🏦 Bitcoin Treasury Firms at Risk of Collapse
A new report by Breed VC, shared via Cointelegraph, warns that many Bitcoin (BTC) treasury companies may not survive ongoing market pressures. These firms could enter a “death spiral” if their market value drops close to their net asset value (NAV).
As Bitcoin’s price falls, companies struggle to raise funds, face margin calls, and may be forced to sell BTC—potentially triggering a crypto bear market. Only a few firms are expected to survive by maintaining a strong MNAV (Multiple of NAV) through smart leadership and strategy.
Fortunately, most BTC treasury firms use equity financing (not debt), which reduces collapse risk. But if debt grows, the threat intensifies.
Over 250 organizations, including MicroStrategy and other corporations, now hold BTC, making this a key area to watch in 2025.
⚠️ Key Insight: The future of BTC treasuries depends on smart execution, low debt, and market resilience.