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The rise of Bitcoin treasury companies has sparked an intense debate over whether they add stability or new layers of risk to businesses. Analysts from the global credit rating agency, Morningstar have expanded on the skepticism, pointing out that using cryptocurrencies such as Bitcoin as a primary reserve currency may weaken, rather than strengthen the stability of corporate treasuries.

The Dark Side Of Bitcoin Treasury Companies

The adoption of cryptocurrencies for treasury functions has become one of the most trending topics in the financial industry. In a commentary published on August 21, Morningstar analysts noted that while Bitcoin and Ethereum are increasingly used for payments and investments, the shifts toward employing them for treasury functions introduce risks that could outweigh potential benefits. 

According to the commentary, Bitcoin treasury companies are likely exposing themselves to elevated levels of financial instability. One of the biggest drivers of this risk is the absence of clear regulatory oversight. Morningstar analysts highlighted the lack of a global regulatory framework for cryptocurrencies, with countries like the United States and Canada adopting differing approaches, while others, such as Egypt and China, impose outright bans.

This fragmented environment reportedly creates unpredictability for corporations that must manage compliance and financial stability. For treasuries, where certainty and legal clarity are vital, the analysts caution that such uncertainty may heighten credit risk and weaken confidence in long-term planning. 

Morningstar further stressed that cryptocurrency markets lack the depth of traditional asset markets, making liquidity unreliable. The analysts warn that this can cause companies to incur losses or face delays when attempting to access capital. They also note that such disruptions undermine the efficiency expected of corporate treasury management.  

Morningstar’s report also highlighted security risks for Bitcoin treasury concerns companies, noting that reliance on third-party custodians and exchanges such as Coinbase or Binance exposes them to operational failure, cyberattacks, and regulatory disputes. It added that the dual role of these exchanges as both trading platforms and custodians increases counterparty risks, weakening the stability of treasury reserves. 

Further Warnings Issued Over BTC Treasury Firms

In the commentary, Morningstar analysts further stated that volatility remains the most striking weakness of Bitcoin treasury companies. Their research underscored that Bitcoin is nearly five times more volatile than the S&P 500 in the short term, exposing companies to sudden valuation swings that can severely destabilize operations. 

Morningstar also noted that the materiality of crypto holdings is another central concern of Bitcoin treasury companies. The analysts caution that when digital assets make up a significant portion of a company’s reserves, the treasury begins to function more like a speculative portfolio than a financial safeguard. 

The report pointed out that firms like Strategy Inc., which holds over 629,000 BTC, are particularly exposed to this imbalance. With the top 20 public companies controlling 94% of total public Bitcoin treasury holdings, the sector also faces significant concentration risks. Furthermore, Morningstar warns that Bitcoin treasury companies may also be vulnerable to technical failures, exchange insolvency, liquidity crises, and weakened creditworthiness, even with insurance and security measures in place.

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According to Thumzup Media’s filing and press release, the Nasdaq-listed company completed a $50 million secondary offering at $10 per share to fund crypto mining and expand a multi-asset treasury.

The company said it will buy mining rigs and add assets such as XRP, BTC, ETH, SOL, LTC, USDC and DOGE to its balance sheet.

The move comes after Thumzup set an internal target to grow a digital asset pool to $250 million and authorized up to 90% of its liquid assets to be held in cryptocurrencies.

Thumzup Expands Crypto Treasury

Robert Steele, Thumzup’s CEO, called the raise a step toward a “strategically managed” digital asset treasury. According to the company, Coinbase Prime will remain custodian and prime broker for the new holdings.

The firm also disclosed a Bitcoin-backed credit facility arranged with Coinbase Prime in May 2025 that is meant to provide flexible capital to support its treasury plan. This is a bold pivot for a publicly traded firm and will draw close scrutiny from investors and regulators alike.

Mining Push And Capital Use

Based on reports, the $50 million proceeds will be split toward mining equipment purchases and direct crypto accumulation. Mining requires machines, space, and power, and Thumzup says it will deploy capital to expand operations.

That’s the part that could either add steady revenue if done well or become a heavy drain on cash if costs rise or market prices tumble. The company didn’t give a detailed commissioning schedule in the initial release, so the timing of any meaningful hash rate increase remains unclear.

Peers And Market Moves

Reports have disclosed a string of similar corporate moves in recent days. Vivopower announced a partnership with Crypto.com for institutional custody.

Metaplanet Inc. of Japan reported a 468% Bitcoin yield in the second quarter of 2025, after holding 18,113 BTC valued at $2.1 billion following a $61 million BTC purchase.

Thumzup’s action sits squarely alongside these shifts as Bitcoin surged to a new all-time high.

A Risky Bet For Shareholders?

If cryptocurrency prices keep rising and margins in mining are still healthy, the plan could deliver very strong returns.

But pooling as much as 90% of liquid assets into digital tokens will expose the company’s balance sheet to sudden swings.

The mining expansion will be a big-ticket item that needs to be executed with care.

Given that the company is associated with US President Donald Trump’s family, the expansion will draw increased media and political scrutiny.

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US President Donald Trump is preparing to sign an executive order this Thursday that could shake up how Americans invest for retirement. The move would allow 401(k) plans to include a wider range of assets — like private equity, real estate, and yes, even cryptocurrency.

The order, as reported by Bloomberg News, tells the Labor Department to take another look at the current rules under ERISA — that’s the Employee Retirement Income Security Act — and figure out how to give retirement plan administrators more room to include less traditional, higher-risk investments.

Trump: Rewriting The Playbook

Labor Secretary Lori Chavez-DeRemer has been tasked with working alongside the Treasury, the Securities and Exchange Commission, and other federal agencies to make this happen. The main goal? Give plan sponsors a clearer roadmap to offer more diverse investment options, without falling foul of the law.

Donald Trump will sign an executive order that aims to allow private equity, real estate, cryptocurrency and other alternative assets in 401(k)s https://t.co/IXetIBnTzL

— Bloomberg (@business) August 7, 2025

Right now, most of the $12 trillion sitting in 401(k)s is invested in good old-fashioned stocks and bonds. But with this new push, savers might soon get the option to invest in assets that were once out of reach.

That said, it’s not as simple as just adding a few new buttons on a retirement dashboard. Offering private equity or crypto means plan administrators will have to show that they’ve done their homework — that the managers are qualified, the fees are fair, and that everything lines up with fiduciary standards.

BTCUSD trading at $116,349 on the 24-hour chart: TradingView

Winners And Warnings

Supporters of the move argue that expanding into private markets could lead to better long-term returns, especially in times when public markets are lagging. Critics, however, worry about the downsides — like high fees, limited access to funds, and the risks that come with less liquid investments.

Big players like Blackstone, Apollo, and KKR could benefit big-time from the change. In fact, BlackRock is already planning to roll out a new 401(k) fund with private investments in 2026. Empower Retirement is expected to launch similar offerings later this year.

Crypto Takes A Step In

What really stands out in this executive order is its nod to crypto. It’s the latest in a series of moves that show Trump warming up to digital assets. Just this past summer, the White House hosted “Crypto Week,” discussed new rules for stablecoins, and even floated the idea of a national Bitcoin reserve.

The new order reportedly asks the SEC to loosen restrictions that have kept crypto out of most retirement plans. If successful, this could open the door for Bitcoin, stablecoins, and other digital assets to become part of Americans’ retirement portfolios.

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A multi-billion-dollar bank is teaming up with the largest crypto exchange in the US to serve institutional investors.

According to a new press release, PNC Bank announces it is partnering with Coinbase for both digital asset and traditional banking services.

While Coinbase will assist PNC with their Crypto-as-a-Service (CaaS) model, allowing clients to buy and hold digital assets, PNC will provide Coinbase with “select banking services.”

Says William S. Demchak, PNC chairman and CEO,

“Partnering with Coinbase accelerates our ability to bring innovative, crypto financial solutions to our clients. We will also provide PNC’s best-in-class banking services to Coinbase. This collaboration enables us to meet growing demand for secure and streamlined access to digital assets on PNC’s trusted platform.”

Added Brett Tejpaul, head of Coinbase Institutional,

“PNC is a market leader in delivering best-in-class products for their clients. We’re thrilled to support their entry into the digital asset market with our leading Crypto as a Service platform, which provides PNC with a powerful set of tools to develop a scalable, high-growth business, built on a foundation of uncompromising security.”

Last month, Coinbase announced that it was partnering with another financial giant, JPMorgan, to launch a token on the exchange’s proprietary Ethereum (ETH) layer-2 blockchain, Base.

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Bitcoin holding company Nakamoto Holdings, founded by US President Donald Trump’s crypto adviser, David Bailey, has secured $51.5 million in fresh capital through a private placement in public equity (PIPE) deal, according to a statement from merger partner KindlyMD.

Bailey said that the new funds were raised in less than 72 hours, reflecting growing investor appetite for Nakamoto’s Bitcoin (BTC) accumulation strategy.

“Investor demand for Nakamoto is incredibly strong,” Bailey said. “We continue to execute our strategy to raise as much capital as possible to acquire as much Bitcoin as possible.”

The financing, priced at $5.00 per share, brings KindlyMD’s total funding to approximately $563 million, and $763 million including convertible notes.

Related: Europe’s first Bitcoin treasury firm buys another $20M BTC, now holds over $170M

Nakamoto launches to build a Bitcoin treasury

Nakamoto’s approach mirrors the playbook used by other corporate entities aiming to leverage BTC as a reserve asset. The company was launched earlier this year with the explicit goal of building a sizable Bitcoin treasury, even as broader market sentiment remains mixed.

Proceeds from the latest round will be used primarily for Bitcoin purchases, along with working capital and general corporate needs. The PIPE financing is set to close alongside the anticipated merger with KindlyMD, which trades under the ticker NAKA on the Nasdaq.

Last month, shareholders of healthcare services firm KindlyMD approved a merger with Nakamoto Holdings. Both companies plan to file information statements with the SEC, with the merger expected to finalize in Q3 2025.

The companies first announced the merger on May 12, saying the merged entity would use equity, debt, and other offerings to develop a slew of Bitcoin-native companies. Additionally, the company will bolster its treasury by accumulating Bitcoin.

Related: Norwegian crypto firm K33 raising more funds to buy up to 1,000 BTC

Firms add Bitcoin to balance sheets

At least 27 organizations have added Bitcoin to their treasuries over the past month, according to data from BitcoinTreasuries.NET, signaling continued interest in BTC among public companies.

However, some analysts remain skeptical. Fakhul Miah of GoMining Institutional noted that smaller firms may be adopting Bitcoin out of necessity rather than strategy, potentially lacking the proper safeguards.

Standard Chartered has also raised concerns, warning that if BTC drops below $90,000, half of these companies could face liquidation risks, posing reputational challenges for the broader crypto market.

Magazine: New York’s PubKey Bitcoin bar will orange-pill Washington DC next

]]> https://earlybirdsinvest.com/nakamoto-holdings-secures-51-5m-to-expand-bitcoin-treasury-strategy/feed/ 0 43263 https://earlybirdsinvest.com/bitdeer-raises-330-million-to-expand-bitcoin-mining-and-ai-operations/ https://earlybirdsinvest.com/bitdeer-raises-330-million-to-expand-bitcoin-mining-and-ai-operations/#respond Wed, 18 Jun 2025 17:19:51 +0000 https://earlybirdsinvest.com/bitdeer-raises-330-million-to-expand-bitcoin-mining-and-ai-operations/

Singapore-based BitDeer Technologies Group has launched a $330 million convertible note offer with the aim of strengthening mining operations, developing ASIC rigs and expanding AI infrastructure.

The memo, scheduled for 2031, will be converted to Bitdeer Class A stock at a 25% premium with an annual interest rate of 4.875% and currently at a stock price of $11.84, placing a conversion price of around $15.88 per share.

This offer is intended for qualified institutional buyers under Rule 144A of the Securities Act. If investors exercise their option to buy more within 13 days, the offering could reach $375 million.

This is Bitdeer’s third convertible note raise. Previously, the company had secured $150 million in August and $360 million in November last year. According to Bitdeer, the offering is scheduled to close on June 23, 2025.

The net revenue is expected to total approximately $319.6 million. Approximately $129.6 million will be allocated to zero strike call options, with $36.1 million allocated for concurrent note exchanges. The remaining funds will support data center expansion, new ASIC rig development, and general company needs.

Bitdeer is also offering note exchanges, providing cash and shares to 8.50% convertible memo holders in 2029. The transaction includes approximately $36.1 million in cash and 8.1 million shares, and was exchanged for $75.7 million of outstanding bills.

This announcement follows Bitdeer’s recent growth. As previously reported, the company mined 196 BTC in May (over $21 million) and expanded its self-mining hashrate to 13.6 EH/s. The new Sealminer rig has been deployed at sites in Texas, Norway and Bhutan, and has officially launched an AI cloud platform powered by a large language model.

“In May 2025, we continued to deploy seal mining mining rigs to sites in Texas, the US, Norway and Bhutan, bringing Bitdia self-mining hashrate to 13.6 EH/S.”

Bitdeer also raised Capital from Tether in 2024, securing $40 million in May from its debt facility with Matrix Finance. Both Bitdeer and Matrix are led by Jihan Wu, co-founder of Bitmain.

With its market capitalization currently exceeding $2.3 billion, Bitdeer continues to invest in expanding its infrastructure and technology as competition for Bitcoin mining and AI computing intensifies.

My first Bitcoin, a nonprofit focused on grassroots Bitcoin education, has announced that it will receive a $1 million grant from the start. This funding will help expand efforts to provide free open source Bitcoin education to the world.

“The revolution in Bitcoin education is that it teaches students how to think and what to think,” said the founder and executive director of my first Bitcoin John Dennehy. “Funding from sources with their own incentives is the biggest vulnerability to threaten it. Education funds it. It doesn’t take away government money, it cuts funds frequently from businesses and businesses. The subtle impact of funding has ruined FIAT education.

The grant will expand its reach to first Bitcoin and provide the ability to improve tools such as Bitcoin diploma, intro courses, and teacher training workshops. It also strengthens the hub of online schools and community, making Bitcoin education more accessible to people everywhere.

This funding is not just a milestone, it is a statement. Dennehy added: “My first Bitcoin is a proof of concept for all independent Bitcoin educators. Staying on a mission makes the other side even stronger, even if it’s challenging.”

My first Bitcoin started in 2021 as a small local project. Since then, it has grown into a global movement. Over the years, the team has taught tens of thousands of students to test and refine the material based on real-world feedback.

In 2022, my first Bitcoin awarded 38 high school students in El Salvador with Bitcoin diplomas. As part of the program, students had 10 lessons including introduction to the monetary system, Fiat, financial history results, understanding Bitcoin, wallet and Bitcoin network, dual spending issues and nodes, security and mining, the value of Bitcoin, the Lightning Network and the future of Bitcoin, and the final project.

In 2023, the organization launched an independent Bitcoin Educator Node Network. It has over 65 projects in over 35 countries. These include the circular economy, meetup groups, and other local Bitcoin projects. What brings them together is a shared commitment to six core values. “Their education is independent, fair, community-driven, Bitcoin-only, quality, with a focus on empowerment rather than profit.”

“Open source money deserves open source education. Over the past few years, we have seen an increasing demand for resources around the world. We are committed to serving everyone in the Bitcoin space who needs support.”