「Stock God」 Serenity: Price Increase Does Not Necessarily Create Value, Avoid Companies with 'Toxic' Financing Structures or Debt Overhang

BlockBeats News, June 7th, the "Stock God" Serenity posted on social media reminding investors to pay attention to corporate financing structure and outstanding share dynamics, stating that this is crucial for investment returns, and gave examples:

IREN: The financing method involves significant dilution, with each rebound being sold off, essentially classified as a "bad stock."

NBIS: The stock price has risen 153% since the beginning of the year, benefiting from an optimized financing structure (such as direct financing, convertible bond combination, etc.).

CRWV: With soaring debt interest, the company has opted for high-interest loans for GPU financing, eroding free cash flow in the long term.

Serenity pointed out that if the company has a strong fundamental background, one can consider buying after the original holdings have been diluted. However, for those focusing on equity appreciation, they should stay away from "toxic" financing structures or companies burdened with debt. Small-cap companies are at higher risk, with SLNH adding $500 million in ATM (at-the-market) offerings, while having a market cap of only $2.5 billion; BKKT keeps diluting stock for executive compensation. These companies are essentially shifting investor funds to the company, often concealed by public opinion or influencer hype. Serenity emphasized that investors must carefully analyze equity structure, dilution risk, and hidden costs when screening targets, to prevent merely looking at profits while ending up with reduced actual ownership.