Corporate Bitcoin Treasuries: Strategic Capital Allocation in a Post-Peg World

The collapse of Terra's UST in May 2022 marked a watershed moment for corporate Bitcoin treasury strategies. In the aftermath, the crypto market's volatility and regulatory scrutiny forced companies to adopt a more disciplined approach to capital allocation. Yet, rather than deterring institutional interest, the crisis accelerated Bitcoin's evolution from speculative curiosity to a strategic reserve asset. Today, 174 public companies hold Bitcoin on their balance sheets, collectively amassing 964,079 BTC valued at over $109 billion. This shift reflects a broader financial innovation trend: corporations are leveraging equity and debt financing to scale Bitcoin holdings, betting on its role as a hedge against inflation and a diversifier in an era of macroeconomic uncertainty.

The Sequans Model: Equity Financing and Bitcoin Accumulation

French semiconductor firm Sequans Communications exemplifies this trend. In August 2025, the company announced a $200 million at-the-market (ATM) equity offering to expand its Bitcoin treasury, aiming to accumulate 100,000 BTC by 2030. At current prices, this raise could add 1,814 BTC to its existing 3,171 BTC holdings, valued at $349 million. Sequans' strategy mirrors that of MicroStrategy (MSTR), which has become the largest corporate Bitcoin holder with 628,946 BTC. Both companies use equity issuance to fund Bitcoin purchases, creating a leveraged exposure to the asset.

This approach, however, comes with trade-offs. Sequans' diluted share count has grown from 97 million in 2020 to over 300 million by 2025, a pattern seen across the sector. While such dilution allows for rapid Bitcoin accumulation, it pressures stock prices. For instance, MicroStrategy's shares have lagged Bitcoin's 160% gain from early 2024 to August 2025, peaking at $543 before falling to $330. The disconnect highlights the tension between capital efficiency and shareholder value.

Risk-Adjusted Returns: Leveraged Exposure vs. Dilution

The appeal of Bitcoin treasury companies lies in their asymmetric upside. If Bitcoin reaches $150,000 by 2030, as Sequans and MicroStrategy predict, the fair value of their shares could surge. For example, MicroStrategy's 630,000 BTC holdings would be worth $94.5 billion at that price, implying a share price of $308–$880 depending on NAV premiums. However, this potential is contingent on continued accumulation and favorable market conditions.

Yet, the sector's risk profile is evolving. As more companies enter the space—such as BitMine Immersion Technologies, which shifted to Ethereum (ETH) treasuries—the competitive landscape has intensified. This has driven down net asset value (NAV) premiums, which historically allowed firms like MicroStrategy to trade at a 2x+ discount to their Bitcoin holdings. By 2025, the sector's NAV premium has trended toward 1x, reflecting a more mature market.

Strategic Capital Allocation in a Post-Peg World

The post-UST era has also reshaped corporate capital structures. Companies now prioritize transparency and collateralization, avoiding the pitfalls of algorithmic stablecoins. Sequans' strategy—combining equity raises, debt financing, and operational cash flow—exemplifies this shift. Its recent $189 million secured convertible debenture and $200 million ATM offering illustrate a diversified approach to funding Bitcoin purchases.

However, this model is not without risks. Shareholders must weigh the dilution from equity issuance against the potential for Bitcoin's long-term appreciation. For Sequans, the key will be disciplined execution: buying Bitcoin at attractive prices during pullbacks (e.g., $110,045 in August 2025) while maintaining operational focus on its core IoT semiconductor business.

Investment Implications

For investors seeking Bitcoin exposure through equities, Bitcoin treasury companies offer a leveraged but volatile path. The sector's success hinges on three factors:
1. Continued Bitcoin Accumulation: Companies must maintain a pace of buying that outstrips dilution.
2. Regulatory Clarity: A stable legal framework will reduce uncertainty and attract institutional capital.
3. Market Sentiment: Broader adoption of Bitcoin ETFs and institutional demand will determine the sector's valuation multiples.

Investors should also monitor the shift toward Ethereum treasuries, as seen with BitMine and others. While Bitcoin remains the dominant reserve asset, Ethereum's 198% price surge since April 2025 suggests growing interest in alternative crypto treasuries.

Conclusion

Corporate Bitcoin treasury strategies represent a bold reimagining of capital allocation in a post-peg world. Sequans' $200 million equity raise underscores the sector's potential to align shareholder interests with Bitcoin's long-term growth. Yet, the path to value creation is fraught with dilution risks and competitive pressures. For investors, the key lies in balancing the asymmetric upside of leveraged exposure with the discipline to avoid overleveraging during market downturns. As the sector matures, the winners will be those who combine strategic Bitcoin accumulation with operational excellence and prudent capital management.