TLDR
- Bitcoin treasuries in public companies are worth $117.91B at publication time
- MicroStrategy holds 638,460 BTC worth about $71B with $47.2B spent
- Ether treasuries account for 3.14% of total ETH supply in public firms
- Mill City Ventures III may raise $500M for its new Sui treasury strategy
The treasury sector is under pressure as companies shift strategies to Bitcoin-focused balance sheets. Toxic financing, failed altcoins, and unclear models have complicated the space, but firms adopting the Bitcoin Bank approach continue to grow. The debate now centers on balance sheet discipline, sustainable expansion, and Bitcoin’s evolving role in finance.
Treasury Sector Faces Test Amid Confusion
The entire treasury sector is being tested as companies adopt different approaches to digital assets. Failed altcoins rebranded as digital asset tokens, poor financing structures, and firms without clear strategies have caused uncertainty. Even the term “treasury company” has created confusion for investors tracking corporate digital asset reserves.
David Bailey, CEO of Bitcoin treasury company Nakamoto, criticized weak operators in the market. “Toxic financing, failed altcoins rebranded as DATs, too many failed companies with no plan or vision. It’s totally muddled the narrative,” Bailey said in an X post. He described the sector as “being tested.”
Bitcoin Banks as Balance Sheet Institutions
Bailey compared Bitcoin treasury companies to banks in the fiat system. He said the industry is building Bitcoin Banks, or Bitcoin financial institutions, with balance sheet growth as their primary strategy.
“The core strategy is to build and monetize your balance sheet,” Bailey said. “If you can do it well, you will grow your assets over time. If you do it poorly, you will trade at a discount and be consumed by someone who can do it better.”
According to Bailey, Bitcoin Banks represent a structural integration of Bitcoin into the financial system. Treating Bitcoin as a balance sheet primitive mirrors how traditional banks manage monetary assets. He added that shorting Bitcoin Banks is equivalent to shorting Bitcoin’s role in the global financial system.
Public Companies Expand Digital Asset Treasuries
Several companies continue to grow their Bitcoin holdings. MicroStrategy remains the largest, with 638,460 BTC acquired for $47.2 billion. The firm’s Bitcoin is now worth about $71 billion. According to BitcoinTreasuries.NET, publicly traded companies hold Bitcoin valued at approximately $117.91 billion.
Expansion is also visible in other cryptocurrencies. Galaxy Digital reported that Ether, Solana, XRP, BNB, and HyperLiquid are gaining traction in treasuries. Ether has gained attention because it can be staked for returns, offering both value storage and income.
Data from StrategicETHReserve shows that 3.14% of Ether’s total supply is held by public treasury firms. On August 2, Nasdaq-listed Mill City Ventures III announced plans to raise up to $500 million for its new Sui treasury strategy. This reflects broader diversification as companies test assets beyond Bitcoin to support balance sheet expansion.
Consolidation of Treasury Firms
Galaxy Digital CEO Mike Novogratz said interest in non-Bitcoin assets may explain Bitcoin’s current sideways price trend. “Bitcoin’s at a consolidation right now. Partly because you’re seeing a lot of these treasury companies in other coins take their shot,” Novogratz said.
Venture capital firm Breed reported that only a limited number of Bitcoin treasury firms will endure. It warned of a potential “death spiral” for companies trading near net asset value without disciplined strategies.
The market is consolidating around firms that can execute balance sheet growth effectively. As Bailey explained, those that succeed will expand assets and attract investor confidence, while weaker operators will eventually be replaced by stronger institutions.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
