Simply Bitcoin Are Bitcoin Treasury and AI Companies Running Ponzi Schemes?! | Bitcoin Simply
Oct 1, 2025
AI companies are drawing scrutiny for financial practices resembling Ponzi schemes, with circular investments and unsustainable valuations. The conversation delves into whether Bitcoin treasury firms, like MicroStrategy, face similar criticisms. The alleged unsustainable nature of AI infrastructure investment is debated, alongside Bitcoin's unique qualities as a treasury asset. Experts question if heavy investments in AI can deliver real returns and how Bitcoin's fixed supply challenges traditional finance narratives. In the end, it raises the provocative question of which sector might collapse first.
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Circular Deals Look Like A Financial Loop
- Nvidia, OpenAI, and CoreWeave have circular investments and contracts that create self-reinforcing revenue flows.
- Dante Cook argues this circularity and heavy debt resemble a Ponzi-like structure funded by investor and bond money.
OpenAI’s Big Promises And Funding Stretch
- Michael Saylor and others describe OpenAI's commitments as "fake it till you make it" due to huge promised compute and revenue targets.
- Saylor notes OpenAI may need to raise roughly $500 billion to meet commitments, making the bets risky but not impossible.
Infrastructure Buildouts Can Create Bubbles
- CoreWeave's $60 billion market cap and executive wealth are built on future commitments, partnerships, and debt more than current revenue.
- The episode links this to historical infrastructure bubbles where assets get built, debt spikes, then demand blips cause distress.