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0 sats \ 4 replies \ @grayruby 28 May \ parent \ on: Bitcoin on Balance Sheets Bad (Financial Times, Lex) econ
I don't disagree. I just think it is stupid. All it is doing is enriching the insiders of these companies. Shareholders are going to get rekt and the rest of us Bitcoin holders probably get crushed too when Bitcoin treasury companies going bust or being forced sellers is the catalyst for the next bear market.
All it is doing is enriching the insiders of these companies.
Not only the insiders, but also many investors.
Bitcoin holders probably get crushed too when Bitcoin treasury companies going bust or being forced sellers is the catalyst for the next bear market.
There has always been leverage in the system and Bitcoin liquidations are nothing new; they happen every day. Some people buy it on 40x leverage and some of them get rekt.
Normal market dynamics, which Bitcoin holders know what they're holding is subject to.
The bear markets are getting shallower, and when they do occur it's an opportunity to stack cheaper.
I don't think the next bear market will be deeper than the previous one. MSTR's leverage is now down to 1.09x.
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Some of them will fail. It's the investor's responsibility to do their research.
Metaplanet is positioned very well though. I forgot to mention in my point about regulatory arbitrage that interest rates in Japan are near zero and the Japanese market is yield-starved. MP can raise capital at much lower rates than MSTR.