Here’s the truth most people don’t want to say out loud:
Corporate Bitcoin treasuries look like asset-backed financing with no cashflow support.
This is rare in public markets because:
•Debt requires coupons
•Preferreds require dividends
•Operating income must service both
But with Bitcoin:
•There is no income
•There is no yield
•There is no production
•There is only price appreciation
So the only way to honor the capital structure is:
1.Sell Bitcoin, or
2.Issue more debt, or
3.Issue more equity, or
4.Run the marketing machine hotter
Why This Matters
Bitcoin is a perfect asset for an individual.
It is a terrible cashflow instrument for a corporation.
When someone issues structured notes, preferreds, or coupon-bearing debt against a non-yielding asset, they’ve created a time-delayed forced-seller behavior.
You can ignore that in a bull market.
In a bear market, the math comes back with a vengeance.