Oddbean new post about login | logout Bitcoin on company balance sheets seems to be all the rage. For a private company in an Australian context I haven’t yet heard a single compelling argument for it. Many down sides. Got excess profits? Extract then and hold bitcoin personally Tell me I’m wrong #AUStriches
If you could leverage business loans to acquire Bitcoin that would be a compelling reason. I think the owning & running of the company itself would need to provide value to you. That's the only reason I'd leave substantial amount of equity in it.
I don't know about AUS, but where I live, it'd be something like this, rather: Extract, *be robbed blind by the taxman twice, the first time because "company profits" and the second time because "personal income"*, and hold personally around one third the amount of BTC you could hold as a company.
I don’t really see the point either. The MSTR leverage playbook makes sense if you can access cheap debt but given how relatively poorly the Australian ETFs have performed, I doubt an Aussie version would get the same investment that MSTR or Metaplanet has managed. Australians are too focused on their housing ponzi, business investment is at the same level now as the early 90s recession.
Depends upon a few things imo: If expenses are mostly Aud$ then you need to hold those on the balance sheet in some form If you’re cashflow positive then, as captain of your own corporate destiny, i would argue that timeframe (>4y or < 4y) comes into play Short-term time horizon - keep $ Long-term, keep a portion in btc on the balance sheet