In 2025, stocks of companies holding significant Bitcoin reserves became the focal point of increased interest in global stock markets, prompting parallels with the investment boom of the 1920s.
Market for Bitcoin Treasury Stocks
Stocks of companies with Bitcoin assets have begun trading at prices significantly above the value of their cryptocurrency holdings. In this context, some stocks reached premiums of 23 times their Bitcoin shares.
Risks and Comparisons to 1920s Trusts
A report from Be Water indicates that current Bitcoin treasury companies exhibit signs of the same speculative bubbles as 1920s investment trusts. Investors are actively driven by promises of future Bitcoin gains, which could result in sharp declines in value.
Investor Psychology and the Bubble
The psychology of investors in 2025 resembles that of the 1920s: speculative enthusiasm and a desire to invest in projects promising high returns without real backing. This sentiment leads to purchases of stocks at high premiums, creating a risk of rapid price drops.
The current landscape in the Bitcoin treasury stock market raises crucial questions about potential risks and historical parallels, highlighting the need for caution among investors.
