Two ‘Red Flags’ You Need To Watch When Investing In Bitcoin Treasury Firms
Peter Chung, head of research at Presto Research on Monday warned that investors eyeing companies holding large Bitcoin (CRYPTO: BTC) reserves should pay close attention to “red flags” before allocating capital.
What Happened: Speaking to CNBC, Chung said that while firms like Strategy inspired a wave of copycats, not all of them have the same fundamentals or execution capacity.
“The two key things that you need to watch out for is, first one is, the underlying asset has to be an asset that has the potential to become a monetary asset,” Chung explained. “The second thing is the management’s execution capability. This operation requires ability to navigate the public capital market and structure the right instruments.”
The sector is dominated by a handful of firms holding tens of thousands of Bitcoin.
Strategy leads with 636,505 BTC, far ahead …
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