JTaggart on Nostr: I don't understand bitcoin treasuries. They're important because now companies have a ...
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)
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)