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forklog.media Strategy: Scheme or Ponzi?

Strategy holds bitcoin worth tens of billions of dollars and is increasingly tapping retail capital via securities issuance. ForkLog examined how Michael Saylor’s company is structured, why critics call it a pyramid scheme while supporters see an example of effective risk management, and what’s behind the recent sale of part of its crypto reserve. Where Strategy stands now Strategy — the largest corporate holder of bitcoin — had more than 845,000 BTC on its balance sheet as of June 9, 2026. The blueprint is simple: raise capital in markets and buy the original cryptocurrency. The complexity lies in the instruments the firm uses and who sits on the other side of the trades. Source: Strategy. In its latest move the company bought 24,869 BTC for roughly $2 billion and simultaneously retired $1.5 billion of debt. Key detail: 95% of the purchase funding came not from common-stock sales, but from placing STRC preferreds (Stretch). Common shares accounted for just 5%. That shift has dominated debate in the crypto community.  How the company’s finance machine works Strategy taps several funding channels. Common stock (MSTR) — issued via an ATM program. Each new sale dilutes existing holders, making the ATM a frequent sore point for shareholders. Convertible bonds — a tool for institutions. Investment banks sell exposure to MSTR through them. Some of these bonds carry a zero coupon but include the right to convert into stock at preset prices. Preferreds, including STRC, are a different story. According to Blockspace Live hosts Charlie Spears and Colin Harper, they’re a “retail game”: institutions rarely buy them, and if they do, it’s a small sleeve. STRC pays roughly 11% in dividends. The funding mix depends on market conditions. When bitcoin volatility is low and prices are rangebound, demand for new stock is thin — selling would mean “unfavorable pricing.” In those stretches STRC is cheaper to issue. The trade-off: preferreds require cash dividends, and those obligations persist. The pyramid debate: the case for and against Whether Strategy is a pyramid scheme has been debated for years. On Reddit, analyst Mark Meldrum’s breakdown sparked a long discussion. Proponents argue current investors are effectively paid from fresh issuance, while bitcoin on the balance sheet delivers only “theoretical” profits until it’s sold. The counterpoint in the same thread: borrowing against assets to invest is standard practice. It’s routine in real estate and equities, and the principle alone doesn’t make a model a pyramid. The difference is that Strategy buys a volatile asset without a steady price. Similar themes surface elsewhere — for example, in a LinkedIn post where private-capital manager Sasha Jovanovic reviews the topic through a corporate-finance lens. He argues the company uses bitcoin as its numeraire. In 2025, the stock’s return measured in the original cryptocurrency was 22.8%. Jovanovic emphasized the figures are transparent and auditable, whereas Ponzi schemes hide or invent returns. Strategy directs new capital toward buying digital gold for reserves, not paying earlier investors. That creates a “flywheel”: rising prices enable issuance of bonds and additional stock for further purchases. Jovanovic added the company doesn’t hide volatility — it monetizes it. Over the year, the structure issued $7 billion of debt. He stressed that even with a 90% price drop (to $8,000), reserves would cover net debt. He concluded that pyramid accusations reflect a misunderstanding of the company’s balance-sheet mechanics and its unconventional treasury management. Users on the r/CryptoCurrency subreddit point out how Saylor’s own statements highlight MSTR’s vulnerabilities. Skeptics compared the setup to the 2008 mortgage crisis, when financial firms also used high leverage and overvalued assets. Others noted Strategy’s reserves are too small to cause a systemic shock to the broader economy.  In practice the risks look more modest. Convertible debt is small relative to bitcoin reserves, and many coupons are near zero. That reduces the odds of a forced unwind, though the question remains: how to meet obligations without selling bitcoin. Why sell bitcoin The headline in recent weeks was a small sale of the original cryptocurrency, even though Saylor has repeatedly said he wouldn’t sell digital gold. Never sell your Bitcoin.— Michael Saylor (@saylor) February 2, 2025 On the Blockspace Live podcast, the sale was framed more as a signal than a move for cash. The message: Saylor is signaling he isn’t so rigid that reserves are never touched. A categorical refusal to sell would be more troubling. The amount is too small to move the balance sheet — but it’s still widely discussed. Another concept surfaced — reverse reflexivity. Previously, the loop worked like this: Strategy issues stock, buys bitcoin, and MSTR climbs. Now the logic flips. When the company sells digital gold, its shares drop more than bitcoin itself, and the sale adds pressure to the asset’s price. Scale brings advantages but also creates a trap. The public arena is shifting in parallel. Blockspace Live participants noted Saylor now faces visible “competition for attention” — for example, Jeff Walton, who projects a more accessible, risk-aware voice. Coffeezilla just debated Jeff Walton for an hour about bitcoin and Michael Saylor’s digital credit business.If you don’t know him, @Coffeebreak_YT has become the most popular YouTuber focused on exposing crypto scams and is skeptical of the strategy. pic.twitter.com/8LWYDxyY5a— Documenting ₿itcoin 📄 (@DocumentingBTC) May 7, 2026 Why retire those specific bonds Spears and Harper analyzed Strategy’s less obvious step: the company repaid convertible bonds due in 2029 with a conversion price above $670. Notably, that wasn’t the nearest maturity and didn’t carry the highest coupon. The 2029 notes have minimal intrinsic value: the market ascribes almost nothing to the embedded conversion option, valuing it near zero. That means the firm spends the least cash per dollar of debt retired — making them the cheapest for early takeout. This speaks less to a view on equity value than to a drive to cut debt with the lowest cash outlay per unit retired. After the deal, about $6.5 billion of convertible debt remains, with maturities through 2032. Hence the internal tension in the model. MSTR holders care about less dilution. STRC holders want cash to flow freely to dividends. It’s hard to please both at once, and the pendulum now swings toward STRC. Who actually holds the paper Primitive Ventures managing partner Dovey Wan adds context: about 80% of STRC holders are retail investors, and roughly 40% of MSTR holders are retail as well. Wan also acknowledged that the “embedded Ponzi” thesis in STRC appears not to hold up. 80% of $STRC holders are retail investors40% of $MSTR holders are retail Was thinking STRC was an insiti ponzi but apparently not 🤔— Dovey "Rug the fiat" Wan (hiring) (@DoveyWan) May 8, 2026 That explains why the dividend question is so sensitive. By Blockspace Live’s estimate, the balance sheet covers roughly six months of STRC payouts. After that the company effectively has two options: reduce the STRC dividend or sell bitcoin. It’s the second path that worries the market. The issue isn’t the tiny amount sold, but the fear sales could grow to cover dividends. The Blockspace Live hosts see the probability of a “blowup” as low, but with $50 billion in bitcoin even a hint of large-scale selling makes participants nervous. At the same time, the podcast linked the recent crypto downturn less to Strategy and more to capital rotating into artificial intelligence — amid expected IPO SpaceX, Anthropic and OpenAI. Bitcoin volatility is near its lowest in almost ten months. What critics say Euro Pacific Capital President Peter Schiff said MSTR is “the biggest Bitcoin buyer and the biggest Bitcoin loser.” $MSTR Is the biggest Bitcoin buyer and the biggest Bitcoin loser. Strategy has been buying Bitcoin for over five years, and so far that "investment" has netted an unrealized $12 billion loss. If a genius like @saylor can't even make money in Bitcoin why should anyone else try?— Peter Schiff (@PeterSchiff) June 4, 2026 By his estimate, after more than five years of buying, the unrealized loss has reached $12 billion — and “if a genius like Saylor can’t even make money in Bitcoin, why should anyone else try?” Institutional voices have joined in. Arca Chief Investment Officer Jeff Dorman called Strategy’s preferreds “out of control,” pointing to roughly $15 billion of such issuance. Attention is also rising in major media. The New York Times published a substantial feature on Saylor and Strategy — a sign the story now extends well beyond crypto. What to watch next Strategy isn’t a classic pyramid in the legal sense. In practice, everything hinges on two things: bitcoin’s price and the ability to attract new capital.  The near-term questions boil down to three:  Whether the company can keep servicing STRC dividends without sizable bitcoin sales.  Whether it can retire the remaining $6.5 billion of convertible debt without large asset disposals.  Whether retail demand for preferreds holds if bitcoin jumps and makes common stock a more convenient funding tool. For now, Strategy is walking a line between market signaling and hard obligations.

blockonomi.com DXY Compression Between 97.5 and 100 Holds Risk Assets Hostage as Breakout Decision Looms

TLDR: The DXY has held between 97.5 and 100 since March 2025, preventing any durable risk-on trend. Bitcoin, gold, oil, and emerging markets each led briefly but failed to sustain broad participation. A DXY breakout higher would pressure most risk assets simultaneously through dollar tightening. A DXY move lower could finally trigger a broad risk-on [...] The post DXY Compression Between 97.5 and 100 Holds Risk Assets Hostage as Breakout Decision Looms appeared first on Blockonomi.

blockonomi.com Instant Payments, Faster Withdrawals, and the Fintech Race in Online Gambling

The exponential surge in the iGaming industry reflects the faster pace of life and the expectations that come with it. This means that bettors want their cash instantly as they seek a frictionless experience. In some ways, the funnel of funds is becoming just as important as the library of games. In a growing gaming [...] The post Instant Payments, Faster Withdrawals, and the Fintech Race in Online Gambling appeared first on Blockonomi.

blockonomi.com Paranovus (PAVS) Stock Surges 20% Following $195M ATM Offering Filing — Investors Face Dilution Concerns

Paranovus (PAVS) stock surges 20% after filing $195M ATM offering. Market cap under $2M raises dilution concerns for existing shareholders. The post Paranovus (PAVS) Stock Surges 20% Following $195M ATM Offering Filing — Investors Face Dilution Concerns appeared first on Blockonomi.

bitcoinist.com Cardano Founder Hoskinson Accused Of Selling 1.5 Billion ADA In 2021 Rally

Cardano founder Charles Hoskinson is facing a new round of allegations after NFT creator Masato Alexander published additional on-chain tracing work tied to large ADA movements during the 2021 market rally. The claims add another layer to an already contentious debate over Cardano’s early allocation history, governance structure, and voucher redemption process. Large Cardano Flows […]

cryptobriefing.com China’s AI spending lags behind the US by a staggering margin, says ‘Chip War’ author Chris Miller

China's AI underinvestment may hinder its tech sector's global competitiveness, while US and Taiwan's lead strengthens their market dominance. The post China’s AI spending lags behind the US by a staggering margin, says ‘Chip War’ author Chris Miller appeared first on Crypto Briefing.

cryptobriefing.com Qatari negotiators travel to Tehran to finalize US-Iran agreement, and crypto markets are watching closely

The potential US-Iran agreement could significantly impact global oil flow and crypto market volatility, highlighting geopolitical influence on digital assets. The post Qatari negotiators travel to Tehran to finalize US-Iran agreement, and crypto markets are watching closely appeared first on Crypto Briefing.

forklog.media Meta Leases Data Center Capacity from Reliance in India for AI Development

Meta Corporation has signed an agreement with conglomerate Reliance Industries to lease computing capacity at a new artificial intelligence data center in Jamnagar, Gujarat, India. Initially, the facility will have a capacity of 168 MW. Reliance will manage the entire process, from design and construction to providing renewable energy, connectivity, and operations. Meta will lease this capacity with the option for future expansion. The site is planned to be powered by renewable energy, and desalinated seawater will be used for cooling the equipment. Meta will cover all electricity and water supply costs for its operations at the data center independently. The facility could be operational within two years. Mark Zuckerberg's company aims to integrate it into its global AI infrastructure to serve one of the fastest-growing markets. Simultaneously, Meta announced contracts for nearly 1 GW of new renewable energy capacity in India through partnerships with CleanMax and Fourth Partner Energy. These volumes are intended to supplement the energy supply for the Jamnagar site. The deal deepens the companies' long-standing partnership. In 2020, Meta invested $5.7 billion in Jio Platforms, after which the parties expanded their collaboration into digital services and corporate artificial intelligence. In April 2026, Meta began collecting data on employee actions to train AI agents.

cryptobriefing.com Oil prices and Treasury yields surge after Trump toughens stance on Iran, dragging Bitcoin lower

Geopolitical tensions heighten market volatility, impacting oil, bonds, and digital assets, underscoring interconnected global economic risks. The post Oil prices and Treasury yields surge after Trump toughens stance on Iran, dragging Bitcoin lower appeared first on Crypto Briefing.

cryptobriefing.com Iran’s IRGC releases missile strike footage targeting US bases as crypto markets shrug off escalation

The IRGC's actions highlight ongoing geopolitical tensions, yet the crypto market's stability suggests a growing resilience to such conflicts. The post Iran’s IRGC releases missile strike footage targeting US bases as crypto markets shrug off escalation appeared first on Crypto Briefing.

blockonomi.com South Korea Stocks Bleed as Margin Liquidations Peak

TLDR: South Korea’s KOSPI fell 13% in eight days, with two full circuit breakers triggered in a single week. The KOSPI 200 put-call ratio hit 2.5, its highest in five years, signaling heavy institutional hedging. Forced margin liquidations surged to a record 300 billion won, exposing millions of retail investors. Samsung and SK Hynix represent [...] The post South Korea Stocks Bleed as Margin Liquidations Peak appeared first on Blockonomi.

forklog.media Russian Tax Bill on Cryptocurrency Passes First Reading

On June 9, the Russian State Duma approved in the first reading a bill on the taxation of cryptocurrency operations, reports TASS. The document aligns the Tax Code with the forthcoming law "On Digital Currency and Digital Rights." What Will Change The tax base for cryptocurrency transactions is proposed to be determined as the positive difference between income and documented expenses. The latter are planned to be calculated using the FIFO method. The bill also introduces the possibility of offsetting — balancing positive and negative financial results from operations with digital currency and foreign digital rights within a single tax period. Brokers, trust managers, and digital depositories will act as tax agents for PIT in such operations if they are the source of income payment to an individual. The State Duma Committee on Budget and Taxes suggested discussing the extension of these functions to exchanges for the second reading. For companies, income and expenses from operations with digital currency, excluding mining, under foreign trade agreements will be included in the general profit tax base. Foreign digital rights in this part are planned to be equated with cryptocurrencies. It is proposed to exempt the sale of non-deliverable foreign digital rights, which only certify monetary claims, from VAT. The exemption will also apply to the services of depositories and organizations conducting cryptocurrency exchanges. Periodic payments on debt DFA, not related to redemption, are proposed to be included in the profit tax base according to the rules for interest income on loans. For ruble-denominated debt DFA of Russian issuers traded on the organized market, a preferential rate is introduced similar to interest on bonds. Timeline The Russian government submitted the bill to the State Duma on April 29. If the document is finally adopted, it will come into force a month after official publication.  The rules for market valuation of cryptocurrencies for miners are set to take effect on January 1, 2028, and a separate regime for debt DFA on January 1, 2030. Previously, the November 2024 version of the tax law proposed a PIT rate of 13-15%, as well as a 25% profit tax for legal entities. The basic project "On Digital Currency and Digital Rights" was approved in the first reading on April 21, 2026. ForkLog provided an in-depth analysis of its provisions in a podcast.

news.bitcoin.com Defillama Adds Pre-IPO Perps for OpenAI, SpaceX, and Anthropic as Onchain AI Bets Heat Up

Defillama has begun tracking pre-IPO perpetual futures for Anthropic, OpenAI, SpaceX, and Quantinuum, as onchain traders are racing to bet on the year’s biggest private companies before they go public. Onchain Markets for Companies That Aren’t Public Yet Crypto data aggregator Defillama said it has added new pre-IPO perpetual futures markets spanning four closely watched […]

cryptobriefing.com Matt Rife: Being uninformed can lead to happiness, why personal focus enhances well-being, and the ethical concerns of award shows | This Past Weekend

Matt Rife's interest in horror projects hints at a new direction beyond his comedy success. The post Matt Rife: Being uninformed can lead to happiness, why personal focus enhances well-being, and the ethical concerns of award shows | This Past Weekend appeared first on Crypto Briefing.

cryptobriefing.com Manchester United’s summer transfer push puts spotlight on its Tezos partnership and fan token ecosystem

Manchester United's transfer activities highlight the challenges and potential instability in crypto partnerships and fan token ecosystems. The post Manchester United’s summer transfer push puts spotlight on its Tezos partnership and fan token ecosystem appeared first on Crypto Briefing.

blockonomi.com Humanity Protocol Hack: How One Infected Device Handed an Attacker Seven Private Keys

TLDR: One compromised developer machine exposed seven private keys tied to Humanity Protocol’s infrastructure. The attacker drained 141M H from the ETH bridge and minted 300M H on BSC using stolen Safe owner keys. No smart contract bug was involved — every attacker action used legitimate, compromised private keys. The BSC H token remains unrecoverable [...] The post Humanity Protocol Hack: How One Infected Device Handed an Attacker Seven Private Keys appeared first on Blockonomi.

bitcoinist.com Maelstrom’s Bitcoin Grants Hit 20 Months — 5 Developers, 4 Active, Here’s What They’ve Accomplished

Maelstrom, the family office of BitMEX co-founder Arthur Hayes, has published its first annual report for its Bitcoin Grant Program — revealing that four active developers have collectively advanced Bitcoin’s privacy, security, and codebase resilience across a 20-month program that began in October 2024, with five developers supported in total since inception. Related Reading: Trump’s […]

news.bitcoin.com Hands-on Review by Bitcoin.com: Exploring the CoinRabbit Crypto Ecosystem

Long-term crypto holders rarely want to sell. Whether it is Bitcoin, Ethereum, XRP, or other major digital assets, many investors view their holdings as long-term capital rather than short-term trading inventory. The challenge, however, is that markets move, opportunities emerge, and liquidity is still necessary. That creates a familiar balancing act across crypto: how do […]

cryptobriefing.com Social Security trust fund expected to deplete by Q4 2032, one quarter sooner than last year’s forecast

The accelerated depletion of the Social Security trust fund underscores urgent fiscal challenges, potentially impacting retirement planning and economic stability. The post Social Security trust fund expected to deplete by Q4 2032, one quarter sooner than last year’s forecast appeared first on Crypto Briefing.

forklog.media Botanix Announces Gradual Shutdown of Bitcoin L2 Network

The Botanix team has announced a phased shutdown of its L2 network on Bitcoin, urging users to withdraw assets by July 9, 2026. It is with a heavy heart that we announce we are winding down the Botanix network.This decision is the hardest one we have made in four years, and we want to share the reasoning openly because the people who backed us, built with us, and used what we shipped deserve more than a…— Botanix 🕷️ (@botanix) June 9, 2026 The team explained the decision was due to weak demand for Bitcoin programmability. Developers assessed the market as immature: most DeFi sector users prefer the wrapped version of the first cryptocurrency on the Ethereum network, while on-chain activity is increasingly concentrated on major platforms like Hyperliquid and Robinhood. According to Botanix, users primarily view Bitcoin as a store of value rather than an asset for high-frequency trading. As a result, the network's commission revenues were insufficient to cover infrastructure costs. After July 9, assets remaining on the network will be controlled by the validator group Federation. Other funds not withdrawn by the deadline will be irretrievable. Botanix positioned itself as an EVM-compatible L2 solution for Bitcoin. The project launched its mainnet on July 1, 2025, promising to reduce block addition times from 10 minutes to five seconds and bring DeFi tools to the first cryptocurrency's ecosystem. In May 2024, Botanix Labs raised $8.5 million, bringing total funding to $11.5 million. The round included Polychain Capital, Placeholder Capital, Valor Equity Partners, and ABCDE. Earlier in the same year, analysts at Galaxy Digital suggested that by 2030, more than $47 billion in liquidity could transition to Bitcoin L2 solutions.

forklog.media EU Proposes Sanctions Targeting Crypto Exchanges in New Package

The European Commission unveiled its 21st package of sanctions against Russia, encompassing measures in financial services, crypto assets, trade, and energy. The financial segment includes asset freezes for nearly 90 banks and a ban on transactions for more than 30 credit institutions in Russia and third countries. The package places particular emphasis on the crypto sector. For the first time, it proposes restrictions on 11 crypto platforms that the EU believes are facilitating sanctions evasion. European Commission President Ursula von der Leyen announced plans to create a mechanism for a complete ban on crypto services from third countries if they assist in lifting restrictions. The document also proposes freezing the current price cap on Russian oil at $44.1 per barrel for six months, along with restrictions against shadow fleets, traders, and refineries from third countries.Additionally, import restrictions will, for the first time, affect fish products and high-performance metal alloys critical for the defense and aerospace industries. The proposal is on the agenda for the EU member states' Committee of Permanent Representatives (Coreper II) meeting on June 10. Approval of the sanctions requires unanimous consent from all 27 member states. In January, the US first imposed sanctions on Bitcoin exchanges for links to Iran.

blockonomi.com Bitcoin Whale Capitulation and Rising Exchange Inflows Point to Final Bear Market Flush

TLDR: Binance BTC inflows from 100–10,000 BTC wallets spiked sharply as Bitcoin’s price declined in June. Short- and long-term whales collectively locked in over $2.5 billion in realized losses recently. Short-term whales hold roughly $16 billion in unrealized losses after a brief May recovery reversed. CryptoQuant’s MorenoDV links capitulating whales and exchange inflows to late-stage [...] The post Bitcoin Whale Capitulation and Rising Exchange Inflows Point to Final Bear Market Flush appeared first on Blockonomi.

cryptopotato.com Ethereum Price Prediction: How Close Is ETH to a Sub-$1.5K Breakdown?

Ethereum remains under significant selling pressure after losing a major support area and extending its decline toward the lower boundary of its broader trading range. While buyers have managed to defend the range lows for now, the market structure continues to favor the bears unless ETH can reclaim several key resistance levels overhead. Ethereum Price […]

bitcoinist.com Analyst Reveals Why They Dumped Their XRP, But It’s Not The End

Over the last year, the XRP value has declined by almost 50%, erasing the majority of the gains that were realized from the 2024 rally. As time has gone on, the sentiment surrounding the altcoin has continued to decline, with many investors lamenting this poor performance. Recently, one XRP investor revealed that they had dumped […]

news.bitcoin.com ‘De-Worsified, Not Diversified’: Robert Kiyosaki Warns Investors on a Hidden Risk

Robert Kiyosaki says most people who think they are diversified are actually “de-worsified,” holding a pile of assets that all sink together when markets turn. Word Play With a Warning Robert Kiyosaki, the author of the best-selling personal finance book “Rich Dad Poor Dad,” is recasting a familiar piece of investing advice. In a post […]