Small companies buying cryptocurrencies

[Leap1]

The entire exercise is a lot of bull.

Think dot cons in 1999.

haveadrink.com

[albaby1]

@MarkR

They’re only doing what their shareholders approve of, and want them to do. Otherwise those shareholders wouldn’t keep providing new money.

And right now, it’s a sensible play - especially if you believe that your shares are overvalued. Normally, if your stock is overvalued (say if you have a meme stock) you might be tempted to sell shares - but if you do that, the market won’t like it and your share price will fall. However, the market is (and has been) happy to pay more than $1 for each $1 a company holds in BTC. So instead of just selling shares, you go out and buy BTC, and you can convert your overpriced shares into an asset with value without tanking your share price! Or if you go out and buy BTC for cash, you can appreciate your stock by more than the value of the BTC!