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(I suppose you could have used the loan to buy more bitcoin, which I assume is what Naka did -- what else are they gonna spend $165 million on? -- but this seems like a somewhat poor way to go about it.
they/he certainly did, at the exact top of the hubris. So yea... if you leverage yourself at 8% interest and go long on an asset that then drops 50% and stays there, yeah, I mean you're pretty fuuuucke.d
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If you are a bitcoin treasury company and your main (sole?) value prop to investors is that you will give them access to bitcoin and maybe even get them more bitcoin, but then you go and use your treasury of bitcoin as collateral for a loan, aren't you actually giving investors less bitcoin access?
(I suppose you could have used the loan to buy more bitcoin, which I assume is what Naka did -- what else are they gonna spend $165 million on? -- but this seems like a somewhat poor way to go about it. Surely Bailey could have gotten people to give him more money using fun constructions like STRC rather than resorting to something as pedestrian as a bitcoin loan.)