FT editor warns against firms using debt to buy Bitcoin

Patrick Jenkins, deputy editor of the UK's Financial Times, criticized companies that invest in Bitcoin as part of their financial strategy, describing the trend as a parade of fools in an Aug. 25 column. He argued that a business model based on raising capital through stocks or bonds solely for Bitcoin investment resembles past Ponzi schemes and the risks associated with the 2008 collateralized debt obligation crisis. Jenkins noted that this strategy is particularly common among non-financial firms and is intrinsically linked to market overheating and bubbles. He warned that when the current enthusiasm subsides and another crypto winter arrives, these companies could face significant financial losses and risks, concluding that excessive optimism about such firms is dangerous.