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?
preston (npub1s5y…6q7z) LynAlden (npub1a2c…w83a)
JTaggart / John
npub1hj…2zg68
2024-08-19 17:29:27
Author Public Key
npub1hjlev3xn736aqr4ecmjxwwzuu9k523kp5fpz9n862s4lwah2h22sm2zg68Published at
2024-08-19 17:29:27Event JSON
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"content": "I don't understand bitcoin treasuries.\n\nThey'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\n\nBut 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).\n\nA 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.\n\nThere's also the financial engineering side, dependent on interest rates and loans, is this is the main draw?\n\nnostr:npub1s5yq6wadwrxde4lhfs56gn64hwzuhnfa6r9mj476r5s4hkunzgzqrs6q7z nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a",
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