According to a new report, companies holding bitcoin reserves could face a sustainability crisis.
Bitcoin treasury companies have become one of the most talked-about phenomena of 2025, but according to an in-depth analysis by venture capital firm Breed, only the most experienced and disciplined companies will manage to survive the “death spiral” threatening the sector.
The future of these companies depends entirely on their ability to maintain a multiple of their net asset value (MNAV), according to Breed’s report. Companies operating with bitcoin reserves face a crucial challenge: avoiding collapse when their market value dangerously approaches their net asset value (NAV).
The research identifies seven distinct stages of decline that can affect these companies. The process begins with a drop in the price of bitcoin, triggering a decrease in MNAV and bringing the company’s stock price closer to its actual NAV.
This dynamic creates a domino effect. When the stock price nears the NAV, it becomes extremely difficult for these companies to secure the debt and equity financing essential to continue their strategy of converting US dollars into bitcoin.
As credit access tightens and debt maturities approach, margin calls are triggered, forcing companies to sell bitcoin on the market — further driving down its price and setting off a wave of sector consolidation through acquisitions by stronger firms.
The report’s authors state:
“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.”
According to the report, a potential crisis among Bitcoin treasury companies could trigger the next bear market. However, Breed’s analysts highlight a mitigating factor: at present, most companies holding bitcoin reserves are financing their purchases through equity rather than debt, which could limit the impact on the market.
