Damus
Tony Carrera profile picture
Tony Carrera
@tonycarrera
Bitcoin treasury companies (BTCTCs) are deploying their capital to buy bitcoin in one of two ways.

Lump sum or DCA.

I would argue it’s better for a BTCTC to buy lump sum at their size (like Strategy $MSTR or Metaplanet $MTPLF).

Some other companies like Smarter Web $SWC $TSWCF prefer to DCA over the short-term, hoping to get a lower average price.

DCA works with smaller sums but eventually Bitcoin will run and shareholders will be affected by eventually buying at a higher price.

Picking up pennies in front of a steamroller.

Thoughts? Any interest in Bitcoin treasuries here on nostr? @HODL


5
VarMur · 25w
I lean towards lump sum, but ultimately am fine as long as the BTCTC has regular and aggressive buys, and they’re not exposed to fiat in significant quantities or durations. If bitcoin truly does around 30% per year for the next decade or more, both these strategies will likely be equally effectiv...