The caller is being referred to “infinite money machines” Some people, but “a ticking time bomb” By others. Bitcoin Treasury Companies are publicly-traded firms that are changing the corporate finance rules by converting their capital to Bitcoin.
The companies use the momentum generated to purchase more Bitcoin.BTC). This cycle has proven to be incredibly profitable.
At the heart of this movement is Strategy — formerly MicroStrategy — which holds more than 590,000 BTC valued at over $60 billion. It has now become the largest corporate Bitcoin holder. Not only is it not alone. More than 130 companies now include cryptocurrency in their financial statements, and that number is growing.
Michael Saylor pioneered the strategy that these companies follow: Raise capital, Buy Bitcoin, Watch Stock Price Climb, Repeat. Behind the profits is a danger that few people are aware of, one which could threaten the whole crypto-ecosystem if the situation goes south.
Bitcoin’s future is a topic of discussion among investors and Bitcoin enthusiasts. This could be the catalyst for Bitcoin’s bull run. Is this a structural issue that might trigger the next Bitcoin crash?
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Related: June remains Bitcoin’s danger zone, while S&P 500 eyes summer rally
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Source: cointelegraph.com
