The Bitcoin treasury company netted $85.5 million, but owes more than the entire company is worth.
Nakamoto just reported its third-quarter results: net income of $85.5 million and 4,283 $BTC on hand. But that same day, CoinDesk dug up another set of books: the company owes exchanges $165 million—more than its entire market cap.
At the current price of $69,287, those 4,283 coins are worth about $297 million, enough to cover the debt on paper. Even if the price drops to the $57,700 analysts warned about, they’d still be worth around $247 million. The problem is that the market won’t value this pile of coins—showing that investors don’t trust the balance sheet and are focused only on the debt hanging over the company.
That same day, Ethereum treasury company BTCS sold $ETH at a loss to hold on to its $64 million Aave loan. Treasury companies’ profits are the numbers you see when the wind is at their backs; debt is what matters when it turns against them. My take: don’t start by asking who’s hoarding the most—look first at who owes the least.
If you had to choose, would you buy a treasury stock carrying debt, or hold spot assets directly?
See today’s other highlights in the image 👆
⚠️ Not investment advice · DYOR
#CryptoEveningBrief #Bitcoin #TreasuryCompanies
Nakamoto just reported its third-quarter results: net income of $85.5 million and 4,283 $BTC on hand. But that same day, CoinDesk dug up another set of books: the company owes exchanges $165 million—more than its entire market cap.
At the current price of $69,287, those 4,283 coins are worth about $297 million, enough to cover the debt on paper. Even if the price drops to the $57,700 analysts warned about, they’d still be worth around $247 million. The problem is that the market won’t value this pile of coins—showing that investors don’t trust the balance sheet and are focused only on the debt hanging over the company.
That same day, Ethereum treasury company BTCS sold $ETH at a loss to hold on to its $64 million Aave loan. Treasury companies’ profits are the numbers you see when the wind is at their backs; debt is what matters when it turns against them. My take: don’t start by asking who’s hoarding the most—look first at who owes the least.
If you had to choose, would you buy a treasury stock carrying debt, or hold spot assets directly?
See today’s other highlights in the image 👆
⚠️ Not investment advice · DYOR
#CryptoEveningBrief #Bitcoin #TreasuryCompanies
