The Rise of Bitcoin Investment Giants: From Software Companies to "Alchemy" of Encryption Assets

1. Background Introduction

A well-known software company has recently shifted its focus to Bitcoin investment, massively purchasing Bitcoin through the issuance of stocks and bonds, becoming a focal point in the US stock market. The company currently holds nearly 500,000 Bitcoins, valued at over 40 billion dollars, accounting for about 2% of the total global Bitcoin supply.

The company has turned the stock market into a Bitcoin "ATM" through a carefully designed capital structure - raising funds by issuing new shares/convertible bonds to buy Bitcoin, and then using the Bitcoin holdings to support the stock price, forming a capital closed loop deeply tied to encryption assets. With this high-premium financing mechanism, the company not only dominates the Bitcoin concept stocks but has also developed a set of "alchemy" recognized by the US stock market.

2. The Driving Forces Behind Stock Price Speculation

Several key factors behind the company's stock price fluctuations are:

1. The non-linear relationship between stock prices and Bitcoin: Stock price fluctuations do not completely follow the price of Bitcoin synchronously.

2. Premium narrowing reaction: The company's premium is gradually shrinking compared to before. The management emphasizes the high volatility of the company's stock, attracting institutional investors who cannot directly purchase Bitcoin ETFs.

3. Bitcoin "proxy investment": becoming an alternative choice for some restricted institutions to invest in Bitcoin.

4. The management's clever marketing and "self-fulfilling prophecy": emphasizing the leverage effect of the company's stock, promoting it as safer than direct leveraging.

5. Unique advantages: strong financing capabilities and marketing strategies, packaging the company as a "super leverage tool" to attract global speculators.

3. The Leaders' Cryptocurrency Vision

The company's leader has promoted Bitcoin through frequent public appearances, interviews, and speeches, attracting a large number of institutional investors into the market. He advocates that the United States should become the global leader in the digital economy, pushing for all assets to be on-chain and tokenized, demonstrating an open attitude towards the widespread application of blockchain technology.

He even proposed the idea of incorporating Bitcoin into the national strategic reserves, envisioning a decentralized global on-chain economy. This forward-thinking approach has gained more recognition within the industry, but it also brings new challenges for global capital flow and regulation.

4. Thoughts on Asset Game

Although the price of Bitcoin has fallen from its recent high, the company's holding cost is still profitable. Even if the price falls below the cost, the company has various coping strategies:

1. The founder holds a large proportion of voting rights, making forced liquidation difficult.
2. You can choose to issue bonds, issue additional stocks, or mortgage Bitcoin for loans.
3. The main debt maturity is later, with no liquidation pressure in the short term.
4. The trend of global institutions viewing Bitcoin as a reserve asset is favorable for the long-term outlook.

However, this model also raises some questions worth considering:

• Does the decrease in Bitcoin volatility affect existing strategies?
• How long can the financing coin purchase model last?
• Are leaders idealists or arbitrageurs?

V. Investment Insights

The company's stock can be seen as a "accelerator version" of Bitcoin, more sensitive to Bitcoin price fluctuations. Its unique capital operation model has brought significant returns, but there are also risks:

• Core business growth is weak, and the outlook relies on the increase in Bitcoin prices.
• Continuously financing through the issuance of convertible bonds and other methods, transferring risks to the stock market.
• The long and short odds in the stock market are generally greater than in the encryption market.

Investors need to weigh high returns against high risks and carefully assess the feasibility of participating in this stock investment.