The Corporate Bitcoin Binge | Are Companies Courting Disaster?

A growing number of publicly traded companies—about 60 with no prior ties to the crypto sector—are adopting the “bitcoin treasury strategy” pioneered by Michael Saylor, aiming to boost their share prices by adding digital assets to their balance sheets. While these moves often send stocks soaring, some industry experts warn that this trend heightens market risks by potentially triggering rapid selloffs during downturns, especially for companies that finance their purchases with debt. Recent announcements show companies investing in not only bitcoin but also ether, solana, and XRP, collectively deploying over $11.3 billion since April. Notable cases include Trump Media and Technology Group and World Liberty Financial, which are also fueling interest thanks to strong political backing from current administration. Analysts caution that without established crypto expertise or a solid “flywheel” to support continuous investments, many of these companies could face steep losses if crypto prices dip significantly.

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