There are companies replicating Strategy’s actions, but with cryptocurrencies instead of Bitcoin.
“This has a lot of risk factors,” says Terrones Godoy.
The price increase that Bitcoin (BTC) and cryptocurrencies have had in recent months lights the alarms of the influencer Manuel Terrones Godoy (also known as Kmanus), for whom it is clear that there is a real bubble in the market in gestation, driven by companies that adopt these assets as treasury.
The analyst recalled This phenomenon that “started a while ago” and has Strategy, the company of Michael Saylor, which transformed its business model by becoming a company with direct exposure to Bitcoin and reached, among other things, the stock market success, since the value of its actions multiplied by 30 in five years.
It was from there that other companies that began to imitate the strategy. “Thus others such as Sharplink Gaming arose, for example, who did it with Ether (ETH),” Terrones said. “And right now this boom is replicated in a lot of companies, for Bitcoin, for ETH and also for other tokens,” he added.
At the moment, 64 Institutional investors adopted ETH as a reserve asset, adding 2.5 million ETHher to corporate hands. At par, others 200 companies, between private and public contribution, They focused on Bitcoin, with more than 1.2 million currencies in business custody. There are also other corporate entities that accumulate other cryptocurrencies such as Solana (Sol), XRP and SUI, as cryptonoticia reported.
The logic is simple: companies issue debt or actions to buy cryptocurrencies, which raises the value of their treasury and, therefore, the price of their own shares.
“Buy low capitalization companies, many are not even from the cryptocurrency, renamed them if necessary and begin to issue actions to buy cryptoactive,” describes Godoy Terrones.
One of the most recent examples is Tron Inc., previously known as SMR. “This company will begin to accumulate TRON (TRX), so that the cryptocurrency vuele,” he says.
At the end of July, Cryptoothic reported that Tron Inc. wanted to increase his treasury in the homonymous cryptoc Authorize the issuance of securities for up to 1 billion dollars.
Mechanics is repeated: the company announces that it will adopt a cryptocurrency treasury, its actions rise, broadcast more titles, buy more cryptocurrencies, and the cycle is restarted.
But, according to lumps, This model is not exempt from risks. He warns that the real risk is not that cryptocurrency drops, but that the weak point of the model is the relationship between the value of the action and cryptocurrency: “The real risk is that the action does not rise. Because if it does not rise, they cannot continue to emit to buy more, or pay the previous debt.”
The titles issued by these companies are not collateralized with cryptocurrencies. “They do not leave cryptocurrencies as a guarantee. Everything is based on the expectation that the action will rise,” he explains. “And that works while the market has liquidity and is willing to continue betting on that narrative.”
The rise of this model, according to Terrones Godoy, is not driven by retail investors. “Common people still did not buy. They are buying Wall Street,” he says. “Institutional are using conventional tools to position themselves, such as ETFs.”
There are already quoted funds for Bitcoin, Eth and Sun, and Terrones anticipates that “little by little there will be more.” But he points out that ETFs are not the only way: “It was not even the most used form for a long time. What was used were debt structures, as Strategy did.”
How to get benefit?
Faced with this dynamic, lump identifies two ways to benefit: invest in the actions of these companies or directly acquire cryptoactives.
“You can get into the actions and make an X10, an X30 in a short time,” he says. “But you can also lose 99%. I prefer to buy the cryptocurrency, not the action. There is the real value,” he said.
On the future of the model, it is cautious. “For me, this is the bubble of the Internet money. Like the Bubble of the Com Point,” he says. “How much did that of the Com Point lasted? From 97 to 2001. It was four years of partying. This could last four years or six months, nobody knows.”
One of its main concerns is access to liquidity. “There are more and more companies asking for money to the market to take debt,” he says. “What happens the day they stop giving money? The day the world liquidity goes down, this circuit is cut. If you cannot issue more debt or actions, you cannot continue buying cryptocurrencies, and if you do not, the action does not rise.”
In that scenario, Terrones sees a specific risk: “If the action does not go up, you cannot comply with the convertible bonds, or pay the credits. And no one gives you the money. He who gives it to you, expects a return. He is betting on the action rises.”
Despite his warnings, Recognizes that the phenomenon is providing visibility to the ecosystem. “The good part is that he is giving a lot of press to the world of cryptocurrencies,” he says. “And when this is click, what is going to fall is the actions, not the cryptocurrencies. The cryptoactive ones are going to go down a little, yes, by sale pressure, but it is not a fundamental problem of the asset.”
For now, Kmanus closely follows the behavior of the model. “In five years, if this did not burst, I will have to return and say ‘boys, the model was sustainable.’ But today I don’t see it like that,” he emphasizes. “It seems better to benefit from the cryptocurrency, which, if you go down, go down a little, but it is not going to zero as it can happen with an action,” he concluded.
