Episode 12: Treasury Companies: Risks You Need to Understand

Understanding the Risks of Investing in Treasury Companies In the latest episode of Old Men New Money, Douglas Borthwick delves into the various risks associated with investing in corporate treasury companies that are heavily involved in crypto assets. The episode covers seven major risk categories including asset price risk, NAV premium compression, dilution, debt leverage, regulatory issues, key person risk, and execution risk. Borthwick emphasizes the importance of understanding and managing these risks, especially in volatile market conditions, and provides guidance on position sizing, monitoring metrics, and establishing clear exit rules. He also cautions against treating these investments as conservative or core holdings, recommending them only for those with high risk tolerance and speculative capital. 00:00 Introduction to Corporate Treasury Strategies 00:45 Understanding Major Risk Categories 02:37 Asset Price Risk Explained 04:14 NAV Premium Compression 05:46 Dilution Risks 06:56 Debt and Leverage Risks 08:14 Regulatory and Legal Risks 09:36 Key Person Risk 10:46 Execution Risk 12:20 Competition and Technological Disruption 15:23 Managing Risks and Position Sizing 16:30 Who Should and Shouldn't Invest 18:09 Final Thoughts and Next Module Preview Get full access to Bitcoin, Blockchain and Tokenization at oldmennewmoney.substack.com/subscribe