The Problem Every Company Holding Bitcoin Will Face

Summary

Jack Mallers explains the conflicting incentives companies face when holding Bitcoin on their balance sheets. Selling Bitcoin when underwater benefits shareholders and creditors but harms Bitcoin holders, while issuing equity dilutes common shareholders. This creates a difficult balancing act for corporate Bitcoin treasuries.

• Companies with Bitcoin treasuries face conflicting interests among stakeholders.
• If Bitcoin price is below cost, selling Bitcoin can raise cash but pressures BTC price.
• Issuing common equity to preserve Bitcoin holdings dilutes shareholders.
• Each choice favors some stakeholders at the expense of others.
• The discussion highlights structural risks for both equity and Bitcoin holders.