How Bitcoin Treasuries Will Cause The Next Bear Market

August 2, 2025

Charlie and Colin dive deep into the dangerous parallels between today’s Bitcoin treasury companies and the 1929 investment trust bubble. They analyze how companies like MicroStrategy use convertible debt to accumulate Bitcoin, why this creates systemic risk, and how forced selling could trigger a catastrophic unwind. From Ponzi-like dividend structures to the speculative attack strategy, they break down why this leverage-fueled boom might end badly.

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NOTES:

• 98 companies raised $86B in 8 weeks for crypto

• MicroStrategy needs $300-400M annually for dividends

• Q1 revenue only $111M vs dividend obligations

• Public entities hold ~900K Bitcoin total

• Investment trusts grew 11x from 1927-1929

• 1929 trusts were 1/3 of all capital issuance

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