BitMEX Research: Cryptocurrency holdings are expensive for companies, and shareholder returns will suffer in the long run

The list includes Anthony Pompliano's Nasdaq-listed BRR, according to examples of the "most high-profile" advisory and asset management agreements for crypto positions compiled by BitMEX Research. The newly listed company announced a $750 million deal that will allow shareholders to pay 5 per cent of their issued share capital, plus a share of the proceeds of rising bitcoin, over a 10-day period.
According to BitMEX Research, those gains will be siphoned off by Inflection Points Inc., a company founded by Pompliano. Other cryptocurrency holdings have similarly staggering fees that will slowly drain cash from companies that promise long-term value to investors.
Many publicly traded companies have billions of dollars worth of digital assets on their balance sheets, but these companies have disclosed that they will pay advisers and asset managers several years of double-digit and triple-digit basis point fees annually. In April and May, large-scale cryptocurrency acquisitions attracted investors, making them willing to pay hefty premiums for these publicly traded companies. Looking ahead, however, these ongoing and high fee structures will weigh on shareholder returns.