Aren’t bonds and Bitcoin supposed to be sworn enemies? Yesterday, Fidelity dropped some numbers: perpetual preferred stock issued by crypto-hoarding companies is basically “a bond you never have to pay back.” In just over a year, it helped them buy 136,000 BTC—more than 0.5% of the total supply. From March to May this year, this strategy alone raised over $7 billion, and in one week in April, they bought nearly 30,000 BTC.
The logic is pretty slick: borrow cheaply from bondholders to buy crypto. If the coins rise faster than the interest, everything left over is profit. Even Fidelity added a caveat: if the coins don’t appreciate faster than the dividends, the whole trick falls apart.
So here’s the question: bondholders’ money is adding leverage to crypto—is this an upgraded money-printing machine, or a preview of a blowup? A: This is amazing—fixed-income money is piling in to boost the market. B: Borrowing to buy crypto means that when it crashes, you can’t even pay the interest. Vote in the comments!
#比特币 #Fidelity
The logic is pretty slick: borrow cheaply from bondholders to buy crypto. If the coins rise faster than the interest, everything left over is profit. Even Fidelity added a caveat: if the coins don’t appreciate faster than the dividends, the whole trick falls apart.
So here’s the question: bondholders’ money is adding leverage to crypto—is this an upgraded money-printing machine, or a preview of a blowup? A: This is amazing—fixed-income money is piling in to boost the market. B: Borrowing to buy crypto means that when it crashes, you can’t even pay the interest. Vote in the comments!
#比特币 #Fidelity