Altcoin Treasury Strategies Draw Scrutiny: Bitcoin's Sideways Trend?
Altcoins in Corporate Treasuries: A Confusing Narrative?
Companies incorporating underperforming altcoins into their treasury strategies are blurring the clarity of the overall treasury landscape, according to David Bailey, CEO of Bitcoin treasury firm Nakamoto.
Bailey voiced his concerns in a recent X post, stating, “The treasury company moniker itself is confusing. Toxic financing, failed altcoins rebranded as DATs, too many failed companies with no plan or vision. It’s totally muddled the narrative.”
The Core Strategy: Building and Monetizing
Bailey emphasized that the fundamental strategy for treasury companies should revolve around building and effectively monetizing their balance sheets. He argues the treasury sector is “being tested.”
“The core strategy is to build and monetize your balance sheet. 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,” he stated.
“The bitcoin treasury company of the fiat system is a bank. Today we are building Bitcoin Banks. If you’re afraid of that term, call them Bitcoin financial institutions.”
His comments come amid a growing trend of publicly listed firms diversifying their crypto holdings beyond Bitcoin (BTC). For instance, Mill City Ventures III is reportedly planning to raise $500 million to fund its Sui treasury strategy.
Narrative-driven investment theses are prompting firms to look beyond Bitcoin, as highlighted in a Galaxy Digital report. Cryptocurrencies like Ether (ETH), Solana (SOL), XRP, BNB, and HyperLiquid (HYPE) are gaining traction.
Currently, publicly-traded companies hold approximately $117.91 billion in Bitcoin, according to BitcoinTreasuries.NET. Ether is also gaining momentum, with around 3.14% of its total supply held in publicly-listed treasury companies, as per StrategicETHReserve.
Bitcoin's Consolidation: A Diversification Effect?
Galaxy Digital CEO Mike Novogratz has suggested that the increasing interest in altcoins among treasury companies might be contributing to Bitcoin's recent sideways price movement.
“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 stated.
While altcoin treasuries are under scrutiny, Bitcoin treasuries also face skepticism. Venture capital firm Breed suggests that only a select few Bitcoin treasury companies will survive long-term, avoiding a potential “death spiral.”