Good morning, Asia. This is what makes news in the market:
Bitcoin finance companies face simple but brutal testing. Can they outweigh the BTC itself or do they need investors to skip them and buy the assets entirely?
“If you haven't, there's no reason to implement your strategy. Just buy a Bitcoin ETF,” said Matt Cole, CEO of Strive Asset Management, during a panel at BTC Asia in Hong Kong.
Cole may be best known for being a solid supporter of GameStop GME0.001152 dollars Place the BTC on the balance sheet.
On stage, Cole described the playbook as an alpha search, finding a way to outweigh BTC without simply accumulating the inherent risks of Bitcoin. Cole explained that this comes down to fundraising, where he pointed to the transition from convertible to permanent preference fairness as a way to lock leverage.
He added that the most difficult milestone is scale. It's the point where capital reaches $1 billion and funding is cheap enough to support IPOs and bigger teams.
“The most difficult thing for a Bitcoin treasury company is to reach $1 billion,” he said, citing Michael Saylor of MicroStrategy.
Cole emphasized that its scale only works with Bitcoin. Ethereum and other tokens will act in the same way as stocks that change monetary policy.
“Ethereum creates a formidable asset for a finance company,” Cole said. “Bitcoin will constantly rise against Fiat currency as they are debased.”
In his view, the fixed supply of BTC is the only asset that can support leverager financial strategies designed to become more complicated over time.
Andrew Webley of Smarter Web Company, a UK web designer with BTC on its balance sheet, has achieved a more measured tone in terms of market NAV, Bitcoin yield and dilution, and company size.
Although small businesses have advantages in raising capital, he said, transparency and clear risk communication remain as important as mathematics.
“In my opinion, the most important thing you can do as a public company is to first publish the rules,” Webley said, adding that clear disclosures will help investors understand the trade-offs of the BTC financial model.
“If someone can understand the risks, in our opinion, these are the best value opportunities in the world,” he added.
The split highlighted the choices facing investors. We support companies that pursue a positive strategy to outperform BTC, or those that promise clear transparency and steady growth.
In any case, the panelists agreed that Bitcoin's role as a financial asset is expanding.
Market movements:
BTC: Bitcoin is trading above $110,500, according to Coindesk's Market Insights Bot, and is trading slightly lower after a minor pullback after a slight pullback.
ETH: ETH is trading at $4,300, down 0.6%. ETH continues to benefit from strong institutional interests and ETF inflows that support long-term structural benefits.
gold: Gold has seen a small pullback in profits, but continues to trade near record highs, supported by rate cut expectations and increased safe demand.
Nikkei 225: Japan's biggest index continues its rally, supported by a combination of long-term stimuli, corporate reforms, rising yields and a powerful foreign purchase caused by a shift in countries away from the Davish queue from the US.
S&P 500: The S&P 500 rose 0.83% to a record 6,502.08 as traders shrugged employment data for weak individuals while awaiting Friday's employment report on rate cuts prospects and clues about recession risk.
