A Bitcoin Treasury Company

What is a Bitcoin Treasury Company?

Bitcoin Treasury Companies come in different modes, shapes, sizes and so on. The way in which Lumika Search is a Bitcoin Treasury Company is that, rather than holding excess reserves in cash, we choose to hold the majority of what we consider excess reserves in cold storage, multi-signature, multi-location, collaboratively secured Bitcoin.

Why be a Bitcoin Treasury Company?

It is extremely challenging to own and run a business. The challenges are far-ranging.

These challenges are then intensified by (what we see as) the impossibility of measuring your organisation’s financial health through traditional means.

We observe this impossibility as we have no idea what we are measuring against (the money supply). We know that $100 this year is worth less than it was last year, but we don’t really know how much less, and how to account for that erraticness when trying to assess our organisation’s health and plans. We know with high certainty that the money supply is going to continue expanding, but we have no idea how rapidly.

Bitcoin, for us, introduces simplicity. It’s predictable, its supply is fixed, it doesn’t change, it’s secure, it can’t be influenced, it can’t be frozen, it’s always available — it’s boring.

Tick-tock, next block.

By placing the majority of our excess cash reserves in Bitcoin, we believe this provides greater clarity of our financial health over time, stops us from having to play guessing games, and acts as a much more reliable measuring stick — enabling us to plan more prudently and for the longer term.

Why tell people you are a Bitcoin Treasury Company?

Two reasons.

1. As mentioned, none of what we say is financial advice. But if sharing what we are up to and why encourages an organisation to explore its own situation, and discover that there might be a more prudent way of doing or thinking about things that may work better for them — then I think that is a great outcome.
2. Any bitcoiner knows that it takes a lot of time and work, and that there is a certain set of values that need to be inherent to arrive at being a ‘bitcoiner’. If being transparent about our position leads us to connections and collaborations with other like-minded, bitcoiner-led organisations — again, I believe that is another great outcome.