Dividends first are double taxed to the shareholder. First, the company pays tax when the dividend is distributed, and then once the share holder receives the funds, they are taxed on the dividend income. Next, the company is reducing its future agility to weather adversity. Once that “potential energy” is sent out the door, it’s gone forever and the company needs to either borrow or retain more earnings in the future to posses this “potential energy”.
I don't understand bitcoin treasuries.
They're important because now companies have a way to store value instead of 1) investing in worse horses at the glue factory and 2) distributing cash to shareholders
But why is a treasury superior to cash distributions? Shareholders can just buy btc on their own then. This seems net neutral to the company buying btc vs cash distribution (if shareholders then buy btc).
A company could weather a downturn relying on their treasury, but normal companies could issue more stock and raise money that way. Again, feels like a wash between treasury/cash distribution.
There's also the financial engineering side, dependent on interest rates and loans, is this is the main draw?
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Discussion
Yes, and it just pushes the issue to the next person, as the dividend money will have to be reinvested into another unsustainable venture not to lose value