Only Top Bitcoin Treasuries Will Survive in 2025
Only the Strongest Bitcoin Treasury Companies Will Survive, Says VC Report
In 2025, Bitcoin treasury companies have emerged as a dominant trend. Yet, a new report from venture capital firm Breed warns that only a select few will endure the industry’s harsh financial realities.
According to the report, many BTC treasury firms may not withstand what Breed calls a “death spiral”—a cascading failure that begins with a drop in Bitcoin’s price and ends with forced liquidations, consolidation, and possibly a prolonged bear market.
The report emphasizes that the sustainability of such companies depends on their ability to maintain a market value significantly higher than their net asset value (MNAV) — essentially a premium that shows investor confidence beyond just asset holdings.
The Seven Phases of Collapse
Breed outlines a seven-step collapse scenario:
- Bitcoin’s price drops, reducing MNAV.
- Share prices fall closer to actual net asset value (NAV).
- Capital becomes harder to raise.
- Credit lines dry up.
- Margin calls occur.
- BTC gets dumped into the market.
- Weaker firms are acquired, amplifying market stress.
This spiraling effect not only threatens individual companies but could also trigger the next widespread crypto bear market. The authors stress that only companies with strong leadership, smart marketing, and disciplined execution will retain their MNAV premium and continue growing their Bitcoin-per-share metric despite volatile conditions.
Equity Financing May Limit the Damage
Despite these risks, the report offers a glimmer of hope: most BTC treasury companies today are funded through equity, not debt. This reduces the systemic risk, as equity-based firms are not as vulnerable to margin calls or forced liquidations. However, the stability could shift if debt financing becomes more common in the sector.
Bitcoin Treasuries Gain Momentum in 2025
The concept of corporate Bitcoin treasuries was initially driven by Michael Saylor’s company, MicroStrategy, which began accumulating BTC in 2020. The trend has grown rapidly since.
According to BitcoinTreasuries, more than 250 entities now hold Bitcoin on their balance sheets — ranging from private corporations and government agencies to ETFs, pension funds, and other digital asset firms.
