Analyst Warns Bitcoin Treasury Trend May Lose Steam

The strategy of holding Bitcoin as a corporate treasury asset may not be as sustainable as many expect, warns Glassnode lead analyst James Check. In a post on X on Friday, Check shared concerns that the easy gains for companies entering the Bitcoin treasury space might already be in the past.

“My instinct is the Bitcoin treasury strategy has a far shorter lifespan than most expect,” Check wrote, adding that the approach is not about “a measuring contest” but about whether a company’s product and business model can support long-term Bitcoin accumulation without depending solely on hype.

“Nobody Wants the 50th Treasury Company”

Check noted that new Bitcoin treasury firms face challenges as investors increasingly favor established players. “Nobody wants the 50th Treasury company,” he said, emphasizing that it will become harder for new firms to sustain a premium in the market unless they bring a unique offering.

In the 30 days leading up to Friday, 21 entities added Bitcoin as a reserve asset, according to BitcoinTreasuries data. Yet the gap between leaders and newcomers remains significant. Michael Saylor’s Strategy (MSTR), the largest public Bitcoin treasury, holds 597,325 BTC, while the second-largest, MARA Holdings, holds around 50,000 BTC — roughly one-twelfth as much.

Check observed that retail speculators are often drawn to these newer treasury firms, but he cautioned that they do not “have infinite money.” While he remains bullish on Bitcoin’s price, which was trading at $107,990 at publication, he noted that sustaining a treasury strategy is a different challenge than simply betting on price appreciation.

“It’s a spectrum,” Check explained, saying that larger players like Strategy have more runway than the 300th company attempting to adopt a Bitcoin treasury model.

Consolidation May Follow for Weaker Players

The concerns echo comments from Taproot Wizards co-founder Udi Wizardheimer, who argued that some companies enter the Bitcoin treasury space seeking quick profits without fully grasping the long-term implications. 

“Many of the folks raising just see easy money and have no idea what they’re doing,” Wizardheimer said, adding that weaker players may eventually be acquired by stronger firms as the trend matures.

Venture firm Breed also raised concerns, suggesting only a few Bitcoin treasury companies will survive the potential “death spiral” affecting firms that trade close to their net asset value. Similarly, GoMining Institutional’s Fakhul Miah recently warned about “copycat” companies entering the space without safeguards, which could risk damaging Bitcoin’s broader image if these firms fail.

The post Analyst Warns Bitcoin Treasury Trend May Lose Steam appeared first on BitcoinLinux.com.