The corporate treasury function, historically rooted in conservative cash management, is undergoing its biggest transformation in decades. The revolution really started with Michael Saylor at Strategy, which now holds over 3% of the total Bitcoin supply, but Strategy is no longer the only player in the bitcoin treasury space. Estimates show that corporate treasuries now hold over a million BTC between them, worth over $120 billion in assets as of October 2025.
The thesis of this strategy is based on the same thesis of why we buy and hold Bitcoin as individuals. In an era of monetary debasement, the rational entity will seek an asset that overcomes the disastrous effects of debasement. As money printing continues and markets continue to react (see gold trading above $4,000), it is inevitable that all public companies will ultimately adopt a Bitcoin treasury strategy.
The case for a corporate Bitcoin treasury
The traditional corporate playbook risks not only poor performance but also a breach of fiduciary duty as cash reserves are depleted on the altar of money printing. Bitcoin, however, offers a finite-supply, non-counterparty asset with a history of more than a decade of compounding value in real terms.
The beauty of the treasury strategy is not just the holding of Bitcoin itself; but the ability it gives companies to take advantage of the capital markets. Unlike spot ETFs, companies can issue shares at premiums to net asset value (NAV), obtain convertible debt with low or even zero coupons, and strategically time both market access and Bitcoin purchases. In practical terms, this means that companies, in addition to holding Bitcoin, can use market structure to increase Bitcoin holdings per share over time.
The network effect is now self-reinforcing. As each successful Bitcoin treasury company demonstrates viability, capital market skepticism wanes and the required financial infrastructure (custody, reporting, convertible debt) matures.
Most compelling is the mNAV value creation paradox: trading at a premium allows companies to issue shares, buy more Bitcoin, and raise BTC per share (BPS) for existing shareholders. For example, Strategy generated a BTC return of 74.3% in 2024, so long-term holders saw their underlying stake in Bitcoin increase by that amount simply through corporate actions, not just market appreciation. This is a structural financial innovation for treasury management.
But why would a rational investor pay such premiums?
Public companies raise debt below Bitcoin’s long-term appreciation rate, magnifying the accumulation of BTC per share. Between 2020 and 2025, Bitcoin’s compound annual growth rate has been 64%. Future projections suggest an environment where BTC continues to accumulate an average of between 25% and 35%, so if funding costs are 8%, shareholders retain the spread.
If BTC per share grows faster than dilution, shareholders benefit. The resonant flywheel is: mNAV premium → equity raise → more BTC → higher Bitcoin per share → sustained premium → next raise.
Viewed from a different perspective, many jurisdictions and markets have different rules regarding access to Bitcoin for both corporate and retail investors. In the UK alone, as of October 2025 a huge amount of capital (£1.4 trillion) is trapped in personal pensions and tax-efficient savings vehicles (ISAs). For this capital, exposure to Bitcoin through Treasury companies is typically the easiest way to generate high alpha returns in a portfolio.
The ups and downs of mNAV
Since the summer 2025 highs, we have seen a huge drop in the mNAVs of all BTC treasury companies due to a mix of stagnant price action and bad sentiment in the community; Some early adopters have declined 90% in a matter of weeks from their highs, challenging investor sentiment and testing companies’ conviction.
As a stock premium to NAV, mNAV is fundamentally based on sentiment and fundamentals.
The success of the corporate Bitcoin treasury depends on building investor confidence through transparent reporting and consistent conviction in Bitcoin, along with fundamentals such as maximizing BTC yield through cumulative capital raises, optimizing leverage at market peaks, maintaining mNAV above 1.2x, and defending it with share buybacks and debt reduction. In times of a down cycle, the conviction of all companies will be tested: those that maintain their conviction and see a longer-term vision will be rewarded. The key solution to maintaining the manual during a down cycle is to have a profitable operating business: this will allow for steady cash flows to initiate cumulative share buybacks if the mNAV falls below one. It also allows the ability to purchase Bitcoin at a discount without diluting shareholders.
Many companies have entered this space with very small, minimally profitable operating businesses; For example, Metaplanet was a small, bankrupt hotel chain. These companies turn to the wheel to revitalize the business. It works very well when times are good, as seen in June of this year, where seemingly any company could get a premium. But when the price of Bitcoin drops, sentiment becomes extremely bearish again, and investors feel disinterested in Treasuries, vulnerabilities will be exposed.
The key to building a truly profitable operating business is maintaining consistent revenue and growth, while strategically adding a Bitcoin treasury. When a company is still profitable and expanding, a market valuation below a mNAV of 1 can only be attributed to irrational sentiment: in practice, the business is wrongly valued as “dead”. By combining a strong core business and stable or growing operating income with a growing supply of Bitcoin, companies can position themselves for resilient long-term value regardless of market volatility. This will be the next step of the treasury model and how the key players will emerge from the bearish periods.
Potential risks
mNAV compression has been dramatically sped up. Artemis Analytics reported three consecutive months of sharp mNAV declines through September 2025, with between 25% and 33% of treasury companies now trading below 1.0x NAV, underwater territory where the wheel reverses. The strategy’s own mNAV has compressed from peaks of 6.0x in 2021 to approximately 1.21x today. Once again, this reiterates the emphasis on the importance of an operating business in providing stability to the treasury strategy; Otherwise, small, purely specialized treasuries can easily be found underwater. Although it has an operating business (marginal compared to broader operations), Strategy is an exception, being well ahead of any other entity in acquisition size.
The death spiral mechanic becomes lethal below 1.0x. Companies trading below NAV face dilutive capital increases that destroy the BPS, causing an exodus of shareholders, a further decline in mNAV and forced liquidations. Last month, Strive acquired Semler Scientific in an all-stock deal worth $1.34 billion at a 210% premium, combining its Bitcoin treasuries into a portfolio of 10,900 BTC. This marks the first major M&A consolidation in the sector and validates the thesis that distressed Treasuries will be snapped up for their discounted Bitcoin holdings. Expect further consolidation as companies with mNAVs below 1.0x become acquisition targets.
A Bitcoin treasury is not optional
The future of Bitcoin treasuries is just beginning. As more CFOs embrace Bitcoin as the backbone of corporate reserves, capital markets will reward disciplined, native BTC management with compounding shareholder value. As adoption accelerates, the alignment between corporate finance and the Bitcoin network will drive unprecedented change. The winners won’t just own Bitcoin: they will build profitable businesses around it, creating sustainable shareholder value and business growth in an increasingly unsustainable system. A bitcoin treasury is not optional; It is not good to have it, it is essential to have it.
