A crypto analyst, James Check of Glassnode, has expressed concerns that the Bitcoin treasury strategy may not have the longevity expected by many. Check warned that new companies entering the space may be facing an uphill battle as investors favor early adopters.
Check stated that it could already be over for new Bitcoin treasury firms, adding that investors are not interested in the 50th company. He also emphasized that the “show me” phase is approaching, where it will become increasingly difficult for newer companies to sustain a premium and get off the ground without a serious niche.
In the past 30 days, at least 21 entities have added Bitcoin as a reserve asset, according to BitcoinTreasuries data. However, Check noted that startup firms attract retail speculators but warned they don’t “have infinite money.” He agreed with Udi Wizardheimer’s view that some companies are using a Bitcoin treasury strategy to make quick profits without understanding its long-term purpose.
Check also expressed his bullishness on Bitcoin’s price, which is trading at $107,990. However, he noted that the trend may still have more legs in it and warned that weaker firms may be acquired by bigger players. The analyst’s warning comes as several doubts have emerged over firms adopting a Bitcoin treasury strategy.
Source: https://cointelegraph.com/news/bitcoin-treasury-strategy-plan-limited-lifespan-forecast-crypto-analyst