For a long time, the US stock market will pay $2 with a $1 worth of crypto. For example, if you have a $500 million worth of Bitcoin stash, you can throw it into a random public company, and the market can cherish the company for $1 billion. You can then raise more money with market stock products and spend more money to buy more Bitcoin. For every $1 spent on Bitcoin, your market capitalization will increase by $2, allowing you to raise more money to buy more Bitcoin and more. Without anything else, this strategy was very visible and very easy to copy, so everyone did it and drove the premium.
But for a while, good trade. One of the odd things about trading is if you have $500 million worth of bitcoin and someone comes to you and says, “Give $500 million worth of bitcoin, $500 million worth of bitcoin,” you’ll be a fool to sell. These Bitcoins had won $1 billion in the stock market! If there was a big stash of Bitcoin, the proper trade would be to start the Treasury of Bitcoin and not sell Bitcoin to anyone else who already had a Bitcoin Treasury company. I wrote about this issue in July:
