The boom in Bitcoin Treasury Companies
In my mind
Are a long term trend that I see unfolding
But a short term black hole of capital miss-allocation
Speculators with a RobinHood account are going to pile in as Bitcoin itself surges
Only to see things fall off a cliff in 6 months from now
If you can time that ride
Go for it
I see a great buying opportunity in 18 months
Happy to be proven wrong however
How can a BTC treasury co outpace the BTC hurdle rate over the next 18 months?
I just bought my first 25 MSTR shares using debt secured by Bitcoin collateral.
It's the first shares I've bought in 15 years.
My thesis (Bitcoin supercycle) assumes that this is close to the bottom of the Bitcoin price. I would have preferred to buy at $370 but it took too long to setup the loan & share account.
This is me putting my money where my mouth is. FAFO!
Go mate! Gotta roll the dice sometimes
What loan product did you use?
That is the kind of play I’d look at doing, but for me not for 18/24 months or so
I personally see a big sell off next year, and I don’t understand how even MSTR won’t be taken down with it
Saying that, if you can carry the debt all the way through, could well be a nice leveraged play
Thanks for sharing. And good luck! Really inventive use of BTC collateral that only a handful of people globally will be trying
I see the big sell off but I suspect it will be at fiat levels much higher than this. Meanwhile they accumulate more paper Bitcoin.
It's a fiat bet using dirty fiat debt & it's brought up all sorts of emotions I haven't felt in a long while.
I used a Swiss bank to obtain a line of credit in euro at 7% pa. It required an LTV of 0.4 & a shitload of invasive questions about my net worth & professional background. I won't name them here because I've been pretty frustrated by the whole experience (it took about 2 months to get set up). I do like the interest rate & that it's a perpetual line of credit (lombard loan with no end date).
