Have you ever felt like you were quietly and politely robbed? Not on the corner. Not under threat of a gun. But in a tie, under the applause of the board of directors. Everything is legal. Everything is according to the charter. And all at your expense.
Today we will talk about those who decided to play in Bitcoin... but by the old, fat rules of Wall Street.
About those who turned decentralized freedom into a centralized reward scheme for top executives.
This is about public companies that buy bitcoins. Not because they believe in Bitcoin. But because it’s convenient for them. Because they can say: 'We are now a crypto company!' - and issue a couple more million shares while you clap your hands.
At the center of this carnival is SMLR, a small company that suddenly decided: 'Hey, why not buy Bitcoin?'
Notice: this is not a crypto startup, not a mining firm. This is a medical company. But who counts? After all, now they are the 'bitcoin treasury'.
As long as the BTC price goes up - stocks rise. But here comes a small question:
And if the stocks are trading cheaper than their share of bitcoins... why not issue more?
Herein lies the dog. Too many companies turn BTC treasuries into a reason to print shares like the Fed does dollars. Because 'we need to buy more bitcoin' sounds nice. And the fact that you are losing your share in the company - well, it's a trifle.
And then Matthew Siegel appears, a man with a rare diagnosis: common sense.
He says:
'Stop, friends. Maybe it's time to stop printing shares if they are cheaper than the company's assets? Maybe it’s worth buying back your own shares first, instead of handing them out to top executives like cookies?'
Oh, how unexpected. Responsible boards of directors?
That sounded almost as naive as 'democratic elections in California'.
Siegel reminds: we’ve been through this before. Public mining companies. Promises. Bitcoins on the balance sheet. And... millions of new shares.
What did shareholders get?
Dilution.
Overbought options.
And fat bonuses for the executives while the stock price crawls down.
So what's the moral?
Bitcoin is decentralized. Greed is not.
While some companies use BTC as a way to strengthen their balance sheet - others use it as a façade for corporate gain.
You are not obligated to be a victim. You can demand accountability. Monitor NAV. Ask: 'Who is paying for these bitcoin purchases?'
And if the answer is you (through dilution), maybe it's time to remember that Bitcoin was created against this.
