Recent comments from analysts raise questions about the viability of the bitcoin treasury strategy for new companies, suggesting that optimistic expectations may not be fulfilled.
Potential Shortcomings of the Strategy
According to Glassnode's lead analyst James Check, "the bitcoin treasury strategy may have a much shorter lifespan than many expect."
Risks and Challenges for New Entrants
Check emphasizes that newer businesses are increasingly finding it difficult to attract investments as investors prefer earlier market participants. "Nobody wants the 50th Treasury company," he noted. He also argues that many new firms attract retail speculators, but do not have infinite funds.
The Future of Bitcoin Treasury Companies
Some experts predict that less effective companies will be acquired by bigger players. Udi Wizardheimer, co-founder of Taproot Wizards, suggests that "the weak ones might be acquired at a discount by the strong ones," but this process could take time.
Commenting on the current situation, analysts express doubts about the sustainability of new companies using the bitcoin treasury strategy and predict that industry consolidation will be inevitable.
