Venture capital funds in the cryptocurrency sector predict that the cryptocurrency treasury trend will explode like the 'super memecoin cycle'.
Nearly 10 billion USD of debt from Bitcoin treasury companies will mature during the 2027-2028 period.
Bitcoin (BTC) treasuries along with numerous simulation projects on Ethereum (ETH) and altcoins will be out of date within the next 2 years, according to Haseeb Qureshi – the founder of Dragonfly, a VC fund specializing in cryptocurrency.
In a post on X, Qureshi likened this 'treasury meta' to the hot money trend, which ends quickly like last year's token sale wave.
But hot money never stays long, which is why treasury companies cannot be the ultimate meta. This trend is predicted to last only 1-2 more years as the heat diminishes.
Source: Hosseeb/X
Will treasury companies collapse?
Zaheer Ebtikar, founder of Split Capital, shares the same view as Qureshi but adds that this trend may even last shorter than the super memecoin cycle.
The market is becoming increasingly savvy, leading to each new meta living shorter… The memecoin frenzy – now shifting to publicly listed companies. All exist only fleetingly, due to market pressure.
As of June, the capital held by Bitcoin and Ethereum treasuries reached 367 billion USD. Notably, businesses focused on BTC hold nearly 3.44 million BTC, approximately 364 billion USD at current market prices.
Meanwhile, the ETH treasury recorded a reserve of 1.16 million ETH, equivalent to 3 billion USD.
BTC flows from public treasuries are mainly driven by Strategy and Metaplanet. However, some experts worry that the debt leverage of these companies to purchase BTC could cause a major crash if they default.
Alex Thorn of Galaxy Digital dismissed these concerns, stating that the level of risk is exaggerated, as most debts will only come due in 2027 and beyond.
Currently, the total debt of BTC treasury companies amounts to 12.7 billion USD, with Strategy accounting for 8.2 billion USD – equivalent to 64% of the total debt.
Nearly 10 billion USD of this debt will mature from 2027 to 2028, coinciding with Qureshi's prediction of the bubble bursting.
Source: Galaxy Research
Cryptocurrency treasury profits – attractive but carry risks.
The cryptocurrency treasury meta offers attractive yields, even outperforming underlying assets, attracting the majority of long-term investors and hedge funds.
However, with a risk management mindset, the 2027-2028 period is a crucial time that investors need to pay close attention to. The game will change if companies cannot repay their debts; the potential for a liquidation explosion or a sudden market decline is difficult to avoid.
Source: https://tintucbitcoin.com/bong-bong-tich-tru-bitcoin-sap-no/
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