A recent report indicates that the company primarily finances its Bitcoin holdings through stock and convertible bond issuances. Despite having strong capital market financing capabilities, the company faces high business concentration, low dollar liquidity, and a fragile capital structure. S&P has identified a currency mismatch risk between Bitcoin and the dollar due to the company's asset structure. Additionally, the company's risk-adjusted capital (RAC) is negative, and its operating cash flow remains in the red, with its main revenue source being the appreciation of Bitcoin prices.
S&P Highlights Risks in Company's Bitcoin-Heavy Asset Structure
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.

