Julian Hosp, founder of Cake DeFi, expressed concerns regarding Strategy Inc.’s bitcoin-backed structure and its discount to net asset value. He indicated that this could lead the company to sell Bitcoin in ways that might ultimately harm shareholders.
“Strategy’s real issue is not so much on covering the 600mil USD a year in interest and dividend expenses… this just highlights they are a ponzi scheme, with new investors paying off old investors,” said Hosp. “What is going to make them implode is their discount to NAV, which forces them to sell BTC and initiate a death spiral. MSTR IS GOING TO SELL BTC… it is just a matter of time. THIS IS WHAT IS GOING TO DESTROY MSTR. Chickens coming home to roost!”
Strategy Inc., known for its focus on bitcoin analytics and treasury management under the MSTR ticker, recently announced the establishment of a $1.44 billion U.S. dollar reserve. This reserve is funded through at-the-market stock sales and is intended to cover preferred dividends and interest on outstanding debt for at least twelve months, with an aim to extend this period to 24 months or more. According to Strategy, this move is directly linked to the sharp decline in bitcoin prices and the company’s own stock price, prompting updates to their 2025 earnings guidance under various Bitcoin price scenarios. These developments have heightened investor scrutiny on how Strategy manages leverage, equity issuance, and potential bitcoin sales amid fluctuating market conditions.
Public filings reveal that Strategy holds approximately 650,000 BTC, making it the largest corporate holder of bitcoin globally. At current valuations, this amounts to tens of billions of dollars and represents a significant portion of the total bitcoin supply. Shareholders thus gain highly leveraged exposure to the asset. After years of trading at a premium relative to its BTC market value, Strategy’s equity has recently shifted to a discount compared to its estimated net asset value—similar to a closed-end fund structure. Analysts are now closely monitoring the firm’s market-cap-to-bitcoin-holdings ratio (mNAV) as a critical metric influencing future capital decisions.
Dr. Julian Hosp is recognized as a medical doctor turned crypto entrepreneur who founded Cake Group, which includes Cake DeFi and Bake. Initially pursuing careers as a professional kitesurfer and surgical trainee, he transitioned into blockchain ventures by co-founding projects like TenX before launching Cake in Singapore in 2019. Hosp focuses on aiding investors and entrepreneurs in building long-term wealth and has authored bestselling books on cryptocurrencies and financial education. He actively engages with audiences through YouTube, podcasts, conferences, and advises European policymakers on digital-asset regulation.
Cake DeFi operates under the broader Cake Group brand from Singapore as a fintech platform offering decentralized finance services such as staking, lending, and liquidity mining on digital assets. Since its founding in 2019, Cake has managed over $1 billion in customer assets at its peak while serving hundreds of thousands of users worldwide. The company emphasizes transparency regarding user fund deployment for yield generation strategies and positions itself as an entry point for retail investors seeking cash-flow strategies from crypto investments while combining centralized user experience with on-chain verifiability. Additionally, Cake Group launched a $100 million venture arm aimed at supporting Web3 and metaverse projects.
