Ah, yes, the good old bitcoin treasury companies are back! (NO, LOLZ; they're dying...) #984224
It was the move to make for much of the year: Sell shares or borrow money, then plow the cash into bitcoin, ether and other cryptocurrencies. Investors bid up shares of these “crypto-treasury” companies, seeing them as a way to turbocharge wagers on the volatile crypto market.
What could possibly go wrong?
Weeeeeelll, pretty much everything. Retail stopped buying overvalued shares, insiders sold like crazy, the mNAV -- from which all the magic stems -- collapsed, the mania ended.
Chanos was right:
At least one big-name investor is adjusting his portfolio after the tumble of these shares. Jim Chanos, who closed his hedge funds in 2023 but still trades his own money and advises clients, had been shorting Strategy and buying bitcoin, arguing that it made little sense for investors to pay up for Saylor’s company when they can buy bitcoin on their own. On Friday, he told clients it was time to unwind that trade.
Saylor, for his part, has remained characteristically bullish, taking to social media to declare that bitcoin is on sale. Skeptics have been anticipating the pullback, given that crypto treasuries often trade at a premium to the underlying value of the tokens they hold.
and, my publicly stated belief is that the show is over. We will not be talking about treasury companies in a year or so; they won't be a thing. (Strategy will, unfortunately, survive, but the premature "Bitcoinization of Finance" is no more.)
companies facing losses will find it challenging to sell new shares to buy more cryptocurrencies, analysts say, potentially putting pressure on crypto prices while raising questions about the business models of these companies. ...
GAME. OVER.
totally.
Archive was misbehaving, so yous gotta trust me on this one.