According to a report by Deep Tide TechFlow, Breed's latest report indicates that Bitcoin reserve companies will become a trend by 2025, but only a few companies can survive in market volatility. Many companies' stock prices are close to net asset value (NAV) and may fall into a 'death spiral.'
The report describes seven stages of recession: the decline in Bitcoin prices leads to a drop in the multiple of net asset value (MNAV), financing difficulties, credit exhaustion, and debt maturities force companies to sell Bitcoin, driving down 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 could worsen.
