Businesses are following the lead of Microstrategy with keeping BTC on the treasury books to increase profits and hedge against inflation.
explodicle@sh.itjust.works 4 weeks ago
Why would they in the first place? It would be like a newspaper buying gold. If investors want to buy bitcoin they can just do that, mutual funds are already a thing.
RedditIsDeddit@lemmy.world 3 weeks ago
explodicle@sh.itjust.works 3 weeks ago
But now they’re essentially just a bitcoin proxy, they even changed the logo to have a bitcoin on it.
Now that there’s lots of ETFs and stuff, why buy Microstrategy and not just bitcoin?
infinitesunrise@slrpnk.net 3 weeks ago
Their value-add is that they financialize their bitcoin holdings to grow their bitcoin-backed shares faster than the bitcoin itself. Higher risk than just holding bitcoin or ETFs that just hold bitcoin, but something like 30-40% better returns.
hark@lemmy.world 3 weeks ago
What does “financialize their bitcoin holdings” mean? Do you mean they use leverage (i.e. debt) to buy bitcoin than they could otherwise? That’s nothing new and is a common ETF strategy (see BITX). And yeah, it also means the bad times hit much harder.
finitebanjo@lemmy.world 3 weeks ago
If you own a share of meta then you own a share of meta and meta owns a mix of assets ranging from physical to various liquidity, whether its USD or BTC there isn’t any difference in this regard.
Darleys_Brew@lemmy.ml 4 weeks ago
Apparently GameStop are considering it too.
porous_grey_matter@lemmy.ml 4 weeks ago
Yeah but GameStop’s entire existence depends on crypto meme hype, while Meta’s depends on extracting our data as efficiently as possible
cupcakezealot@lemmy.blahaj.zone 3 weeks ago
is gamestop even relevant anymore
Jimmycakes@lemmy.world 3 weeks ago
Gamestop already did last week
Darleys_Brew@lemmy.ml 3 weeks ago
I’m out of date then.
finitebanjo@lemmy.world 3 weeks ago
Because holding USD is a liability these days.
UnderpantsWeevil@lemmy.world 3 weeks ago
lerba@sopuli.xyz 3 weeks ago
!remindme in one year
finitebanjo@lemmy.world 3 weeks ago
Since you’ve missed the news, the USA has been overtaken by a fascist christian white supremacist party who gut social programs, cut science funding, literally completely disbanded the department of education, increased the defficit, and enacted large Tariffs on every other nation.
UnderpantsWeevil@lemmy.world 3 weeks ago
the USA has been overtaken by a fascist christian white supremacist party
For the third time (assuming you don’t count Congressional cycles) in twenty years. I’ve spent a solid 13 of the last 25 years living under a Christian Fascist presidency. Why am I supposed to assume that will devalue the dollar this time around?
Saleh@feddit.org 3 weeks ago
If i understood it correctly, meta wants to slap its own crypto-currency on everything.
Knock_Knock_Lemmy_In@lemmy.world 3 weeks ago
That was called Libre
finitebanjo@lemmy.world 3 weeks ago
Buying BTC doesn’t help them do that.
Saleh@feddit.org 3 weeks ago
“our crypto is backed in value by bitcoin”
finitebanjo@lemmy.world 3 weeks ago
They’re selling shares of their company, META stocks, to the shareholders that then vote on their liquidity portfolios. Not Crypto. Owners of a hypothetical META crypto don’t benefit from or have any say in how the company operates.
Alternatively they could spend that money on holding their own hypothetical crypto so as to create market cap and buy/sell volumes appealing to crypto investors.