When companies are competing to bet on BTC, can the success of Strategy be replicated?

原标题：The $Strategy Strategy Proliferation

Author: Breed Investment Partner Nick D. Garcia

Compiled by: BitpushNews

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Key Points

The next stage of Bitcoin's development has arrived: companies are adopting Bitcoin on their balance sheets. As of May 2025, a total of 199 entities hold 3.01 million BTC (approximately $315 billion), and this number is still growing rapidly.

Companies that primarily hold Bitcoin will be regarded as Bitcoin holding companies, with their valuation method similar to that of the largest Bitcoin company, Strategy. To survive, these companies must pay attention to a key premium metric "Multiple on Net Asset Value (MNAV)" - this is the most critical measure.

The premium of MNAV depends on the market's trust in the core team's capabilities and execution. These teams must execute the strategy of Strategy: increasing the per-share Bitcoin holdings through debt financing, stock issuance, and cash flow reinvestment. Currently, new entrants are expanding this approach.

The biggest threat is the prolonged duration of the bear market, which weakens the MNAV premium, coinciding with the maturity of debts. Newly established Bitcoin treasury companies face greater risks as they have stricter conditions for capital raising and higher leverage.

Once the industry begins to see failures, the strongest players may acquire struggling companies and consolidate them. Fortunately, because most financing is equity-based, the contagion risk is limited; however, companies that rely heavily on debt pose a greater systemic threat.

New Stage: Companies Compete to Adopt Bitcoin

We have witnessed the rise of Bitcoin in recent years. Not only has the price increased, but its level of adoption and recognition has also crossed the chasm. Key milestones include:

• In September 2021, El Salvador recognized Bitcoin as legal tender;
• In January 2024, BlackRock launched the IBIT ETF;
• The U.S. president has made Bitcoin a strategic economic focus;
• And in the summer of 2025, the adoption of Bitcoin on company balance sheets surged.

According to data from Bitcointreasuries.net, currently 199 entities hold a total of 3.01 million BTC (31.5 billion USD). Among them, 147 private and public companies hold 1.1 million BTC (11.5 billion USD).

Recently, a wave of companies announced new Bitcoin treasury strategies. These companies include those with diversified balance sheets and those specializing in Bitcoin treasury management, covering different countries and industries, and led by trusted teams.

Since the beginning of 2024, the number of Bitcoins held by the company has more than doubled. Strategy Company holds over 580,000 BTC, accounting for 53% of the total corporate holdings. Other companies holding more than 10,000 BTC include:

• Block.one (164,000 tokens)
• Tether (100,500 tokens)
• MARA Holdings (49,140 coins)
• Twenty One (31,500 pieces)
• Riot Platforms (19,200 coins)
• Galaxy Digital (12,800 tokens)
• CleanSpark (12,100 coins)
• Tesla (11,500 pieces)
• Hut 8 (10,300 coins)

With its scale, reputation, and counter-cyclicality, Strategy is essentially destined to continue being the leader among Bitcoin-holding companies. But more notably, the Strategy model is being imitated. An increasing number of companies are incorporating Bitcoin into their balance sheets, and new companies specializing in Bitcoin treasury management are emerging, which has profound implications for Bitcoin.

Operating Mechanism and Valuation Method

Companies that add Bitcoin to their balance sheets while maintaining their core business are still primarily valued based on their main operations. However, once a company's sole purpose is to hold Bitcoin, its valuation will be primarily based on the Bitcoin it holds.

To attract investors to buy their stocks instead of directly holding Bitcoin, such companies must achieve excess returns that exceed the performance of Bitcoin itself. This excess return is referred to as the 'Market Net Asset Value multiple' (MNAV).

For example, Strategy Company holds 580,250 BTC, worth approximately 6 billion USD, while its market capitalization is 104 billion USD, and the MNAV is 1.7 times.

The volatility of MNAV depends on various factors such as company size, market experience, and other businesses. 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 the company holds Bitcoin, provided that investors believe the company's management can consistently and steadily grow the "per share Bitcoin" quantity.

Since 2020, Strategy has been demonstrating its capabilities through three types of capital leverage methods:

1. Convertible Bonds: Issue low-interest convertible bonds that can only be converted into equity when the stock price increases by 30–50% compared to the issuance price, thereby raising large amounts of capital at a lower cost without easily diluting equity.
2. Stock Issuance in the Market (ATM): When the stock price is higher than the MNAV, continue to issue new shares through the ATM program, which is equivalent to continuously purchasing Bitcoin using the average cost method.
3. Reinvesting Operating Cash Flow: Use all free cash flow generated from traditional business to purchase spot Bitcoin.

Latecomer companies are also adopting and innovating this strategy. Some innovative methods include:

• Allow Bitcoin holders to convert to stocks through stock exchange, avoiding triggering capital gains tax;
• Acquire companies below their net cash value and convert their value into Bitcoin;
• Acquire claims related to Bitcoin lawsuits that are in distress;
• Enhance influence through media and events;
• Financing through PIPE (Private Investment in Public Equity) method;
• Utilize regulatory arbitrage.

Who are the participants?

As of the first half of 2025, more than 40 companies have publicly announced their intention to adopt Bitcoin on their balance sheets, collectively raising hundreds of billions of dollars to execute these strategies. These companies vary in terms of industry, region, execution model, and listing path.

Notable mentions include:

• Metaplanet (Japan): One of the earliest international participants, taking advantage of Japan's ultra-low interest rate environment;
• Semler Scientific and GameStop (USA): Their Bitcoin financial strategy has attracted mainstream media attention;
• Twenty One Capital: A specialized enterprise backed by Tether and Cantor;
• Strive and Nakamoto: Rapidly going public through a reverse merger.

Please refer to the chart above for more companies that have announced Bitcoin treasury strategies as of May 2025.

Is the ### model sustainable?

There is no foolproof strategy in the financial sector - the Bitcoin finance company is no exception.

Strategy underwent significant trials during the bear market of 2022-23: Bitcoin plummeted 80%, MNAV premium disappeared, and new sources of capital dried up. Despite this, the company managed to survive, although Saylor may not have slept well for a few nights.

The biggest survival risk is an extended bear market, where the MNAV premium is eroded and debts are maturing. If the stock price falls to or below the net asset value, and lenders refuse to refinance, the company may be forced to sell Bitcoin to pay off debts—triggering a vicious cycle of price declines and sell-offs.

The newly established treasury companies carry higher risks. Without the scale, reputation, and passive index fund flows of a Strategy, their financing conditions are worse and leverage is higher. In a declining market, these structures may quickly trigger margin calls + sell Bitcoin at a loss, further exacerbating the market downturn.

The next direction

The expansion of Bitcoin financial companies is still in the early stages; however, this model has begun to extend to other crypto assets —

For example: Solana: DeFi Development Corp (market cap of $100 million, holding over 420,000 SOL), Upexi, and Sol Strategies; Ethereum: SharpLink Gaming raised $425 million in funding led by Consensys.

It is expected that more companies worldwide will adopt this model, covering more assets and using higher leverage in pursuit of success.

Most companies will fail. Fortunately, since most financing is based on equity, the contagion risk is lower. However, companies that are heavily reliant on debt pose a systemic threat.

Ultimately, only a few companies can maintain an MNAV premium over the long term, relying on strong leadership, rigorous execution, savvy market operations, and unique strategies, so that regardless of market fluctuations, they can continuously drive the growth of Bitcoin's per-share value.