Just saw that Nakamoto Holdings tanked hard recently. They followed the bitcoin treasury model and insiders dumped their stocks, causing a 96% loss. This raises serious questions about the whole model...
I doubt it's a total failure though. Could just be a one-off issue, maybe even bad management. Someone needs to look into what went wrong, but I've read it might relate to PIPE deals letting certain investors buy in cheap before the stocks hit the market.
Yeah, this bitcoin treasury thing is pretty new, so mistakes are expected. Some companies are just copying what others have done, without really understanding it. Nakamoto Holding didn't even invest in bitcoin until things went south. Seems like they were masking their management issues with BTC.
Not gonna lie, this model feels like a way to attract investors to failing businesses. MicroStrategy seems to be the exception, but who knows how long that lasts. Other sectors are trying to copy this, but it just feels sketchy to me.
You nailed it! Nakamoto (NAKA) merged with Kindly MD trying to pivot to this model. It's wild how the U.S. lawmakers are turning a blind eye to these ponzi-like schemes. If this keeps up, it’ll tarnish the reputation of legit companies holding BTC.
Totally agree. Scammers are quick to jump on trends like this. They'll exploit the system for their gain, and if it can happen in banks, it can happen in bitcoin too. Bad risk management can lead to collapses.
I've been saying similar stuff for a while, but dissenters get roasted in the MSTR threads. MicroStrategy seems fine for now, but who knows how long that lasts? By the way, has KindlyMD changed their ticker? They've definitely strayed from the path.