#Over 100 Companies Hold Over 830,000 BTC#
According to reports as of June 19, more than 100 companies collectively hold over 830,000 BTC, worth about $86.476 billion.
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Bitcoin No Longer King? Why Altcoin Treasuries Might Be Corporate Suicide
Key Insights
Cryptocurrencies are now being added en-masse into the treasuries of publicly traded companies.
However, while this is going on, companies are including not just Bitcoin as the benchmark crypto, but also others like Ethereum, XRP, Solana, Tron, and even lesser-known tokens like TAO and FET.
While diversification is a great move for forward-thinking investors, some analysts are sounding the alarm.
These analysts, like Greg Cipolaro, Global Head of Research at NYDIG, believe that straying too far from Bitcoin’s proven role as a store of value could be a disaster waiting to happen.
Here’s what Cipolaro means and why he believes companies should steer clear of “consumptive commodities.”
Bitcoin As The Gold Standard of Crypto Treasuries
Bitcoin has carved out a place in corporate finance for itself over the past decade. The cryptocurrency is often referred to as “digital gold” and has become the go-to crypto asset for companies looking to diversify away from fiat currencies or traditional assets.
Bitcoin’s fixed supply, network security and institutional adoption make it very attractive for treasury holdings.
However, in a recent note, Cipolaro argued that this level of understanding and trust simply doesn’t extend to many altcoins.
“Unlike Bitcoin,” he explains, “many of these alternative treasury cryptocurrencies function as consumptive commodities.
These protocols may or may not achieve meaningful adoption and will therefore leave open questions about the long-term value and utility of the treasury holdings.”
What Are “Consumptive” Cryptocurrencies?
Not all digital assets are created equal. Bitcoin, for instance, is mostly held and traded.
However, it is not consumed in the process of using the Bitcoin network.
In contrast, tokens like Ethereum , Solana and others are often used to pay for transactions, power decentralized apps or fuel smart contracts.
This means that a portion of these tokens may be burned, or permanently removed from circulation every time they’re used.
According to Cipolaro, this introduces one more layer of unpredictability and makes these assets more speculative in nature.
The real issue, according to the analyst, is the reliance on each blockchain network and how quickly they can achieve widespread and sustainable adoption.
Without that, any value derived from holding the assets they come with, could be risky.
The Rise of Altcoin Treasuries
Despite the warnings, more and more companies are choosing to invest in altcoin treasuries.
For example, SharpLink Gaming is building a treasury with Ethereum, Trident Digital is accumulating XRP, DeFi Development Corp. is stockpiling Solana, and SRM Entertainment is starting a Tron treasury.
More companies like Synpatogenix are investing in TAO tokens (which is used within Bittensor’s AI-focused blockchain), and Interactive Strength is planning to buy Fetch.ai (FET) tokens.
These moves from these companies show that altcoins are very attractive for treasury strategies with business operations or market trends.
For example, companies involved in artificial intelligence or gaming may choose tokens tied to those platforms, and so on.
However, Cipolaro warns that many of these companies, especially smaller, microcap firms may be creating these treasuries for visibility or short-term investor appeal.
Some of these disclosures, he notes, are “thin on details,” and leave investors unclear about how or why the tokens are being acquired and managed.
So far, Bitcoin’s in corporate treasuries has been cemented largely thanks to bold moves by firms like Strategy.
Just last week, the company added over $1 billion worth of Bitcoin to its balance sheet, after purchasing 10,100 BTC at an average price of $104,080 per coin.
This brought its total holdings to over 592,000 BTC, which is worth approximately $64 billion.
This aggressive accumulation has become a model for other companies interested in turning their treasuries into crypto war chests.
However, while Strategy’s Bitcoin-only approach has been successful so far, companies looking to mimic it with other tokens may be taking on more risk than they realize.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.