📌 Breed VC: Most companies with BTC on their balance sheets may not survive the 'death spiral'

In 2025, the strategy of holding bitcoin in corporate reserves is gaining popularity among companies. But Breed VC analysts believe that for many, this will end in disaster.

What is the 'death spiral'?

Decline in BTC price → decrease in company capitalization → difficulties in attracting investments → margin calls → forced sale of BTC → even deeper decline.

◾️ Those who combine sound management, strategic discipline, and growth in BTC per share, even in unfavorable conditions, will survive.

◾️ For now, the situation is mitigated by the fact that most purchases are financed through stock issuance rather than debt.

◾️ But if debt financing begins to prevail — the market risks sliding into a new bear cycle.

Today, BTC is already on the balance sheet of more than 250 entities — from corporations and funds to ETFs and government institutions.