Balance sheet management probably evolves into immediate conversion of all foreign-denominated profits into Bitcoin
Thinking about companies that accrue huge cash balances off-shore and keep them inaccessible to avoid punitive US tax
(And all attendant inefficiencies and costs)
You liability match against all local costs and then shift everything else into the currency without a country.
Eliminates all kinds of exotic hedging, bond market operations and legal shells that are otherwise required to balance sheet optimize against a global footprint
(This new world is not great for the investment banks or a whole coven of associated legal purveyors of structuring and advice, so expect this transition to be accompanied by all manner of carping cacophony)
Rough math:
$12 trillion in S&P 500 revenue of which
30% foreign
at call it a 15% margin above local costs
=
$500 billion in annual purchase volume
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The apparent secret sauce:
They watched the livestream of Tesla’s battery day;
They also took notes;
Then those notes were exclusively leaked to Reuters.
So they could hire, hoping to begin production by
[checks notes]
2025.
fwiw
In 2011 I placed a number of 10 to 1 bets with friends that Apple would have an iCar in-market before April of ’21.
Going to lose.
But it always seemed like the right play for them, and I’m convinced that if Jobs hadn’t passed they would have made that bet (and made mine)
At the time (2011) people were arguing that Apple would vertically integrate through TV manufacture (which I always thought was inane).
There was (and still is!) so much transformation-potential in automotive, but they waited too long; Tesla is tearing through their green space.