bitcoin

Venture Capital Report: Many Bitcoin Treasury Companies May Fall into a "Death Spiral"

ChainCatcher news, according to a report by Cointelegraph, the latest report from venture capital firm Breed shows that Bitcoin reserve companies have become a major trend in 2025, but only a few experienced and disciplined companies are expected to survive future market fluctuations. The report points out that many Bitcoin treasury companies may fall into a "death spiral," especially those whose stock prices are close to net asset value (NAV).Breed's report details seven stages of decline for Bitcoin reserve companies: starting with a drop in Bitcoin prices, leading to a decrease in the multiple of net asset value (MNAV), which makes it difficult for companies to obtain debt and equity financing. As credit dries up and debts come due, margin calls will force companies to sell Bitcoin, further depressing market prices and potentially triggering industry consolidation or even a prolonged market downturn.The report emphasizes that only a few companies can maintain MNAV premiums and achieve per-share Bitcoin growth through strong leadership, rigorous execution, savvy marketing, and unique strategies. Currently, most companies are using equity rather than debt financing to purchase Bitcoin, which may limit the overall market impact, but if debt financing becomes mainstream, the situation could worsen.
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