Since Bitcoin has established itself as a reserve of serious value in the eyes of companies, a new category of actors emerged: Bitcoin cash companies. Presented as the pioneers of the finance of the future, they are now faced with a harsh reality. According to an icing report of the Breed venture capital fund, the vast majority of them are about to go out, trapped in a spiral as predictable as fatal.
In short
- The fall in the price of Bitcoin leads to a drop in the multiple inventory value of inventory (MNAV), weakening BTC cash companies.
- The “spiral of death” is triggered: loss of funding, forced sales of BTC, and increased pressure on the market.
- Only disciplined companies, with a clear strategy and rigorous management, will survive this crisis.
The silent trap of NAV: when valuation becomes an enemy
The heart of the problem? An implacable accounting mechanism: the net inventory value (NAV). When the price of bitcoin falls, the whole architecture of cash companies flicker. Their naval multiple (MNAV) collapses, making each action as flat as their financial future.
The markets, much more sensitive to tales than to raw figures, severely punish this loss of bonus. Result: these companies, often doped for the optimism of the Bull-Run, struggle to raise new capital. The debt becomes out of reach, the shareholders are scarce, and the Bitcoin in the checkout loses its magic capacity to attract fresh money. It is no longer asset management, it is survival.
And when credit deadlines strike the door, it is Panic BTC sales that accentuate the fall in the market. We then speak of “spiral of death”: a self-destructive chain where companies liquidate their treasure so as not to sink, while digging their own grave.
Bitcoin: Between martial discipline and long -term vision
But everything is not lost. Breed identifies a handful of companies capable of challenging gravity. Their secret weapon? Surgical execution. Solid leadership, coherent strategy, conviction marketing, and above all: cautious management of the Bitcoin/Action ratio.
These companies do not seek to surf the waves, they build ships capable of facing storms.
It is in this distinction that the future resides. The market rewards the controlled audacity, not the malavly euphoria. Michael Saylor's model, controversial but fascinating, is the illustration: accumulate, communicate, resist. The NAV bonus is not just a matter of accounting, it is an index of confidence on the market.
A systemic risk contained, but a clear warning
For the moment, most Bitcoin cash companies are using equity to finance their purchases. This limits the risks of contagion to the entire market. But if the trend switches to loan funding, the wick may well be on for the next Crypto Krach.
Breed's report therefore sounds like an alert : The “Hold and Hope” strategy is no longer enough. As the market becomes more sophisticated, only entities capable of transforming the BTC into a strategic lever and not in passive burdens, will win.
The era of Bitcoin cash societies affects a critical phase. The mirage of a wealth guaranteed by the only possession of BTC collapses in the face of the brutal reality of the market. In this “spiral of death”, it is no longer a question of believing in Bitcoin, it is a question of knowing how to use it with a precision of goldsmith. But for the moment, Bitcoin remains solid.
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