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It either uses cash it holds (so it spends £100 and get BTC worth £100. Or in reality marginally less to account for any transaction costs) or it borrows and incurs a liability and an asset.
No. It spends its own equity, valued at whatever the NAV premium is, say 2.7x Bitcoin to buy more Bitcoin. If you like, a bitcoin that it buys is instantly re-rated by 2.7x. Or it can buy 1 bitcoin for an amount of its own equity which represents 1/2.7 or about 0.37 BTC
frank9755
andyfallsoff
Yes but it will have to spend the market price. It's mad to think that a plan to buy something increases value / share price when it's a speculative asset with no income return or ability to enhance it. It either uses cash it holds (so it spends £100 and get BTC worth £100. Or in reality marginally less to account for any transaction costs) or it borrows and incurs a liability and an asset.
In neither case has it added any value. It makes no logical or economic sense.
Put it another way - what would you value a company with no BTC at that just had a bit of cash and a plan to buy some? Surely no more than the value of the cash it already holds?
If that's not your answer then I'm off to companies house and will happily sell you some shares