Here’s Why Holding Bitcoin Should Be a No-Brainer for Corporations

TL;DR

• BTC treasuries may be essentially the most compelling pitch in company historical past — an asset that, over 5 years, holds its worth at worst and doubles at greatest!

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So, Reddit is planning on going public, which implies an entire bunch of beforehand non-public company data is now being made public.

And seems…

Reddit has been holding Bitcoin, Ethereum, and Polygon.

Which begs the query — why aren’t extra corporations doing so? Trigger we simply did some tough math, and managed to persuade ourselves that:

Bitcoin treasuries are one of the crucial compelling pitches in company historical past.

Right here’s how we received there…however first, keep in mind this:

• Traditionally, anybody that has purchased and held Bitcoin for 5 or extra years has made cash (at the least on paper).

• Let’s say Reddit began shopping for Bitcoin in 2021 — shortly after Michael Saylor popularized the thought of company BTC treasuries.

• That will imply it’s 3 years into its 5 yr break even interval.

• The following 12 months look promising for BTC, with potential new all-time-highs on the horizon.

• This could imply there’s an excellent likelihood Reddit’s BTC buy will probably be in revenue very quickly, if it isn’t already.

Alright, now for some again of the serviette math…

Whereas 5 years is the ‘protected zone’ for a break even Bitcoin funding — that boundary downplays issues fairly a bit.

Trigger proper now, BTC is at $51.5k. However 5 years in the past, it was sitting at ~$3.8k.

(That’s a tidy 13.5x improve).

So let’s sand bag these numbers, assuming these sorts of value will increase are lengthy gone, and at greatest, we’re solely going to see a 1-2x value improve over 5 years, from right here on out…

That’s nonetheless one of the crucial compelling pitches in company historical past:

A treasury asset that, over a 5 yr interval: holds its worth at worst — and doubles at greatest!

Right here’s why it’s best to care:

Company adoption of Bitcoin ought to improve costs over time, and what’s good for Bitcoin, is nice for your entire crypto business.