The “infinite money glitch” fueling Strategy and BitMine has evaporated, forcing a desperate pivot to survive
The arbitrage model allowing crypto treasury firms Strategy and BitMine to issue inflated stock for asset purchases has collapsed, forcing them to pivot.Summary
The structural advantage, or "infinite money glitch," that allowed crypto treasury companies like Strategy (MicroStrategy) and BitMine to issue stock at premiums to Net Asset Value (NAV) to fund Bitcoin and Ethereum acquisitions is ending. Strategy's premium has shrunk from 2.5x to around 1.15, meaning issuing stock is becoming dilutive, forcing them to raise cash defensively. If the premium drops below 1.0, the company might be forced to sell Bitcoin, inverting its growth feedback loop. Meanwhile, BitMine is pivoting from a store-of-value strategy to a yield-bearing model by staking its large Ethereum holdings, aiming for annual yield starting in 2026. This shift is necessary because the commoditization of crypto access, largely due to spot ETFs, has eliminated the premium investors were willing to pay for corporate wrappers, forcing both firms to rely on financial engineering or future cash flows rather than simple market access arbitrage to survive.
(Source：CryptoSlate)