Matt Levine’s Money Stuff: Bitcoin Treasury Company M&A (1)

Bitcoin treasury merger

For a long time, the US stock market would pay $2 for $1 worth of crypto. If you had a stash of, say, $500 million worth of Bitcoin, you could plop it into a random public company and the market would value the company at $1 billion. Then you could raise more money in at-the-market stock offerings, and use the money to buy more Bitcoin. Each $1 that you spent on Bitcoin would increase your market capitalization by $2, allowing you to raise more money to buy more Bitcoin, etc., in a virtuous cycle that, come ...