For several years, Strategy (formerly MicroStrategy) was the sole public company whose modus operandi was buying millions of dollars worth of Bitcoin with borrowed capital. These days, several other companies are trying to follow in Strategy’s footsteps.
As more companies go all-in on stacking Bitcoin, critics are raising concerns about the growing centralization of crypto treasuries. Currently, just 216 entities — 101 of which are public companies — hold nearly 31% of the circulating BTC supply, with corporate treasuries alone accounting for approximately 765,300 bitcoins, or 3.7% of total supply (excluding lost coins).
This trend shows no sign of slowing, with existing firms continuing to accumulate and new players entering the space. This prompts debate over the benefits and risks of corporate Bitcoin ownership.
A wave of high-profile crypto treasury launches is underway, led by figures like Jack Mallers with 21 Capital, David Bailey with Nakamoto, and most recently Anthony Pompliano with ProCapBTC, which is reportedly raising $750 million in equity and convertible debt to accumulate Bitcoin.
Each new treasury announcement is met with bullish fanfare on Crypto Twitter, where influencers routinely frame the news as a catalyst for BTC price appreciation. Yet with such announcements now occurring almost daily, their actual impact is increasingly unclear.
The familiar refrain of “this is not priced in” has become a cliché, while comment sections often reflect confusion over why Bitcoin’s price continues to fall despite seemingly bullish developments.
According to the Gemini research, the growing adoption among sovereign and regulated financial institutions led to decreased volatility in all time frames after 2018.
The launch of Bitcoin ETFs in 2024 made the trend even stronger. Despite the stabilization of the Bitcoin price, it doesn’t stop gaining value. The main difference is that now the price rises steadily without the frequent high-amplitude fluctuations it had in the past.
According to Unchained, Bitcoin’s price is stuck between $100,000 and $110,000, and it will take a long time for it to exceed the $130,000 mark. People don’t pay attention to many things while reading bombastic announcements. One is a lack of retail interest, as the public tends to pay attention to Bitcoin when it hits an all-time high or at similar periods.
Another reason for slower price movement is that Bitcoin treasuries not only buy BTC but dump it, too, as they need cash to repurchase shares. Additionally, the announcements usually display the full amount of the deal (i.e., “Pompliano to raise $750 million to invest in Bitcoin treasury”), whereas, in reality, these amounts are raised slowly; it may take several months to complete the deals.
So it comes that the purchases made by Bitcoin treasuries are not what they may seem to be.
Finally, the relentless accumulation of Bitcoin is pulling coins away from circulation, making a notable part of the supply dormant and somewhat purposeless for years. Bitcoin treasuries need this crypto to attract more investors and clients.
However, it drives Bitcoin away from its initial role as an alternative electronic cash, and some in the crypto community raise critical voices directed at Bitcoin treasuries.
Many Bitcoin enthusiasts prefer actually to own their bitcoins and don’t outsource all the hassle to corporations. Maximalists remind us that any entity does not control Bitcoin, and it is free to purchase, so there is no need for a company to buy and maintain Bitcoin on your behalf.
Some criticize Bitcoin treasuries for not representing the spirit of Bitcoin, while others emphasize the troubled past of Bitcoin treasury frontmen.
For instance, MicroStrategy had a questionable episode during the dot-com bubble era, whereas the company restated its profits, resulting in losses for the investors. The SEC accused the company of fraud.
At the time, Saylor spoke about his plans to donate $100 million to the Internet university that will provide “free education for everyone on earth, forever.”
This kind of evangelism may sound familiar to those who follow Saylor’s modern-day speeches, while he is more grounded when dealing with Bitcoin.
For some, Pompliano is an ambiguous candidate for helming the new mighty Bitcoin treasury. While Pompliano is a well-known and recognizable Bitcoin advocate, some remember his involvement in promoting fraudster crypto exchange FTX and its associated platform, BlockFi.
Collapses of these platforms were painful not only for its users but also impacted the entire crypto sector, crashing the market and infusing cryptocurrency distrust among the community outsiders and, more importantly, regulators.
Some Bitcoin owners watch the performance of the treasury company’s stocks or ETFs and sell their bitcoins to buy these assets, hoping for quicker gains.
Adam Back, a Blockstream CEO and the only person whose work is referenced in the Bitcoin whitepaper urged his followers not to sell their bitcoins to buy ETFs or similar assets as they won’t be able to buy them back.
The same person urging us not to sell bitcoins, Adam Back, explained that Bitcoin treasuries “are bringing forward the Bitcoin adoption curve.”
Back pointed out that most people don’t have money and opportunities to acquire Bitcoin. In contrast, public companies have these opportunities to raise capital by selling their shares or vice versa.
These companies don’t need free money to invest in Bitcoin as they can buy Bitcoin in advance and pay for it years later. “They are basically an arbitrage between the fiat [monetary system] and the hyper-bitcoinized future.”
A more mainstream explanation is that shares and ETFs are easier to deal with for institutional investors than Bitcoin.
So they don’t have to worry about the Bitcoin legal status and lack of the company around it. Instead, they can deal with a public company that offers some guarantees and is traded just like other public companies while exposing clients to the Bitcoin price appreciation.
Generally speaking, these treasuries are helping TradFi traders and investors to benefit from Bitcoin’s long-term price appreciation without having to deal with Bitcoin.
