Experts Warn: The Surge in Bitcoin Treasuries May Be Short-Lived

• Why Are Analysts Concerned About Bitcoin Treasury Companies?
• Are Bitcoin Treasury Companies Sustainable Long-Term?
• What Challenges Do New Bitcoin Treasury Companies Face?
• How Might Bitcoin Treasury Companies Evolve?
• Expert Q&A on Bitcoin Treasury Trends

Corporate bitcoin treasuries have become a hot trend, with companies like Strategy aggressively hoarding BTC. But market analysts are sounding the alarm - this capital reserve strategy may lack long-term vision and could collapse during Bitcoin's next bear market. Glassnode's James Check warns newer treasury companies are struggling without sustainable products, while Emil Sandstedt compares them to Ponzi schemes. Even Bitcoin bulls like Taproot Wizards' Udi Wizardheimer caution that newcomers lack understanding of the space. With 51 new Bitcoin treasury companies emerging in 2025's first half alone, experts question how many will survive the inevitable market downturn.

Why Are Analysts Concerned About Bitcoin Treasury Companies?

The recent explosion of corporate Bitcoin treasuries has market watchers nervous. Glassnode lead analyst James Check notes most new entrants are simply chasing quick profits without viable long-term strategies. "For many newcomers, it's already over," Check stated on X. "This isn't about size but about having a serious, sustainable product and accumulation strategy." Data shows 51 new Bitcoin treasury firms launched in 2025's first half, compared to 37 in all of 2024. BitcoinTreasuries reports 21 companies adopted BTC reserves just last month. However, Check observes capital flows increasingly favor established players like Strategy over newer entrants. "Nobody wants the 50th Bitcoin treasury company," he remarked, noting startups mainly attract retail speculators seeking short-term gains.

Are Bitcoin Treasury Companies Sustainable Long-Term?

Market experts identify several red flags. Many treasury firms rely on complex financial products to obscure their revenue sources. Bitcoin Magazine's Emil Sandstedt bluntly calls them "bubbles," comparing their operations to Ponzi schemes. Strategy, holding 597,325 BTC worth $64.5 billion, pioneered the aggressive accumulation model now being copied by firms like MARA Holdings and Metaplanet. But Sandstedt warns these imitators may collapse when Bitcoin's price declines, as they've used share issuance and financial engineering to artificially inflate holdings. "Smart money is leaving this sector," Sandstedt noted, "while insiders dump overvalued shares to retail investors." The BTCC research team adds that weaker firms may face acquisitions if Bitcoin enters prolonged bear territory.

What Challenges Do New Bitcoin Treasury Companies Face?

Taproot Wizards co-founder Udi Wizardheimer argues most newcomers lack fundamental understanding of Bitcoin's ecosystem. "These new players chase quick profits without DEEP industry knowledge," he observed. VC firm Breed's recent report suggests only a few treasury companies will survive the coming "death spiral" when share prices approach net asset values. Some analysts speculate future diversification into revenue-generating activities like lending or staking could improve sustainability. However, these proposals remain theoretical. Currently, Bitcoin trades at $108,121 after minor intraday corrections, according to TradingView data. The BTCC team notes corporate BTC accumulation has significantly increased in 2025, but questions whether this growth reflects sound strategy or speculative frenzy.

How Might Bitcoin Treasury Companies Evolve?

While skeptical of current trends, analysts see potential paths forward. James Check remains bullish on Bitcoin's long-term price prospects despite concerns about treasury companies. Some suggest adopting yield-generating strategies could help firms weather market volatility. However, Wizardheimer believes weaker players will need time to develop viable approaches or face acquisition. "This trend might continue temporarily before slowing down," he predicted. The BTCC research team emphasizes that sustainable models must MOVE beyond pure accumulation, possibly incorporating Bitcoin-native financial services. As the space matures, differentiation between serious operators and speculative ventures will likely become clearer.

Expert Q&A on Bitcoin Treasury Trends

Why are experts warning about Bitcoin treasury companies?

Analysts warn that many new Bitcoin treasury firms lack sustainable business models, relying instead on financial engineering and speculative inflows. Without genuine revenue streams, these companies may collapse during market downturns.

How many new Bitcoin treasury companies emerged in 2025?

CryptoQuant data shows 51 new Bitcoin treasury companies appeared in 2025's first half, compared to 37 in all of 2024. BitcoinTreasuries reports 21 firms adopted BTC reserves just last month.

What problems do analysts identify with these companies?

Experts cite overreliance on share issuance, lack of clear revenue models, and speculative investor bases as key issues. Some compare their operations to Ponzi schemes that require constant new investment.

Which company holds the most Bitcoin in treasury?

Strategy remains the largest holder with 597,325 BTC worth $64.5 billion at current prices. Their aggressive accumulation model has been copied by numerous other firms.

Could Bitcoin treasury companies become more sustainable?

Some analysts suggest diversification into Bitcoin-native financial services like lending or staking could improve sustainability, though these ideas remain largely theoretical at present.