The Crypto Treasury Raziernia
This American summer, a new investment madness – related to the Spac (Special Purpose Acquisition Company) exuberance of 2020/21 – has grabbed Wall Street while companies transform their balance sheets into crypto -safes. And while September unfolds, the company strip in cryptocurrencies does not show any signs of delay.
From Japanese hotel operators to chip makers, technical startups and old manufacturers, they have all led dozens of billions in Bitcoin and Altcoins, so that their cash reserves are conceived as bets on digital assets.
Michael Saylor demonstrably kicked it off with his 2020 gamble at Strategy (formerly MicroSstrategy), but the movement was so inspiring that it has changed into a mainstream trend, if not a mania. A Pro-Crypto White House also has the trend supercharged. President Trump’s promise to crown the US as the ‘crypto capital of the planet’, in combination with Crypto-Savvy and pending legislation, unlocked the locks.
Trump Media & Technology Group characterized the shift and raised US $ 2 billion to bitcoin and effects. What was once a fringe idea has the crypto-treasury-pivot now has 209 public companies with US $ 145 billion in crypto, a figure that year with US $ 86 billion has been collected to date.
You heard that well; Companies have not collected billions for research and development (R&D) or expansion, but to buy and hoard Bitcoin and Altcoins.
While the American autumn is cooling the climate and the market, the stock prices of these crypto holders, however, fall (the strategy falls by 27 percent compared to the height of July, even if Bitcoin has only fallen eight percent compared to the High August).
Summer Lovin ‘
Fueled by a crypto-friendly political climate under President Trump, the trend exploded with companies that announced plans to collect more than US $ 86 billion for crypto purchases since January 2025, the American initial public offer (IPO) revenues. The momentum was intensified by July, with entities such as Bitmijnbouw shifting to Solana Treasuries worth a maximum of US $ 300 million, and Upexi that collects more than two million Sol (Solana) tokens after an increase in US $ 200 million. Even Trump Media joined the battle and launched a company supported by Spac to collect CRO (Cronos) tokens, so that it was actively sent 30 percent on the announcement.
High -profile backers then strengthened the excitement. Vental capitalists such as Peter Thiel’s Founders Fund have deposited US $ 250 million in Bitmine Immersion Technologies for Ether Buys, who are appreciation of US $ 26 million to more than US $ 2 billion. Banking weights, including former Barclays CEO Bob Diamond, formed entities to chase obscure tokens such as hype, supported by hedge funds and former-fed officials, while custodians such as Bitgo reported an increase in business customers, managing treasuries for dozens of new players.
In general, and according to reports, 209 public companies had US $ 145 billion in digital assets at the beginning of September, with Bitcoin treasuries only added US $ 5 billion in August despite a delay from the JUST TREAK.
Proponents claim that this is not speculation – it is strategic. In the past year, companies such as strategy have risen 153 percent by using debts and equity to buy Bitcoin, now valued at more than US $ 115 billion in interests. Treasuries allow the release of yields (not available to exchange traded funds (ETFs)) and borrow against assets for reinforced returns. The Q2 2025 CFO survey by Deloitte showed that the North -American financial leaders warmed up for crypto for Treasury division, quoting inflation hedges and potential upward.
Clouds on the horizon?
Of course everyone says something similar when the Activum they have bought is too all time and strengthens their position.
However, skeptics see red flags everywhere.
For example, why would you pay a premium for a company’s crypto companies when investors can buy Bitcoin directly via cheap ETFs? Many treasure boxes are traded according to valuations that are much higher than their assets – such as buying a dollar for two dollars.
In the meantime, business Bitcoin in August, where treasuries are said to add only 47,718 BTC in the midst of a cooling market. Consequently, the stock prices for these companies have fallen: strategy and metaplanet have led the falls, with shares “crypto treasury” under broad pressure.
Perhaps not surprising, Jim Chanos and other shorts bet against them and they call it a frenzy reminiscent of the Pandemic Spac -Boom – something we warned about this on the blog at the time.
Those meta and microsoft shareholders have voted Bitcoin -Treasury proposals, prioritize the core activities over crypto -gambling, at the same time that others plow ahead and even move to Altcoins, fuel adds that the whole thing can be a bubble.
While Bitcoin treasure boxes dominate, companies also bet on riskier tokens such as intellectual property (IP) (rise in adoption by Heritage Distillery), Solana and even hype. In the meantime, insiders seem to sell. Executives at companies such as Tron Inc. (formerly SRM Entertainment) sold millions of shares, profit in their pocket while the stock price crated.
And although regulations and larger institutional flows are likely to reduce volatility, we are not there yet. Consequently, volatility remains the Achilles heel of the sector. By way of example, Sequans’ US $ 384 million Bitcoin Raise yielded a doll of 215 percent in share price, followed by a decrease of 66 percent. As Evgeny Gaevoy warned from Wintermute, a bear market could ‘crash and burn’ these setups, which hurt retail investors. Even Strategy’s Saylor warns against Altcoin bets and recorded their speculative risks.
Hug or beware?
The flowering Bitcoin price has produced a range of tangential strategies for investors (or speculators) to consider. Although dressed up in different forms, many directors on the digital currencies themselves, and investors must remember that the price of cryptocurrencies will reflect in the absence of widespread industrial use – something that is almost impossible to predict consistently.
The crypto treasury trend offers seductive opportunities – livered exposure, yields and coordination with an adult digital activa class that is now worth US $ 4.11 trillion. Institutional inflow, such as the bet of US $ 6 billion from Capital Group, as well as legislation, such as the Genius Act, signal the emerging legitimacy of the sector.
For that reason, I believe that it will pay investors to keep an eye on the sector, especially on funds that offer market -neutral strategies. These do not need Bitcoin to rise, to take advantage, and they take advantage of the volatility and the still inefficient market that produces relatively wide spreads for the same instrument over several fairs.
Overhyped ratings, recent pullbacks and Altcoin proliferation suggest a bubble in crypto treasury shares, which are a reflection of Manias. Investors can do better with diversified funds, avoiding premiums and business risks, or market -neutral, high -frequency or arbitration funds. These latter funds are looking forward to increasing volatility in a still inefficient market.
Although crypto treasuries could bring about a revolution in company financing, they can only become the following warning story in a long row of warning that demonstrably started tulips.
Roger Montgomery is the founder and chairman of Montgomery Investment Management. Roger has more than three decades of experience in fund management and related activities, including stock analysis, stock and derivative strategy, trade and effects. Prior to the establishment of Montgomery, Roger positions in Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also the author of the best -selling investment guide for the stock market, value. Aabel-Hoe to appreciate the best shares and buy them for less than they are worth.
Roger regularly appears on television and radio, and in the press, including ABC Radio and TV, the Australian and Ausbiz. View upcoming media performances.
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