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Breed Report: Bitcoin Reserve Companies May Be Stuck in a Death Spiral, Market Consolidation Risks Intensify
On June 29, according to reports, the latest report from venture capital firm Breed shows that Bitcoin reserve companies have become a major trend for 2025, but only a few experienced and disciplined companies are likely to survive in future market fluctuations. Many Bitcoin treasury companies may fall into the "death spiral," especially those whose stock prices are close to their net asset value (NAV).
The Breed report details seven stages of decline for Bitcoin reserve companies: starting with a drop in Bitcoin prices, leading to a decrease in the multiple of net asset value (MNAV), which makes it difficult for companies to obtain debt and equity financing. As credit dries up and debt matures, margin calls will force companies to sell Bitcoin, further depressing market prices and potentially triggering industry consolidation or even a prolonged market slump. Currently, most companies are using equity rather than debt financing to purchase Bitcoin, which may limit the overall market impact, but if debt financing becomes mainstream, the situation could worsen.