The treasury company structure is not ideal at all.
- it's tax inefficient
- it has key man risk (Saylor could die)
- it can be abused for personal excess (Naka private jet)
- there is no automatic lever to bring to parity (we now know these things can trade below par)
- there is M+A risk (see Selmer's bad deal)
- In the case of MSTR there is a 30% premium to mNav which could contract to zero.
- as far as a "yield" product, these products have massive principal risk. (STRK has dropped 32% in price since a lot of people got excited about it in July, 2x the move down in BTC).
A hedge fund with borrowing against BTC would be far better.
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