# The Crypto Capital Base

_How leverage drives valuation premiums_

October 15, 2025 • Michael Nadeau

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# The Crypto Capital Base

## How leverage drives valuation premiums

Michael Nadeau
 October 15, 2025

 Hello readers,

 The crypto markets remain arguably the only truly free market in the world.

 24/7. Global. Permissionless. Transparent, onchain data. With 100x leverage.

 There are no central banks. Margin calls. Circuit breakers. Or backstops.

 It’s beautiful and chaotic at the same time.

 Over the last few weeks, we’ve seen the more chaotic and messy side of the market.

 In this week’s report, we share our views through the lens of the crypto “capital base” to highlight how leverage can create mispriced valuations.

 Topics covered:

- [The Crypto Capital Base](#the-crypto-capital-base)

- [Market Views & Portfolio Management](#market-views-portfolio-management)

***Disclaimer:**** Views expressed are the author’s personal views and should not be relied upon as investment advice. *

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 Let’s go.

# The Crypto Capital Base

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