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Companies holding bitcoin reserves could face a sustainability crisis.atlas21.com/few-bitcoin-treasury-companies-will-survive-the-death-spiral-report/
281 sats \ 4 comments \ @Bell_curve 10h Stacker_Stocks
Ultimately, only a select few companies will sustain a lasting MNAV premium. They will earn it through strong leadership, disciplined execution, savvy marketing, and distinctive strategies that continue to grow Bitcoin-per-share regardless of broader market fluctuations.
FYI: this is not my opinion but something to think about
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61 sats \ 1 reply \ @freetx 8h
I'm not at all saying "this time is different..." - and I have do have healthy skepticism of how far the virtuous cycle can go.
However, I feel like they are missing something.
  1. Bitcoin price drops
  2. MNAV falls
  3. Yet if debt-load is still sane, they can still issue bonds
  4. Money from bonds goes into buy more Bitcoin
  5. MNAV rises
Point being, Strategy has a 18% debt-load. That means price of BTC would need to fall by 75% before their debt-load got to 1:1.
From a pure finance perspective, a company have 50% debt load to assets is considered a healthy company, so they should be able to continue to issue bonds (ie. convertables)
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10 sats \ 0 replies \ @Bell_curve OP 8h
STRK, STRF, STRD
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11 sats \ 0 replies \ @BlokchainB 9h
Yup this the crash down for sure
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0 sats \ 0 replies \ @LibertasBR 3h
As ridiculous as I think these companies’ actions are, I don’t believe in that spiral. That’s because what will keep Bitcoin valuable against any other currency is its use as money — the spiral in question treats it like just another financial asset, which it is not.
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