Strategy’s leveraged Bitcoin model has faced its first stress test: Grayscale

- Grayscale’s leveraged Bitcoin model just got its first reality check, proving that leverage is the financial equivalent of juggling chainsaws in a minefield. Zach Pandl’s take? “Less Bitcoin on levered DAT balance sheets and more on diversified corporate balance sheets will be a positive.” Translation: stop betting the farm on one volatile asset and actually diversify. It’s not rocket science; it’s basic risk management. While moonboys scream about 100x gains, institutions are finally realizing that borrowing against crypto to buy more crypto is a recipe for liquidation, not liberation. Grayscale is pivoting from a leveraged casino to a diversified portfolio, which is corporate speak for “we learned from our mistakes.” Good. The market needs less leverage and more sanity before the next margin call wipes out the weak hands.