<ul data-eligibleForWebStory="false"><li>Over 130 publicly traded companies are holding Bitcoin, Ethereum, and Solana in their corporate treasuries through capital raises to invest in crypto assets directly.</li><li>The strategy of companies raising funds in bull markets, issuing stocks above net asset value, and investing in crypto can lead to increased market caps, attracting investors and enabling further fundraising.</li><li>However, Franklin Templeton warns of risks associated with this strategy, such as a potential reversal in token prices leading to NAV discounts, cutting off access to capital, and forcing liquidation of crypto holdings.</li><li>Analysts highlight the high-risk nature of heavily investing in crypto for corporate treasuries, with concerns about the impact of market downturns and excessive leverage in the next bear cycle.</li></ul>

Crypto-Fueled Corporate Treasuries Raise Growth Potential — and Collapse Risks

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