CoinDesk Podcast Network BITCOIN SEASON 2: How Bitcoin Treasuries Will Cause The Next Bear Market
Aug 2, 2025
The hosts dive into the alarming similarities between Bitcoin treasury companies and investment trusts from the 1929 financial crisis. They highlight how companies like MicroStrategy are generating systemic risks through overleveraged positions and speculative strategies. By drawing parallels with historical financial collapses, they explore the potential for forced selling to trigger a bear market. With over $86 billion raised in just eight weeks, they caution against the excitement surrounding Bitcoin's boom, likening it to past bubbles.
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Bitcoin Treasuries Mirror 1929 Trusts
- Bitcoin treasury companies share worrying similarities with 1920s investment trusts that triggered the 1929 crash.
- Both are fueled by speculation and intense investor demand for scarce assets leading to leverage risks.
Long-Term Debt Strategy Risks
- Bitcoin treasury companies use long-term corporate debt to accumulate Bitcoin, resembling 'intelligent long-term debt' strategies.
- This provides more leverage stability than margin loans but depends heavily on Bitcoin’s price appreciation.
Combine Bitcoin with Cash Flow Business
- Combine Bitcoin treasury strategies with real cash-flowing businesses to sustainably issue debt and accumulate Bitcoin.
- Avoid purely speculative treasury approaches with no revenue backing to reduce financial risks.
