The use of business of cryptocurrencies evolves beyond payments, a certain number of companies adopting bitcoin and other digital assets as basic cash reserves. A report Thursday of the Morningstar DBRS rating company warns that this strategy could increase credit risk profiles.
According to BitcoinTareries.net, around 3.68 million BTC (worth around $ 428 billion in August 19) are detained in all companies, negotiated funds on the stock market (ETF)governments, decentralized funding (Challenge) Protocols and guards. This represents around 18% of the power supply of Bitcoin.
Funds dominate with 40% of assets, followed by 27% public companies. This exhibition remains very concentrated. A company, strategy (MSTR)Controls more than 629,000 BTC, representing 64% of all assets of the Treasury, notes the report.
Morningstar DBRS has highlighted a range of vulnerabilities in business cryptographic cash strategies, including regulatory uncertainty, liquidity challenges during periods of volatility and exposure to exchange counterparts.
The high dependence on Bitcoin reserves could force liquidity management, while the priced prices of the assets add an additional risk.
The company has also noted that different tokens bear distinct technological and governance problems, and custody, whether managed internally or by third parties, remains an essential security problem.
The adoption of cryptographic cash strategies should grow, led by companies like Strategy and Mara Holdings (Mara). Morningstar DBRs have warned that concentration, volatility and regulatory complexity mean that such strategies could considerably retaliate the way in which credit markets assess the risk of the company.
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