Public Crypto Vehicle is the strategy pioneered by @saylor to access financial capital through selling company shares and convertible notes to get funds to buy Bitcoins at regular intervals. MicroStrategy owns 580,250 Bitcoins as of now. Their average purchase price is $66.3K

Now why the strategy work? Because they made around $14B in profits on their Bitcoin treasury so far, and that growing profit became a strong catalyst when Saylor decided to become the most vocal voice for Bitcoin.

MSTR stock went up by 15.6x in the past 3 years, while BTC did 2.7x growth — that's a 5.7x premium against Bitcoin. And that helped institutions/retail who bought MSTR shares make one of the highest returns in U.S. equities in the past 3 years.

Metaplanet — a Japanese listed company — picked the same script, and it worked for them as well. They bought around 7.8K BTC since April '24, and the stock price went up by 20x in the past 1 year. These were all dead stocks that saw a new rebirth after they announced adding

Their success has created a new wave where many public companies ended up raising funds against their shares, and they bought Bitcoins thinking their stock price would shoot up too — but that's not happening anymore.

One of the examples is a public company called MicroCloud, which announced around $200M worth of Bitcoin purchase in March. The stock price barely moved after the announcement.

The unknown truth in all of these Bitcoin PCVs is that some of the companies are even holding more Bitcoin in value than their market cap, and their stock price never moved to the Bitcoin treasury catalyst — because not everyone had a promoter like Saylor. Two things are clear

So what is the other way out now? The other way out would be building an alternative crypto treasury and raising funds against it. And now we have a whole bunch of desperate VCs who won't miss that chance, as they can sense the possibility of great returns on the stock price if

The game has already started. A bunch of VCs like Pantera, Electric, Galaxy, and a few more funded $425M in a NASDAQ-listed sports betting company called SharpLink Gaming to buy company shares at $6.15 each. The price of the stock went to $40 on the day they announced that the

Those stocks are their leverage hedge against their crypto positions. These VCs will eventually make returns on ETH, but they're gonna make more returns on stocks. And now they've got a perfect playground to create the whole buzz around these stocks related to PCVs — because

Every onchain user will get access to invest in these PCV stocks, and there will be a narrative designed by influencers on social media that will push your mind to take those leveraged crypto bets by investing in these stocks.

Solana PCV game has started too. Two listed companies called Upexi and DeFi Development Corp are holding over $200M in SOL right now, and they've also raised funds from crypto VCs like GSR. Upexi stock is up by 5x since the announcement. So it's working too.

The game is clear now. VCs haven’t realized anything compared to the last cycle. So they will attack the pie from two fronts: - Getting ICOs back, becoming shadow public investors in them, and getting liquid tokens from Day 1. - Funding dead companies, pumping their stocks

Eventually, we could possibly see a future where crypto token treasuries might also start to follow the same playbook of investing in public shell companies, acquiring their own tokens, and building institutional hype around it.

The real alpha in the whole PCV game would be onchain equities of the companies who are building incremental treasuries of ETH and SOL. And people who get into these stocks early will probably follow the lead of crypto VCs, but you need to be super careful too, because you could

I hope you enjoyed reading this thread. If you appreciate my work, please like, share, and repost the tweet below https://x.com/hmalviya9/status...

@hmalviya9 We should be buying Jetking shares?

@PareenL They have 1.59M in BTC bro, I know they are just trying to ride the wave.. also building some buzz around it in Indian market, it would be interesting only if they can do incremental purchase at regular intervals, and that would happen only when they get enough buyers for selling

@hmalviya9 How can I purchase on-chain equities? I’ve never heard of it before.

@Leader_Slnm Early stage as of now but @DinariGlobal has some of them listed, kraken launching soon.

@hmalviya9 How can a retail investor benefit from this?

@ArshjyotSingh1 Stocks and coins. If retail will only benefit when they lose emotion, and follow logic. And only when they invest time at due diligence and practice risk management.

@hmalviya9 I was just reading about something related to this last night & your post popped up today! Indeed this play is happening. Also feel that most companies have not publicly announced about their BTC holdings yet! So that’s going to take this trend forward

@hmalviya9 @0xKaps brought me here

@hmalviya9 While they may fuel the market in the short term is this not a ticking time bomb? These assets they're purchasing mainly via debt will inevitably go down and they will be forced to sell lower at some point? I think this will also trigger a domino effect where a large holder will

@hmalviya9 Love seeing the institutional playbook laid out clearly — understanding this is key to the next big market rally!" 📊🚀

@hmalviya9 this could be the next big market fuel

@hmalviya9 good one bro

@hmalviya9 Thank you very much for this thread on PCV sir

@hmalviya9 It won't be long before this playbook ends and another emerges. I always believe that VCs have their own ways of doing things to maximise profit but then there are always the smartest of them all that finds path early and makes profit off it before others discover what's going

@hmalviya9 @MirraTerminal 🤓

@hmalviya9 Clean thread with real value✅

@hmalviya9 @UnrollHelper unroll

@hmalviya9 You're a treasure for the community, great post!