In recent years, there has been a growing interest in companies managing Bitcoin treasuries, yet experts express concerns about the sustainability of such business strategies.
Capital Inflow Challenges
Glassnode analyst James Check noted that new companies operating in the Bitcoin space may face difficulties attracting investment. He emphasized that most investors prefer more established firms, while new entrants struggle to gain sufficient attention. According to him, "nobody wants the 50th treasury company."
Critique of Business Strategy Models
Bitcoin Magazine reporter Emil Sandstedt expressed concerns that new companies are "bubbles." He pointed out that firms such as Strategy create the illusion of growth by utilizing complex financial products. Sandstedt added that the current model may be too risky for many new players, especially those copying aggressive strategies of existing firms.
The Future of Bitcoin Treasuries
Market participant Udi Wizardheimer warned that new companies typically operate without a clear strategy. He emphasized that many are simply chasing quick profits and lack a deep understanding of the industry. Some experts predict that the behavior of such companies could lead to a "death spiral," which will pull down weaker firms that risk losing their market positions amidst Bitcoin price declines.
Discussions around Bitcoin treasury firms highlight the necessity for a long-term approach and vigilance regarding current market conditions. Experts suggest approaching this trend with caution to avoid potential losses.
