Bitwise Alpha Strategy Director: Enterprises’ moderate allocation of BTC is like wearing golden armor

PANews reported on October 26 that Jeff Park, head of strategy at Bitwise Alpha, wrote on the X platform that some people believe that Microsoft should not buy Bitcoin to enrich its balance sheet, saying that this will distract them from their core business, but they have overlooked a key understanding of modern equity: a moderate allocation of BTC by a company is like putting on golden armor, which is much more powerful than any available financial engineering. This strategy will make it more difficult to short stocks and expose the balance sheet to greater tail upside in the exponential trend. If you believe in BTC, you will understand that Bitcoin actually provides one of the largest long-term capital cost arbitrage opportunities, especially if you have $70 billion in idle cash. Even if you allocate 1-5% of BTC, shareholders will not worry about losses (nor will it affect the volatility of its multiples), but it will bring asymmetric financial upside. Board members who do not understand this fiduciary responsibility will not stay in this world for long. Equity is just a "return on capital" and does not need to be overly complicated by injecting personal interests.

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Author: PA一线

This content is for informational purposes only and does not constitute investment advice.

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