@bfg
Interestingly enough — there are still many people calling Strategy's borrowing for BTC purchases ponzi 🤔
But Strategy (formerly MicroStrategy) isn’t running a Ponzi scheme — it is doing what everyone borrowing money to build or produce does, only their choice is a highly leveraged Bitcoin bet.
Right now, the company holds about $63B in Bitcoin, backed by $8B in debt and $14B in preferred stock. That's debt exposure around 30%. Nothing dramatic or strange.
If everything were sold today, debt holders get paid first, preferred investors second, and common shareholders would still have roughly $41B left.
So the model isn’t “new money paying old investors” like a proper Ponzi 🤓
The real risk is simpler:
If Bitcoin rises, shareholders benefit.
If Bitcoin crashes hard, common shareholders absorb most of the pain.
So, yeah, there's a risk, but not a fraudulent scheme.
Btw: that preferred stock from Strategy pays 11.5% 🤔 not bad!