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 in market volatility. Many companies' stock prices are close to their net asset value (NAV), which may lead to a 'death spiral.'
The report describes seven phases of recession: the decline in Bitcoin prices leads to a decrease in the multiple of net asset value (MNAV), financing difficulties, credit exhaustion, and debt maturity forcing companies to sell Bitcoin, which depresses market prices and triggers 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.
