4 hours ago
Cointelegraph investigates however nationalist companies are fueling Bitcoin’s emergence with a high-stakes strategy that could supercharge the bull tally oregon trigger the adjacent crash.
They’re being called “infinite wealth machines” by some, and “a ticking clip bomb” by others. Welcome to the satellite of Bitcoin treasury companies, publically traded firms that are rewriting the rules of firm concern by converting superior into Bitcoin.
These companies are leveraging gains to boost their banal price, and utilizing momentum to bargain adjacent much Bitcoin (BTC). It’s a rhythm that, truthful far, has been wildly profitable.
At the bosom of this question is Strategy — formerly MicroStrategy — which holds much than 590,000 BTC valued astatine implicit $60 billion. The institution has go 1 of the astir salient firm holders of Bitcoin. And it’s not alone. Over 130 companies person added the cryptocurrency to their equilibrium sheets, and the fig keeps growing.
These companies are pursuing the playbook pioneered by Michael Saylor: rise capital, bargain Bitcoin, ticker banal terms climb, repeat. But down the gains lies a hazard fewer are talking about, a vulnerability that could shingle the full crypto ecosystem if things crook south.
Among Bitcoin investors and enthusiasts, questions are mounting astir what happens next. Is this the substance down Bitcoin’s adjacent bull run? Or are we looking astatine a structural hazard that could trigger the adjacent crash?
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