Bitcoin’s Gamble: Will Treasuries Collapse Under Price Pressure? ⚠️

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Bitcoin‘s Gamble: Will Treasuries Collapse Under Price Pressure? ⚠️

In our curious age, a handful of ambitious companies—who presumably have learned nothing from history—are feverishly adding Bitcoin (BTC) to their treasuries. Ah, the noble pursuit of wealth, or perhaps just the thrill of gambling with other people’s money? 🤔

Between the days of June 11, a mere 30 days, at least twenty-two entities—more than a dozen—have dared to treat Bitcoin as a reserve asset. According to BitcoinTreasuries.net, no less! One might wonder if they’re hoping Bitcoin’s volatility is merely a phase, like fashion or young love.

All eyes turn to Strategy (formerly MicroStrategy), whose relentless Bitcoin hoarding has set a kind of feverish standard. Their aggressive blueprint has stirred a swarm of imitators, all eager to mimic what might be a fool’s errand disguised as genius. 🎭

While some hail these companies for their visionary zeal, skeptics—those wise souls with trembling hands—point out that many of these firms have shaky financial foundations. They buy Bitcoin not out of conviction, but to avoid slipping beneath the financial waves. Truly, one must wonder whether Bitcoin is becoming a lifeboat for sinking ships.

“What truly alarms me,” said Fakhul Miah, managing director of GoMining Institutional, “are the copycats. They’re trying to fashion Bitcoin banks without proper safeguards or risk management. If these smaller companies go under, expect a ripple effect—perhaps even a tsunami—that might tarnish Bitcoin’s reputation forever.” 😅

“If Bitcoin price falls below $90,000, half of these corporate treasuries could drown,” warned Standard Chartered’s report on June 3. A 22% drop below their average purchase prices could force them to sell in panic, like a herd of sheep fleeing the wolf. 🐑🧛‍♂️”

Possible reversal on Bitcoin buying pressure

Enter Michael Saylor, the charismatic CEO of Strategy, who began accumulating Bitcoin in August 2020—perhaps fueled by a fascination with digital gold or simply by an aversion to traditional investments. His company now holds a staggering 582,000 BTC—enough to make even a king envious. And to think, this is the largest corporate hoard in existence!

“Back then,” said Miah, “spot Bitcoin ETFs didn’t exist. Strategy was your shortcut to indirect Bitcoin exposure—buy their stock, and voilà! Instant crypto—minus the worries of custodial mishaps.”

Fast forward to 2024, and the US has approved Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust reaching over $70 billion in assets—faster than you can say “profit-taking!” Truly, the floodgates have opened, and corporate giants are diving in headfirst, armoring themselves in Bitcoin like knights in shining armor.

By mid-2025, the game changed—companies prefer to add Bitcoin directly to their treasuries, no longer content with playgrounds like ETFs or indirect exposures. Some are playing with fire, fueling demand and risk like kids with fireworks. Boom! 💥

When prices plummet, cascade—liquidations, bankruptcies, chaos. Standard Chartered’s wise analyst, Geoff Kendrick, warns that many of these Bitcoin holdings are valued at multiples greater than their actual Bitcoin content—kind of like paying extra for a diamond ring with a cheap cubic zirconia inside. 💍

Regulatory constraints in certain jurisdictions make direct crypto investing complex—these companies might seem like clever workaround artists but beware: as regulations evolve, demand for these proxies could vanish faster than a magician’s rabbit. Poof! And valuations may topple like a house of cards.

Bitcoin treasury companies are not Strategy

While Strategy retains 71% of Bitcoin in public treasuries—assembled over years using a cocktail of equity and debt—many newcomers have raced to buy in at significantly higher prices. Leverage—oh, sweet leverage!—may turn their dreams into nightmares if the price drops sharply.

Strategy’s resilience was tested in 2022, enduring Bitcoin’s brutal plunge of over 50%—from around $31,000 down to $15,500—without forced sales. Impressive, yes, but can the new kids withstand such storms? Only time will tell.

Miah notes that institutions are now intrigued by mining—producing pristine, “virgin” Bitcoin—free from the taint of illicit activity, much like a brand new car from the factory. Yet mining’s competition is fierce, rewards halving every four years, and the next halving is on the horizon in 2028, dropping rewards to just 1.625 BTC every ten minutes. Like a stubborn diet, rewards shrink, and the game gets tougher. 🍽️

Bitcoin’s mission meets institutional reality

Bitcoin was meant to be a decentralized, egalitarian digital currency—accessible to all, regardless of social standing. But as it becomes darling of corporations and governments, the decentralization jitters. Now, they hold about 819,689 BTC—3.9% of the maximum supply—and private entities control an additional 292,047 BTC, summing up to roughly 5.29% of all Bitcoin. Looks like a club, or perhaps a secret society? 👀

“This,” said Samson Mow, a faithful Bitcoin evangelist, “doesn’t compromise Bitcoin’s core mission. It’s simply the way of the world—valuable things tend to fall into the hands of the powerful. Our job? Educate them, so they understand the difference between simply holding and truly *trusting* Bitcoin.”

“In the end, Bitcoin is in the hands of companies, institutions, and governments because it’s valuable. That’s how this universe works,” Mow humbly declared.

For those wary of custody issues—who can blame them?—indirect investment offers a safer, regulated path. After all, losing house keys is bothersome, but losing crypto keys? Perhaps catastrophic. Miah humorously reminds us that, by May, there were 29 recorded violent attacks targeting crypto owners in 2025—more than the 22 cases in mid-May. Seems some people have mastered the art of uninvited visits!

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2025-06-11 17:21