{"id":13729,"date":"2025-07-05T06:15:32","date_gmt":"2025-07-05T04:15:32","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=13729"},"modified":"2025-07-05T06:15:32","modified_gmt":"2025-07-05T04:15:32","slug":"analyst-highlights-potential-shortcomings-of-bitcoin-treasury-approach","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/07\/05\/analyst-highlights-potential-shortcomings-of-bitcoin-treasury-approach\/","title":{"rendered":"Analyst Highlights Potential Shortcomings of Bitcoin Treasury Approach"},"content":{"rendered":"

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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.<\/p>\n

\u201cMy intuition is the Bitcoin treasury approach has a significantly shorter duration than most presume,\u201d Glassnode chief analyst James Check declared<\/a> in an X update on Friday.<\/p>\n

\u201cIt might already be concluded\u201d for new Bitcoin treasury enterprises<\/h2>\n

\u201cFor numerous newcomers, it might already be concluded,\u201d Check remarked, emphasizing that it\u2019s not \u201cabout a competition of metrics\u201d but rather the sustainability of a firm\u2019s product and strategy regarding long-term Bitcoin (BTC<\/a>) accumulation.<\/p>\n

Check indicated that it is becoming a challenging endeavor for recent Bitcoin treasury firms as investors lean toward the initial adopters. \u201cNo one desires the 50th Treasury organization,\u201d Check stated.<\/p>\n

\u201cI believe we\u2019re already nearing the \u2018show me\u2019 phase, where it will become progressively challenging for arbitrary company X to maintain a premium and launch without a significant niche.\u201d<\/p><\/blockquote>\n

Source: <\/em>James Check<\/em><\/a><\/figcaption><\/figure>\n

In the 30 days leading to Friday, at least 21 organizations integrated Bitcoin as a reserve asset, according<\/a> to BitcoinTreasuries data. The largest public Bitcoin treasury, Michael Saylor\u2019s Strategy (MSTR), possesses 597,325 BTC, while the second-largest, MARA Holdings, retains 50,000 BTC \u2014 roughly one-twelfth as much.<\/p>\n

Check conveyed that startup Bitcoin treasury companies attract retail investors \u2014 but cautioned they don\u2019t \u201chave endless capital.\u201d<\/p>\n

Check acknowledged that it is difficult to impose a time frame on the decline for the newer firms, as he remains \u201coptimistic\u201d about Bitcoin\u2019s price, which is trading at $107,990 at the time of publication, about 3.70% below its $111,970 all-time peak, according<\/a> to CoinMarketCap data.<\/p>\n

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Bitcoin has risen 2.87% over the preceding 30 days. Source: <\/em>CoinMarketCap<\/em><\/a><\/figcaption><\/figure>\n

\u201cIt\u2019s a spectrum,\u201d he explained, mentioning that, for instance, Strategy has more potential than the 300th Bitcoin treasury firm entering the market.<\/p>\n

Check expressed agreement with Taproot Wizards co-founder Udi Wizardheimer\u2019s perspective<\/a> that some companies are implementing a Bitcoin treasury approach as a means for swift earnings, without fully grasping its long-term significance.<\/p>\n

\u201cThe weaker ones\u201d might be taken over by the larger Bitcoin entities<\/h2>\n

\u201cMany individuals raising funds simply see easy profits and lack comprehension of what they\u2019re undertaking,\u201d Wizardheimer commented.<\/p>\n

\u201cI think it will require some time for them to understand,\u201d he added:<\/p>\n

\u201cThe weaker companies might be acquired at a reduced rate by the stronger ones, and the trend could still possess a few more phases.\u201d<\/p><\/blockquote>\n

Lately, various uncertainties have surfaced concerning firms embracing a Bitcoin treasury approach.<\/p>\n

Venture capital entity Breed asserted in a June 29 report that only a limited number of Bitcoin treasury<\/a> enterprises will endure the test of time and evade the brutal \u201cdeath spiral\u201d that will affect BTC holding firms trading near net asset value (NAV).<\/p>\n

Related: <\/strong><\/em>Bitcoin’s third stumble at $110K endangers bulls: BTC price levels to monitor<\/strong><\/em><\/a><\/p>\n

On June 11, Fakhul Miah, managing director of GoMining Institutional<\/a>, revealed to Cointelegraph that what troubles him most are \u201cthe imitators.\u201d<\/p>\n

\u201cNumerous 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\u2019s reputation,\u201d Miah stated.<\/p>\n

Magazine: <\/strong><\/em>Bitcoin vs stablecoins showdown approaches as GENIUS Act nears<\/strong><\/em><\/a><\/p>\n