Treasury Companies' Bitcoin Strategy Comes with High Risks and Volatility

There are now 179 listed companies holding Bitcoin on their balance sheets, all following a similar strategy. These companies raise capital on traditional markets, buy Bitcoin, and attempt to increase the amount of BTC that backs each share faster than they dilute shareholders.

This equation works in favor of these companies when the price of Bitcoin is going up, but it also amplifies losses during bear markets. The 50 largest Bitcoin treasury companies have collectively bled $83 billion in market value since July 2025.

One such company, Metaplanet, recently faced a shareholder backlash due to excessive dilution.

Mark Palmer, managing director and senior equity research analyst at StoneX, notes that investors should look beyond the headline number of Bitcoin held by a company and focus on 'Bitcoin per fully diluted share, net of debt and preferred stock claims.'

Adam Morgan McCarthy, a researcher at LO:TECH, warns that many companies have failed to establish a strong narrative or exit plan, leaving them vulnerable to market downturns.