Bitcoin News Today: Bitcoin Treasuries Mature as Premiums Shrink and Competition Heats Up

The crypto treasury company craze is showing signs of cooling, as the initial wave of enthusiasm among public companies for accumulating digital assets on their balance sheets appears to be reaching a plateau. What began as a strategy to hedge against inflation and diversify holdings has now evolved into a broader trend, with over 152 publicly traded companies holding more than 950,000 bitcoins valued at over $110 billion as of mid-2025. However, the excess returns once associated with these holdings are becoming increasingly difficult to replicate, and the market is beginning to question the sustainability of this approach.

At the heart of the trend were firms like MicroStrategy (MSTR), which pioneered the concept of holding Bitcoin as a corporate asset and became a proxy for the cryptocurrency itself. The company, which started as a software firm in Virginia, now controls $73 billion worth of Bitcoin, yet its market capitalization of $95 billion reflects a 25% premium to its crypto holdings. This premium has attracted both institutional and retail investors, but it has also drawn scrutiny. For instance, MSTR’s market price-to-NAV (net asset value) ratio is currently 1.58x, placing it among the highest in the sector. This premium is attributed to the company’s aggressive capital-raising strategies, including convertible notes and preferred stock offerings, which allow it to acquire more Bitcoin while diluting existing shareholders.

The rise of crypto treasury companies has also spurred demand for custody, trading, and yield generation services, benefiting institutions like Anchorage Digital, BitGo, and Coinbase. For example, BitGo saw its assets under custody surpass $100 billion in the first half of 2025, driven by growing corporate interest in securing and managing digital assets. Meanwhile, custodians like BitGo and Coinbase charge institutional clients a range of fees, typically between 0.15% and 0.30% annually. These fees translate into significant revenue, but the margins are thin, with the primary earnings derived from volume rather than margin. The demand for these services has also created opportunities for yield generation through staking and lending, with firms like Maple Finance and Two Prime charging between 25 to 50 basis points for treasury management services.

Yet, the initial frenzy appears to be giving way to a more cautious market. Companies that once enjoyed massive premiums are now underperforming their underlying assets. For instance, MSTR’s stock price has lagged Bitcoin’s performance in the short term, despite historically maintaining a strong correlation (Pearson coefficient of 0.8) with the cryptocurrency. In the 1-month and 3-month timeframes, MSTR has underperformed Bitcoin, while in the 1-year and year-to-date periods, it outperformed. This underperformance is attributed to three structural factors: equity dilution from capital-raising efforts, competitive dispersion of capital into ETFs and other treasury models, and selling pressure from convertible arbitrage strategies.

The emergence of spot crypto ETFs like BlackRock’s IBIT and Fidelity’s FBTC has further fragmented the capital that once concentrated in MSTR and other Bitcoin-focused treasuries. These ETFs offer a more direct, low-cost, and efficient way to gain exposure to Bitcoin, reducing the need for equity vehicles with embedded risks and premiums. For example, IBIT, with $89.5 billion in assets under management and a fee of 0.25%, has drawn significant capital from MSTR and similar stocks. As a result, MSTR’s premium to its Bitcoin net asset value (NAV) has contracted, from a high of over 2x to its current 1.62x.

In addition to ETFs, the rise of altcoin-focused treasuries has further diluted the market. While MSTR and other firms focused on Bitcoin, companies like BitMine Immersion (BMNR) and Upexi (UPXI) have adopted Ethereum and Solana treasuries, creating new categories of crypto-proxy stocks. This diversification has fragmented the capital that once flowed primarily to Bitcoin-centric treasuries and introduced competition for MSTR’s market dominance. BitMine Immersion, for instance, now holds $6.612 billion in crypto assets, including 1.52 million ETH, making it the largest ETH treasury in the world. However, its stock trades at a 1.9x premium to its underlying assets, suggesting that the market is willing to pay for high-beta exposure to altcoins.

The broader implications of this trend are still unfolding, but one thing is clear: the days of rapid, unearned returns are over. The crypto treasury craze has matured into a more competitive, diverse, and capital-efficient market, where excess returns are no longer guaranteed. As companies look to differentiate themselves, they are increasingly exploring yield-generating strategies, such as staking and lending, to maximize the value of their holdings. However, these strategies come with their own set of risks and challenges, including regulatory uncertainty and market volatility.

In the end, the future of crypto treasuries will likely depend on their ability to adapt to a more sophisticated and competitive environment. For now, the focus is on building long-term value through strategic asset management, disciplined capital allocation, and a deeper understanding of the evolving market dynamics. While the initial wave of enthusiasm may have faded, the underlying potential of digital assets in corporate treasuries remains strong, albeit with a more measured approach.

Source:

[1] Who's Getting Rich Off The $100 Billion Crypto Treasury Boom (https://www.forbes.com/sites/juliegoldenberg/2025/08/19/whos-getting-rich-off-the-100-billion-crypto-treasury-boom/)

[2] BitMine Immersion (BMNR) is the 1 ETH treasury in the world, now 2nd largest crypto treasury globally and the 10th most liquid US stock, trading $6.4 billion per day on average (https://www.prnewswire.com/news-releases/bitmine-immersion-bmnr-is-the-1-eth-treasury-in-the-world-now-2nd-largest-crypto-treasury-globally-and-the-10th-most-liquid-us-stock-trading-6-4-billion-per-day-on-average-302531968.html)

[3] The Crypto Company Initiates Multi-Asset Crypto Treasury with Bitcoin, Ethereum, XRP and Avalanche (https://www.morningstar.com/news/accesswire/1063423msn/the-crypto-company-initiates-multi-asset-crypto-treasury-with-bitcoin-ethereum-xrp-and-avalanche)

[4] If Bitcoin Treasury Companies Are Buying Billions, Why Is The Price Not Going Up? (https://finance.yahoo.com/news/bitcoin-treasury-companies-buying-billions-203108902.html)

[5] Strategy Lags Bitcoin — What's Next for MSTR Investors? (https://www.ccn.com/analysis/business/why-strategy-isnt-keeping-up-btc-where-mstr-headed/)

[6] The big difference between bitcoin and crypto treasury companies (https://blockspace.media/insight/the-big-difference-between-bitcoin-and-crypto-treasury-companies/)

[7] The big difference between bitcoin and crypto treasury companies (https://finance.yahoo.com/news/big-difference-between-bitcoin-crypto-133449410.html)