Should You Invest in Bitcoin Treasury Companies?
From Nasdaq.
May 16, 2025 6:00 AM:
Bitcoin treasury companies like Strategy (NASDAQ: MSTR) are hoarding Bitcoin, outperforming Bitcoin itself with a 230% return on shares in the past year. These companies issue debt and new shares to buy and hold Bitcoin, offering a leveraged investment option. However, risks include magnified losses during Bitcoin dips and unclear competitive advantages.
While Bitcoin treasury companies may offer some benefits, such as potential leverage and tax advantages, they also introduce risks like equity-based losses and lack of competitive advantage. Buying these companies’ stock could lead to potential challenges in valuing their businesses and potential impacts on share prices in times of Bitcoin volatility.
Read more at Nasdaq: Should You Invest in Bitcoin Treasury Companies?