The corporate treasury function, traditionally conservative in cash management, is now experiencing its most significant transformation in decades. This change was initiated by Michael Saylor at Strategy, which now possesses over 3% of the total Bitcoin supply. Strategy, however, is no longer the solitary contender in the Bitcoin treasury field. Current estimates suggest that corporate treasuries collectively hold over one million BTC, amounting to more than $120 billion as of October 2025.
This strategy is grounded in the same rationale individuals use when buying and holding Bitcoin. In a time marked by monetary debasement, logical entities will seek assets that surpass the detrimental impacts of such debasement. As the money-printing spree persists and market reactions continue (evident in gold trading at over $4000), it is only a matter of time before every public company adopts a Bitcoin treasury strategy.
The case for a corporate Bitcoin treasury
The conventional corporate approach not only risks subpar performance but also a potential violation of fiduciary duty as cash reserves deplete due to rampant money-printing. In contrast, Bitcoin presents a finite-supply, counterparty-free asset with a proven track record of value compounding over more than a decade.
The elegance of this treasury strategy lies not only in holding Bitcoin but also in the leverage it offers companies in capital markets. Unlike spot ETFs, firms can issue equity at premiums to Net Asset Value (NAV), raise convertible debt with minimal or zero interest rates, and tactically time both market entry and Bitcoin acquisitions. Practically, this implies that companies can augment their Bitcoin holdings per share over time.
The network effect is now self-reinforcing. As each successful Bitcoin treasury company showcases viability, skepticism in capital markets diminishes, and the necessary financial infrastructure—covering custody, reporting, and convertible debt—matures.
Most noteworthy is the mNAV value-creation paradox: trading at a premium allows companies to issue shares, acquire additional Bitcoin, and boost BTC per share (BPS) for existing shareholders. For instance, Strategy produced a 74.3% BTC yield in 2024, allowing long-term holders to see their underlying Bitcoin stakes increase by that percentage purely through corporate activities rather than market appreciation. This represents a structural financial innovation in treasury management.
But why would a rational investor pay such premiums?
Public companies can incur debt at rates below Bitcoin’s long-term appreciation, enhancing BTC-per-share growth. Between 2020 and 2025, Bitcoin’s compound annual growth rate reached 64%. Future forecasts recommend an environment where BTC continues to grow on average between 25% and 35%, meaning if funding costs are 8%, the excess is retained by shareholders.
If BTC-per-share is increasing faster than dilution, shareholders stand to benefit. The effective cycle is: mNAV premium → capital raise → more BTC → higher Bitcoin per Share → sustained premium → subsequent raise.
Examined from another perspective, various jurisdictions and markets impose differing regulations regarding access to Bitcoin for both corporate and retail investors. In the UK alone, as of October 2025, approximately £1.4 trillion of capital is immobilized in personal pensions and tax-efficient savings vehicles (ISAs). For this capital, gaining exposure to Bitcoin via treasury companies frequently represents the easiest approach to yielding high alpha returns on a portfolio.
The highs and the lows of mNAV
Since the peak in summer 2025, there has been a drastic decline in the mNAVs of Bitcoin treasury companies, impacted by stagnant price movements and community sentiment. Some early adopters have plummeted by 90% in just weeks, challenging investor morale and testing corporate conviction.
As a share premium relative to NAV, mNAV fundamentally relies on sentiment and underlying fundamentals.
The success of corporate Bitcoin treasury strategies hinges on building investor faith through transparent reporting and steadfast conviction in Bitcoin, accompanied by maximizing BTC yield via lucrative capital raises, optimizing leverage at market peaks, maintaining mNAV above 1.2x, and defending it through share buybacks and debt reduction. During bear cycles, the resolve of every company will be challenged—those who maintain their convictions and focus on the long term will reap rewards. The pivotal strategy for sustaining this approach during a bear market is to operate a profitable business, which provides sufficient cash flow to enable accretive share buybacks if mNAV dips below one. This also creates the opportunity to acquire Bitcoin at a discount without diluting shareholder value.
Numerous companies have entered this sector with small, minimally viable operating businesses; for example, Metaplanet was a struggling small hotel chain. These firms often rely on the flywheel to rejuvenate their businesses. This strategy works efficiently when conditions are favorable, as witnessed in June of this year when it seemed almost any company could achieve a premium. However, when Bitcoin prices fall and sentiment turns bearish, the vulnerabilities within these firms become apparent.
Building a genuinely profitable operating business requires consistent revenue growth while strategically cultivating a Bitcoin treasury. A company that remains both profitable and growing can only be undervalued if the market price falls below an mNAV of 1 due to irrational sentiment—effectively misclassifying the business as “dead.” By fusing a robust core operation and stable or growing revenues with a rising Bitcoin reserve, companies can set themselves up for sustainable long-term value despite market fluctuations. This will be the next phase of the treasury model and determine how key players endure bearish periods.
Potential risks
The compression of mNAV has accelerated sharply. Artemis Analytics reported three months of significant declines in mNAV through September 2025, with 25-33% of treasury companies now trading below 1.0x NAV—an underwater situation where the flywheel may reverse. Strategy’s mNAV has contracted from peaks of 6.0x in 2021 to approximately 1.21x today. This reiterates the crucial necessity of having an operational business to provide stability to the treasury strategy; otherwise, pure-play small treasuries risk finding themselves deeply underwater. While it has an operational business (though marginal in comparison to larger operations), Strategy is an exception because of its significant lead in acquisition size.
Death spiral mechanics become perilous below 1.0x. Companies trading under NAV face dilutive capital raises that undermine BPS, prompting a shareholder exodus, further mNAV decline, and coerced liquidations. Last month, Strive acquired Semler Scientific for $1.34 billion in an all-stock deal at a 210% premium, merging their Bitcoin treasuries into a portfolio of 10,900 BTC. This marks the first significant M&A consolidation in the sector and affirms the thesis that struggling pure-play treasuries will be sought after for their discounted Bitcoin assets. Anticipate further consolidation as companies with mNAV below 1.0x become prime acquisition candidates.
A Bitcoin treasury is not optional
The evolution of Bitcoin treasuries is only beginning. As more CFOs adopt Bitcoin as the foundation of corporate reserves, capital markets will recognize disciplined, BTC-native management with compounding shareholder value. As adoption increases, the synergy between corporate finance and the Bitcoin network will instigate unmatched change. The future winners won’t merely hold Bitcoin—they’ll establish profitable businesses around it, fostering sustainable shareholder value and growth in an increasingly unstable system. A Bitcoin treasury is not a luxury—it’s an essential.
