The Bitcoin Treasury Companies are gaining in popularity among investors. “euphoria” A Bitcoin Treasury Executive has stated that the concern about Bitcoin-stacking businesses is starting to diminish.
There are 205 Bitcoins listed on the public market (BTCThe treasury industry is dominated by treasury firms worldwide. Their shine has begun to dull. In recent months, several firms have experienced a decline in their market-net asset value (mNAV).
“The market’s getting more sophisticated, it’s learning how to assess what makes treasury companies different,” KindlyMD CEO David Bailey leads the Bitcoin accumulation strategy of the company. said In an interview on CNBC Thursday, he said:
Bitcoin treasuries must have a need and ‘edge’ to launch
Bailey said there was little need to launch an enterprise unless it had a really unique business model. “It’s kind of like, what’s the edge? Why are you needed?” Bailey Said
“Anytime there is euphoria in the market, you see good companies come to bear and you also see not great companies come to bear,” He said.
Bailey believes that new Bitcoin-treasury firms are no longer following in the footsteps of existing public companies.
“There are so many companies that the market can bear doing the exact same thing,” He said.
Michael Saylor, for example, specialized in the asset category of credit. He also suggested that these companies can differentiate themselves by acquiring or consolidating businesses which generate a steady income.
Bailey’s Bitcoin business, Nakamoto Holdings has completed its merger with healthcare company KindlyMD formed a Bitcoin Treasury Vehicle on August 14, with plans to collect 1,000,000 BTC.
KindlyMD has seen a sharp drop in its shares in recent weeks. The stock plunged by 55% on Sept. 15 to just $1.22, after Bailey had warned traders to be wary of the risks. “price volatility.”
“We expect share price volatility may increase for a period of time,” Bailey made the statement in a letter to shareholders.
KindlyMD is currently trading at $0.76. according Google Finance
Bitcoin treasuries have been the subject of debate as to whether they are a bubble
The strongest Bitcoin Treasury companies will enter the market, he said. “the next stage” Which industry is likely to be positioned in the next few years? “healthy space.”
At the time of publishing, public Bitcoin treasuries held a total value of $113.8 Billion. according The following are some of the ways to get in touch with us: BitcoinTreasuries.NET.
In recent months, the mNAVs of several Bitcoin treasuries has plummeted.
Standard Chartered issued a warning on Sept. 15 that there was a threat to the collapse of several digital The mNAVs of asset treasuries expose smaller companies to greater risks.
“We see market saturation as the main driver of recent mNAV compression,” Standard Chartered said.
Breed VC said only a handful of Bitcoin Treasury companies would survive the test and be able to avoid the vicious cycle. “death spiral” BTC holders that trade near the mNAV may be impacted.
Related: Bitcoin traders fear $102K BTC price dive next as gold sets new highs
Glassnode Lead Analyst James Check said on July 4 It is a “instinct is the Bitcoin treasury strategy has a far shorter lifespan than most expect.”
“For many new entrants, it could already be over,” Checked added
Meanwhile, TON Strategy CEO Veronika Kapustina It is said that all of the indicators indicate it’s a bubble. “a new segment of finance.”
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Source: cointelegraph.com
