Patrick Boyle On Finance The Infinite Money Glitch is Broken!
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Dec 9, 2025 Corporate strategies that once turned Bitcoin into a revenue generator have backfired. The episode explores how firms leveraged the 'infinite money glitch' before it unraveled, revealing a fragile dynamic. Leveraged ETFs magnified losses, and even crypto giants like MicroStrategy are shifting away from Bitcoin. It discusses the rise of crypto treasuries and how firms are now selling tokens to service debts. With a lack of new catalysts, crypto prices are plummeting, reflecting the end of an unsustainable hype loop.
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Hype-Fueled Corporate Finance Loop
- Companies raised capital to buy crypto and used social media hype to lift both token and stock prices in a recursive loop.
- Hedge funds monetized the volatility via convertible bonds and gamma trading without caring about the underlying business.
Premium Over NAV Was The Fragile Engine
- The entire crypto-treasury trade depended on a fragile premium over NAV that made share issuance accretive.
- Once that premium evaporated, issuing stock to buy crypto destroyed value and broke the recursive funding model.
Leveraged ETFs Magnified The Downside
- Retail traders amplified volatility by piling into leveraged single-stock ETFs tied to MicroStrategy, accelerating losses.
- Some leveraged ETFs lost ~85% YTD, wiping out billions of investor assets in months.
