David Bailey, CEO of Bitcoin treasury firm Nakamoto, has voiced frustration with how companies are reshaping the corporate crypto narrative.
He argues that by adding weaker altcoins to balance sheets, firms are blurring what was once a straightforward strategy: holding Bitcoin as a reserve asset.
Bailey criticized what he called “toxic financing” and the repackaging of failed projects as new instruments. He warned that too many firms are chasing trends without vision, undermining the legitimacy of the entire treasury sector. The way forward, he said, is simple: grow and monetize balance sheets effectively. Those who succeed will expand assets, while those who mismanage will be swallowed up by stronger players.
Comparing Bitcoin treasury firms to traditional banks, Bailey said the industry is essentially building “Bitcoin banks” or, at minimum, Bitcoin-focused financial institutions. In his view, the sector is entering a critical testing phase where only a few will endure.
His comments come as a growing number of publicly listed companies diversify beyond Bitcoin. Some firms, like Mill City Ventures III, have even unveiled strategies centered on altcoins such as Sui, fueling debate over risk and long-term viability. Data shows companies now hold nearly $118 billion worth of Bitcoin, while interest in Ethereum and other tokens has been rising. Ethereum, in particular, has gained traction thanks to staking yields, with over 3% of its supply already in corporate treasuries.
Not all investors welcome this shift. Galaxy Digital’s Mike Novogratz suggested Bitcoin’s recent sideways trading may be tied to treasury demand spilling into other assets. Meanwhile, some venture capital voices warn that only a handful of Bitcoin treasury firms will survive, predicting that poorly managed ones could spiral toward collapse.
The growing appetite for non-Bitcoin treasuries highlights both the maturing of corporate crypto strategies and the risks that come with them. Whether Bitcoin retains its dominant role or cedes ground to a more diverse set of assets remains one of the biggest questions facing institutional adoption today.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoins-biggest-threat-may-be-coming-from-inside-corporate-treasuries/