Bitcoin treasury firms can outperform BTC... but is the risk worth taking?
Bitcoin treasury companies promise to amplify returns over investing in Bitcoin alone, but does the potential upside outweigh the risks to the downside?
Bitcoin treasury companies promise to amplify returns over investing in Bitcoin alone, but does the potential upside outweigh the risks to the downside?
There are now 179 listed companies holding Bitcoin on their balance sheets, all following variations of the same simple formula:
Raise capital on traditional markets, buy Bitcoin and attempt to increase the amount of BTC that backs each share faster than the company dilutes shareholders.
That dynamic was very favorable for Strategy during the last Bitcoin bull market, McCarthy says, because Bitcoin was increasing fast. “They were able to take on new debt. They were able to issue new debt because of that.”