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Forbes
5 days ago
- Business
- Forbes
From Bitcoin To Ethereum: The Rise Of Crypto Treasury Strategies
A New Era for Crypto Treasury Strategies More and more companies are now raising cash specifically to implement crypto treasury strategies—allocating funds to buy bitcoin and other cryptocurrencies. MicroStrategy pioneered this approach at scale, and its success has inspired a wave of corporate imitators worldwide. MicroStrategy's Bold Bet on Bitcoin MicroStrategy began buying bitcoin in August 2020. As of July 18, 2025, it holds about 601,550 bitcoins, valued at over $70 billion at current prices. The company paid an average of $71,268 per coin, totaling $42.87 billion in investment. With bitcoin trading near $120,000, MicroStrategy's bitcoin position has gained approximately 68%. Its stock has done even better. Since January 2025, shares are up 46%, beating bitcoin's 26% gain over the same period. Since launching its bitcoin strategy in 2020, MicroStrategy stock has surged over 3,000%. The Copycat Effect in Crypto Treasury Strategies MicroStrategy's performance has turned heads. Japan's Metaplanet is one standout follower. The company says holding bitcoin through its stock offers tax advantages under Japanese law. Since April 2024, Metaplanet has accumulated over 16,000 bitcoin, and its stock price has jumped over 4,000%. 'One of the strategic advantages... is the more favorable tax treatment of shareholders who seek exposure to bitcoin through its stock versus the punitive tax treatment of those who own bitcoin directly.' – Benchmark Equity Research, 11 July 2025 Not all imitators have fared as well. GameStop entered the market in May 2025 following board approval in March. After raising $2.25 billion, likely for bitcoin purchases, its stock has remained volatile. So far, companies that moved early and stayed focused have delivered the strongest returns. Ethereum Enters the Crypto Treasury Spotlight While bitcoin led the way, Ethereum is now gaining ground in corporate treasuries. In June 2025, SharpLink Gaming (SBET) raised $425 million in a deal led by Consensys and named Ethereum co-founder Joseph Lubin as chairman. The company said it would use nearly all the cash to buy ether, Ethereum's native token. SBET shares jumped from $3 to nearly $79, and by July 18, traded at $29—still nearly 900% higher than before the announcement. Another example is BitMine Immersion Technologies. In May, crypto bull Tom Lee joined the board, and Peter Thiel acquired a 9.1% stake. BitMine revealed that about 40–50% of its treasury is now in ether. The stock soared from $3 to $135, and by July 18, closed at $42.35—a 1,300% gain from pre-announcement levels. A list of Ethereum treasury companies: A list of Ethereum treasury companies Beyond Bitcoin: Expanding Crypto Treasury Strategies The trend is expanding beyond BTC and ETH. SRM Entertainment, now Tron Inc., has gone all-in on TRX. Others have adopted BNB, Hyperliquid, and even Litecoin as reserve assets. In one dramatic case, YHC Corporation became a media sensation after Robert Leshner (founder of Compound) announced plans to acquire it and turn it into a crypto treasury company—then backed out due to lawsuits over the control issues. The stock whiplashed, highlighting how speculative this sector has become. With so many companies jumping into crypto, skepticism is growing. 'We're seeing companies with no real crypto ties suddenly pivot to these strategies just to pump their stock. It feels like a bubble.' – Anonymous fund manager, Bloomberg Markets, July 2025 Risks Facing Crypto Treasury Strategies Despite big returns, the risks are real. Critics argue that many crypto treasury strategies depend on a fragile loop: raise money, buy crypto, drive up share price, then raise more. Prominent short-seller Jim Chanos has been one of the harshest voices. He warns that MicroStrategy trades well above the value of its bitcoin holdings—and that its complex financing structure adds risk. 'MicroStrategy's model is simple: borrow cheap, buy bitcoin, watch it rise, sell more stock at a premium, and repeat,' he said. 'But if bitcoin falls or debt costs rise, the whole cycle could break.' He compares the current trend to the SPAC bubble of 2021—where hype fueled overvalued companies that eventually collapsed. Peter Schiff, Chief Economist & Global Strategist at Europac. Conclusion: The Future of Crypto Treasury Strategies Crypto treasury strategies are changing how companies manage their cash. Early adopters have seen massive gains, but risks around volatility, debt, and euphoria are growing. Whether this marks a true financial revolution or just another speculative bubble remains to be seen—but for now, crypto treasury strategies are clearly rewriting the corporate playbook.
CNBC
26-06-2025
- Automotive
- CNBC
Tesla can rally 45% thanks to its leg up over competitor Waymo, says Benchmark
The time has come to go all in on Tesla , according to Benchmark Equity Research. In a Thursday note, Benchmark analyst Mickey Legg raised his price target for the electric vehicle maker to $475 per share from $350, citing Tesla's recent robotaxi launch as a catalyst. That forecast implies upside of 45%. Tesla began offering its robotaxi service on Sunday to a select group of early-access individuals in Austin, Texas. "While limited, we believe the controlled rollout demonstrates a controlled and safety-first approach," Legg wrote. "Winning over regulators and public opinion is paramount and will allow a rapid scale up if achieved, in our opinion. New regulations for autonomous vehicles are set to go into place on Sept. 1 in TX that we believe will further help win trust and pave the way for expansion to additional cities." TSLA YTD mountain TSLA YTD chart The analyst added that Tesla has a better value proposition than Waymo, its main competitor in autonomous vehicles. Legg believes that Tesla's more cost-effective and scalable camera-focused approach could beat out Waymo — despite the latter's first-mover advantage. "The average cost of a Waymo is over six-figures, well over the cost to produce a Model Y," the analyst wrote. Tesla's balance sheet also looks healthy and balanced, with the excess free cash flow it has produced in recent quarters "providing plenty of fresh powder to fund growth opportunities down the road," Legg said. Legg added analysts have already priced in a year-over-year decline in second-quarter deliveries, which Tesla is expected to report next week. "Growth ahead remains in the form of expanding the robotaxi business, model refreshes, and Optimus robots, long-term," the analyst said. "In our view the company is undergoing an evolution from a trailblazing vehicle OEM to a high-tech automation and robotics company with unmatched domestic manufacturing scale."
