A cryptocurrency evaluator states that the Bitcoin treasury tactic might not possess the durability many anticipate, signaling that the straightforward growth might already be behind for emerging companies in the sector.
“My intuition is the Bitcoin treasury approach has a significantly shorter duration than most presume,” Glassnode chief analyst James Check declared in an X update on Friday.
“It might already be concluded” for new Bitcoin treasury enterprises
“For numerous newcomers, it might already be concluded,” Check remarked, emphasizing that it’s not “about a competition of metrics” but rather the sustainability of a firm’s product and strategy regarding long-term Bitcoin (BTC) accumulation.
Check indicated that it is becoming a challenging endeavor for recent Bitcoin treasury firms as investors lean toward the initial adopters. “No one desires the 50th Treasury organization,” Check stated.
“I believe we’re already nearing the ‘show me’ phase, where it will become progressively challenging for arbitrary company X to maintain a premium and launch without a significant niche.”
In the 30 days leading to Friday, at least 21 organizations integrated Bitcoin as a reserve asset, according to BitcoinTreasuries data. The largest public Bitcoin treasury, Michael Saylor’s Strategy (MSTR), possesses 597,325 BTC, while the second-largest, MARA Holdings, retains 50,000 BTC — roughly one-twelfth as much.
Check conveyed that startup Bitcoin treasury companies attract retail investors — but cautioned they don’t “have endless capital.”
Check acknowledged that it is difficult to impose a time frame on the decline for the newer firms, as he remains “optimistic” about Bitcoin’s price, which is trading at $107,990 at the time of publication, about 3.70% below its $111,970 all-time peak, according to CoinMarketCap data.
“It’s a spectrum,” he explained, mentioning that, for instance, Strategy has more potential than the 300th Bitcoin treasury firm entering the market.
Check expressed agreement with Taproot Wizards co-founder Udi Wizardheimer’s perspective that some companies are implementing a Bitcoin treasury approach as a means for swift earnings, without fully grasping its long-term significance.
“The weaker ones” might be taken over by the larger Bitcoin entities
“Many individuals raising funds simply see easy profits and lack comprehension of what they’re undertaking,” Wizardheimer commented.
“I think it will require some time for them to understand,” he added:
“The weaker companies might be acquired at a reduced rate by the stronger ones, and the trend could still possess a few more phases.”
Lately, various uncertainties have surfaced concerning firms embracing a Bitcoin treasury approach.
Venture capital entity Breed asserted in a June 29 report that only a limited number of Bitcoin treasury enterprises will endure the test of time and evade the brutal “death spiral” that will affect BTC holding firms trading near net asset value (NAV).
Related: Bitcoin’s third stumble at $110K endangers bulls: BTC price levels to monitor
On June 11, Fakhul Miah, managing director of GoMining Institutional, revealed to Cointelegraph that what troubles him most are “the imitators.”
“Numerous other firms are attempting to establish Bitcoin banks without adequate safeguards or risk management. If these smaller enterprises falter, we might experience a ripple effect that harms Bitcoin’s reputation,” Miah stated.
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