Public Firms Turn Into Bitcoin Vaults: The Crypto Strategy That’s Shaking Up Wall Street

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According to Presto Head of Research Peter Chung, this movement is ushering in a structural shift in financial engineering unseen since the days of leveraged buyouts and ETFs.

In a Thursday report, Chung said these companies are not simply riding the crypto hype. Rather, they’re leveraging volatility to maximize shareholder value, drawing inspiration from pioneers like Strategy. Most firms convert former operational entities, SPACs, or shells into digitally-focused holding vehicles, backed by sophisticated U.S. capital markets.

“This surge marks the dawn of a new era in financial engineering,” Chung wrote. “But it’s often misunderstood and dismissed as just another ‘leveraged ETF trade.’

Funding the Crypto Treasury Model

To build up crypto holdings, these companies are tapping a variety of financing tools — including private placements, ATM offerings, convertible debt, and perpetual preferred shares. The approach allows them to accumulate crypto without pledging assets, while adapting to different stages of corporate maturity and investor appetite.

Though critics warn of bubble dynamics similar to past crypto booms, Chung argues the risk profile is more nuanced.

“Some firms may lack diamond hands,” he noted, “but that doesn’t make the market riskier. What matters is whether they manage liquidity and capital efficiently.”

Market Implications: Multiples for Crypto Efficiency

Companies that successfully execute this strategy could see their net asset value (NAV) multiples soar, as the market rewards efficient capital structuring and long-term crypto exposure. Those that falter may face sharp valuation penalties — mirroring traditional market dynamics based on earnings growth and capital discipline.

As this trend gains traction, the transformation of public firms into crypto treasury engines may become one of the defining financial stories of the decade.

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2025-06-20 04:17