Companies adding underperforming altcoins to their balance sheets are muddying the broader treasury narrative, says Bitcoin treasury company Nakamoto CEO, David Bailey.
“The treasury company moniker itself is confusing,” Bailey <a href="https://x.com/DavidFBailey/status/1966999156515541120" rel="noopener noreferrer nofollow" target="_blank">said</a> in an X post on Sunday.&nbsp;
“Toxic financing, failed altcoins rebranded as DATs, too many failed companies with no plan or vision. It’s totally muddled the narrative,” Bailey said.
<h2 id="david-bailey-says-sector-is-being-tested">David Bailey says sector is “being tested”</h2>
Bailey emphasized that “the core strategy is to build and monetize your balance sheet.”
“If you can do it well, you will grow your assets over time; if you do it poorly, you will trade at a discount and be consumed by someone who can do it better,” he said.
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 “The bitcoin treasury company of the fiat system is a bank. Today we are building Bitcoin Banks. If you’re afraid of that term, call them Bitcoin financial institutions.”
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Bailey said that the entire treasury sector is “being tested.” His comments come as publicly listed companies are starting to look beyond Bitcoin (<a href="/bitcoin-price" rel="noopener noreferrer">BTC</a>) and down the risk curve for other crypto assets to add to their treasuries.
On Aug. 2, it was reported that Nasdaq-listed Mill City Ventures III may raise another $500 <a href="https://cointelegraph.com/news/mill-city-to-raise-500-million-for-sui-treasury" rel="noopener noreferrer nofollow" target="_self">million under an equity agreement</a> to fund its recently announced Sui treasury strategy.
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Narrative-driven theses are driving firms to expand their treasuries beyond Bitcoin, Galaxy Digital <a href="https://www.galaxy.com/insights/research/digital-asset-treasury-companies" rel="noopener noreferrer nofollow" target="_blank">said</a> in a July 31 report. Ether (<a href="/ethereum-price" rel="noopener noreferrer">ETH</a>), Solana (<a href="/solana-price-index" rel="noopener noreferrer">SOL</a>), XRP (<a href="/xrp-price-index" rel="noopener noreferrer">XRP</a>), BNB (<a href="/binance-coin-price-index" rel="noopener noreferrer">BNB</a>), and HyperLiquid (HYPE) are among the cryptocurrencies gaining traction outside of Bitcoin.
Bitcoin held in publicly-traded companies is approximately $117.91 billion at the time of publication, <a href="https://bitcointreasuries.net/" rel="noopener noreferrer nofollow" target="https://bitcointreasuries.net/">according</a> to <a rel="noopener noreferrer nofollow" target="http://bitcointreasuries.net/">BitcoinTreasuries.NET.</a>
Ether is gaining traction as an alternative because it can also be staked for annual returns, making it a store of value and a source of income. Approximately 3.14% of Ether’s total supply is held in publicly-listed treasury companies, <a href="https://www.strategicethreserve.xyz/" rel="noopener noreferrer nofollow" target="_blank">according</a> to StrategicETHReserve.
<h2 id="expanding-interest-may-be-reason-for-bitcoin-s-sideways-price">Expanding interest may be reason for Bitcoin’s sideways price</h2>
Galaxy Digital CEO Mike Novogratz<a href="https://cointelegraph.com/news/bitcoin-consolidation-altcoin-treasury-growth-2025" rel="noopener noreferrer nofollow"> said treasury companies showing interest</a> in the broader crypto market may be the reason for Bitcoin’s sideways price action in recent times.&nbsp;
“Bitcoin's at a consolidation right now. Partly because you’re seeing a lot of these treasury companies in other coins take their shot,” Novogratz said.
Related: <a href="https://cointelegraph.com/news/altcoin-season-indicators-highest-levels-this-year" rel="noopener noreferrer nofollow">Altseason index hits highest level this year: Here’s what traders think</a>
While altcoins in treasuries have faced some scrutiny, questions have also been raised about Bitcoin treasuries.
Venture capital firm Breed said <a href="https://cointelegraph.com/news/few-bitcoin-treasury-companies-survive-death-spiral" rel="noopener noreferrer nofollow">only a few Bitcoin treasury companies</a> will stand the test of time and avoid the vicious “death spiral” that will impact BTC holding companies that trade close to net asset value (NAV).
Magazine: <a href="https://cointelegraph.com/magazine/ethereum-polkadot-founder-gavin-wood-vitalik-buterin-parity-technologies/" rel="noopener noreferrer nofollow">Meet the Ethereum and Polkadot co-founder who wasn’t in Time Magazine</a>

‘Failed altcoins’ are confusing treasury narrative: David Bailey

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