Bitcoin Treasury Hype Fades Amid Growing Market Sophistication
Investor sentiment toward Bitcoin treasury companies is shifting as the market becomes more selective. David Bailey, CEO of KindlyMD and head of its Bitcoin accumulation strategy, noted that the initial “euphoria” around Bitcoin-stacking firms is fading, with investors now better able to spot weak or unsustainable treasuries.
“There are currently around 205 publicly listed Bitcoin treasury companies worldwide, but many have seen their market net asset values (mNAVs) plunge in recent months,” Bailey told CNBC. “The market’s getting more sophisticated; it’s learning how to assess what makes treasury companies different.”
Treasury Firms Must Offer a Distinct Edge
Bailey emphasized that Bitcoin treasuries must have a clear purpose and competitive edge to succeed. “It’s kind of like, what’s the edge? Why are you needed?” he said. “Anytime there’s euphoria, you see both great and weak companies emerge.”
He added that simply following the MicroStrategy-style playbook no longer works, as “there are only so many companies the market can bear doing the same thing.” Instead, he outlined paths to differentiation — from targeting international markets to entering specific asset categories such as credit, or even acquiring operating businesses that produce steady cash flow.
Bailey’s firm, Nakamoto Holdings, recently merged with healthcare company KindlyMD, forming a publicly traded Bitcoin treasury vehicle with plans to accumulate 1 million BTC.
Market Volatility Tests New Entrants
Despite its ambitious plans, KindlyMD’s stock price has dropped nearly 57% over six months, recently trading at $0.76, according to Google Finance. Bailey previously warned investors that “share price volatility may increase for a period of time.”
Currently, public Bitcoin treasuries collectively hold $113.8 billion in BTC, but several have seen sharp mNAV declines, raising questions about sustainability. Standard Chartered recently cautioned that market saturation is driving these losses, exposing smaller firms to heightened financial risk.
Concerns are mounting that the Bitcoin treasury boom may be entering bubble territory. Glassnode lead analyst James Check said, “My instinct is that the Bitcoin treasury strategy has a far shorter lifespan than most expect — for many new entrants, it could already be over.”
Meanwhile, Veronika Kapustina, CEO of TON Strategy, acknowledged the risks but called the trend “a new segment of finance” that could reshape corporate asset management.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.