Analysing Treasury Companies
Bitcoin Treasury Companies are sprouting up like mushrooms, and given their non-standard business model of BTC acquisition, we require a new suite of metrics to assess relative value.
G’day Folks,
Bitcoin Treasury Companies are one of the major narratives for Bitcoin, and a key source of buy side pressure in the market.
These treasury companies do not have normal business models, and that means traditional valuation metrics simply do not work.
As I noted in Tuesday’s report, Treasury companies have absorbed over 420k BTC since the start of November 2024, with Strategy being the 800-pound gorilla in the room, accounting for ~80% of this.
In today’s piece, I will break-down several valuation metrics which we can use to compare the performance of a variety of Bitcoin Treasury Companies.
In particular, I will focus in on Strategy, XXI, and MetaPlanet, which will help illustrate the benefits and challenges with various tools.
It is also worth noting that a handful of companies appear to be attempting a ‘Treasury’ strategy with crypto outside of Bitcoin. Sharplink Gaming appears to be trying this with ETH, and the stock took a -71.5% nosedive in after-hours trading in response.
Who could have expected this…
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