All true. Thouh, to be fair (or at least more complete), raising capital at 10% ineterest via issuing preferred stock and using that capital to buy bitcoin is a solid plan. Nobody would be complaining about the marginal business expenses of managing this wrapped btc if bitcoin had been appreciating just a little faster than 10%.

That being said, It's probably a good thing that the risk involved in this plan when bitcoin is not going up has been made crystal clear sooner rather than later.