Presto Research: Corporate crypto asset reserves are at risk of a bubble, but it’s “more subtle” than before

Odaily News According to Presto Research, the current "crypto asset reserve strategy" of companies incorporating crypto assets into financial report reserves has obvious bubble risks, but its pattern is more complex and subtle than previous market cycles.
Presto Research points out that this trend has potential risks, such as market adjustments, liquidity crises and leverage problems. However, compared with the ICO bubble in 2017-18, the current reserve strategy has more structural differences, such as convertible bond financing, attracting capital with the help of leading figures, and being driven by policies. In addition, analysts warn that if the volatility of the crypto market intensifies, these reserve companies may face rapid selling pressure and even trigger systemic risks. This round of strategy combines Bitcoin reserves with stock financing, leverage tools and policy motivations, making it fundamentally different from the purely speculative bubbles in the past. (The Block)