Nearly 200 companies currently own billions in Bitcoin, but a new report warns that only a few can avoid the danger of a potential death spiral.
Bitcoin (BTC) company recruitment is accelerating rapidly, with nearly 200 entities holding over 3 million BTC on their balance sheets. However, as new players appear to be in a hurry, only those who can skillfully develop Bitcoin Holding per Share are likely to survive the risks ahead.
As of May 2025, approximately 199 entities have 3.01 million BTC, with approximately $315 billion at current prices. Of these, 147 companies, both private and public, hold about 1.1 million BTC, worth $115 billion. And this is not static. Since early 2024, the number of Bitcoins held by such entities has more than doubled.
Corporate Bitcoin Adoption Between Various Entities | Source: Breed.vc
The story here is about not just accumulation, but also about companies whose primary purpose is to hold Bitcoin is being evaluated differently, says analysts at Bread.vc. Think of these as Bitcoin holding companies – strategy is the poster child. The new report highlights that for these companies, survival and success depends on ordering net asset value, or what is soon called MNAV. Essentially, this is a premium investor where investors pay beyond the value of Bitcoin in the book.
Please wait and see
However, the premium “reliably depends on the trust and execution of the core team,” the report explains. It’s not just about owning Bitcoin. Investors hope that these companies will run playbooks that will grow their Bitcoin holdings faster than anyone else by holding them themselves.
Bitcoin Holdings and Mnav | Source: Breed.vc
The strategy is currently dominated by around 580,000 BTC, worth around $60 billion, more than half of the Bitcoin held by companies. However, its market capitalization is $104 billion, giving it an MNAV of about 1.7 times. Historically, MNAV, twice as much as strategy, was the gold standard. The report outlines three major lever strategies that have been in use since 2020.
- Issuing convertible obligations with low coupons. This will only be converted into stocks if the stock price jumps significantly, protecting shareholders from dilution unless performance is required.
- Because we operate a stock issuance program in the market, we will be able to sell new stocks when prices exceed MNAV and then more Bitcoin.
- Reinvest all your free cash flow into the purchase of spot bitcoin from legacy businesses.
Others are watching. Newcomers are using this approach to fine-tune it. Some allow Bitcoin holders to exchange coins for stocks without causing capital gains, acquire undervalued businesses, or even turn their value into Bitcoin. Others are navigating favourably through the obviously grey territory of regulation, pursuing a bitcoin litigation claim or raising capital through pipe transactions.
You might like it too: Strategy joins Russell’s Top 200 Value Index with $64 billion BTC on the book
Bitcoin Treasury’s roster of players is growing rapidly. Over 40 companies announced their Bitcoin financial strategies in the first half of 2025 alone, increasing hundreds of billions to support these moves. These companies come from everything. Japan’s Metaplanet is taking advantage of low interest rates, US Semler Science and GameStop have circumvented the Treasury Department, and pure play companies like 20 capitals backed by Tether and Canter are also in the mix.
Contagion risk
But despite all optimism, the report warns that “nothing of finance is a bullet” especially in this area. The strategy itself faced brutal stress testing in the Bear market in 2022-23. Bitcoin prices plummeted 80%, causing the collapse of MNAV Premium and capital to run out. The company survived, but the threat is clear.
Crypto Treasury Company Death Spiral | Source: breaded.vc
The imminent bear market and the maturity of the looming debt could force businesses to sell Bitcoin to meet their obligations, creating a vicious cycle of price drops and forced sales. This risk is said to be particularly severe for new companies that lack the size and reputation of their strategy. They often raise funds with higher leverage and more stringent conditions. This could accelerate margin calls and distressed sales during slump, and amplify market pressure.
The report predicts that “if a failure is inevitably a hit, the strongest players are likely to acquire the struggling company and consolidate the industry.”
“The good news is that most funding is equity-based, so the risk of transmission is reduced. However, companies that rely heavily on debt pose a greater systematic threat.”
bred.vc
It appears that the Bitcoin Treasury Company model has just begun, not just Bitcoin. The playbook has already spread to other crypto assets. Solana, for example, has Defi Development Corp, which holds over 420,000 SOLs and is valued at around $100 million, while Ethereum has Sharplink Gaming, which raised $425 million in a round led by Consensey.
The report expects this trend to grow globally, with more companies chasing higher leverage to amplify their success. However, it is also foreseen that “most of them fail.” That shakeout only a handful maintain a lasting MNAV premium through “strong leadership, disciplined execution, savvy marketing and unique strategies.”
In short, the game has evolved. Bitcoin finance companies are becoming companies of their own breed, and are not just those who have to demonstrate skills and discipline beyond the market they invest in.
read more: GameStop’s Bitcoin Push reflects the strategy, but no cushions
