Fundstrat’s Tom Lee: Bitcoin is the Last Thing You Want to Put on Your Balance Sheet

Bitcoin bulls are all wondering who the next company will be to put cash reserves into bitcoin.  Last fall, Microstrategy and Square invested millions of their cash reserves into bitcoin. Microstrategy has since bought more, and CEO Michael Saylor said on […]

article-image

TOM LEE | Scott Mlyn, CNBC

share
  • Tom Lee warned that holding bitcoin could expose corporates to regulatory risk
  • Holding exchange traded products like GBTC or BITW would be preferable

Bitcoin bulls are all wondering who the next company will be to put cash reserves into bitcoin. 

Last fall, Microstrategy and Square invested millions of their cash reserves into bitcoin. Microstrategy has since bought more, and CEO Michael Saylor said on a company earnings call Thursday that it plans to continue accumulating. He also said holding bitcoin as a primary reserve asset is part of its corporate strategy.

It’s not a great idea for companies though, Fundstrat Global Advisors’ Tom Lee said at a virtual event Thursday. 

“The last thing you want is to put on company’s balance sheet is an asset that companies could one day decide they have to divest because of some regulatory change,” Lee said. “It’s something every board member is going to face liability for, and I don’t think it’s a great policy for a business.”

The big buys by corporates are good for the bitcoin price though, which climbed steadily from August to a new all-time high of almost $42,000 on Jan. 7. In the same period PayPal, Stan Druckenmiller, Guggenheim, MassMutual, Ruffer Investment Company and One River Asset Management have all made bullish calls on bitcoin.

 Companies might as well put the money into a trust though, Lee said.

“I’d rather MicroStrategy put $4 billion into Grayscale or into Bitwise, because that bitcoin never leaves,” said Lee, who is cofounder and head of research at Fundstrat Global Advisors. “If you put $4 billion on MicroStrategy and they suddenly have to divest it, you’ve got $4 billion of bitcoin getting dumped in the market.”

Grayscale Investments and Bitwise Asset Management each have bitcoin and ether trusts that give investors exposure to the digital assets through traditional investment vehicles without the challenges of buying and securely storing it themselves.

When investors redeem their shares they don’t actually sell their holdings, they just list them on the market. They’ll be much better ways to “corporatize America,” Lee said.

“Corporate America usually uses outside managers to manage capital, he added. “Apple allocates their fixed income excess to fixed income hedge funds and fixed income managers – they should allocate it to Bitwise and to Grayscale.”

Tags

    Decoding crypto and the markets. Daily, with Byron Gilliam.

    Upcoming Events

    Javits Center North | 445 11th Ave

    Tues - Thurs, March 24 - 26, 2026

    Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

    recent research

    Research Report Templates (8).png

    Research

    Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

    article-image

    BTC finished the week up 1.6%, while L2s, RWAs and the treasury trade continued to grind lower

    article-image

    DTCC moves DTC-custodied Treasuries onchain via Canton, while Lighter’s LIT launches trading at a fees multiple in Hyperliquid territory

    article-image

    In the 90s, rapt audiences worldwide watched a coffee pot — will that fascination ever turn to crypto?

    article-image

    Some systems improve by failing — and crypto has no choice

    article-image

    Yield Basis introduces an IL-free AMM design that already dominates BTC DEX liquidity

    article-image

    Maybe tokenholders don’t need the rights that corporate shareholders have come to expect

    Newsletter

    The Breakdown

    Decoding crypto and the markets. Daily, with Byron Gilliam.

    Blockworks Research

    Unlock crypto's most powerful research platform.

    Our research packs a punch and gives you actionable takeaways for each topic.

    SubscribeGet in touch

    Blockworks Inc.

    133 W 19th St., New York, NY 10011

    Blockworks Network

    NewsPodcastsNewslettersEventsRoundtablesAnalytics