According to a report by Deep Tide TechFlow, Breed's latest report indicates that Bitcoin reserve companies are becoming a trend by 2025, but only a few companies can survive the market volatility. Many companies' stock prices are close to net asset value (NAV), which may fall into a 'death spiral.'
The report outlines seven stages of recession: the decline in Bitcoin prices leads to a decrease in multiple net asset value (MNAV), financing difficulties, credit exhaustion, and debt maturities force companies to sell Bitcoin, depressing market prices and triggering industry consolidation.
The report emphasizes that a few companies maintain an MNAV premium through strong leadership and unique strategies. Most companies use equity financing to purchase Bitcoin, and if debt financing becomes mainstream, market conditions may worsen.
