If more and more companies are adopting a bitcoin strategy why would i hold the companies share instead of holding the actual asset all of them will be fighting for?
Serious question.
Discussion
I've never understood why you should buy a stock rather than bitcoin itself. The same goes for the crap they call ETFs and all that crap.
Tradfi bros are afraid of the personal responsibility that is required for holding your own keys.
I don't understand it either, unless the company was accepting bitcoin for payments and stacking sats. For example, if metaplanet actually had a fleet of sucessful hotels and only accepted bitcoin it would make sense.
As far as I understand it, Metaplanet has 1 hotel. It's like that Schitt's Creek show, but somehow they are able to amass a lot of bitcoin. I don't get it.
It's just degen trading stuff. Some companies will be able to outperform Bitcoin short to medium term due to leverage. As more and more do it though, the gains will be less.
Short term speculation. Or if it’s the only way you can tap into bitcoin with some of the funds I guess. Most of these companies are shitcoins themselves so far …
Agree.
Because a company might be more valuable than the sum of assets it holds.
Sounds like crypto
Because you're taking a risk investing in a Business that you believe will generate a positive return for you. Bitcoin doesn't have a return. These companies are just adopting Bitcoin as their treasury asset instead of the Dollar that is hurting them.
As for what you should do depends on if you believe that this company will increase your BTC holdings or not.
With $GME adopting Bitcoin for example you might want to be invested if you believe that the hedge funds that sold all the naked shorts over the last years will get fucked and will be forced to go into the market to buy back the shares at some point. You're taking a bigger risk though and you're giving up control of your money to someone else.
Bitcoin is savings and stocks are investments. Different people have different opinions and circumstances which will make them prefer one over the other.
As for me, I believe it's best if you personally mainly have self-custody Bitcoin.
Something something tax incentives something something bitcoin yeild
I’ve never understood it
Because you believe either in the short term or long term that the company will outperform the underlying asset.
How does a company want to outperform an asset that is scarce which all companies trying to outperform each other are fighting for to acquire more?
Good question
Short answer, innovation allows them to beat the competition. This answer really requires the context of my other answer to fully make sense of.
BTC Yield
A company has to be productive to acquire bitcoin. They need to do something else of value other than just be a zombie company that in a last ditch effort decides to stack corn. (Looking at you there GameStop.)
That “something else” is the value on top of their treasury asset. As bitcoin scales it eventually becomes the hurdle rate and not the S&P.
Because they can get leverage I cannot. MSTR probably isn’t the best company to own who is doing this. But if a major, publicly traded oil & gas company ever entered the fray … they might be worth 5-20% allocation to outperform bitcoin, especially on a short-term basis.
It's all a matter of risk levels. Bitcoin-related stocks may act as a leveraged bet on its adoption so you would have more upside potential there but also more risk.
Only reason in the UK is a locked up pension fund. A SIPP. That’s the ONLY reason.
Depends where you are.
I can’t hold my pension fund money in pure BTC, and I can’t access those funds yet - so if I want to link them somehow to BTC (which I do), I can buy the shares of companies who hold it.
Prolly lazy fiat mentality
Government locked pension funds. Will MSTR outperform some mixed bonds and stocks in 9 years when I can at the earliest withdraw them at 55?
Sats flow. Think value for value in a Business to Business and Business to Consumers. The winners will win the losers will lose.
positive satsflow will be all that matters
A business should turn a profit against the base asset of their treasury. I buy inputs with $currency, I sell those outputs for larger amounts of $currency.
My personal cold storage is a fixed slice of the Bitcoin pie. My shares in a profitable Bitcoin reserve company are a growing slice of the total Bitcoin pie.
This has added risks that they'll sell back to fiat, corruption such as embezzlement, or fail to turn a profit in exchange for that hoped for growth. The major risk so far has been stock restructuring reducing your slice of that companies economic value and therefore reducing your slice of their sats.
No publicly traded bitcoin reserve business I know of is focused on offering a product that allows them to turn a profit against their treasury currency. Strategy and GME are gaming the fiat system to grow their slice of the Bitcoin pie. Those games require constantly shrinking your slice of ownership of their pool of stock. The goal of that game is dollars go up not sats go up.
For now Bitcoin keeps eating a bigger slice of total global economic value. That means my fixed slice of the Bitcoin pie is becoming a bigger slice of global economic value. Once Bitcoin has become the world reserve currency the growth of Bitcoin against goods will slow. Then you will need to invest in successful companies to grow your slice of the Bitcoin pie if you want a bigger slice of the global economic value pie. That is a long way away for now so you can mostly not think about it.
This is a great explainer
Depends on the evaluation of the Risk reward ratio
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