The popular Bitcoin treasury strategy, adopted by numerous firms to hold the digital asset as a reserve, may face a significantly shorter lifespan than many anticipate, especially for new market entrants. This warning comes from James Check, lead analyst at Glassnode, who suggests that the era of easy gains for new companies in this space might be nearing its end.
<h2>The Challenging Landscape for New Entrants</h2>
[embed]https://twitter.com/_Checkmatey_/status/1941093643072495718[/embed]

Check's analysis highlights a shift in market dynamics, where late adopters of the Bitcoin treasury model are finding it increasingly difficult to establish momentum. "My instinct is the Bitcoin treasury strategy has a far shorter lifespan than most expect," Check stated on X, adding, "For many new entrants, it could already be over." He emphasized that long-term accumulation hinges on a company's product sustainability and strategic approach, rather than merely holding <a href="https://www.cryptoknowmics.com/news/trumps-big-beautiful-bill-could-ignite-bitcoin-40-surge-in-a-week/">Bitcoin</a>. "Nobody wants the 50th Treasury company," he remarked, indicating a saturation point. Check believes the market is moving into a "show me" phase, making it challenging for new companies without a distinctive niche to thrive and maintain a premium.
<h3>Concerns Over Sustainability and "Copycats"</h3>
While Bitcoin Treasuries data shows at least 21 entities added Bitcoin as a reserve in the 30 days leading up to last Friday, the sustainability of these ventures is being questioned. Firms like Michael Saylor's Strategy (MSTR), holding 597,325 BTC, and MARA Holdings with 50,000 BTC, dominate the public treasury landscape. However, smaller, newer firms often attract retail speculators who "don't have infinite money," according to Check.

The sentiment is echoed by Taproot Wizards co-founder Udi Wizardheimer, who observed, "Many of the folks raising just see easy money and have no idea what they're doing." He predicted that "The weak ones might be acquired at a discount by the strong ones, and the trend could still have a few more legs in it." This concern extends to the rise of "copycats" in the market. Fakhul Miah, managing director of GoMining Institutional, expressed worry about companies creating "Bitcoin banks without proper safeguards or risk management," warning of a potential "ripple effect that hurts Bitcoin's image" if these smaller firms falter. Venture capital firm Breed further supports this, suggesting in a recent report that only a select few Bitcoin treasury companies will withstand market pressures and avoid a "death spiral."

Bitcoin Treasury Strategy Under Scrutiny: Analysts Forecast Limited Longevity

Analysts warn the Bitcoin treasury strategy faces a "far shorter lifespan" for new entrants, citing market saturation and sustainability concerns.

Bitcoin Treasury Strategy Under Scrutiny: Analysts Forecast Limited Longevity

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