Public companies are now adopting a new strategy called a “crypto treasury,” where they buy and hold cryptocurrencies like Bitcoin, Ethereum, and even Dogecoin. Strategy (NASDAQ: MSTR) is leading the way by issuing debt and equity to buy Bitcoin, resulting in a 173% share price increase in the last 12 months. Other companies are following suit with Ethereum and Ripple’s XRP.

Companies like Semler Scientific and Nature’s Miracle Holding are forming crypto treasuries to buy various cryptocurrencies, including Ethereum, Litecoin, and Dogecoin. The investment thesis for Ethereum focuses on its utility in decentralized finance, while Bitcoin’s value lies in its scarcity. Buying stocks in crypto treasuries provides leverage but comes with added risks due to organizational and governance factors.

VivoPower and Nature’s Miracle Holding have initiated XRP treasury programs, with plans to accumulate and hold XRP on their balance sheets. At least 10 other companies are following suit with XRP-focused treasury strategies, aiming for allocations as high as $500 million. Investors must consider the trade-offs between buying shares in a crypto treasury versus owning XRP directly to manage operating, financing, and dilution risks.

Before investing in XRP, investors should consider the top 10 stocks recommended by the Motley Fool Stock Advisor team for potential high returns. While XRP may not be on the list, the historical performance of recommended stocks like Netflix and Nvidia demonstrates significant growth. Joining Stock Advisor provides access to the latest top 10 list for potential market-crushing returns.

Read more at Nasdaq: First Bitcoin, Then Ethereum: Will Ripple’s XRP Be the Next Target of the “Crypto Treasury” Strategy?