What I worry about is the Treasury Companies. Saylor says he will never sell, but I'm not sure about all the others. What if they are structured in such a way that if bitcoin drops low enough, they have to unload. At least when whales were selling, it was likely as prices went higher, so they sold into strength. If these companies are forced to sell to cover debt, they might be selling as price is dropping, and it could be forced selling. This might end up making it worse. Of course, with them scooping up so much supply, it maybe also means a much faster $1M BTC price. But as others have suggested, the last crash was due to FTX and LUNA and a host of others, while the next crash might be a Bitcoin Treasury company implosion. Issuing stock or bonds to buy bitcoin as bitcoin goes up, which allows you to buy more bitcoin, and rinse and repeat, is a strategy that likely blows up one day. No different than Real Estate bubbles I guess.
David Bailey has already said that they will sell some of the bitcoin to buy the shares (NAKA) if the mnav is less than 1 per the share price Fiduciary duty to the shareholders, protection from short sellers trying to initiate a death spiral they wouldn't be able to defend against, as raising funds under distressed share price wouldn't be feasible Unless they can issue preferred shares with ATM capabilities like mstr, Saylor and CEO Phong Le have already said publicly they will defend against such attacks with mstr share buybacks using the preferred shares (during the bear market) if necessary
Yeah I basically share your concerns … but eventually. Point being I can totally see these bitcoin treasury companies causing a bubble in their own stock price as well as bitcoin itself, but I actually think we are a long way from that. The big MSTR competitors as I understand it haven’t really even started buying yet. The biggest one will probably be that 21 capital backed by Canter Fitzgerald, soft bank, and tether. They are gonna buy a ton, but from my understanding they haven’t even started yet. A bunch of other ones have to do things like complete their spacs before even starting to buy basically if this becomes a bubble, I don’t even think it started yet.