Companies Dey Use Debt Take Bay Bitcoin Treasury, Dey Boost Stocks
Companies wey dey struggle dey dey raise debt and equity plenty now to build Bitcoin treasury, dey try boost their share price as revenue dey drop. Semiconductor maker Sequans Communications borrow $384 million to buy Bitcoin, e share price jump 160% before e balance. Michael Saylor MicroStrategy lead di way, e shares jump over 3,000% with e Bitcoin-heavy strategy. Architect Partners talk say 154 public companies don promise $98.4 billion for crypto buy this past year, before e dey $33.6 billion. Besides Bitcoin, some companies and SPACs dey target Ethereum and Solana, while Trump Media and ReserveOne raise $2 billion and $1 billion respectively for crypto buys. Investors dey value “bitcoin per share” matter and tax arbitrage for markets like Japan and Brazil.
But fast debt-funded Bitcoin treasuries dey cause bubble fears. If Bitcoin price drop sharply, e fit drag down company share price and fit trigger forced sell-offs, wey fit bring systemic risk. Some companies plan make dem shift to crypto financial services, but analysts warn say sustainable growth need strong operations and risk management. Regulators dem need watch the new risks wey dey form for corporate crypto treasuries.
Bullish
Corporate demand for Bitcoin treasuries dey rise, dem dey buy am with debt, so e dey increase steady buying pressure from institutions, wey normally good for Bitcoin price. Short term, traders fit see price dey climb as companies dey put plenty money for Bitcoin and other coins. But di leverage plus debt fit cause wahala and sudden sell-off if price drop. Overall, immediate effect dey positive because demand big, but long-term stability go depend on how regulators dey watch and how companies take manage risk well.