3 Things Investors Should Know as the Crypto Treasury Trend Continues
Key Points
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Crypto treasury companies are all the rage right now.
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Bitcoin, Solana, Ethereum, XRP, and others are all being hoarded.
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Tread very carefully with these stocks, if you choose to tread at all.
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There’s a new kind of company in town, and it’s built around the premise that stock prices sometimes go up when you buy and hold a ton of crypto on the balance sheet. These so-called crypto treasury companies then raise more capital to buy more coins, and, if the coin’s price goes up, the shareholders get the returns they’re looking for.
In practice, this approach is both ingenious and risky. Before assuming these businesses are interchangeable with the underlying coins, it is worth being clear…
