<ul data-eligibleForWebStory="false"><li>Bitcoin's volatility has attracted companies to invest in Bitcoin treasuries, risking capital erosion as they focus heavily on acquiring the cryptocurrency.</li><li>Concerns have been raised by global investment firm VanEck regarding companies not adequately hedging their Bitcoin holdings or diversifying their portfolios.</li><li>Capital erosion occurs when a company's market value declines due to investments in high-risk assets like Bitcoin, leading to challenges in raising more capital for investment.</li><li>One example is Semler Scientific, whose stock price dropped significantly despite heavy Bitcoin investments, highlighting the risks of capital erosion and the need for diversified portfolios.</li></ul>

Are Many Bitcoin Treasury Companies Heading for Capital Erosion?

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