All articles tagged with #public companies
Many previously loss-making companies with diverse backgrounds have pivoted to focus on cryptocurrency, becoming digital asset treasury companies (DATs) to capitalize on the crypto boom, though the sustainability of this trend remains uncertain.
The Trump administration has taken equity stakes in four public companies—Intel, MP Materials, Lithium Americas, and Trilogy Metals—setting a potentially dangerous precedent for government ownership in the stock market, raising concerns about conflicts of interest and influence over corporate governance.
The SEC has permitted public companies to prevent investors from participating in class-action lawsuits, a move that could impact investor rights and corporate legal strategies.
President Trump proposed that U.S. public companies shift from quarterly to semi-annual earnings reports, aiming to reduce regulatory burdens and costs, though experts debate whether this change would improve long-term focus or transparency. The SEC is prioritizing this proposal, which could significantly impact corporate reporting practices and Wall Street valuation methods.
Many CEOs value quarterly earnings reports for their discipline and transparency, despite President Trump's proposal to eliminate them to reduce burdens and shift focus to long-term management. While some see benefits in removing guidance pressures, most CEOs appreciate the accountability these reports provide, and the SEC is prioritizing the proposal amidst ongoing debates about short-termism and transparency in public companies.
President Trump proposed allowing public companies to report earnings biannually instead of quarterly, citing cost savings and management focus, but experts warn this could reduce transparency and increase risks of fraud. The SEC would need extensive review to change the longstanding quarterly reporting rule, and such a shift could lead to more market volatility and less oversight.
Donald Trump is advocating for the SEC to allow US public companies to report earnings semi-annually instead of quarterly, aiming to reduce regulatory burdens and boost market participation, though critics argue it could harm transparency and market stability.
President Trump proposed that U.S. public companies shift from quarterly to semi-annual earnings reports, aiming to reduce costs and encourage long-term management, a move that would require SEC approval and aligns with practices in Europe. The suggestion has garnered support from some business leaders but faces skepticism from experts who believe broader changes in corporate governance are needed to truly shift focus from short-term results.
Blockware predicts that by the end of 2025, at least 36 more public companies will add Bitcoin to their balance sheets, marking a 25% increase from the current 141, with the total Bitcoin holdings among public companies surging 120% in 2025. While corporate interest in Bitcoin is growing rapidly, some analysts warn that this trend may face challenges and could be short-lived, with concerns about the sustainability of Bitcoin treasury strategies.
Public companies have outpaced ETFs in Bitcoin purchases for the third consecutive quarter, driven by strategies to increase shareholder value and benefit from a more crypto-friendly regulatory environment, with major players like MicroStrategy leading the trend.
U.S. exchange operators, including Nasdaq and NYSE, are in discussions with the SEC to ease regulations for public companies, aiming to encourage more startups to go public by reducing disclosure requirements and costs, amidst ongoing efforts to make public markets more attractive and accessible.
A new trend has emerged where public companies are rapidly acquiring Bitcoin and other digital assets through SPACs and reverse mergers, driven by rising Bitcoin prices, investor hype, and the desire for regulated exposure to crypto. These firms are leveraging capital markets to scale quickly, often using leverage and volatility to amplify gains, and are creating new investment vehicles for institutional and retail investors. While this surge offers significant growth potential, experts warn of risks associated with rapid balance sheet expansion and speculative behavior.
VanEck warns that Bitcoin-buying firms should consider stopping their strategies if their stock prices fall near or below the net asset value, citing Semler Scientific's recent decline as a cautionary example. The firm has bought significant Bitcoin holdings, but its stock has dropped sharply, highlighting risks associated with equity issuance and Bitcoin price fluctuations. Experts advise companies to adopt safeguards, prioritize buybacks, and consider strategic reviews if NAV discounts persist, emphasizing disciplined management and alignment of executive compensation with NAV growth.
A growing number of public companies are investing in Bitcoin as part of their treasury strategies, inspired by MicroStrategy's success, but experts warn of significant risks if Bitcoin's price falls or if companies face liquidity issues, potentially leading to forced sales or acquisitions. Coinbase also cautions about systemic risks associated with this trend, emphasizing the importance of market conditions and the potential for market disruption if these investments fail.
Metaplanet's shares surged over 12% after announcing a plan to raise $5.4 billion to acquire up to 210,000 Bitcoin by 2027, potentially making it the second-largest public holder of Bitcoin, with its stock rising significantly following the news.