Franklin Templeton Warns of Crypto Treasury Risks 🔎
Franklin Templeton analysts cautioned that corporate crypto treasury strategies, where firms raise capital to hold assets like Bitcoin, Ethereum, and Solana, face an uncertain future.
> While these models can boost valuations, generate staking income, and create positive feedback loops when crypto prices rise, they also carry serious risks.
> A drop in market-to-NAV ratios can make new equity issuance dilutive, and falling crypto prices may trigger a “dangerous” negative feedback loop.
> Analysts stressed that maintaining a premium to NAV and managing volatility are essential for long-term success.
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