There are only a few bitcoins (BTCAccording to a report by Venture Capital (vc) firm, fiscal companies will stand the test of time and avoid a vicious “death spiral” created by BTC holdings that trade near net asset value (NAV), whose total assets have lowered its liabilities.
The authors write that the health of Bitcoin Treasury companies depends on their ability to direct their net worth (MNAV).
variety Report The seven phases of the decline of BTC fiscal companies are outlined, which begins with a decline in Bitcoin’s price, which triggers a decline in MNAV, bringing the company’s share price closer to its actual NAV.
This, in turn, makes it harder for BTC holding companies to ensure Debt and equity financing Asymmetric trade is essential for conversion Inflation dollar Appreciation assets entering the supply amount.
With the possibility of getting credit dryness and debt maturity, triggering margin calls that force companies to sell BTC to the market, further reducing the price of BTC, thereby facilitating mergers of holding companies acquired by stronger companies and potentially triggering A The recession of the entire market extends. The author of the report wrote:
“Ultimately, only a few companies will maintain a lasting MNAV premium. They will win it with strong leadership, disciplined executions, savvy marketing and unique strategies that will continue to grow at Bitcoin per share, regardless of the widespread market volatility.”
This death spiral may trigger the next Crypto Bear Market. However, the authors of the report said that since most BTC finance companies currently fund purchase funds at the price of equity rather than debt, implosion can be included.
Stock-based financing limits the impact of a wider market, the author says. Still, current forecasts may change if debt financing exceeds equity as a more popular option.
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Michael Saylor’s company, the strategy has always been Buy Bitcoins since 2020 And popularized BTC company finance conceptThis has gained a lot of momentum over the past two years.
https://www.youtube.com/watch?v=npzqd7tsqmg
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