Large stashes of Bitcoin held in highly regulated onshore entities could be most vulnerable to confiscation or rehypothecation.
US takes stake in Intel
Earlier this week, it was confirmed that the U.S. government would take a 10% stake in chip giant Intel for nearly $9 billion. The controversial deal will make it possible for the tech giant to keep expanding factories in the US.
"An unsustainable bubble"
The cryptocurrency treasury race will eventually result in an unsustainable bubble. Hence, it advises "caution" and "awareness" when it comes to dealing with these types of companies since investors get exposed to additional layers of risk.
The report recommends exercising "thorough due diligence" when investing in Bitcoin companies while focusing on "integrity" and "perseverance" instead of just first-mover advantage.
"We’ve seen strategic advantages evaporate very quickly in this space," it said.
Investors are also advised to focus on companies that have operations in multiple countries.
That said, the report has stressed that investors should prioritize getting exposure to the actual asset instead of just companies holding it.