TL;DR
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BTC treasuries might be the most compelling pitch in corporate history — an asset that, over 5 years, holds its value at worst and doubles at best!
Full Story
So, Reddit is planning on going public, which means a whole bunch of previously private corporate information is now being made public.
And turns out…
Reddit has been holding Bitcoin, Ethereum, and Polygon.
Which begs the question — why aren’t more companies doing so? Cause we just did some rough math, and managed to convince ourselves that:
Bitcoin treasuries are one of the most compelling pitches in corporate history.
Here’s how we got there…but first, remember this:
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Historically, anyone that has bought and held Bitcoin for five or more years 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 corporate BTC treasuries.
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That would mean it’s 3 years into its 5 year break even period.
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The next 12 months look promising for BTC, with potential new all-time-highs on the horizon.
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This would mean there’s a good chance Reddit’s BTC purchase will be in profit very soon, if it isn’t already.
Alright, now for some back of the napkin math…
While 5 years is the ‘safe zone’ for a break even Bitcoin investment — that boundary downplays things quite a bit.
Cause right now, BTC is at $51.5k. But five years ago, it was sitting at ~$3.8k.
(That’s a tidy 13.5x increase).
So let’s sand bag those numbers, assuming those kinds of price increases are long gone, and at best, we’re only going to see a 1-2x price increase over five years, from here on out…
That’s still one of the most compelling pitches in corporate history:
A treasury asset that, over a 5 year period: holds its value at worst — and doubles at best!
Here’s why you should care:
Corporate adoption of Bitcoin should increase prices over time, and what’s good for Bitcoin, is good for the entire crypto industry.
