Should my company rethink holding Bitcoin after GameStop’s losses?

[Alex]

Since GameStop lost money on its Bitcoin investments (with a quarterly loss of $9.2 million), should my company reconsider holding such a volatile asset in our treasury? Or is the real issue better risk management rather than ditching crypto altogether?

[Kaile]

@Alex
GameStop's $9.2 million unrealized Bitcoin loss highlights the volatility of crypto, especially during downturns. Many firms use Bitcoin for diversification or inflation hedging, though outcomes vary widely. The key isn't to eschew crypto but to focus on effective risk management. Companies should establish clear policies and determine appropriate allocation sizes that align with their long-term objectives.

Many companies have followed in GameStop’s footsteps, but they all have very different strategies for holding Bitcoin.

• The Public Companies: Strategy (formerly MicroStrategy), Tesla, Block, Inc. (formerly Square)
• The Specialized Players: Marathon Digital (MARA), Coinbase, Metaplanet