Investors buying shares in companies that hold cryptocurrency on their balance sheets face risks distinct from direct coin ownership, even when the underlying crypto assets appreciate. The core issue lies in the stock's premium to net asset value (NAV), which can compress independently of crypto prices. If a company's share price trades at a significant premium to its per-share crypto holdings, a narrowing of that premium can result in shareholder losses despite rising bitcoin or other digital asset values. This dynamic highlights that equity exposure to crypto-holding firms introduces valuation risk not present in spot markets.