Crypto Companies Leverage âInfinite Money Glitchâ to boost Bitcoin Holdings
Crypto firms are using a strategy called the âinfinite money glitchâ to raise capital and buy Bitcoin.This boosts their value and allows them to raise more funds.Companies like MicroStrategy have thrived on this approach, but rising debt raises sustainability questions.
Many firms are now adopting cryptocurrency treasuries. However, their capital-raising methods coudl be risky if the economy turns downward. Financial engineering, which involves creating new investment products, has been used by banks for years.But it led to problems during the 2008 financial crisis. Will the same happen with crypto?
The infinite money glitch involves selling shares and using convertible notes to buy Bitcoin. As Bitcoinâs price rises, so dose the companyâs value. They can then use this increased value to raise more capital. This cycle continues provided that Bitcoinâs price rises.
MicroStrategy, led by Michael Saylor, pioneered this strategy. Since
