Why a Bitcoin Treasury Strategy Is Risky: Analyst

The Solarbank Energy Infrastructure Company is planning In order to add Bitcoin to her balance sheet, after an increasing number of public companies that have started accumulating the oldest crypto currency in the world, but one analyst warns that a strategy – the first popular software company strategy – is a risk.

In a note of investors on Tuesday, the Chartered Global Standard Global Chief of Digital Property Geoffrey Kendrick reported that the imitators of the strategy have doubled their Bitcoin shares on just under 100,000 bitcoin in the last two months, setting up their average cost by Bitcoin much more than a strategy.

As a result, about half of the Bitcoin cashier held by 61 public companies that were not underwater “would be underwater” if the Token fell below $ 90,000, Kendrick said. The Chartered Standard estimates that Bitcoin reaches the price “22% below the average purchase prices can lead to liquidations.”

Bitcoin recently traded in the amount of $ 106,000, said Crypto Data Coingecko.

“Volatility of Bitcoin prices can stimulate the price of BTC below the average purchase prices of many new treasures,” analysts said.

Kendrick added that corporate bitcoin treasury could eventually reduce the price of bitcoin, due to the removal of market inefficiency such as the regulations against the crypto and the process of the conservative investment committee in the US and other countries in the future.

“Bitcoin cash registers add pressure to buy Bitcoin, but we see the risk that this can be revealed over time,” Kendrick wrote in the note.

Observations of analysts come in the midst of a rise in the number of public trading companies and other entities buying Bitcoin.

On Tuesday, Canada Solarbank, a solar energy provider, a storage of batteries and a pure energy infrastructure, announced the Bitcoin Treasury Strategy, although she did not determine among the property he would buy or start date.

Two hundred and twenty -three entities hold bitcoin from the time of publication, which is about 7% in the last 30 days, according to Bitcointracker.net’s data Supervisory board. Their share is worth a combined Bitcoin worth $ 359.7 billion, the same data show.

It also comes several weeks after Bitcoin rose to New price of all time high of just over $ 112,000 earlier this month. Actions of positive prices coincided with US President Donald Trump private dinner with 220 holder of your meme coin Official Trump on May 22.

Kendrick issued a warning about Bitcoin Treasury despite his bicou -predictions for token prices.

Earlier this month, the analyst predicted Bitcoin would sail at $ 500,000 At the end of the second term of President Trump.

Edited by James Rubin