Corporates pile into digital assets as BTC vs altcoin split emerges: Institutional treasuries of public companies are moving USD bns into crypto, but a divide is emerging over whether the balance sheet should stick to BTC or diversify into altcoins, Bloomberg reports.

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Who’s buying into what? With USD 116 bn held by 190 listed firms in BTC, the crypto mainstay’s backing outweighs altcoin holdings — however this lead is being challenged to some degree on the back of altcoin’s promising yields, with ETH treasuries reaching USD 16 bn and firms holding USD bns worth of SOL, pointing to shifting preferences.

The case for BTC: BTC backers see it as the only virtual asset that carries real legitimacy as a treasury asset, with its fixed supply of 21 mn tokens and established position in crypto markets providing “stability and simplicity,” Bit Digital CEO Sam Tabar said. BTC is also less susceptible to price volatility than its altcoin counterparts.

In the other corner: Alternative assets like ETH and SOL could offer bigger upside and returns, because of the various tactics like staking, staking, and lending that they offer. However, more exposure to market volatility and price swings make it a “horrible asset for a treasury company,” according to Strive Inc’s CEO Matt Cole.

BTC’s stagnant position on balance sheets will need to be challenged through the issuance of instruments or bonds, some argue, adding that the “moment has passed” for BTC to just be bought and held on balance sheets.

BUT- Skepticism around altcoins remains: CEO of BTC treasury firm Nakamoto David Bailey warned in an X post that failed altcoin projects and “toxic financing” have blurred the purpose of digital asset treasuries. He likened BTC treasuries to banks, arguing that firms with strong balance sheets will grow while weaker ones will be absorbed. Altcoins are also among the most vulnerable to market downturns, which would hit treasury firms hard.

TASI

10,781

+1.2% (YTD: -10.4%)

MSCI Tadawul 30

1,399

+1.1% (YTD: -7.3%)

NomuC

25,291

+0.7% (YTD: -19.7%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

5.0% repo

4.5% reverse repo

EGX30

35,403

+1.2% (YTD: +19.0%)

ADX

10,128

+0.3% (YTD: +7.5%)

DFM

6,023

+0.7% (YTD: +16.8%)

S&P 500

6,664

+0.5% (YTD: +13.3%)

FTSE 100

9,217

-0.1% (YTD: +12.8%)

Euro Stoxx 50

5,458

0.0% (YTD: +11.5%)

Brent crude

USD 66.68

-1.1%

Natural gas (Nymex)

USD 2.89

-1.7%

Gold

USD 3,706

+0.6%

BTC

USD 115,599

-0.1% (YTD: +23.6%)

Sukuk/bond market index

917.25

0.0% (YTD: +1.7%)

S&P MENA Bond & Sukuk

150.45

-0.1% (YTD: +7.5%)

Don

VIX (Volatility Index)

15.45

-1.6% (YTD: -11.0%)

THE CLOSING BELL: TADAWUL-

The TASI rose 1.2% on Thursday on turnover of SAR 16.4 bn. The index is down 10.4% YTD.

In the green: MBC Group (+10.0%), EIC (+9.9%) and Almajdiah (+7.6%).

In the red: Saptco (-4.5%), Musharaka Reit (-3.0%) and Alandalus (-2.6%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.7% on Thursday on turnover of SAR 56.1 mn. The index is down 19.7% YTD.

In the green: Munawla (+10.4%), Ladun (+10.0%) and AME (+9.8%).

In the red: Meyar (-12.5%), Alhasoob (-6.5%) and Alshehili Metal (-6.1%).

CORPORATE ACTIONS-

Raydan Food Company secured the Capital Market Authority’s approval to cut its capital to SAR 73.1 mn from SAR 158.1 mn, it said in a statement on Thursday. The move, which would reduce its shares to 7.3 mn from 15.8 mn, remains subject to shareholders’ approval and completion of regulatory procedures.

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