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“New Stock God” Serenity: A rising stock price doesn’t necessarily create value—avoid companies with “toxic” financing structures or debt that feels overwhelming

MarsBitNews
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Mars Finance News, June 7 — "New Stock God" Serenity posted on social media reminding investors to pay attention to corporate financing structures and circulating shares, stating that these are crucial for investment returns, and giving examples: IREN: Financing methods are nearly infinitely dilutive, with each rebound being sold off, essentially a "bad stock." NBIS: Stock price has increased 153% since the beginning of the year, thanks to optimized financing structures (such as direct financing, convertible bond portfolios, etc.). CRWV: High debt interest, the company uses high-interest loans for GPU financing, which long-term erodes free cash flow. Serenity pointed out that if a company's fundamentals are good, it can consider going long after its original holdings are almost diluted away. But if focusing on equity appreciation, one should stay away from "toxic" financing structures or companies burdened with debt. Small-cap companies are especially risky, such as SLNH adding a $500 million ATM (at-the-market offering), while its market cap is only $250 million; BKKT's stock is constantly diluted by executive compensation. These companies essentially transfer investor funds to the business, masked by public opinion or influencer hype. Serenity emphasized that investors must carefully analyze equity structure, dilution risks, and hidden costs when selecting targets, to prevent only looking at profits while actual equity shrinks.
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