What's a zombie company do when it's out of options? Deteriorating or stable business with a big cash pile. Maybe massive pension obligations.

We all know what companies can do with their cash: spend it, hold it or dividend it out. Now, there's a fourth option ... buy BTC.

The reason I bring it up is that I think a lot of companies will start going to this option in the next few years. BTC is a commodity so it gets around limits on stock purchases. It also will enjoy mark to market accounting rules so increases in price will be reflected as earnings. (I told you they were earnings.) It keeps the capital in the business and must look very tempting to heads-I-win-tails-you-lose executive comp package beneficiaries. There are tons of businesses around the world with nowhere to put big cash piles who don't want to give it back to shareholders. Could increase the value of some cigar butt companies who buyout specialists acquire to load up with your favorite Beanie Baby Ponzi scheme.


The speculative attack on the Dollar is accelerating.

Berkshire Hathaway FAQ

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