Crypto analyst warns that Bitcoin Treasury strategy might not be as long-lasting as many people expect.
“My instinct is the Bitcoin treasury strategy has a far shorter lifespan than most expect,” Glassnode’s lead analyst James Check said On Friday, X posted a message.
“It could already be over” Bitcoin Treasuries: New Bitcoin firms
“For many new entrants, it could already be over,” Checked, but added that it is not “about a measuring contest” But rather, how durable a product or strategy is in the long term.BTC) accumulation.
Check noted that the battle is getting harder for Bitcoin treasury companies as early investors are more likely to favor them. “Nobody wants the 50th Treasury company,” Check it out
“I think we’re already close to the ‘show me’ phase, where it will be increasingly difficult for random company X to sustain a premium and get off the ground without a serious niche.”
At least 21 companies added Bitcoin to their reserve assets in the 30 days before Friday. according BitcoinTreasuries has data. The largest public Bitcoin treasury, Michael Saylor’s Strategy (MSTR), holds 597,325 BTC, while the second-largest, MARA Holdings, holds 50,000 BTC — approximately one-twelfth as much.
Check said startup Bitcoin treasury firms attract retail speculators — but warns they don’t “have infinite money.”
Check said it was difficult to set a date for the recession in the younger firms because he does not know how long the slump will last. “bullish” Bitcoin price is $107,990 as of the publication date, about 3.70% lower than its previous high $111,970. according CoinMarketCap provides data on the market.
“It’s a spectrum,” He said that Strategy had a greater runway for entry than, say, the 300th Bitcoin Treasury Company.
Check stated that he agrees with Taproot Wizards’ co-founder Udi Wizardheimer. view Some companies use a Bitcoin Treasury strategy to gain quick profits without understanding the long-term goal.
“The weak ones” Bitcoin’s biggest players may acquire the smaller Bitcoin players
“Many of the folks raising just see easy money and have no idea what they’re doing,” Wizardheimer said.
“I think it’ll take them some time to figure out,” “He said,” adding,
“The weak ones might be acquired at a discount by the strong ones, and the trend could still have a few more legs in it.”
Recently, there have been several questions raised about the adoption of Bitcoin as a treasury by firms.
Breed, a venture capital company, argued its case in a 29 June 2009 article. report that only a few Bitcoin treasury Businesses that can withstand time and the vicious cycle will be able to avoid it “death spiral” BTC companies trading near net asset values (NAV) will suffer.
Related: Bitcoin’s third flop at $110K puts bulls at risk: BTC price levels to watch
On June 11, Fakhul Miah, managing director of GoMining InstitutionalWhat concerns him the most? – he tells Cointelegraph “the copycats.”
“There are now other companies trying to create Bitcoin banks without proper safeguards or risk management. If these smaller firms crash, we could see a ripple effect that hurts Bitcoin’s image,” Miah said.
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Source: cointelegraph.com
