Has the bitcoin treasury company bubble popped? | Protos
In April, a new fad emerged after MicroStrategy (MSTR) founder Michael Saylor laid the groundwork for a new type of public stock corporation, the so-called “bitcoin treasury company.” Like any fad on Wall Street, early adopters earned disproportionate gains ahead of the herd of trend followers. However, the fad is already fading as investors are beginning to tire of overpaying for publicly-traded balance sheets. An acronymic play on bitcoin’s BTC symbol and modeled after MicroStrategy itself, these bitcoin treasury companies promised to upend the traditional investment framework of discounted cash flow Analysis . Instead of boring corporate activities like building products and services for paying customers, they would mostly skip over such bothersome details to focus on something much more exciting: raising capital to buy BTC. Bitcoin treasury company season begins On April 23, Bitcoin Treasury Company Season kicked off in earnest with the launch of Tw...