From Nasdaq
June 7, 2025 6:00 am:

MicroStrategy, now Strategy (NASDAQ: MSTR), pioneered the Bitcoin treasury concept. New start-ups offer leveraged exposure to digital assets. Investors should assess where the true value lies and how these companies impact the coins they hold.

Several companies are amassing cryptocurrencies on their balance sheets. These crypto treasury companies aim to provide investors with indirect exposure to digital assets. However, their long-term viability is uncertain, and they lack a competitive advantage or economic moat.

Renewable energy firm VivoPower raised $121 million for an XRP purchase program. Companies like Reitar Logtech Holdings and Twenty One Capital are stockpiling Bitcoins. These assets offer a hedge against inflation, but investing in crypto treasury businesses may dilute coin exposure due to overhead costs.

Investors may consider buying and holding digital assets directly. Companies like Twenty One Capital’s goal of 42,000 Bitcoins could reduce the circulating float of coins. However, volatility remains a risk, as crypto treasuries may impact prices if forced to sell.

Investing in digital assets directly may be a more straightforward approach than buying shares in crypto treasury companies. While corporate holders may face additional fees and risks, coin holders may benefit from scarcity and consistent adoption. It’s essential to weigh the pros and cons before investing in Bitcoin or other digital assets. Join Stock Advisor to access the latest top 10 list of stocks. Stock Advisor returns as of June 2, 2025. Author Alex Carchidi has positions in Bitcoin. The Motley Fool recommends and has positions in Bitcoin and XRP. Check out the 10 stocks recommended by Stock Advisor.

Read more at Nasdaq: Crypto Treasury Companies Are Bullish on Bitcoin and XRP. But Don’t Invest.