Step 1: Create a Crypto Treasury Company and Raise capital -> Step 2: Use that money to buy Crypto -> Step 3: boast about your valuation to raise more capital -> go back to step 2.

Everyone in this sub is probably very familiar with Michael Saylor and Microstrategy and the fact that he's converted Microstrategy into the most well known Crypto Treasury Company who is always buying the BTC top. (currently holding 3% of the BTC supply from ~5 years of buying)

https://preview.redd.it/45stntw0kwvf1.png?width=1406&format=png&auto=webp&s=12b44e16b36a32574a91b80b0f8bbee6a7be40a7

But unless you either lost money in the .com bubble or you've been following Crypto for a long time, you probably don't know that Michael Saylor and MicroStrategy were accused of Fraud in 2000 for an accounting scandal.

 On March 20, 2000, MicroStrategy announced that it intended to restate its financial results for the fiscal years 1998 and 1999. MicroStrategy stock, which had recently reached a high of $333 per share... By April 13, 2000, after MicroStrategy announced that it would also restate its fiscal 1997 financial results, the company's stock closed at $33 per share. The company's restatement reduced revenues over the three-year period by approximately $66 million of the $365 million reported. Approximately $54 million, or 80 percent, of these restated revenues were in 1999. 

[source]

In the last few years there has been a rise in Crypto Treasury Companies who follow the steps outline above to buy everything from Dogecoin and CRO to BTC and ETH.

When the custodied asset is pumping these people obviously "look smart" and can raise money to buy more of that treasury asset based off the increased valuation of their treasury assets further boosting the value of their treasury asset. But what happens when the treasury asset nukes in value do the trad-fi investors just eat the loss? Assumedly these companies would have to sell the treasury asset to repay antsy trad-fi investors creating further downward pressure on their and other crypto treasury companies holdings.

Alts

Obviously this scenario would be extremely concerning for treasury companies focusing on alts which might have limited liquidity (see the recent flash crash against all alts last week). So I think at the very least we have to accept that crypto treasury companies for alts, create a huge risk of a blackswan in the future for those alts if treasury companies are forced to liquidate their position. But what about the "blue chips"?

https://preview.redd.it/ep0kofpigwvf1.png?width=1145&format=png&auto=webp&s=80b99886e4455e990fd17e71254b3d2dba85d160

BTC / ETH

BTC and ETH arguably have a lot more liquidity and can handle a lot more downward pressure especially as BTC and ETH have experienced increased institutional adoption and buying pressure. But with Saylor buying every top (currently holding about 3% of all BTC) and the recent rise of ETH treasury companies. Could either drop enough that treasury companies would be forced to sell causing cascading losses across the entire crypto industry?

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I don't know the answer, I'm sure some people here are very familiar with the topic and could answer that. But what if Crypto Treasury Companies being forced to liquidate is the investment bubble that no is talking about?