More than 250 organizations—including not only corporations and government entities but exchange-traded funds (ETFs), pension funds, and digital asset service providers—currently own Bitcoin. A new report from the venture capital firm Breed zeroes in on an urgent and related problem. Most of these Bitcoin treasury firms might find themselves in a “death spiral” if they start trading anywhere close to their NAV. Our report delves into the strategy behind Bitcoin treasury companies. These platforms have received tremendous momentum in the last two years.

Breed’s report breaks down the seven stages of death for a Bitcoin treasury co., detailing them step by step. Bitcoin’s price plummets, igniting the fall. This results in a corresponding plunge in market capitalization relative to net asset value (MNAV). This decline usually brings a firm’s share value in line with its true NAV.

According to Breed, only a few Bitcoin treasury companies will stand the test of time and avoid the "death spiral." Equity-based financing further caps the fallout on the wider market. According to BitcoinTreasuries.net, more than 250 corporations and nonprofits hold Bitcoin on their balance sheets today.

Ultimately, only a select few companies will sustain a lasting MNAV premium. They will earn it through strong leadership, disciplined execution, savvy marketing, and distinctive strategies that continue to grow Bitcoin-per-share regardless of broader market fluctuations.

  • Breed