{"id":393701,"date":"2025-05-30T14:26:11","date_gmt":"2025-05-30T08:56:11","guid":{"rendered":"https:\/\/dripp.zone\/news\/thursday-links-treasury-companies-and-dinner-without-trump-crypto-news\/"},"modified":"2025-05-30T14:31:04","modified_gmt":"2025-05-30T09:01:04","slug":"thursday-links-treasury-companies-and-dinner-without-trump-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/thursday-links-treasury-companies-and-dinner-without-trump-crypto-news\/","title":{"rendered":"Thursday links: Treasury companies and dinner without Trump &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<p><em>This is a segment from The Breakdown newsletter. To read full editions,\u00a0<\/em><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/blockworks.co\/brand\/the-breakdown\" rel=\"nofollow\" target=\"_blank\" node=\"[object Object]\"><em>subscribe<\/em><\/a><em>.<\/em><\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n<figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cA chain is no stronger than its weakest link, and life is after all a chain.\u201d<\/p>\n<p><em>\u2014 William James<\/em><\/p>\n<\/blockquote>\n<\/figure>\n<p>The investment case for bitcoin treasury companies can be confusing, so VanEck has done us a service by writing the definitive explainer on the various ways to invest in Strategy (MSTR, STRF, converts).<\/p>\n<p>The main vehicle, MSTR, is generally viewed as a leveraged bet on bitcoin, but VanEck details why that\u2019s not exactly correct.<\/p>\n<p>Instead, MSTR is a \u201cconvexity\u201d bet on the price of bitcoin \u2014 because investors are not just exposed to BTC, but to an \u201cincreasing BTC position as the price of BTC increases.\u201d<\/p>\n<p>I wonder how many MSTR holders realize that\u2019s the bet they\u2019re making.<\/p>\n<p>VanEck is unusually brave about putting price targets on crypto assets, but it declined to do so here and it\u2019s easy to see why: MSTR\u2019s value is driven by the \u201ccircular relationship between Strategy\u2019s Premium and its ability to finance more BTC purchases.\u201d<\/p>\n<p>Circular logic doesn\u2019t work well in valuation models, so that should be a red flag to anyone who thinks valuation matters.<\/p>\n<p>MSTR\u2019s raison d\u2019\u00eatre<em> <\/em>is to increase its \u201cbitcoin per share\u201d and the primary way it does that is to sell shares above NAV.<\/p>\n<p>So MSTR\u2019s value is ultimately a function of the valuation that investors assign it.<\/p>\n<p>The result is that MSTR investors are \u201cbuying an option on the continued existence of The Premium.\u201d<\/p>\n<p>VanEck\u2019s capitalization of \u201cThe Premium\u201d seems to reflect how central it is to the Strategy investment case, which Michael Saylor acknowledges.<\/p>\n<p>But Saylor believes The Premium can persist \u2014 Strategy, he says, is a \u201ccrypto reactor that can run for a long, long period of time.\u201d<\/p>\n<p>But you can\u2019t model a crypto reactor in a spreadsheet, so how long it might run is anyone\u2019s guess.<\/p>\n<p>President Trump\u2019s exchange-listed media group announced plans this week to raise $2.5 billion from investors to buy bitcoin.<\/p>\n<p>This prompted the <em>Wall Street Journal<\/em> to warn that \u201cTrump\u2019s policies toward bitcoin\u2026could potentially affect the value of Trump Media\u2019s bitcoin stash.\u201d<\/p>\n<p>But I\u2019d like to add that Trump\u2019s policies toward the <em>dollar<\/em> could potentially affect the value of his bitcoin stash.<\/p>\n<p>After the capital raise, I\u2019m guessing the president will end up with roughly a 25% stake in Trump Media\u2019s $2.5 billion worth of bitcoin.<\/p>\n<p>This creates a bizarre situation in which the president would personally profit by debauching the currency that his government issues.\u00a0<\/p>\n<p>I\u2019m not cynical enough to think he\u2019d deliberately do that \u2014 but could it make him a little less concerned about running giant deficits?<\/p>\n<p>Show me the incentives and I\u2019ll show you the outcome.<\/p>\n<p>When Jack Kubinec asked DeFi Development Corp\u2019s Dan Kang what problem his Solana treasury company is solving, Kang said it\u2019s that investors \u201ccan\u2019t accumulate SOL fast enough.\u201d<\/p>\n<p>I\u2019m not convinced how pressing a problem that really is, but like Strategy, DeFi Development Corp offers to solve it for you by selling you stock above NAV and investing the proceeds into SOL on your behalf.<\/p>\n<p>The higher you pay above NAV, the faster they will be able to accumulate SOL.<\/p>\n<p>Depending on how willing subsequent investors are to pay above NAV, this <em>might<\/em> work out as a faster way to get exposure to SOL.\u00a0<\/p>\n<p>But either way, the investing logic illustrates the circular conundrum of crypto treasury companies.<\/p>\n<p>As with any asset, you don\u2019t want to pay too high of a valuation multiple for treasury companies \u2014 surely 100x NAV, for example, would be too much.<\/p>\n<p>But unlike any other asset, you don\u2019t want to pay <em>too low<\/em> of one, either.<\/p>\n<p>A Treasury company trading at or below 1x NAV won\u2019t be able to grow its crypto holdings on a per share basis at all.<\/p>\n<p>So, for the investment case to make sense, you have to believe there\u2019s some Goldilocks multiple of NAV \u2014 not too hot and not too cold, but just right.<\/p>\n<p>Sounds like a fairy tale to me.<\/p>\n<p>Pakistan announced this week that it plans to mine as many as 17,000 bitcoin per year using surplus energy from underused coal-powered plants.<\/p>\n<p>I imagine many in Pakistan would be surprised to hear that there\u2019s all this extra energy going unused because the country\u2019s electrical grid is notoriously unreliable.\u00a0<\/p>\n<p>But I guess it\u2019s possible because the thing about electricity is that it\u2019s not generated on demand.<\/p>\n<p>When you flick a light switch on at home, the reason the room is immediately filled with light is that the electricity had already been generated and was in the grid waiting for you (metaphorically speaking).<\/p>\n<p>Utilities are always guessing how much power they need to generate, so it\u2019s helpful for them to deliver some of it to bitcoin miners that can be turned off when they\u2019ve generated too little.<\/p>\n<p>This is the core argument for why bitcoin mining isn\u2019t as environmentally damaging as it seems.<\/p>\n<p>But that\u2019s probably not what\u2019s happening here \u2014 the reference to \u201cunderused\u201d power plants suggests that Pakistan will be burning more coal than it otherwise would have.<\/p>\n<p>This makes the term \u201csurplus\u201d a bit misleading; it\u2019s probably not surplus energy that\u2019s being used to mine bitcoin, but surplus capacity to generate energy.<\/p>\n<p>Either way, Pakistan says the bitcoin will be kept in a strategic reserve, which is also kind of weird because the Pakistani government runs persistent budget deficits.<\/p>\n<p>So, the country will effectively be borrowing money to buy the coal required to use its spare power plant capacity to mine bitcoin, which it will HODL.<\/p>\n<p>Just like Strategy!<\/p>\n<p>I imagine Michael Saylor would advise Pakistan that the real play here is to rebrand its Strategic Bitcoin Reserve as a bitcoin Treasury company and list it on the stock exchange where its bitcoin will magically be worth twice as much.\u00a0<\/p>\n<p>Matt Steib reported that last weekend\u2019s \u201c\u2018Dinner With President Trump\u2019 didn\u2019t even include a dinner with President Trump.\u201d<\/p>\n<p>Instead, the famously loquacious president reportedly spoke for an uncharacteristically efficient 15 to 20 minutes before departing.<\/p>\n<p>\u201cAs diners tucked into their meals,\u201d Steib wrote, \u201cthey heard the helicopter taking off back to the White House.\u201d<\/p>\n<p>I doubt anyone was too disappointed, as a 220-person dinner hardly promises to be an intimate affair.<\/p>\n<p>Also, it was pretty cheap.<\/p>\n<p>One attendee told Steib that the cost to attend was only about $1,200 \u2014 the fees they paid to buy TRUMP tokens in a digital wallet and short a matching number of tokens on an exchange.\u00a0<\/p>\n<p>\u201cMost people I spoke to had hedge positions,\u201d the attendee added.<\/p>\n<p>No wonder the president didn\u2019t hang around to chat.\u00a0<\/p>\n<p>Sam Altman\u2019s blockchain-based project to <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/blockworks.co\/news\/worldcoin-biometric-identity-vision\" rel=\"nofollow\" target=\"_blank\" node=\"[object Object]\">save the internet from AI bots<\/a> (a problem largely of his own making) is even more ambitious than I thought.<\/p>\n<p>Altman is the chair of Tools for Humanity, which is developing the World project, which aims to \u201cverify\u201d the humanity of every person on Earth.<\/p>\n<p>For Time, Billy Perrigo reported that Tools for Humanity also hopes World will become \u201cthe world\u2019s largest financial network, through which it believes \u2018double-digit percentages of the global economy\u2019 will eventually flow.\u201d<\/p>\n<p>\u201cIf this really works,\u201d Altman said, \u201cit\u2019s like a fundamental piece of infrastructure for the world.\u201d<\/p>\n<p>I\u2019m sold on the need for such infrastructure: \u201cIn a best-case scenario,\u201d Perrigo writes, \u201cWorld ID could be a privacy-preserving way to fortify the internet against an AI-driven deluge of fake or deceptive content.\u201d<\/p>\n<p>Perrigo explains how in helpfully accessible terms: \u201cIf I were to use my World ID to access a website, that site would learn nothing about me except that I\u2019m human.\u201d<\/p>\n<p>The way to prove you\u2019re human is to prove you have eyeballs, as an Orb attendant explains: \u201cWe need a way to verify that we\u2019re human and not AI. So how do we do that? Well, humans have irises, but AI doesn\u2019t.\u201d<\/p>\n<p>(Irises are not the only thing that separates us from AIs, but they\u2019re the only thing that\u2019s provably unique.)<\/p>\n<p>World has signed up about 12 million users so far, which is probably not fast enough.<\/p>\n<p>\u201cThe internet will change very drastically sometime in the next 12 to 24 months,\u201d Tools for Humanity CEO Alex Blania told Time. \u201cSo we have to succeed, or I\u2019m not sure what else would happen.\u201d<\/p>\n<p>What would probably happen first is that the internet will be overrun by AIs.<\/p>\n<p>But Altman now says that\u2019s not his focus: \u201cIt\u2019s not like, \u2018Oh, we\u2019ve got to avoid the bot overrun\u2019 or whatever. It\u2019s just that we can do a lot of special things for humans.\u201d<\/p>\n<p>Perrigo suspects that Altman is changing the narrative on World to better fit the narrative on OpenAI: \u201cTools for Humanity\u2019s mission may be shifting beyond simply proving humanity, and toward becoming the infrastructure that enables AI agents to proliferate with human authorization.\u201d<\/p>\n<p>Lots of those AI agents will be created by Sam Altman\u2019s OpenAI.<\/p>\n<p>I find that a little disappointing because it muddies the narrative, but World still seems like a worthy cause to me, because what\u2019s the alternative?<\/p>\n<p>One way to contribute to the cause is to buy the World token, which has to have value so that Tools for Humanity can incentivize sign-ups, attract investors and motivate employees.<\/p>\n<p>Time quotes Tools for Humanity CEO Blania as saying that he\u2019s \u201creally excited to make a lot of money.\u201d<\/p>\n<p>That strikes a discordant note for an ostensibly mission-driven company, but if World works, he\u2019ll have earned it.<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n<p><strong>Get the news in your inbox. Explore Blockworks newsletters:<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This is a segment from The Breakdown newsletter. To read full editions,\u00a0subscribe. \u201cA chain is no stronger than its weakest link, and life is after all a chain.\u201d \u2014 William James The investment case for bitcoin treasury companies can be confusing, so VanEck has done us a service by writing the definitive explainer on the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":393702,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-393701","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/393701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=393701"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/393701\/revisions"}],"predecessor-version":[{"id":393703,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/393701\/revisions\/393703"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/393702"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=393701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=393701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=393701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}