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Crypto Treasury companies are Bullish on Bitcoin and XRP. But don't invest.

    • Start-ups stack Bitcoin and XRP for a few reasons on their balance sheets.

    • The question is whether their shareholders get some value.

    • Owning these assets directly is probably the safer option.

    • 10 shares that we like more than Bitcoin ›

    Strategy (Nasdaq: MSTR) (Formerly called micro strategy) Pioneered the famous Bitcoin (Crypto: BTC) Treasury concept, buying the crypto and holding on the company's balance. Now a harvest of start-ups promises to offer the same type of leverage exposure to selected digital assets for everyone who wants to buy their shares.

    But before handing over a treasury operator a dime, it is important to look at who really records the value they advertise, and to understand how the existence of these companies can be beneficial for the coins you have.

    In short, crypto treasury companies are companies that accumulate cryptocurrency assets such as bitcoin and XRP (Crypto: XRP) On their company balance sheets.

    Their goal is to offer investors indirect exposure to these digital assets, while theoretically offers some diversification or extra value compared to investors who only buy and keep the most important underlying asset. They are a very recent phenomenon, and most will probably not survive, even if their most important assets will do well for the next decade.

    In the last quarter, at least five companies launched or rotated to save coins as their most important strategy, or as a pillar of their financing strategy for their other business lines. Hong Kong-based logistics group Reitar Logtech Holdings Just submitted to buy no less than 15,000 bitcoins, worth around $ 1.5 billion at today's prices. Another company, twenty -one capital, wants to purchase 42,000 Bitcoins, enough to rank third -party third -year -old among company holders.

    Bars of Gold are in relief with the Bitcoin logo.
    Image source: Getty images.

    Renewable energy Vivopower International A $ 121 million picked up to start a $ 100 million XRP purchase program. Two smaller private companies announced their intention to form XRP reserves within 24 hours after that deal. There may be more on the way.

    But why are these assets so attractive to keep and why would investors want to buy shares of a company that only manages assets that they have no control over?

    In short, Chief Financial Officers see that low yields in relatively safe assets they already have, such as American treasury, still look Punier compared to the meteoric starting in prices for assets such as XRP and Bitcoin during the past 10 years.

    They probably think that a small coin allocation offers a cover against inflation, without so much risk as an investment in shares – although it is not clear that they are correct at the latter point. Moreover, buying and keeping cryptocurrencies means that a company does not have to take a risk of making capital investments in value-generating equipment, nor has any operational costs for work, like most companies.