Hacker News new | ask | show | jobs
by JumpCrisscross 1887 days ago
> Comparing their asset balance with the market cap of its stock is complete nonsense

Eh, not really. They’re both stock (as opposed to flow) measures. And one is a subset of the other. That said, crypto as fraction of assets would be a more rigorous metric.
1 comments
noxer 1886 days ago
>And one is a subset of the other.

Not alt all. Mark cap is a fictive value. Assets hold by a company aren't fictive and are not part of the market cap at all. Market cap is simply the price of all stocks at the current market price of one.

>crypto as fraction of assets That would make more sense but also would need to include debts.

link
sokoloff 1886 days ago
If Tesla announced it was going to sell all of its BTC tomorrow, would they get 100% of its notional value?

There’s a reason companies list “cash and equivalents” and BTC isn’t included in that line on the balance sheet.

link
noxer 1886 days ago
>would they get 100% of its notional value?

depend on the liquidity on that day also they could OTC sell so yes they can probably get the market price. However telling the market fist isnt going to help.

>There’s a reason companies list “cash and equivalents” and BTC isn’t included in that line on the balance sheet.

Yes, the reason is volatility and uncertain liquidity. To compare BTC with cash equivalents you could use volume adjusted price over the last months, that would give a good short term cash value. But long term ofc its impossible to know what it may be worth.

Not quite sure how that's relevant to what I said, namely that assets hold by a company are not comparable to the companies market cap.

link