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Anyone want to buy $BTC at a 47% discount to current prices? Here's how you can do it.
I can't believe I'm saying this, but $EOS might actually be the best risk/reward in digital assets right now due to their massive #Bitcoin holdings.
Thread time 👇
First, let's talk risk/reward. Over the past 2 years, $EOS is the only well-known token other than $XRP that is not higher. In fact, it has underperformed by a LOT.
Even other zombie projects are up 300-1000%
That's a nice start for an investment -- low downside, relatively
Next, the math:
Block One owns 140,000 $BTC. At $2.77, the market cap of $EOS is $2.6 bn, which is only 47% of the value of their BTC holdings.
That means by buying $EOS, you are actually buying $BTC at $18,771. Huge discount.
The question is "can you unlock this value"?
Why does book value matter? Here's a good explanatory thread:
https://t.co/Mp5bn0dbNE
$WNXM showed how this works. WNXM traded below BV temporarily, until investors realized the value of the underlying ETH. These are sweet setups and don't last
Counter-argument: Generating an ROI from BV is basically a bet on what management will do with that capital, & of course the EOS & Block One teams have done nothing to instill confidence right?...
https://t.co/bKghLv7TmF
...but that's precisely why this is so interesting.
I can't believe I'm saying this, but $EOS might actually be the best risk/reward in digital assets right now due to their massive #Bitcoin holdings.
Thread time 👇
First, let's talk risk/reward. Over the past 2 years, $EOS is the only well-known token other than $XRP that is not higher. In fact, it has underperformed by a LOT.
Even other zombie projects are up 300-1000%
That's a nice start for an investment -- low downside, relatively
Next, the math:
Block One owns 140,000 $BTC. At $2.77, the market cap of $EOS is $2.6 bn, which is only 47% of the value of their BTC holdings.
That means by buying $EOS, you are actually buying $BTC at $18,771. Huge discount.
The question is "can you unlock this value"?
Why does book value matter? Here's a good explanatory thread:
https://t.co/Mp5bn0dbNE
$WNXM showed how this works. WNXM traded below BV temporarily, until investors realized the value of the underlying ETH. These are sweet setups and don't last
1/ If you're trying to value DeFi assets with traditional valuation ratios, use Price to Book Value (not Price to Earnings)
— Aleks Larsen (@_alekslarsen) January 12, 2021
Why?
Counter-argument: Generating an ROI from BV is basically a bet on what management will do with that capital, & of course the EOS & Block One teams have done nothing to instill confidence right?...
https://t.co/bKghLv7TmF
...but that's precisely why this is so interesting.
EOS was nothing more than a #bitcoin heist.
— Peter McCormack (@PeterMcCormack) January 12, 2021