"Small Businesses Mimicking Strategy's Approach Could Become Zombie Companies"

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Summary

It was pointed out that while many small businesses can expect short-term stock price increases by mimicking Strategy's Bitcoin purchasing strategy, there are long-term risks involved.
Companies with poor stock performance are following this strategy due to a lack of an attractive business model.
There is concern that small businesses hoarding Bitcoin may become zombie companies in the future.

Concerns have been raised about the increasing number of small businesses imitating Strategy's Bitcoin (BTC) purchasing strategy.

On the 11th (local time), Fortune reported, "More companies are blindly copying Strategy's approach," adding, "They purchase Bitcoin to defend their stock prices from short sellers." It further pointed out, "While Bitcoin reserves can positively impact stock prices in the short term, there is a risk that Bitcoin prices must be maintained or rise in the long term."

Mark Palmer, an equity analyst at Benchmark Company, also noted, "Companies with sluggish stock performance often lack an attractive business model," and "These companies are following Strategy's Bitcoin reserve strategy." He added, "There is a high possibility that small businesses hoarding Bitcoin could become 'zombie companies.'"

Meanwhile, according to CoinKite data, 78 companies worldwide hold Bitcoin.

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