Wall Street's Tom Lee reveals: The trend of companies Coin Hoarding, the six core advantages of companies with encryption asset reserves.

Enterprise-level digital asset treasuries are experiencing explosive growth. Currently, more than 200 publicly traded companies have incorporated Bitcoin or Ethereum into their balance sheets, with dozens more being added each week. From former U.S. President Trump to online gambling marketing companies, businesses are strengthening their financial reserves by holding crypto assets. Wall Street strategist and staunch supporter of the crypto space, Tom Lee, revealed the six core advantages of such crypto asset treasury companies in an interview with Pantera Capital, with the key to their success ultimately boiling down to "management capability." This article will deeply analyze the unique value of enterprise crypto reserve strategies.

Capital operation advantages: premium financing, discount hoarding of coins Lee pointed out that the operation of the capital market is the primary driving force. When a company's stock price is higher than its encryption asset net value, it can issue new shares and use the funds raised to purchase more tokens—this achieves asset growth without increasing debt or diluting the value per share.

"They are actually increasing your encryption asset holdings by selling stocks," Lee explained, "This is a peculiar strategy but has an accretion effect that adds value." Therefore, if investors are willing to pay a premium for the company's exposure to encryption assets, the company can continue to increase its holdings at a discount.

Cost of Capital Advantage: Arbitrage Opportunities with Low-Interest Leverage The second advantage lies in the difference in capital costs. Retail investors have to bear interest rates of up to 10% to finance their crypto positions, while enterprises can obtain capital at much lower rates and further reduce costs by using financial instruments such as bonds or derivatives.

"MicroStrategy (now Strategy) can borrow at nearly 0% interest," Lee cited as an example. This is equivalent to obtaining a zero-interest loan and using the borrowed funds to earn returns from the appreciation of encryption assets. Currently, the company's Bitcoin reserves are valued at over $73 billion.

Advantages of Equity Mergers and Acquisitions: Premium Stocks as Acquisition Weapons The third advantage is that listed companies can use equity as a strategic asset for mergers and acquisitions. Lee envisioned: "Suppose there are two companies that both hold reserves of Ethereum as encryption assets, one trading at net asset value and the other at a premium. The premium company can acquire the competitor using its own stock, instantly increasing the per-share ETH holdings."

This means that when a company's stock price is significantly higher than the net value of its encryption assets, its stock will become a powerful acquisition tool, enabling the consolidation of competitors, expanding on-chain reserves, and creating value for shareholders with zero cash consumption.

Operational Leverage Advantage: Build Ecosystem, Activate Asset Value For Ethereum reserve companies, the fourth major advantage lies in breaking through passive holding - real businesses can be built around the holdings. "They can establish operating companies to enhance the value of each share of ETH," Lee emphasized.

These companies can develop products, infrastructure, or services within the Ethereum ecosystem, where all activities can both generate revenue and earn more ETH, creating an on-chain exposure compounding effect, ultimately enhancing shareholder returns.

On-chain income advantages: The "yield" characteristic of Ethereum The fifth advantage is Ethereum staking rewards. Companies based on Ethereum can earn additional income by staking ETH in addition to capital appreciation — this is a structural advantage that Bitcoin reserve companies do not have.

Pantera Capital portfolio manager Cosmo Jiang pointed out: "This is a unique advantage of non-Bitcoin reserves." Bitwise Alpha strategy director Jeff Park similarly emphasized that yield is the core value of Ethereum enterprise reserves: "Bitcoin stores value, while Ethereum has productivity — it can generate yield." (Source: July 8, 2025 Wolf of All Streets podcast)

Narrative Management Advantages: Key Variables Determining Success or Failure But the most core factor? Market narrative. "It all depends on whether the market believes this story," Lee bluntly stated. The management team must clearly articulate how to achieve the top five advantages in order to gain the trust of investors.

"This is exactly the basis of Metaplanet's valuation logic." This Japanese company has transformed from an economy hotel operator to one of the most aggressive Bitcoin reserve companies, with a market value soaring from $13 million to about $6 billion (as of the time of writing, the price of Bitcoin is approximately $119,142).

Conclusion: A New Paradigm from Financial Operations to Strategic Narratives Tom Lee's analysis reveals the deep logic behind crypto asset reserve companies transcending the superficial "enterprise-level holding". Through five major advantages: capital operation arbitrage, low-cost leverage, equity acquisition expansion, ecological value capture, and on-chain native revenue, companies are building a new financial engine. Ultimately, the fulcrum that leverages value lies in whether the team can create a convincing strategic narrative. With the success of benchmark cases like MicroStrategy and Metaplanet, enterprise crypto asset allocation has transitioned from marginal experimentation to mainstream financial strategy, and its evolutionary path will continuously provide key observational samples for the market.