Are crypto treasury companies a marvel of financial engineering or a ticking time bomb?
The following is a guest post and opinion of Robert Schmitt, Founder of Cork Protocol.
Many people view crypto treasury strategy companies as a form of leveraged crypto exposure to digital assets. In many ways, this thinking is correct, as these companies seek to deliver amplified returns by strategically accumulating and managing digital assets on their balance sheets. But given the leverage involved, a downturn could severely impact prices and cause significant contagion in broader markets, similar to the blowups experienced last crypto winter.
So, what exactly are these companies? Marvels of financial engineering, or ticking time bombs ready to crash the market?
To understand the risks, we first need to understand what a treasury…
