in revenue very quickly, if it isn’t already.
Alright, now for some again of the serviette math…
Whereas 5 years is the ‘secure 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 enhance).
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 enhance over 5 years, from right here on out…
That’s nonetheless probably the most compelling pitches in company historical past:
A treasury asset that, over a 5 12 months interval: holds its worth at worst — and doubles at greatest!
Right here’s why you must care:
Company adoption of Bitcoin ought to enhance costs over time, and what’s good for Bitcoin, is sweet for your entire crypto business.