TechFlow news, June 29 — According to Cointelegraph, a recent report from venture capital firm Breed indicates that in 2025, companies holding bitcoin reserves have become a major trend. However, only a few experienced and disciplined firms are likely to survive future market volatility. The report warns that many bitcoin treasury companies could fall into a "death spiral," especially those whose stock prices are close to their net asset value (NAV).
The Breed report outlines seven stages of decline for bitcoin reserve companies: beginning with falling bitcoin prices, leading to reduced multiples of net asset value (MNAV), making it harder for companies to secure debt or equity financing. As credit dries up and debt matures, margin calls will force companies to sell bitcoin, further depressing market prices—potentially triggering industry consolidation or even prolonged market downturns.
The report emphasizes that only a select few companies can sustain MNAV premiums and grow bitcoin per share through strong leadership, disciplined execution, savvy marketing, and unique strategies. Currently, most companies use equity rather than debt financing to buy bitcoin, which may limit overall market impact. However, the situation could worsen if debt financing becomes widespread.
