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BitMEX Research: Companies holding cryptocurrency are expensive, shareholder returns will be damaged in the long term

According to online reports, the "most high-profile" examples of advisers and asset management agreements compiled by BitMEX Research show that Bitcoin holding companies, including Anthony Pompliano's Nasdaq-listed company BRR, are on the list. The newly listed company announced a $750 million deal that will allow shareholders to pay 5% of its issued share capital, plus a portion of Bitcoin's rising gains, during a 10-day deal close process. According to BitMEX Research, those gains will be absorbed by Inflation Points Inc., a company founded by Pompliano. Fees for other cryptocurrency holding companies are equally staggering, which will slowly draw cash from companies that promise investors long-term value. There are billions of dollars worth of digital assets on the balance sheets of many publicly traded companies, but these companies have disclosed that they will pay advisers and asset managers basis fees of double and triple digits per year for years. In April and May, large-scale cryptocurrency acquisitions attracted investors, making them willing to pay high premiums for these listed companies. Looking forward, however, these persistent and expensive fee structures will drag on shareholder returns.

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