tl;dr
I am worried about the example being set by BTCS. Next week is “Crypto Week”, though I must admit it does feel like that to me all the time.
Market Snap
Market Wrap
This latest round of Trump’s tariff wars is mostly being ignored by the markets, which is a positive sign for all risk assets.
Curious Cryptos’ Commentary — Blockchain Technology Consensus Solutions (BTCS)
BTCS was a very early mover in the crypto treasury space, adding ETH to its balance sheet back in 2021 to the tune of 14,600 ETH, with a value today of roughly $40mm.
Yesterday, the company announced a fundraising exercise of $100mm to buy more ETH:
https://www.btcs.com/news-media/intent-to-raise-100m/
The first two elements of the plan will be familiar to us from other examples of companies that are adding cryptos to their treasury reserves — the sale of equity and the issuance of zero-coupon (or near-zero) convertible bonds, which can look a lot like selling equity. In a recent discussion of this topic, with a broad-brush review of the risks to the companies themselves and the wider crypto market (https://www.btcs.com/news-media/intent-to-raise-100m/), we agreed…