In real world,companies with much profit will buyback share at high price, then they either destroy them or reward some employee.
Some people misunderstand this behavoir, the action’s precondition is the companies have plenty of cash/profit.
In real world, there is another type of companies want to sell share HIGH and destroy debts, it’s called “debt-to-equity swap”.
Both behaviors above are smart, however,
1)buyback share @high price with bad fianance status is stupid.
2)sell share at low price for “debt-to-equity swap” is also stupid.
To sum up, buyback share if you have much profit, or sell share @ high price to destroy debts when you have tons of debts after share price lifted to high level artificially.
Nu has done one stupid thing(buyback high with bad financial status), and have to do another stupid otherwise you die.
You always find two sub reports in financial report of public companies, cash flow report and equity-liability report.
The “good” and “bad” “cash flow” status of Nu are influenced by outsides, it fluctuates, if BTC price had not risen, Nu may keep "“good” cash flow status today, but the “equity-liability” status is relative stable and easy to predict a company’s fate although some people deny to admit Nu is a company. A ORGANIZATION living without outside donate is a company, whatever you call it, DAC or DAO. It must comply the basic economics rule, IT tech can NOT change basic economics rules, even satoshi’s bitcoin comply the gold standard theory hundreds of years agao.
If you want to be rich and deserved to be rich, equip yourslves with decent financial/accounting knowledge. We are far far from Satoshi’s economics level.
