The U.S. government's stake in companies like Intel sparks fears of similar action in Bitcoin firms, raising custody risk concerns for investors.
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U.S. government’s 10% stake in Intel fuels debate on federal influence in crypto firms and its implications for Bitcoin custody.
Bitcoin stored in highly regulated onshore entities remains at risk of potential confiscation or rehypothecation, according to a new report.
Recent comments by early Bitcoin investor Tuur Demeester have reignited concerns over the security of custodied Bitcoin in the United States. His remarks followed confirmation that the U.S. government would acquire a 10 percent stake in chipmaker Intel, amounting to nearly $9 billion. The federal move is designed to support domestic chip manufacturing but has drawn parallels to the cryptocurrency space.
Adamant Research has released a report warning that Bitcoin held by heavily regulated U.S.-based entities could face threats of confiscation or rehypothecation. The report emphasizes that historic patterns show government actions once considered unlikely can become acceptable under certain conditions. The research cites the example of Intel as a signal that more direct federal involvement in private enterprises is now on the table.
Bitcoin Treasury Bubble Highlighted as an Emerging Threat
The report also addresses the increasing competition among companies to hold Bitcoin in their treasuries. Analysts describe this race as unsustainable and warn it may lead to a financial bubble. The research recommends caution when engaging with Bitcoin companies, as investors may unknowingly expose themselves to additional systemic risks beyond price volatility.
Adamant Research stresses the importance of conducting detailed due diligence before investing in crypto firms. It encourages investors to prioritize businesses that operate across multiple jurisdictions to reduce exposure to single-country regulatory risks. The focus, according to the report, should be on operational integrity and long-term resilience rather than short-term advantages like early market entry.
Direct Asset Exposure Preferred Over Corporate Holdings
The report ultimately advises investors to prioritize holding the actual Bitcoin asset rather than relying on companies that maintain Bitcoin reserves. It suggests that the strategic edge of some high-profile companies in the space may diminish rapidly under pressure from regulators or shifting market dynamics.
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