TL;DR

• 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:

• Historically, anyone that has bought and held Bitcoin for five or more years has made money (at least on paper).

• Let’s say Reddit started buying Bitcoin in 2021 — shortly after Michael Saylor popularized the idea of corporate BTC treasuries.

• That would mean it’s 3 years into its 5 year break even period.

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

• 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.