Bitcoin Treasury Firms Ditch Aggressive Accumulation for Profitable Businesses
The Bitcoin treasury model is undergoing significant changes as firms shift from aggressive Bitcoin accumulation to acquiring profitable businesses that can generate cash.
This change in strategy, dubbed 'DAT version 3.0' by Sora Ventures Chief Growth Officer Mitty Chang, comes after the market value of fully diluted Bitcoin treasury company stocks fell by nearly $69 billion from its October peak of $141 billion.
The downturn has exposed a fundamental weakness in the digital-asset treasury (DAT) model, which relies on issuing stock or debt to finance additional purchases. However, this strategy worked better while BTC and treasury-company valuations were climbing.
Several firms are now exploring ways to generate recurring revenue streams, with Sora Ventures reportedly raising $1 billion to help portfolio companies achieve this goal.