[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Udi Wertheimer [@udiWertheimer](/creator/twitter/udiWertheimer) on x 225.9K followers Created: 2025-07-26 20:04:43 UTC i’ve briefly explained this in the attached post below a little over a month ago. it’s absolutely true that most investors don’t understand this dynamic, and frankly some of the executives of these new companies don’t seem to understand this either fwiw pricing PIPE deals at market price doesn’t remove the advantage that PIPE investors have over public investors. private investors get in on asymmetric private information (they learn that the company will start a bitcoin strategy before anyone else does and sign NDAs that require them to keep that information secret) and as such they take very little risk since they buy in at 1x. if anyone else buys on the public market at the same price at the same time they do that without knowing the company will be capitalized with a bitcoin treasury, so they’re taking a lot more risk. the PIPE deals strongly advantage private investors over public investors and frankly they highly incentivize private investors to use retail public investors as equity liquidity. private investors are led to believe that once the deal is made public, the stock likely wouldn’t trade dramatically below their entry price (which is 1x mnav), but retail might drive it to a significant multiple and if they do the PIPE investors can quickly lock in a large profit. to some extend this dynamic is unavoidable, and maybe over time some of these stocks can stabilize and grow. but i do think it in the future other companies might require PIPE buyers to have a long-term vesting schedule to ease the selling pressure and align with long-term buyers. we’ll see if investors still think this PIPE structure is a good one after seeing what happened to $SQNS. XXXXX engagements  [Post Link](https://x.com/udiWertheimer/status/1949199220516249847)
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Udi Wertheimer @udiWertheimer on x 225.9K followers
Created: 2025-07-26 20:04:43 UTC
i’ve briefly explained this in the attached post below a little over a month ago. it’s absolutely true that most investors don’t understand this dynamic, and frankly some of the executives of these new companies don’t seem to understand this either
fwiw pricing PIPE deals at market price doesn’t remove the advantage that PIPE investors have over public investors. private investors get in on asymmetric private information (they learn that the company will start a bitcoin strategy before anyone else does and sign NDAs that require them to keep that information secret) and as such they take very little risk since they buy in at 1x. if anyone else buys on the public market at the same price at the same time they do that without knowing the company will be capitalized with a bitcoin treasury, so they’re taking a lot more risk.
the PIPE deals strongly advantage private investors over public investors and frankly they highly incentivize private investors to use retail public investors as equity liquidity. private investors are led to believe that once the deal is made public, the stock likely wouldn’t trade dramatically below their entry price (which is 1x mnav), but retail might drive it to a significant multiple and if they do the PIPE investors can quickly lock in a large profit.
to some extend this dynamic is unavoidable, and maybe over time some of these stocks can stabilize and grow. but i do think it in the future other companies might require PIPE buyers to have a long-term vesting schedule to ease the selling pressure and align with long-term buyers. we’ll see if investors still think this PIPE structure is a good one after seeing what happened to $SQNS.
XXXXX engagements
