Episode 12: Treasury Companies: Risks You Need to Understand

Understanding the Risks of Investing in Treasury CompaniesIn 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 Strategies00:45 Understanding Major Risk Categories02:37 Asset Price Risk Explained04:14 NAV Premium Compression05:46 Dilution Risks06:56 Debt and Leverage Risks08:14 Regulatory and Legal Risks09:36 Key Person Risk10:46 Execution Risk12:20 Competition and Technological Disruption15:23 Managing Risks and Position Sizing16:30 Who Should and Shouldn't Invest18:09 Final Thoughts and Next Module Preview Get full access to Bitcoin, Blockchain and Tokenization at oldmennewmoney.substack.com/subscribe

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