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Businesses Bingeing on Crypto

Observant1
edited June 10 in Off-Topic
I'm sure there will be no major issues and we shouldn't be concerned about this at all. /s

"About 60 companies with no previous ties to the market are now pursuing the 'bitcoin treasury strategy,'
according to Standard Chartered Bank, citing data from BitcoinTreasuries.net.
They make software, and offer marketing and healthcare services.
Some aren’t just buying bitcoin, but are piling into smaller tokens such as ether, solana and XRP."

"Some industry players argue these companies are courting disaster.
For one, they say, digital assets have a history of volatility.
If the price of bitcoin or another crypto token were to fall sharply,
the selloff might also pull down the value of a company’s stock.
More troubling, though, is that a steep decline might also compel companies to sell their tokens
—accelerating the selloff—especially if they borrowed heavily to acquire their crypto in the first place.
For students of financial history, it is a familiar refrain."

https://www.msn.com/en-us/money/other/businesses-are-bingeing-on-crypto-dialing-up-the-market-s-risks/ar-AA1Gm7gP

Comments

  • Old_JoeOld_Joe
    edited June 10
    "XRP". Gee, that sounds neat... I'll surely have to get ahold of some of that. Oh, wait... what is it ???
  • yogibearbullyogibearbull
    Several of these companies have issued convertible debt at low/no interest (zero-coupon convertibles). So, their bet is on crypto boom that will eliminate/convert debt to equity and the risk will be for those equity holders, not the company treasuries.
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