Traditional companies enter the Crypto Treasury game with BTC, XRP, and Sol Buyys
A growing number of traditional companies are beginning to experiment with digital assets as part of their corporate treasury approaches, which signed a transition to how businesses view the role of crypto in financial management.
This week alone, companies from sectors of different agriculture, consumer manufacturing and even an 80 -year -old Japanese fabric have announced allocations to tokens such as Bitcoin (Btc), XRP (XRP), and Solana (Sol).
On Wednesday, the miracle of nature, an agricultural technology company, announced This will allocate up to $ 20 million for an XRP (XRP) Corporate Treasury, making it one of the latest firm to move to a Approach to the Altcoin treasury.
Consumer Manufacturing Company UPEXI revealed The acquisition of 83,000 sol (Sol), which costs $ 16.7 million, for its corporate treasury, also on Wednesday.
A day before, Kitabo, a publicly listed company that was primarily involved in fabrics and recycling, revealed Plans to buy 800 million Japanese Yen, or about $ 5.6 million, of Bitcoin for its reserve company.
The Rise of Bitcoin Treasury Company has led to the expansion of corporate treasury options, with many businesses considering digital assets for treasury techniques. As the pace grows, the analysts warn the mounted Market and investment risks of Crypto Treasury Company.
Related: Trump’s bitcoin mentor in BTC Treasury Strategies – and his wealth exploded
Dangers associated with the growing trend of crypto treasury companies
The companies holding crypto, including Bitcoin treasury companies.
A Some bitcoin treasury companies will surviveAccording to a June Report From the Venture Capital Company Breed.
The authors of the report argued that even minimal drops in Bitcoin prices could trigger a spiral of death of overleveraged BTC companies, which would forced to sell their BTC to cover debt obligations, which potentially lead to a vicious cycle of lower price and dried credit credit.
Companies holding assets can also Deal with costly investor suits If crypto markets are not performed or if traditional financial metrics such as sharing prices have sank.
These risks are combined by companies holding Altcoin, holding inflationary owners that can experience 90% drawdowns between market cycles and often peak in a single market cycle.
“Altcoins have no floor and thus cooked sometimes ‘stopping music,’ while BTC treasury companies have a floor, and this floor is independent of them, and tend to climb time,” the creator of content and community member Viktor write In X.
Magazine: ‘China’s Microstrategy’ Meitu sells all Bitcoin and Ethereum: Asia Express
