In light of increased interest in balance sheet holdings outside of Bitcoin, David Bailey, CEO of Nakamoto, claims that the digital asset treasury company’s “moniker itself is confusing.”
David Bailey, CEO of Bitcoin treasury startup Nakamoto, claims that businesses that include underperforming cryptocurrencies on their balance sheets are distorting the overall treasury narrative.
In an X post on Sunday, Bailey stated, “The treasury company moniker actually is confusing.”
Too many failed businesses with little strategy or vision, toxic finance, and altcoins that failed but were renamed as DATs. The story is completely confused,” Bailey remarked.
According to David Bailey, the industry is “being tested.”
“Building and monetizing your balance sheet is the core strategy,” Bailey stressed
“You will increase your assets over time if you can do it well; if you can’t, you’ll trade at a discount and be absorbed by someone who can do it better,” he stated.
“A bank is the fiat system’s bitcoin treasury corporation. We are constructing Bitcoin banks today. You can refer to them as Bitcoin financial institutions if you’re scared of that phrase.
The entire treasury sector is “being tested,” according to Bailey. His remarks coincide with publicly traded corporations beginning to consider options other than Bitcoin.
The entire treasury sector is “being tested,” according to Bailey. His remarks coincide with publicly traded corporations beginning to search for additional crypto assets to add to their treasuries, looking beyond Bitcoin and along the risk curve. According to a rumor on Aug. 2, Mill City Ventures III, which is listed on the Nasdaq, may raise an additional $500 million through an equity agreement to finance its recently revealed Sui treasury strategy.
In a report released on July 31, Galaxy Digital stated that companies are expanding their treasuries beyond Bitcoin due to narrative-driven theses. Other cryptocurrencies that are becoming more popular than Bitcoin include Ether and HyperLiquid (HYPE).
According to BitcoinTreasuries.NET, the total amount of Bitcoin held by publicly traded corporations at the time of writing was around $117.91 billion.
Ether is becoming more and more popular as a substitute since it can be staked for yearly returns, which makes it both a source of income and a store of wealth. StrategicETHReserve estimates that publicly traded treasury businesses have about 3.14% of Ether’s total supply.
Growing interest could be the cause of Bitcoin’s volatile pricing.
According to Mike Novogratz, CEO of Galaxy Digital, treasury firms’ interest in the larger cryptocurrency market could be the cause of Bitcoin’s recent sideways price movement.
“Bitcoin is currently undergoing consolidation. Novogratz stated, “In part because you’re seeing a lot of these treasury companies in other coins take their shot.”
Bitcoin treasuries have been questioned, but altcoins in treasuries have also come under examination.
Only a small number of Bitcoin treasury firms will survive and escape the ruthless “death spiral” that will affect BTC holding businesses that trade around net asset value (NAV), according to venture capital company Breed.
This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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