Viewpoint: Experienced and disciplined Bitcoin treasury companies can survive in market fluctuations

On June 29th, according to Cointelegraph, the latest report from venture capital firm Breed shows that Bitcoin reserve companies have become a major trend by 2025, but only a few experienced and disciplined companies are expected to survive in future market fluctuations. Many Bitcoin treasury companies may fall into a 'death spiral', especially those whose stock prices are close to net asset value (NAV). The Breed report provides a detailed description of the seven stages of decline for Bitcoin reserve companies: starting with a drop in Bitcoin prices, which leads to a decrease in net asset value multiples (MNAVs), making it difficult for the company to obtain debt and equity financing. As credit dries up and debt matures, margin calls will force companies to sell Bitcoin, further lowering market prices and potentially triggering industry consolidation or even long-term market downturns. Currently, most companies use equity financing instead of debt financing to purchase Bitcoin, which may limit the overall market impact, but if debt financing becomes mainstream, the situation may worsen.