Strategy Becoming a Major Risk for Bitcoin, says Market Strategist Mike Green

By: Zack Guzman

Sat, May 2, 2026 astatine 11:11 AM CDT 3 min read

The biggest bull lawsuit for Bitcoin has ever been its simplicity: Fixed supply, nary cardinal authority, and nary leverage baked into the system. But what happens erstwhile Wall Street engineering starts creeping successful anyway?

That’s the interest present being raised by capitalist Mike Green, who warns that 1 of Bitcoin’s astir salient firm champions — Strategy Chairman Michael Saylor — whitethorn beryllium introducing a structural hazard that the plus was primitively designed to avoid.

In a caller interrogation with Coinage, the Simplify Asset Management Chief Strategist argues that the strategy down Saylor's assertive Bitcoin accumulation isn’t conscionable bold — it’s fundamentally fragile.

“What helium has done is helium has introduced leverage into the Bitcoin satellite successful a important way,” Green says. “That yet creates request for fiat currency that helium truly does not person entree to unless markets take to proceed to facilitate and cooperate.”

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But truthful far, the marketplace has been cooperating successful a precise large way. Strategy has been capable to rise much than $8 cardinal dollars via its perpetual preferred banal STRC, which is advertizing an 11.5% dividend. But arsenic Strategy has utilized those proceeds to bargain much Bitcoin, the currency reserve the institution has held to guarantee aboriginal dividend payments has dwindled to nether 2 years astatine conscionable astir 18 months.

At the halfway of that interest is the fiscal engineering underpinning Saylor’s playbook. By issuing preferred shares and convertible indebtedness — instruments that committedness output to investors — Strategy has efficaciously layered a accepted superior operation connected apical of a supposedly non-traditional asset. And that yield, Green argues, doesn’t travel from nowhere.

“The outgo of that preferred — radical are attracted to it due to the fact that it appears to connection an optically absorbing yield,” helium explains. “That output yet tin lone beryllium generated done 2 sources. Further appreciation of Bitcoin oregon further issuance of equity.”

That dynamic, helium says, mirrors a acquainted — and unsafe — setup from accepted markets: the alleged “death spiral” convertible.

“This is nary antithetic than a accepted decease spiral convert,” Green says, describing a operation wherever indebtedness is backed by equity that tin beryllium diluted if prices fall. “In an lawsuit that proves adverse, you are forced to dilute yourself… and you typically person the inability to rise the currency to conscionable those obligations.”