CMC News

$BTC Treasury Companies Face Death Spiral Warning

Most $BTC treasury companies will collapse in a vicious death spiral, according to new VC analysis.

Only disciplined firms maintaining strong MNAV premiums will survive the coming shakeout.

The death spiral begins when $BTC price drops trigger MNAV declines, bringing share prices near actual NAV.

This makes securing debt and equity financing nearly impossible for leveraged companies.

Credit access dries up forcing margin calls and $BTC sales that further depress prices.

Over 250 organizations now hold #BTC following MicroStrategy's pioneering #treasury strategy.

Most firms currently use equity financing which may contain the fallout from weaker players.

However, the crisis could trigger the next #crypto bear market if debt financing becomes dominant.