What happened?
Anthony Scaramucci, the founder of SkyBridge Capital, suggested that the trend of public companies using crypto as part of their treasury strategy is likely to decline. He questioned whether it’s wise for investors to pay a premium for equity in firms holding crypto when they could just buy the digital assets themselves. Some companies, however, are still emulating the model with high-profile figures joining their boards.
Who does this affect?
The shift will primarily impact companies that have adopted or are considering adopting crypto-based treasury strategies. This includes firms like BitMine and Metaplanet, which have already embraced such models. Investors and stakeholders in these companies face potential changes in valuation and market perception as this trend evolves.
Why does this matter?
The outcome of this trend has significant implications for the market, influencing how both companies and investors manage crypto assets on corporate balance sheets. A decline in the crypto treasury strategy might prompt regulatory scrutiny and changes in accounting practices. For investors, it raises questions about the long-term viability and profitability of investing in firms with substantial crypto holdings versus direct investments in cryptocurrency itself.