What are Bitcoin Treasury Companies?

To make conventional currency work, you need to have a lot of trust. Fiat currency history is littered with breaches in trust. We trust banks to store our money electronically and send it, yet they loan it in credit-bubble waves with barely a fraction of the reserve.

Satoshi Nakamoto, 11 February, 2009.

These days, Bitcoin Treasury companies are the latest craze.

You’ve got a story. likely apocryphalAlbert Einstein, in early 1900s at the Swiss Patent Office, examining perpetual motion devices. “We know they don’t work,” Einstein is said to have made a quip. “The fun part is working out why they don’t work.” 

The perpetual motion financial machines don’t even work. financial historyI specialtyThe. is littered by people who have tried: Most of the time, we must wait for elaborate attempts to fail before we see what they really were. The South Sea Company Directors trying to bubble There’s always someone else who thinks this time will be different. From the scammers and swindlers of 2017 to those of 2022 (and then again) claiming perpetual crypto wealth, it’s never been a dull moment.

If (when) you admit it, then? The following are some of the ways to improve your own ability. The world is going to be dominated by bitcoin hyperbitcoinization (defined here as “the inflection point at which bitcoin becomes the default value system of the world” implies that someday, eventually The world will not be the same. 

The now forgotten Sam Bankman Fried, Bloomberg’s Odd Lots Matt Levine’s description of the yield farm analogy in April 2020 was that it was like an empty, black box full of crypto changing ownership at an ever increasing price. “You’re just like, well, I’m in the Ponzi business and it’s pretty good.”

…to which SBF answered yes — completely serious and without hesitation. It’s a good business for me to peddle Ponzi schemes.

How quickly memories can fade. We made it to the next level in just three short years. Ponzi Make business great once again Bitcoin 2025 The bitcoin treasury industry made announcements after announcements, each one launching a daring and ambitious financial engineering effort.

Bitcoin is supposedly not reaching the heavens, or the masses of plebs. mass exodus From financial institutions, and the fulfillment of your dreams cypherpunk destinyThe only way to buy bitcoin is through speculative and ridiculously complex financial games that convert fixed income securities, equities, and other assets into funds.

Bitcoin treasury companies — of which David Bailey, the owner of Bitcoin Magazine, is peddling one, NAKA, and UTXO Management, another sister company of Bitcoin Magazine, is heavily invested In several others. Disclaimer everywhere about hashtags — are this cycle’s FTX, led by more eloquent, sophisticated and better-looking Bankman-Frieds, and trading in much larger volumes than the convicted felon now serving 25 years in prison ever could have dreamed of.

The following are some of the ways to improve your own ability. How can a Bitcoin, wrapped up in a Corporate Charter, be suddenly worth Double, triple or ten-fold What is the world’s most liquid, visible and indisputable value? 

What extreme value-added transformation does our orange coThe following are some examples of how to use undergo the moment you take it under your financially leveraged wings and promise to issue debt, preferred stock, and equity against it — in “waves of credit bubbles,” We hear Satoshi’s ghost faintly whispering.

Satoshi was not thinking of Bitcoin Treasury Companies when he invented a brand new type of company. electronic cash System to eliminate third party financial middlemen. In just 16 years we have turned Satoshis’ great invention into exactly what he was trying to get rid of. 

Okay, these things are on the rise and stock prices have a forward-looking outlook. There’s still plenty of room for regulatory arbitrage. The fact that you’re blinded by what It is a good idea to use a bilingual translatorThe next person can also see what was paid for and how much money had been raised. It’s a fact that I accept. market prices You should know this I don’t — but it comes with a nasty feeling that Bitcoin analyst James CheckRecently joining the doubters is right 

“I suspect many (arguably most) Treasury Companies will suffer the same fate as the shitcoin complex in the fullness of time. A few will survive, but most are probably destined to under-perform spot Bitcoin.”

Jeff Walton, a member of the MSTR True North podcastThis is what, an episode dedicated to explaining the Bitcoin Treasury Strategy by Strategy, has to say. 

BRITISH HODL: “So, how are the dividends that [Strategy is] paying out funded?”
Walton: “They could, theoretically, ATM any of these instruments to pay the dividend of any of the [other] instruments… It’s effectively like re-financing your debt.”

This, my friend, is what a Ponzi scheme looks like. If the thing you’re advancing depends for its ever-increasing valuation on new money coming in to pay off the old money… yeah, you’re in the Ponzi business. We hope that it is good. As Emil Sandstedt’s “gigantum”Rise and Future Fall of MicroStrategyIt is compulsory reading. says: “You create the arbitrage from where the Bitcoin yield flows.”)

This is not to single out Walton, specifically — god knows he has suffered enough at the hands of Madam Tooth In the most embarrassing way possible FT Film documentary Saylor in the early part of this year. Walton spent hours explaining the products to me, and I have so much respect for him.

Anthony Pompliano’s ProCap Financial SPAC is a merger. announced this weekSpeaking about bitcoin Treasury Company trend:There’s a reason the bubble forms — because the trend works.“

I’m in the Ponzi business, and business is good…

It’s not a bad idea to say that there is a certain moment. FT documentary Saylor argues in a rhetorical manner. “Michael, you’re a financial engineer. Yes, I am!“

And to be fair, most of us, if given a money-printing machine in the form of privileged access to the capital markets and mNAV>1, would do precisely what Saylor You can also find out more about et.. are doing: As David Bailey says, “If you can sell a dollar for more than a dollar, you do that trade all day long.”

(Dylan LeClair: “What do investors want? They want more bitcoin. What do we do at Metaplanet? We give them more bitcoin!” June 27, Bitcoin 2025)

This is not it mysterious bit. The truly remarkable aspect is why Wall Street capital, the most arbitrage-hungry and greedy profit-seekers on the planet, are willing to buy bitcoin at between $183,000 and $2 million a coin when it’s wrapped in a corporate charter — but only $102,000 for the real deal.

And even if the equity->bitcoin->at-the-market (preferred) equity issuance-> more bitcoin funnel worked — an infinite flywheel — with the next treasury company having a higher “torque” Why would anyone choose to buy a newer model than their previous one? bagholder, sorry, “investor,” Keep the stock in your hands? You can just dump the stock on another victim, and then move onto the latest scheme announced by a famous Bitcoiner.

Perhaps this time, 2025, we can use a similar technique to create a bubble of convertible corporate debt. Maybe this time? It is a good idea to use a bilingual translator Different: Perhaps these financial alchemists, who are aggressively funded and fumbling over each other to sell debt to investors. won’t Blow up. This could be the last blow. speculative attackEnding fiat currency

Perhaps it’s an amazing thing”that these treasury co’s can tap HUGE pools of capital that might not have otherwise come into Bitcoin at this time“, Stephan Livera observed calmly.

Even a child can have a dream. 

When I make a mistake, the “capital pump to accelerate the flow of capital from bonds to bitcoinI’ll celebrate if hyperbitcoinization accelerates. In the meantime, I implore you, beloved financial engineers of the world, to please explain to me — preferably like I’m five — why all these shrewd shenanigans won’t simply implode. 

Financial or other perpetual motion machines do not work. What is the reason? You can also find out more about this by clicking here. The following are some of the most effective ways to increase your effectiveness. What’s the difference?

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