Bitcoin & crypto treasuries: what are you really buying vs. ETPs/ETFs?

Crypto continues its path toward institutional legitimacy. As Bitcoin gains broader acceptance, a growing number of publicly traded companies have added digital assets to their corporate treasuries. 

This trend has created new forms of exposure for investors, not by holding the crypto directly, nor through ETFs or ETPs, but by buying shares in companies that hold substantial crypto reserves. 

However, this strategy comes with key differences and risks that are worth unpacking.

Strategy, the pioneer

Strategy, formerly MicroStrategy, was the first major public company to fully commit to Bitcoin as a treasury asset. 

Under the leadership of Michael Saylor, the company pivoted from enterprise software to crypto in 2020, declaring Bitcoin a superior store of value to cash. 

As of July 29, 2025, Strategy held 607,770 BTC, acquired at an average price of approximately $71,700 per coin. With Bitcoin trading near $119,500, the company’s reserve now exceeds $72 billion in value. 

This bold bet has paid off, as reflected in the fact that Strategy's stock has surged by more than 3,700% over five years, significantly outperforming Bitcoin itself.

The company financed its Bitcoin accumulation through a combination of equity offerings, preferred stock, and convertible debt. This structure adds layers of financial complexity, including dilution and interest obligations. 

Bitcoin treasury companies multiply

For four years, Strategy has been the only company following this playbook, but its success finally inspired several companies to adopt a similar model. The second one was Metaplanet, which announced its plan in May 2024. Based in Japan, Metaplanet is one of the most prominent. As of July 28, the company held 17,132 BTC, representing a total value of nearly $2 billion.

In France, The Blockchain Group (recently rebranded Capital B) raised capital through Bitcoin-denominated debt, using the proceeds to expand its BTC holdings. These firms echo Strategy’s crypto-first architecture, relying on structured leverage rather than pure fiat reserves.

Other companies have opted for a simpler approach. Firms like TwentyOne and Nakamoto have raised capital, converted it into crypto, and now operate mainly as holding vehicles. 

Their share price is thus closely tied to the value of their digital assets. This minimalist structure comes with drawbacks: increased exposure to market volatility and no underlying business to absorb potential downturns.

And now the altcoins

Bitcoin may still dominate corporate treasuries, but altcoins are rapidly gaining ground. 

SharpLink Gaming, in particular, has drawn attention with its aggressive Ethereum acquisition strategy. The company recently purchased 77,210 ETH for approximately $295 million and now holds a total of 438,017 ETH as of 28 July 2025, valued at around $1.7 billion at current market prices.

Solana has also gained ground, particularly with companies like Defi Development Corp., Upexi, Sol Strategies Inc., and Classover Holdings. 

Some of these firms go further by staking their assets or operating validators to earn yield.

BNB is attracting institutional interest as well. Nano Labs now holds 120,000 BNB and plans to grow this position.  Windtree Therapeutics has committed to building a $200 million BNB reserve, aligning itself with long-term Web3 infrastructure. 

Meanwhile, even memecoins like Dogecoin are gaining attention. Bit Origin, a Bitcoin mining firm, announced plans to raise $500 million to build a DOGE treasury, which caused its stock to surge 90% in a single day. 

While such moves remain fringe, they illustrate a growing appetite for risk and a more fluid interpretation of what qualifies as a treasury asset.

What are you actually buying?

As we have seen, investment options are becoming more diverse for those seeking exposure through companies with crypto treasuries. 

This now stands as a legitimate alternative to crypto ETPs, which similarly allow investors to access the crypto market without using an exchange or holding the digital asset directly.

Both alternatives could be attractive to  institutional investors, such as funds, or individuals who prefer to avoid the technical and operational complexities of self-custody, wallets, or relying on centralized crypto exchanges.

However, owning stock in a company that holds crypto is not equivalent to owning the crypto itself. While ETPs and ETFs are specifically designed to closely track the price of the underlying asset, shares in a crypto treasury company introduce multiple additional layers of exposure. 

These include the company’s capital structure, overall financial health, operating costs, management decisions, use of leverage, and other business-specific factors. When investing in crypto treasury stocks, investors also become exposed to premiums and discounts to NAV, which ETPs and ETFs are designed to minimise.

Most importantly, shareholders have no direct claim on the company’s crypto holdings. If the company goes bankrupt, those assets would be liquidated to pay off creditors, and shareholders would be last in line. 

Crypto treasuries are a risky bet

Thus, the question remains: is investing in a crypto treasury company more attractive or less risky than investing in a crypto ETP?

Crypto treasury companies offer an alternative way to gain exposure to digital assets, particularly in jurisdictions where spot ETFs or ETPs are not yet accessible. 

However, as we’ve seen, this emerging model carries several risks, some of which may have been masked by the current bull market.

First, companies pursuing altcoins or memecoins without a sustainable core business expose investors to significantly higher volatility and uncertainty. The viability of their model is closely tied to crypto market performance. If prices stagnate or decline, these firms can quickly become overleveraged and vulnerable to severe corrections.

This risk is amplified by the increasing use of PIPE (Private Investment in Public Equity) financing. By issuing tens or even hundreds of millions of new shares, companies can temporarily boost their capital, but the real test comes when these shares become tradable. 

Recently, this moment has triggered dramatic crashes in stock prices, wiping out prior gains and punishing late retail entrants.

For many investors, especially those without the ability to monitor these variables closely, regulated ETFs or ETPs remain a more secure and transparent option.