CZ on Bitcoin Reserve: Not taking risks is the biggest risk!

Recently, Bitcoin Treasury companies have been sprouting up like mushrooms after rain. Binance founder CZ believes these companies are taking risks and shared his views on risk management. ABMedia also compiled the stock performance of these companies over the past month, with most skyrocketing like newly emerged meme coins. However, if these companies are seeking attention based on unprofitable core businesses, the stock price will likely plummet once the initial hype subsides.

Binance Founder CZ: These Companies Are Taking Risks

Binance founder CZ believes these companies are taking risks and shared his views on risk management as follows:

• Every company takes risks, which is not a binary (0 or 1) situation, but a range (0-100)
• Find the most suitable risk/ROI balance through proper management
• Risks must be managed, and avoiding all risks is itself a risk.

CZ did not express whether he agrees or disagrees with these Bitcoin Treasury companies' approaches, but merely encouraged everyone to manage risks rationally rather than blindly avoiding them.

Bitcoin Treasury Company Stocks Like Meme Coins, Just a Flash in the Pan?

ABMedia compiled the stock performance of publicly listed companies over the past month. Except for Where Food Comes From (WFCF), which had negative returns, and the veteran meme stock GameStop with only an 8.66% increase, other stocks saw stunning gains of 60-816%. This shows these company stocks are like newly emerged meme coins, easily soaring.

• GameStop (GME): 8.66%
• DDC Enterprise (DDC): 317%
• ATAI Life Sciences (ATAI): 60%
• Kindly MD (KDLY): 816%
• Coinsilium Group (COIN): 125%
• Where Food Comes From (WFCF): -9%

However, the author also reminds everyone that unless these companies can sustainably manage Bitcoin Treasury business with discipline like MicroStrategy and Metaplanet, most Bitcoin Treasury companies are seeking attention based on unprofitable core businesses. Once the initial stock hype subsides, their stock prices will likely plummet.

(Strategy Leads the Trend, A Comprehensive Guide to Bitcoin Treasury Strategy Company Investments)

Crypto-friendly Senator Cynthia Lummis stated this morning 6/4 that multiple high-ranking US military officials support establishing a "Bitcoin Strategic Reserve" to address potential economic and military conflicts with China. The stablecoin bill 'GENIUS Act' is also expected to be voted on in the Senate soon.

Regarding concerns about potential conflicts of interest with Trump Media's fundraising to purchase Bitcoin, Lummis explained: "Trump's willingness to invest in the digital economy is forward-thinking and visionary."

Stablecoin Bill Likely to Pass Next Week, Yield-Bearing Stablecoins Still Under Discussion

Lummis first stated that the stablecoin bill 'GENIUS Act' will begin voting this week, but due to numerous proposed amendments, the vote will be delayed until next week. Regarding Democratic concerns that the bill might facilitate illegal financial activities, Lummis said both parties have reached a preliminary consensus.

However, variables remain. Lummis noted that the bill's successful passage hinges on whether someone will forcibly add "credit card fee cap" provisions. If such provisions are included, it could derail the bill.

Regarding why the bill prohibits the issuance of revenue-generating stablecoins, Lummis frankly supports it, but to ensure the bill passes, she had to exclude it first. She stated that it might be rediscussed when submitted to the House of Representatives.

US Military Top Brass Also Supports Bitcoin Reserve, Aiming to Solve National Debt Issue

Notably, Lummis also revealed that US military top brass stationed in Southeast Asia believe the United States should establish a "Bitcoin Strategic Reserve" to address the US-China economic war and potential military conflicts.

She suggested using crypto assets seized by US law enforcement as the foundation for the first year of the Bitcoin strategic reserve. Subsequently, other existing and different forms of assets would be converted to BTC for long-term holding. Here are Lummis's Bitcoin reserve objectives:

1. Allow the US government to hold 1 million BTC
2. Occupy 5% of global Bitcoin supply and hold for 20 years
3. Primarily solve the national debt problem

Congress Will Clarify Crypto Asset Regulatory Jurisdiction

Lummis pointed out that the Senate will focus on the "Market Structure Reform Bill" to clarify which assets will be regulated by the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC). She stated:

• BTC is a Commodity and should be regulated by the CFTC.
• Centralized exchanges like Coinbase and Kraken, which are involved in token issuance and trading, should be regulated by the SEC.

She also emphasized that the stablecoin bill and market structure bill will be handled separately without interfering with each other.

Lummis: Trump's Fundraising to Buy Crypto Shows Foresight, US Digital Reserve Only Considers Bitcoin

Regarding whether Trump's media company (DJT) raising $2.4 billion to purchase BTC involves a conflict of interest, Lummis explained:

"This is no different from owning hotels and resorts. The key is its forward-looking nature, investing early in digital assets, which is quite visionary."

She added:

"Our model shows that Bitcoin price will rapidly rise and then stabilize. Within the next 10 years, 99% of BTC will be mined. BTC still has enormous growth potential in the next decade."

She finally emphasized that if the US were to establish a digital asset reserve, it would only choose Bitcoin with Proof of Work (PoW) due to its irreplaceable scarcity and security.

(Trump Media Raises $2.4 Billion, Becoming the Fourth Bitcoin-Holding Public Company)