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At the heart of Bitcoin treasury companies’ strategies lies yield generation. By engaging in activities that involve borrowing fiat at low-interest rates and investing in Bitcoin that historically appreciates at much higher rates, these companies create an attractive investment model. This dynamic enables them to potentially double their Bitcoin holdings frequently, thus increasing shareholder value.
Different Types of Treasury Companies
Bitcoin treasury companies distinguish themselves based on their operational strategies. Some simply acquire Bitcoin to hold on their balance sheets, while others actively leverage equity and debt structures to enhance their cryptocurrency stacks. Understanding the risk-reward profiles of these different types is crucial for investors.