Franklin Templeton: The future of corporate crypto financial strategies is uncertain, and there is a risk of a “dangerous” feedback cycle
TechFlame
2025-07-03 11:25
TechFlame2025-07-03 11:25
English
According to TechFlame, according to The Block, Franklin Templeton digital asset analyst warned that there is uncertainty about the future of corporate cryptocurrency treasury strategies, and pointed out that the negative feedback loop is a “particularly dangerous scenario.”
Analysts said that although this strategy has advantages such as premium financing, asset appreciation potential, and pledged returns above net asset value, it also faces significant risks. If the market capitalization to net assets ratio is less than 1, the issuance of new shares will have a diluting effect, and it may be difficult for the company to raise additional capital.
Analysts concluded that the cryptocurrency treasury model represents a new phase in institutional cryptocurrency adoption, but maintaining net asset premiums, continuing value-added transactions, and coping with market fluctuations will be key factors in the long-term success of these companies.