Analysis: High crypto treasury fees could erode long-term investor value

Crypto treasury firms are charging steep fees that could steadily erode the value they promised to long-term investors, Protos reported, citing an Aug. 12 BitMEX Research paper. One example is Inflection Points Inc., an entity affiliated with Anthony Pompliano and trading under the ticker BRR, which has a $750 million initial deal size. Its advisory fee structure awards the company 10 million shares, which BitMEX Research estimates is about 5% of its outstanding stock. The arrangement also allows the firm to take 15% of any gains in Bitcoin’s price between the signing and completion of the deal, with the other 85% going to equity investors. Earlier this year, large crypto acquisitions drove investors to pay heavy premiums for these public companies, but the report warns that ongoing high fees will weigh on shareholder returns for years.