As more investors see to enter the cryptocurrency market, two primary methods have come to light: buying covas directly from exchanges such as coinbase or benns, or investing in publicly designed companies that keep significant amounts of crypto on their blunt sheets.
According to a recent informative Report By Fortune, the latter approach has attracted the attention of conscience and is made up of the hottest trades within the scope of digital assets.
160 firms hold bitcoins on their balance sheet
Currently, around 160 firms added globally Bitcoin (BTC) For their balance sheet, with 90 companies located in the United States. Notable names such as Tesla, Block and Gamestop have made fun of rank with Trump Media and Technology Group.
This trend is surprised to some analysts, as the increase in share prices of these firms often demonstrates the value of cryptocurrency conducted by them.
The report highlights the strategy, first a microstrate, a cyber security firm, which transferred his attention to bitcoin to focus his attention, Michael Sorre.
The company’s decision to pive away from its main business has inspired attractive, now holding a strategy Bitcoin Stash Market capitalization of $ 74 billion and about $ 112 billion in the region.
Finance Professor Mitchell Peterson of Northwestern University preferred the incident for the dot-com bubbles of the early 2000s, when companies added them “dotcom” to their names, resulting in stock prices.
Peterson expresses doubts towards the current trend, not the wheel large corporations and Microsoft invested strategically to invest for cash, they usually have a part of a broad, secure, liquid assets asets. Financial strategy,
He questions the argument behind the investments of many firms in bitcoin, when such action appears disconnected from their main business operations.
Risak of public companies hugging crypto
Although such strategies have been successful, the instability of the cryptocurrency market still posts significant risk for companies engaged in this trend.
Experts have warned that many firms can find themselves in the future declining marketIncrease concerns about the stability of this approach.
Darellal Dafi, an finance professor at Stanford University, argues that the current wave of public companies buying bitcoins is more than a “meme impact” compared to a search investment strategy. He said that firms should focus on their core perfections compared to trying to play special strategies of hedge funds.
While some firms, such as strategies, demand that it is possible to succeed with this approach, Duffy captions that follow more firms, the market will eventually correct itself. He predicts that the trend will fade, making the way to the craze of the next investment.
Specially displayed image from Dall-E, chart from traudingView.com
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