Bitcoin Plummets to $70,000: A Structural Crisis Unfolds

Bitcoin's recent downturn has initiated a significant stress test for the so-called "treasury company" investment model. In recent months, this approach seemed straightforward: companies would liquidate stock or tap into low-cost convertible notes to acquire Bitcoin, banking on escalating prices and a sustained equity premium to manage other expenses.

However, as Bitcoin's value approaches the $70,000 mark, the viability of this strategy is being called into question. The implications of this decline could be profound, potentially leading to far-reaching consequences that are reminiscent of the FTX collapse but possibly more severe.