“Strategy’s mNAV — a key valuation metric comparing the firm’s market capitalization to the value of its Bitcoin holdings — has collapsed from above 2.5 to just 1.2.” Selling stock at 1.2x net asset value to buy Bitcoin is still accretive, but it’s no longer the magic trade that it was at 2.5x, and it is fragile: If you keep selling more stock to buy more Bitcoin, you will tend to drive down the price of the stock and make the premium — and the whole thesis of the company! — disappear.

borrowing at 10% to buy Bitcoin is a fine trade when Bitcoin goes up, but not so much when it goes down. “Strategy Inc. sold €775 million ($898 million) preferred shares at 80 cents on the euro earlier this month,” reports Bloomberg, with a coupon of 10% (and thus a yield of 12.5%). Bitcoin “has tumbled 12% since Strategy’s euro preferred sale,” though. Paying 12.5% to buy an asset that then falls by 12% is very much not accretive. Ah well.

"“The fundamentals have not changed,” says the CEO of a vaping company turned crypto treasury company about a market crash in tokens like Shiba Inu. Is that good?"