"As summer now turns to fall in the northern hemisphere, the stonkcoiner dream of bitcoinizing finance is rapidly becoming a nightmare. The bitcoin paper summer of issuing shares to clueless financial markets at (extreme) overvaluations to thereby buy bitcoin on the cheap is ending, not with a bang of success but with a pretty unimpressive whimper. The bitcoin treasury dream was nice; I even openly admit that it made some sense."
"For a few months, Wall Street merrily entertained the froth and fuelled the fires. But at last, financial gravity is reasserting itself: We're all waking up from our summer fling with financial delusion, where things traded for more than what they're objectively worth. It's both wonderful and tragic to see standard corporate finance once more hold firm. Earlier this year, our own David Bailey, CEO of BTC Inc, the owner of Bitcoin Magazine, told Bitcoin for Corporations, another arm of BTC Inc, that "if you can sell a dollar for more than a dollar, you do that trade all day long." Turns out, that free-lunch strategy(!) wasn't free... wiping out investor money in the process has been a painful journey in learning that lesson."
"I absolutely hate seeing the stock price go down of course- many of my closest friends and family are shareholders. But I can't control the market.What I can do is work for the best interest of shareholders and execute our strategy dutifully. Together we'll build a massive... https://t.co/kEIokoUwev- David Bailey🇵🇷 $1.0mm/btc is the floor (@DavidFBailey) September 4, 2025"
Summer speculative issuance of overvalued shares to accumulate bitcoin created inflated mNAV premiums that enticed retail buyers to pay above net asset value. Wall Street momentum briefly supported those trades, but valuation discipline is returning as market gravity corrects premiums and erodes perceived arbitrage. Executives touted selling dollars for more than dollars as profitable, yet the strategy has produced investor losses when premiums vanished. Corporate finance norms are reasserting themselves, forcing share prices and mNAVs toward parity. Retail holders who bought securities instead of spot bitcoin often paid a premium and realized losses as the market repriced risk.
Read at Bitcoin Magazine
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