The companies listed are quickly transforming into Bitcoin Treasury vehicles, raising capital to buy BTC and keep it in their balances. With Bitcoin increasingly seen as a possible global reserve asset, gaining institutional traction and strong price expectations, this trend may seem solid. But there is a problem: most of these companies have acquisition plans without a business plan.
Why buy with a premium when you can buy Bitcoin directly?
Almost any investor can buy bitcoin directly, either spot or through ETF. So why invest through a quoted company quoting with a significant premium to the net asset value (NAV) of your bitcoin?
The short response is: it should not, unless the company has a clear strategy to put its Bbitcoin to work in a way that investors cannot easily replicate. BTC retention must fulfill an operational purpose. Otherwise, the company must return the capital and allow shareholders to buy bitcoin in their own terms.
Bitcoin Performance ≠ Business Model
To justify the premiums, some analysts now use the concept of Bitcoin performanceThe percentage increase in BTC per action over time. While it is an interesting kpi to track, it does not justify a premium to navigate on your own.
Yes, if a company issues capital with a cousin above NAV and buy more BTC, it can increase BTC per share. But if the objective of an investor is to obtain the maximum Bitcoin exposure per inverted dollar, investors should buy BTC directly.
Long leveled with limited advantage
To accelerate their acquisitions, many treasure companies collect capital through various types of convertible debt. The result is a long -signed position in Bitcoin, with total decline on decline and a limited advantage. This structure is exactly why creditors have been eager to subscribe such instruments.
If Bitcoin falls, creditors receive reimbursements in USD, while the company can be forced to sell its BTC holdings to cover the debt. If Bitcoin increases, creditors turn their debt into actions with a discount and sell them to capture the rise above the conversion price. That is an advantage that would otherwise belong to the shareholders.
As an investor that chooses between buying a capital company of Bbitcoin leverage or simply assuming leverage against your own BTC, should you ask: Is it worth avoiding the reduced work of doing so yourself?
If the company also quotes with a substantial premium to its underlying bitcoin and lacks any operational plan beyond buying and having BTC, the answer is probably not.
The same applies to other simple risk taking strategies, such as lending BTC in exchange for interest; They present risks, but they do little to justify the premium.
A business plan, not just a BTC plan
This does not mean that all Bitcoin Treasury companies must trade to NAV or below. But a premium requires more than a financing and acquisition strategy, it requires a commercial strategy.
A strong Bitcoin balance can serve as a powerful basis for an operational business. In finance, the balances are the basis for loans, commerce, structuring and more, and some of the current Nbitcoin Treasury companies will probably arise as financial giants of the future.
The brokerage, the provision of liquidity, the guaranteed loans and the structured products are examples of operational models that can climb, generate income and justify premium assessments.
On the contrary, simply raising funds to pursue “Bitcoin performance” is not a business plan. If a Pure Play Treasury company does not develop an operational plan, its cousin will collapse, and can eventually be acquired by a company that does Know how Bitcoin to work.
Bitcoin is the new obstacle rate. To overcome BTC, companies must do more than buy and maintain it. They must discover how to build a Bitcoin -based business.
