The $Strategy Strategy Proliferation
“Nothing in biology makes sense except in the light of evolution.”
-Theodosius Dobzhansky
Key Takeaways
The next phase in Bitcoin’s evolution is here: corporate adoption on balance sheets. As of May 2025, 199 entities collectively hold 3.01 million BTC ($315 billion), and these numbers are rapidly accelerating.
Companies whose primary purpose is to hold Bitcoin will be valued as Bitcoin holding companies, similar to Strategy. To survive, these firms must command a premium known as the Multiple on Net Asset Value (MNAV) – the most important metric to track.
The MNAV premium hinges on trust in and execution by the core team. These teams must execute the Strategy playbook of raising capital through debt, stock issuance, and reinvesting cash flow to increase the amount of BTC held per share. New entrants are expanding on this approach.
The existential threat is an extended bear market that erodes the MNAV premium just as sizable debt maturities come due. New treasury companies face this risk even more acutely as they will have to raise capital on tougher terms and at higher leverage ratios than Strategy.
When failures inevitably hit, the strongest players are likely to acquire distressed companies and consolidate the industry. Fortunately, contagion risk is muted because most financing is equity-based; however, companies that rely heavily on debt pose a greater systemic threat.
The Next Evolution: Corporate Adoption
We have all witnessed Bitcoin’s rise over the past few years. Beyond the rise in price, adoption and recognition have crossed the chasm. Pivotal moments include El Salvador recognizing BTC as legal tender in September 2021, BlackRock launching the IBIT ETF in January 2024, the U.S. president emphasizing BTC as a strategic economic focus, and, as of summer 2025, a surge in corporate adoption of BTC on balance sheets.
According to Bitcointreasuries.net, 199 entities collectively hold 3.01 million BTC ($315 billion). Among these, 147 private and public companies account for 1.1 million BTC ($115 billion).
Recently, a wave of companies announced new Bitcoin treasury strategies. These range from firms diversifying their balance sheets with BTC to dedicated BTC treasury holding companies. These entities span diverse geographies and sectors, and they are led by reputable teams.
Since the start of 2024, the amount of BTC held by entities has more than doubled. Strategy accounts for 53% of the BTC held by corporations, with over 580,000 BTC. Other notable companies holding more than 10,000 BTC include Block.one (164,000), Tether (100,500), MARA Holdings (49,140), Twenty One (31,500), Riot Platforms (19,200), Galaxy Digital (12,800), CleanSpark (12,100), Tesla (11,500), and Hut 8 (10,300).
Thanks to its size, reputation, and lindy, Strategy is all but guaranteed to remain the leading BTC holding company. However, it is significant that the Strategy strategy is now being emulated. The growing number of companies adopting BTC on their balance sheets—and the rise of pure-play BTC treasury holding firms—has massive implications for Bitcoin.
How It Works And How To Value
Companies that simply add BTC to their balance sheets while continuing to focus on their core businesses will primarily be valued based on those core operations. The dynamic changes when a company's sole purpose becomes BTC holding—effectively opting to be valued based on the Bitcoin held.
To attract investors to buy their stock rather than just holding BTC directly, these companies must outperform Bitcoin itself. This outperformance is referred to as a premium called MNAV (Multiple on Net Asset Value).
For example, Strategy holds 580,250 BTC, worth approximately $60 billion, while its market capitalization stands at $104 billion—resulting in an MNAV of 1.7x. MNAVs can vary widely depending on factors such as company size, tenure in the market, alternative business lines, and more. Nonetheless, Strategy’s historical 2x MNAV is the long-term gold standard.
The market does not award a company MNAV simply because it owns Bitcoin. It does so when investors believe that management can reliably grow BTC-per-share faster than they could on their own.
Strategy has proven this by repeatedly executing on three capital levers since 2020:
Convertible Debt – Issue low-coupon senior notes that convert to equity only if the share price rises 30–50% above the issue date. This enables large, low-interest borrows while protecting dilution unless performance warrants it.
At-the-Market Stock Issuance – Maintain an ongoing ATM program to sell new shares when the stock trades above MNAV—effectively dollar-cost averaging into more BTC.
Operating-Cash Reinvestment – Redirect every dollar of free cash flow from the legacy business into buying spot BTC.
Second movers are adopting and iterating on this playbook. Some innovations include enabling BTC holders to swap coins for stock without triggering capital gains, acquiring businesses trading below net cash to convert value into BTC, acquiring distressed Bitcoin litigation claims, leveraging media and events, raising capital through PIPE (private investment in public equity) deals, and exploiting regulatory arbitrage.
Who Are The Players
Through the first half of 2025, more than 40 companies have publicly announced plans to adopt Bitcoin on their balance sheets, collectively raising tens of billions of dollars to execute these strategies.
These announcements vary widely – across industries, geographic regions, execution models, and the paths companies have taken to go public.
Notable names include Metaplanet (Japan), one of the earliest international adopters capitalizing on Japan’s ultra-low interest rates; Semler Scientific and GameStop in the U.S., whose treasury pivots have drawn significant mainstream attention; purpose-built entrants like Twenty One Capital, backed by Tether and Cantor; and firms like Strive and Nakamoto, which have leveraged reverse mergers to go public quickly.
See the slide above for a broader snapshot of companies that have announced Bitcoin treasury strategies as of May 2025.
Is It Sustainable
Nothing in finance is bulletproof – especially Bitcoin treasury companies.
Strategy endured a severe stress test during the 2022–23 bear market: BTC fell 80%, the MNAV premium collapsed, and access to fresh capital vanished. The company survived, though Saylor likely had some sleepless nights.
The existential threat is an extended bear market that erodes the MNAV premium just as sizable debt maturities come due. If the stock trades at or below NAV and lenders refuse to refinance, Strategy may be forced to liquidate Bitcoin to meet its obligations – triggering a reflexive death spiral of falling prices and further forced sales.
New treasury companies face this risk even more acutely. Without Strategy’s scale, reputation, and passive index inflows, they will likely raise capital on tougher terms and at higher leverage ratios. In a downturn, those aggressive structures could accelerate margin calls and distressed BTC sales, amplifying downside pressure across the market.
Where We Go From Here
The proliferation of Bitcoin treasury companies is still in its early innings; however, the crypto treasury model is already expanding into other crypto assets – Solana has DeFi Development Corp (valued at $100 million and holding more than 420,000 SOL), Upexi, and Sol Strategies, and Ethereum has SharpLink Gaming, which raised $425 million in a round led by Consensys. We expect more companies around the world to adopt this playbook, extending to more assets and taking on greater leverage to chase success.
Most will fail. Fortunately, contagion risk is muted because most financing is equity-based. However, companies that rely heavily on debt pose a greater systemic threat. When failures inevitably hit, the strongest players are likely to acquire distressed assets and consolidate the industry.
Ultimately, only a select few companies will sustain a lasting MNAV premium. They will earn it through strong leadership, disciplined execution, savvy marketing, and distinctive strategies that continue to grow Bitcoin-per-share regardless of broader market fluctuations.
