Loading ...Even if they pay in tokens, the daily volume is half the float so it’s easy to convert to cash. But they are buying shares from gold company shareholders, so it’s probably is cash!
It’s actually brilliant. They sell tokens which are used however they get used in crypto jiggery-pokery, and back the tokens by buying UST notes (less than 90 days’ maturity), on which they earn 3.5%. So the tokens theoretically really are backed by cash equivalents. With $130bn earning 3.5% that’s $4.5bn p.a. in free cash which is paid to the owners as dividends. With the investments they’ve made in gold bullion and Bitcoin recently the dividends paid have been $3.5bn per quarter. For the last three quarters. And the owners probably haven’t had to put up one cent of their own money.
It’s still suspicious that they won’t be subject to audit – don’t know how this will be resolved as El Salvadorian S.A. de C.V. need auditing. But I can see how it could easily be a legit, very profitable, no risk venture.