The corporate treasury function – historically rooted in conservative cash management – is undergoing its biggest transformation in decades. The revolution began in earnest with Michael Saylor at Strategy – who now owns over 3% of the total Bitcoin supply – but Strategy is no longer the only player in the bitcoin treasury space. Estimates show that corporate government bonds now hold over a million BTC between them, worth over $120 billion of assets by October 2025.
The thesis of this strategy is rooted in the same thesis of why we buy and hold Bitcoin as individuals. In an era of monetary degradation, the rational entity will look for an asset that surpasses the catastrophic effects of degradation. As money printing continues and markets continue to react (see gold trading at $4000+), it is inevitable that every public company will eventually embrace a Bitcoin finance strategy.
The Case for a Corporate Bitcoin Treasury
The traditional corporate playbook risks not only underperformance, but also a breach of fiduciary duty as liquidity reserves bleed away on the altar of money printing. However, Bitcoin offers a peer-to-peer, limited-supply asset with a decade-plus track record of compounding value in real terms.
The beauty of the financial strategy is not just the possession of Bitcoin itself; but the opportunity it gives companies to exploit the capital markets. Unlike spot ETFs, companies can issue shares at premiums to Net Asset Value (NAV), raise convertible debt with low or even zero coupons, and strategically time both market access and Bitcoin purchases. In practical terms, this means that along with owning Bitcoin, companies can use the market structure to grow Bitcoin holdings per share over time.
The network effect is now self-reinforcing. As each successful Bitcoin finance company demonstrates viability, capital market skepticism diminishes and the necessary financial infrastructure (custody, reporting, convertible debt) matures.
Most compelling is the mNAV value creation paradox: trading at a premium allows companies to issue shares, buy more Bitcoin, and increase BTC per share (BPS) for existing shareholders. For example, Strategy delivered a BTC dividend of 74.3% in 2024, so long-term holders saw their underlying Bitcoin share increase by that amount purely through corporate actions – not market valuation alone. This is a structural financial innovation for financial management.
But why would a rational investor pay such premiums?
Public companies raise debt at below Bitcoin’s long-term rate of appreciation, which magnifies BTC per share growth. From 2020 – 2025, the compound annual growth rate for Bitcoin has been 64%. Future projections suggest an environment where BTC continues to compound on average between 25-35%, so if the funding cost is 8%, the spread of the shareholders is kept.
If BTC per share grows faster than dilution, shareholders benefit. The resonant flywheel is: mNAV premium → capital increase → more BTC → higher Bitcoin per share → continuous premium → next increase.
Seen through a different lens, many jurisdictions and markets have different rules on access to Bitcoin for both corporate and retail investors. In the UK alone, as of October 2025, a huge amount of capital (£1.4 trillion) is trapped in personal pensions and tax-efficient savings accounts (ISAs). For this capital, exposure to Bitcoin through treasury companies is often the easiest way to generate high alpha returns on a portfolio.
Highest and lowest levels of mNAV
Since the summer 2025 highs, we have seen a huge decline in the mNAVs of all BTC financial companies due to a mix of stagnant price action and poor community sentiment, with some of the early adopters dropping 90% in a matter of weeks from their highs – challenging investor sentiment and testing conviction.
As a premium to NAV, mNAV is fundamentally built on a foundation of sentiment and fundamentals.
The company’s Bitcoin financial success depends on building investor confidence through transparent reporting and consistent belief in Bitcoin, paired with fundamentals such as maximizing BTC returns via accredited capital increases, optimizing leverage at market peaks, maintaining mNAV above 1.2x and defending it with share buybacks and debt reduction. In times of a bear cycle, every company’s convictions will be tested – those who remain convicted and take the long view will be rewarded. The key solution to maintaining the book during a bear cycle is to have a profitable operating business: this will allow constant cash flow to initiate incremental share buybacks if mNAV falls below one. It also provides the opportunity to buy Bitcoin at a discount without diluting shareholders.
Many companies have entered the space with very small, minimally profitable operating businesses – for example, Metaplanet was a failing small hotel chain. These companies are looking at the flywheel to revitalize the business. It works well when times are good, as seen in June this year, when seemingly any business could get a prize. But when Bitcoin falls in price, sentiment returns to extreme bearishness, and investors feel disinterested in treasuries, vulnerabilities will be exposed.
The key to building a truly profitable operating business is to maintain consistent revenue and growth while strategically adding a Bitcoin wallet. When a company remains both profitable and expanding, a market valuation below an mNAV of 1 can only be attributed to irrational sentiment – effectively mispricing the company as “dead”. By combining a robust core business and stable or growing operating income with a growing Bitcoin reserve, companies can position themselves for resilient long-term value regardless of market volatility. This will be the next step in the financial model and how the key players will come out of bearish periods.
Potential risks
mNAV compression has been accelerated dramatically. Artemis Analytics reported three consecutive months of sharp mNAV declines through September 2025, with 25-33% of financials now trading below 1.0x NAV – underwater territory where the flywheel is turning. The strategy’s own mNAV compressed from 6.0x peaks in 2021 to approx. 1.21x currently. Again, this reiterates the importance of an operating business to provide stability to the financial strategy, otherwise pure small treasuries can easily find themselves deep underwater. Although it has an operating business (marginal compared to wider operations), strategy is an exception as it is so far ahead of any other unit in acquisition size.
Death spiral mechanics become lethal sub-1.0x. Companies trading below NAV face dilutive capital raisings that destroy BPS, triggering shareholder exodus, further mNAV declines and forced liquidations. Last month, Strive bought Semler Scientific in a $1.34 billion stock deal at a 210% premium, combining their Bitcoin government bonds into a portfolio of 10,900 BTC. This marks the first major M&A consolidation in the sector and validates the thesis that struggling pure government bonds will be acquired for their discounted Bitcoin holdings. Expect more consolidation as sub-1.0x mNAV companies become acquisition targets.
A Bitcoin treasury is not optional
The future of Bitcoin treasuries has just begun. As more CFOs embrace Bitcoin as the backbone of corporate reserves, capital markets will reward disciplined, BTC-native stewardship with increased shareholder value. As adoption accelerates, the alignment between corporate finance and the Bitcoin network will drive unprecedented change. The winners will not only own Bitcoin – they will build profitable businesses around it and create sustainable shareholder value and business growth in an increasingly unsustainable system. A bitcoin treasury is not optional – it’s not a nice to have, it’s a must have.
