In the last few years, MicroStrategy has become a Bitcoin SPAC, with investors attributing savant-like status to Michael Saylor. Its success has led some to push companies to shift their cash into bitcoin. As a general principle, this is a bad idea, but there are four carveouts.
The second is companies that need bitcoin for day-to-day business (PayPal and Coinbase), but the bitcoin holdings should be proportional to bitcoin transactions, and operate more like working capital than investing bet.
The third is companies in countries with failed fiat currencies, where bitcoin is less volatile and more likely to hold its value than the domestic currency.
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