On one side, the rules are tightening; on the other, some people are still doubling down. There are reports that treasury company Strive is preparing to issue another large batch of preferred shares, with the proceeds going toward the same old purpose: buying more crypto.
The amount is around $130 million. The timing makes this move especially striking. Just the night before, a similar company’s stock took a hard hit over the possibility of being dropped from an index. By conventional wisdom, this would be a time to pull back and play it safe. But Strive is doing the opposite—using real money to publicly say, “I don’t care about short-term share price swings.”
👉 关注我，点击进入聊天室，学习更多策略
The logic behind it is simple. As long as Bitcoin keeps rising over the long term, every round of fundraising to buy more crypto today adds leverage to the balance sheet of the future. If they’re right, shareholders could make a fortune; if they’re wrong, the preferred-share dividends and repayment obligations will come knocking first.
There’s an aspect of this that doesn’t get discussed much. A large share of treasury companies’ funds comes from debt and preferred shares—in other words, it’s other people’s money. They use that money to take on the long-term ups and downs of a single asset. The gains go to shareholders, but the risks land first on creditors. That’s also why rating agencies and index providers are becoming increasingly wary of them.
Of course, that’s also what makes these companies so appealing: they turn a bullish bet on Bitcoin into a highly leveraged financial product. Gains are magnified on the way up, and losses are magnified on the way down. And the tightening rules are precisely aimed at that amplification.
So here’s the question: will this “the more we’re questioned, the more we double down” strategy eventually prove who was right and who was wrong? If Bitcoin falls below $80,000 again, do you think they’ll hit the brakes, or borrow more to buy the dip? Which side are you on?
The amount is around $130 million. The timing makes this move especially striking. Just the night before, a similar company’s stock took a hard hit over the possibility of being dropped from an index. By conventional wisdom, this would be a time to pull back and play it safe. But Strive is doing the opposite—using real money to publicly say, “I don’t care about short-term share price swings.”
👉 关注我，点击进入聊天室，学习更多策略
The logic behind it is simple. As long as Bitcoin keeps rising over the long term, every round of fundraising to buy more crypto today adds leverage to the balance sheet of the future. If they’re right, shareholders could make a fortune; if they’re wrong, the preferred-share dividends and repayment obligations will come knocking first.
There’s an aspect of this that doesn’t get discussed much. A large share of treasury companies’ funds comes from debt and preferred shares—in other words, it’s other people’s money. They use that money to take on the long-term ups and downs of a single asset. The gains go to shareholders, but the risks land first on creditors. That’s also why rating agencies and index providers are becoming increasingly wary of them.
Of course, that’s also what makes these companies so appealing: they turn a bullish bet on Bitcoin into a highly leveraged financial product. Gains are magnified on the way up, and losses are magnified on the way down. And the tightening rules are precisely aimed at that amplification.
So here’s the question: will this “the more we’re questioned, the more we double down” strategy eventually prove who was right and who was wrong? If Bitcoin falls below $80,000 again, do you think they’ll hit the brakes, or borrow more to buy the dip? Which side are you on?