Bitcoin

1️⃣ What are Bitcoin Treasury Companies?As you know, companies can now legally hold Bitcoin on their balance sheets.These institutions convert part (and sometimes even more) of their cash reserves into Bitcoin to reduce the “erosion of cash” and hedge against inflation. This club includes all kinds of profiles: from software firms to miners, from payment giants to holding companies (MicroStrategy, MARA, Block, Tesla, Coinbase, etc.).In short: Bitcoin Treasury Companies are simply “public or private companies holding BTC on their balance sheets.”2️⃣ How do companies buy Bitcoin?Some companies (like Tesla) allocate part of their profits to BTC.Others (like MicroStrategy) issue massive bonds and take on debt to buy Bitcoin. Miners, on the other hand, simply keep a portion of the BTC they produce instead of selling it. This table shows us that Bitcoin is no longer just for “individual investors” — it has become part of corporate strategies as well.But the methods differ: cash, debt, or production.3️⃣ Is borrowing to buy Bitcoin risky?Yes, that’s the most critical part of the story.Borrowing to buy Bitcoin works wonders in a bull market, right? BTC goes up 100%, and your balance sheet explodes upward. But in a bear market, things flip.If Bitcoin drops 50% or more, companies that borrowed to buy BTC don’t just lose money — they might struggle to service their debt and eventually collapse!Remember Terra/Luna and the FTX crisis in 2022? Companies overleveraging with crypto created chain-reaction problems. In short, buying BTC with debt is a double-edged sword.✅ ConclusionHaving Bitcoin on corporate balance sheets speeds up adoption and fuels the bull cycle.Every new purchase boosts market confidence. But let’s not forget: if those same companies are buying BTC with debt, when the bear comes, it could add extra selling pressure.So, this picture is both a sign of “institutional Bitcoin adoption” and a reminder of the “risks that come with debt.”The corporate side of this story is both a powerful catalyst in the bull market and a major risk in the bear.

Bitcoin Treasury Story: The Top 20 Companies Hold 6% of the Bitcoin Supply in Their Treasuries

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