James Check of Glassnode shared his views on the instability of Bitcoin treasury strategies for new businesses, emphasizing important insights on long-term sustainability.
James Check's Assessment
In a post on X, Check noted: 'I feel that the Bitcoin treasury strategy has a much shorter lifespan than most expect.'
Challenges for New Participants
Check pointed out that new Bitcoin treasury firms are struggling due to investors' preference for early users. 'No one wants the 50th treasury company,' Check explained. He added that while such companies may attract retail speculators, they do not 'have infinite funds.'
Long-term Perspective and Risks
The analyst also agreed with a founder of Taproot Wizards about many companies misunderstanding the long-term goals of Bitcoin treasury strategies. 'Many of those raising funds see only easy money and do not understand what they're doing,' he said, highlighting the potential risks and the possibility of weaker firms being absorbed by stronger ones.
James Check's overall conclusions highlight the need for a deep understanding of long-term strategies in Bitcoin treasury, as simple profits may become elusive for new companies.
