The Bitcoin to Litecoin treasury flip: How the smallest Bitcoin treasury company can outsmart the rest

All it takes is for the smallest Bitcoin Treasury company in the top 100 to make the switch to a Litecoin Treasury for a cascade to trigger and for the amount of Litecoin treasuries to expand dramatically in a matter of weeks. Here’s how.

Let’s take a look at the smallest Bitcoin treasury in the top 100: Horizon Kinetics Holding Corporation (ticker: HKHC).

This company currently holds 131 Bitcoins with an average cost of $13,144/BTC, which is currently worth $12,021,477. If this were instead converted into Litecoin, it would net them 144,624 Litecoin's at the time of writing this. Now, with Litecoin having exactly four times the supply of Bitcoin, this means they would own far more of the current total supply with Litecoin than they do with their Bitcoin holdings: 0.170% compared to 0.000657%. That’s 259× more supply for the same amount of money and arguably far less risk.

Now let’s talk about the effects of the smallest Bitcoin Treasury company making the flip to a Litecoin treasury. This strategy would no doubt cause a stir—not only in our bubble on X, but more than likely on mainstream airwaves like CNBC. When interviewing prominent Bitcoin Treasury company heads like Michael Saylor, Anthony Pompliano, etc., they would almost certainly be asked, “Why Litecoin?” and “What does this mean for other BTC treasuries?” They would be forced to defend their Bitcoin maxi narrative as it is actively falling apart right in front of them—and there’s no other coin that can destroy that narrative better than Litecoin, since it has the exact same fundamentals but is just faster, cheaper, has 4× the supply, and comes with an optional privacy layer with MWEB.

As this is happening, the other lower-market-cap BTC treasuries will see this and think, “Why be #100 on the Bitcoin treasury list when we could be #2 on the Litecoin treasury list” and have far more upside potential with future ETF approvals and many more treasuries to follow. This cascade effect could potentially cause the bottom 10 of the top 100 BTC treasuries to flip into LTC treasury companies, which would cause a significant price increase considering how much lower Litecoin’s market cap is compared to Bitcoin’s. And there is no better time than now—we’re at the very tail end of an 8-plus-year consolidation squeeze.

If you’re a Bitcoin treasury company, you’re looking at—best case—maybe a 3× multiple on your investment over a two- to four-year period from current levels. Now imagine investing in an asset that looks to 10-12x in a very short amount of time because of an eight-plus-year consolidation squeeze that’s at the cusp of finally breaking out of. One already has all of its ETFs approved; the other just had its first ETF approval a few weeks ago and still has nine left to go, with more assumed to come in the future. Which one sounds like it has far more room to grow? I think the answer is clear…