Analysts at Franklin Templeton cautioned that corporate crypto treasuries could exacerbate market dips during bearish phases. The firm highlighted the risks associated with over 130 companies adopting Bitcoin as reserve assets, which could trigger a harmful cycle of forced sales if market conditions deteriorate.
The report emphasized that falling market-to-NAV ratios could make equity issuances dilutive, undermining investor trust. Franklin Templeton noted the importance of maintaining a premium to NAV to mitigate volatility. Similar concerns were raised by VanEck’s Matthew Sigel regarding Bitcoin treasury strategies.
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