Bitcoin Treasury Companies have a similar dynamic to VC funds. Anyone investing essentially has to trust the executive team, who get paid whether the fund does well or not, though obviously much better if it does well. The secret to VC funds is that the Venture Partners get their 2% management fee regardless of what happens. Seems like that's what's happening with BTCTCs.
I like the asset that they're holding, obviously, but the risk-reward just doesn't seem worth it, given what amount to taxes on any gains and the fees/executive compensation that all get paid by the investors in the end. Even if I weren't morally opposed because of the fiat expansionary theft on which all these companies operate, I would stay away.
Replies (3)
Sure. That’s a fair argument for individual investors.
What about institutional investors and the ability of BTCTCs to accelerate the flow of capital, that wouldn’t otherwise have access into Bitcoin.
For trapped capital, that's fine, though oftentimes, there are better alternatives than BTCTCs.
The tax treatment in Japan still makes Metaplanet sensible for Japanese investors.
I think the boom-times are over in the US and that’s reflected in MSTR and NAKA price declines relative to BTC.
IMHO (not financial advice) everyone should just dollar cost average and hodl in self custody. If you want to hodl in a retirement account then, you probably need to play the paper bitcoin game with FBTC/IBIT etc.. at least they just claim to buy BTC on your behalf without the financial-engineering nonsense that results in MNAVs.
