Experts Warn: Bitcoin Treasury Boom May Be Unsustainable
Corporate Bitcoin treasury firms have become an emerging trend in the last few years, with companies like Strategy adopting an aggressive ownership approach. But some market experts have expressed concern over this capital reserve strategy, arguing that it lacks purpose and may not stand the test of time.
In Brief
- Analysts warn that many Bitcoin treasury companies rely on new investors for revenue generation.
- Firms use complex financial products to hide the true source of yield.
- Failing companies copying the Bitcoin treasury playbook may face collapse during a prolonged Bitcoin downturn.
- Experts advise caution as the next bitcoin bear market may wipe out equity in these companies.
Analyst Says New Bitcoin Treasury Firms May Struggle Without Long-Term Strategy
Glassnode lead analyst James Check recently took to X, saying that the current Bitcoin holding model may not be as sustainable as many expected. He suggested that the days of easy gains may be gone for new firms entering the industry unless a sustainable product and approach are adopted.
For many new entrants, it could already be over. It’s not about a measuring contest. It’s about how serious and sustainable your product and Strategy is to sustain the accumulation
Checkmate
The market expert also acknowledged that new entrants are already facing a difficult time attracting capital inflow, as most investors mostly favor early Bitcoin treasury firms. “Nobody wants the 50th Treasury company,” Check explained. He added that startup BTC treasury firms mostly attract retail speculators with limited funds who are in for short-term gains.
Compared to previous years, corporate BTC accumulation has surged significantly in 2025. According to CryptoQuant data, 51 new Bitcoin treasury firms debuted in the first half of the year, 14 more than 2024’s count of 37. A BitcoinTreasuries report also shows that about 21 new companies have adopted BTC as a reserve asset in the past month alone.
Check conceded that it’s difficult to predict how long these newer firms might face challenges, even though he remains bullish on Bitcoin’s long-term price outlook. At the time of writing, the OG coin is exchanging hands at $108,121 following a modest intraday retracement.
The Glassnode lead analyst called the whole trend a spectrum, explaining that Strategy, for instance, holds more appeal than a 300th firm entering the BTC treasury space. He also agreed with Taproot Wizards co-founder Udi Wizardheimer’s comments that some firms are leveraging the Bitcoin treasury strategy as a quick-gain scheme, without thinking of its long-term objective.
Bitcoin Treasury Firms Are “Bubbles,” Says Emil Sandstedt
Bitcoin Magazine reporter Emil Sandstedt also raised a similar concern regarding this new corporate finance trend, saying that “Bitcoin Treasury Companies are bubbles.” Sandstedt argued that Bitcoin treasury companies like Strategy are operating like Ponzi schemes.
According to the reporter, Strategy creates an illusion of growth by issuing massive amounts of shares and complex financial products to buy more bitcoin. Michael Saylor’s Strategy (MSTR) is currently the largest Bitcoin Treasury holder with 597,325 BTC worth $64.5 billion at current market rates.
Several firms, including MARA Holdings and Metaplanet, have adopted Strategy’s aggressive BTC stashing model as a blueprint for increasing their holdings. However, like Check, Sandstedt believes that failing companies have copied this model to boost their stock prices. He also cautioned that smart money is exiting the industry, and insiders sell shares at inflated prices to retail traders.
Wizardheimer Warns New Corporate Bitcoin Holders Lack Purpose
Wizardheimer admitted that the new firms are just raising capital without a clear sense of purpose. Here’s what Taproot Wizards co-founder thinks about the BTC treasury boom:
- New players are simply chasing quick profits without a deep understanding of the industry.
- These new players will need time to fully understand the space for a better business approach.
- Weaker companies might be acquired by stronger ones at discounted prices.
- This trend could continue for some time before eventually slowing down.
Venture capital firm Breed has also echoed the ongoing doubts regarding the new trend. In a recent report, the VC company suggested that only a few Bitcoin treasuries will hold up over time when an inevitable “death spiral” engulfs firms that trade close to net asset value (NAV).
Still, some market experts believe that Bitcoin treasuries could diversify in the future, potentially exploring attainable income generation options such as lending or yield staking. Such a robust approach could help these firms better guard against Bitcoin’s price volatility in the event of a market downturn. However, these projections are still in their early days and remain largely speculative.
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