Key Takeaways
The next stage of Bitcoin's development has arrived: companies adopting Bitcoin on their balance sheets. As of May 2025, 199 entities collectively hold 3.01 million BTC (about $315 billion), and this number is still growing rapidly.
Companies whose primary purpose is to hold Bitcoin will be considered Bitcoin holding companies and valued in a similar way to the largest Bitcoin company Strategy. In order to survive, these companies must pay attention to a key premium indicator, "MNAV: Multiple on Net Asset Value" - the most critical metric.
The MNAV premium depends on the market’s trust in the core team and its ability to execute. These teams must execute Strategy’s strategy: increasing the number of Bitcoins per share held through debt financing, equity issuance, and cash flow reinvestment. Currently, new entrants are expanding this approach.
The biggest threat is that the bear market lasts too long, eroding the MNAV premium just as debt matures. Newly established Bitcoin treasury firms face greater risk because they have more stringent conditions for raising capital and higher leverage.
Once failures start to occur in the industry, the most powerful players are likely to acquire distressed companies and consolidate. Fortunately, since most financing is equity-based, contagion risk is limited; however, companies that rely heavily on debt pose a greater systemic threat.
The Next Phase: Businesses Rush to Adopt Bitcoin
We have witnessed the rise of Bitcoin in recent years. Not only has the price increased, but its adoption and recognition have also crossed the chasm. Key nodes include:
- In September 2021, El Salvador recognized Bitcoin as legal tender;
- In January 2024, BlackRock launched the IBIT ETF;
- The US President has made Bitcoin a strategic economic priority;
- and the summer of 2025, with a surge in Bitcoin adoption on corporate balance sheets.
According to Bitcointreasuries.net, there are currently 199 entities holding a total of 3.01 million BTC ($315 billion), of which 147 private and public companies hold 1.1 million BTC ($115 billion).
Recently, a wave of companies have announced new Bitcoin treasury strategies. These companies include diversified balance sheet businesses and companies specializing in Bitcoin treasury, covering different countries and industries, and led by trusted teams.
Since the beginning of 2024, the amount of Bitcoin held by the company has more than doubled. Strategy holds more than 580,000 BTC, accounting for 53% of the total corporate holdings. Other companies holding more than 10,000 BTC include:
- Block.one (164,000 pieces)
- Tether (100,500 pieces)
- MARA Holdings (49,140 pieces)
- Twenty One (31,500 pieces)
- RiotPlatforms (19,200 coins)
- Galaxy Digital (12,800 pieces)
- CleanSpark (12,100 pieces)
- Tesla (11,500)
- Hut 8 (10,300 pieces)
With its size, reputation, and anti-cyclicality, Strategy is essentially destined to continue to be the leader among companies holding Bitcoin. But what is more noteworthy is that Strategy's model is being imitated. More and more companies are adding Bitcoin to their balance sheets, and new companies specializing in Bitcoin treasury are emerging, which has profound implications for Bitcoin.
Operation mechanism and valuation method
For companies that add Bitcoin to their balance sheets while maintaining their main business, their valuation is still based on their main business. However, once the company's only purpose is to hold Bitcoin, the Bitcoin it holds will be the main basis for valuation.
To entice investors to buy their shares rather than own Bitcoin directly, such companies must achieve excess returns that exceed the performance of Bitcoin itself. This excess return is called a “net asset value multiple” (MNAV).
For example, Strategy holds 580,250 BTC, worth about $60 billion, while its market cap is $104 billion, with a MNAV of 1.7x.
MNAV fluctuates depending on a variety of factors such as company size, market experience, other businesses, etc. However, the 2x MNAV that Strategy has historically maintained is the long-term gold standard.
The market will not assign a premium to MNAV simply because a company holds Bitcoin, provided that investors believe that the company's management can continue to steadily grow the number of "Bitcoins per share."
Since 2020, Strategy has been demonstrating its capabilities through three leveraging methods:
- Convertible bonds: Issue convertible bonds with low interest rates that are converted into equity only when the stock price rises 30-50% from the issue price, thereby raising large amounts of funds at a lower cost without easily diluting equity.
- Stock issuance at the market (ATM): When the stock price is higher than MNAV, new shares are continuously issued through the ATM program, which is equivalent to continuously purchasing Bitcoin using the average cost method.
- Reinvesting operating cash flow: All free cash flow generated by traditional businesses will be used to purchase spot Bitcoin.
Newcomers are also adopting and innovating this strategy. Some of the innovative approaches include:
- Allow Bitcoin holders to convert to stocks through a stock exchange to avoid triggering capital gains tax;
- Acquire companies below their net cash value and convert their value into Bitcoin;
- Acquisition of troubled Bitcoin-related litigation claims;
- Increase influence through media and events;
- Financing through PIPE (Private Equity Investment);
- Taking advantage of regulatory arbitrage.
Who are the participants?
As of the first half of 2025, over 40 companies have publicly announced plans to adopt Bitcoin on their balance sheets, raising tens of billions of dollars to execute on these strategies, and these companies vary in terms of industry, geography, execution model, and path to market.
Notable ones include:
- Metaplanet (Japan): One of the earliest international players to take advantage of Japan’s ultra-low interest rate environment;
- Semler Scientific and GameStop (US): Its Bitcoin treasury strategy attracted mainstream media attention;
- Twenty One Capital: a specialized firm backed by Tether and Cantor;
- Strive and Nakamoto: Going public quickly via reverse mergers.
Check out the chart above to see more companies that have announced a Bitcoin treasury strategy as of May 2025.
Is the model sustainable?
No strategy in finance is foolproof – and Bitcoin Treasury is no exception.
Strategy was severely tested in the 2022–23 bear market:
Bitcoin plunged 80%, the MNAV premium disappeared, and new sources of capital dried up. Still, the company survived, though Saylor may have had some sleepless nights.
The biggest existential risk is that the bear market lasts too long, the MNAV premium is eroded, and debt is due. If the stock price falls to or below net asset value and lenders refuse to refinance, the company may be forced to sell Bitcoin to repay the debt - triggering a vicious cycle of falling prices and selling.
Newly established treasury firms are at a higher risk. Without Strategy’s scale, reputation, and passive index fund flows, they have poorer funding conditions and higher leverage. In a down market, these structures could quickly trigger margin calls + fire sales of Bitcoin, further exacerbating market declines.
Next direction
The expansion of Bitcoin treasury companies is still in its early stages; but the model is beginning to extend to other crypto assets.
For example: Solana: DeFi Development Corp (market value of US$100 million, holding more than 420,000 SOL), Upexi and Sol Strategies; Ethereum: SharpLink Gaming, which raised US$425 million in a financing led by Consensys.
It is expected that more companies around the world will adopt this model, covering more assets and using higher leverage in pursuit of success.
Most companies will fail. Fortunately, since most financing is equity-based, contagion risk is low. But companies that rely heavily on debt pose a systemic threat.
Ultimately, only a select few companies will be able to sustain a MNAV premium over the long term, relying on strong leadership, disciplined execution, savvy market manipulation, and a unique strategy that can consistently drive growth in the value of Bitcoin per share regardless of market volatility.
Original title: The $Strategy Strategy Proliferation
By Nick D. Garcia, Breed Venture Partner
