A new analysis from venture firm Breed warns that most companies holding Bitcoin as a treasury asset may face serious challenges ahead — and only a few will likely endure.
The report outlines how firms trading too close to their net asset value could be vulnerable to a chain reaction triggered by falling BTC prices. If they can’t maintain a premium above their assets, access to funding could dry up, pushing them into forced sales and potentially dragging prices even lower.
While many of these companies currently rely on equity rather than debt, the authors caution that a shift in financing strategies could deepen the risks. According to the report, the firms that will survive are those with strong leadership, clear strategies, and the ability to grow their BTC holdings regardless of market swings.
A sharp drop in Bitcoin’s value can quickly undermine investor confidence, especially if margin calls force distressed firms to liquidate BTC. This creates downward pressure on the market, potentially sparking a broader correction and accelerating industry consolidation, where weaker firms are absorbed by stronger players.
Bitcoin treasury adoption, once championed by companies like Michael Saylor’s Strategy, has spread across sectors. Today, more than 250 institutions — including public companies, ETFs, and government bodies — hold BTC on their books. While this signals mainstream acceptance, the Breed report suggests that not all participants are equipped to withstand long-term volatility.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly 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 passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/only-a-handful-of-bitcoin-holding-companies-may-withstand-market-pressures/