TL; DR
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BTC Treasuries may be the most compelling pitch in corporate history – an asset that, over a five-year period, will at worst retain its value and at best double!
Full story
So Reddit plans to go public, which means a slew of previously private company information is now made public.
And it turns out…
Reddit owns Bitcoin, Ethereum and Polygon.
That begs the question: why aren’t more companies doing this? Because we just did some rough calculations and convinced ourselves that:
Bitcoin treasuries are one of the most compelling pitches in business history.
That’s how we got there…but first remember this:
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Historically, anyone who has bought and held Bitcoin for five years or more has made money (at least on paper).
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Let’s say Reddit started buying Bitcoin in 2021 – shortly after Michael Saylor popularized the idea of BTC corporate bonds.
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That would mean that the five-year break-even period is already three years old.
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The next twelve months look promising for BTC, with potential new all-time highs on the horizon.
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This would mean that there is a good chance that Reddit’s BTC purchase will be profitable very soon. if that is not already the case.
Okay, now for some math behind the napkins…
While 5 years is the “safe zone” for a break-even Bitcoin investment, that limit downplays things quite a bit.
Because right now BTC is at $51.5k. But five years ago it was at ~$3.8k.
(That’s a neat 13.5x increase).
So let’s take a closer look at those numbers, assuming these types of price increases are long gone. and at its bestwe will only see a 1 to 2x price increase in five years from now…
That’s still one of the most compelling pitches in corporate history:
A treasury investment that, over a period of 5 years: retains its value in the worst case – And doubles at best!
Here’s why you should care:
Corporate adoption of Bitcoin should see prices rise over time, and what’s good for Bitcoin is good for the entire crypto industry.