BITCOIN TREASURY COMPANIES ARE LOSING THEIR APPEAL
BTC itself is not changing, but the way companies use equity to accumulate BTC is being questioned by the market. According to DWF Ventures, only four of the 20 largest crypto treasury companies still have share values above the value of their crypto holdings: Bit Digital, Strive, Hyperliquid Strategies and BitMine.
My take: the key issue is the gap between a company’s market value and the assets on its balance sheet. When a stock trades below the value of its crypto holdings, issuing more shares to buy BTC can dilute the economic interest of existing shareholders instead of creating additional value. That explains why a model once rewarded with a premium can lose momentum when the premium disappears. The fact that most stocks in this group have also underperformed direct crypto exposure makes the “stock as a BTC access vehicle” story harder to justify.
Sequans has sold its remaining 314 BTC and now holds no crypto, showing the pressure is not purely theoretical. For BTC treasury companies, I’ll watch premium or discount to NAV, share issuance and BTC per share before deciding whether to accumulate or stay defensive. Do you think this model is entering a cleanup phase, or could a new BTC cycle restore its appeal? If this logic makes sense, drop a follow for more market breakdowns.
Please do your own research carefully before making any transactions (DYOR). $BTC $BCH $BNB
BTC itself is not changing, but the way companies use equity to accumulate BTC is being questioned by the market. According to DWF Ventures, only four of the 20 largest crypto treasury companies still have share values above the value of their crypto holdings: Bit Digital, Strive, Hyperliquid Strategies and BitMine.
My take: the key issue is the gap between a company’s market value and the assets on its balance sheet. When a stock trades below the value of its crypto holdings, issuing more shares to buy BTC can dilute the economic interest of existing shareholders instead of creating additional value. That explains why a model once rewarded with a premium can lose momentum when the premium disappears. The fact that most stocks in this group have also underperformed direct crypto exposure makes the “stock as a BTC access vehicle” story harder to justify.
Sequans has sold its remaining 314 BTC and now holds no crypto, showing the pressure is not purely theoretical. For BTC treasury companies, I’ll watch premium or discount to NAV, share issuance and BTC per share before deciding whether to accumulate or stay defensive. Do you think this model is entering a cleanup phase, or could a new BTC cycle restore its appeal? If this logic makes sense, drop a follow for more market breakdowns.
Please do your own research carefully before making any transactions (DYOR). $BTC $BCH $BNB
