According to a report by Deep潮TechFlow, Breed's latest report shows that Bitcoin reserve companies will become a trend by 2025, but only a few companies can survive the market volatility. Many companies' stock prices are close to their net asset value (NAV), and they may fall into a 'death spiral'.
The report describes seven stages 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 maturities 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 rely on equity financing to purchase Bitcoin, and if debt financing becomes mainstream, market conditions may worsen.
