The Infinite Money Glitch is Broken!

The crypto infinite money glitch appears to be broken and we may never truly know what went wrong. The way it was supposed to work is that you could take an irrelevant company, raise capital to buy Bitcoin or some other token. They're all basically the same, then tweet something quasi religious about the future of money, and put a lot of effort into creating AI memes as good AI memes will definitely drive the token price up. I mean, that's in corporate finance textbooks at this point.

This starts the flywheel spinning. The crypto goes up, pushing your stock price up. Then you sell more stock to raise money. Buy more crypto.

Rinse and repeat. If there are any annoying questions about cash flow, PE ratios, or the fundamental loss of thermodynamics, that's possibly just a sign that you need to crank out more AI memes. Why run a business which is dull and boring and can go wrong in many, many ways when you can just buy something, tweet about it, and pump its price? I'm possibly making it sound too simple.

One of the real innovations of crypto treasury companies, as they became known, was to monetize the volatility of your stock. If your stock price jumps around like a caffeinated squirrel or has a high standard deviation, as nerds would say, you could monetize that volatility by issuing low or zero coupon convertible bonds. The more volatile your stock price is, the more the embedded conversion option is worth. And the convertible bonds will be bought by hedge funds who don't necessarily believe in your company or the underlying crypto token, but they are able to make money through gamma trading, which I'll explain in more detail later in the video.

But it involves buying a convertible bond, short selling the stock against it on a ratio so that you're market neutral, and then constantly adjusting your position size as the stock price moves around. The hedge fund can make money from this while keeping its combined position stock price neutral. These guys don't care about the company or the Sheba Enu based token that you're claiming drives its value. They just care about the stock price moving around a lot, which your AI memes and unhinged tweets are supposed to cause.

This is a virtuous circle or some sort of a circle anyhow as it ...