For several years, the strategy (previously Microstrategy) was the only public company whose modus operandi was buying millions of dollars in Bitcoin with borrowed capital. These days, several other companies are trying to follow the steps of the strategy.
As Bitcoin are going to stack, critics are raising concerns about the growing centralization of cryptographic treasure bonds. Currently, only 216 entities, 101 of which are public companies, have almost 31% of the supply of circulating BTC, with corporate treasure bonds on themselves that represent approximately 765,300 bitcoins, or 3.7% of the total supply (excluding lost coins).
This trend does not show signs of deceleration, with existing companies that continue to accumulate and new players enter space. This causes a debate on the benefits and risks of Bitcoin’s corporate property.
The trend is in full swing
A wave of high -profile cryptographic treasury launches is being carried out, led by figures such as Jack Mallers with 21 Capital, David Bailey with Nakamoto, and more recently Anthony Pompliano with ProCAPBTC, which according to the reports collects $ 750 million in equity and convertible debt to accumulate Bitcoin.
Each new Treasury announcement meets Crypto Twitter bullish, where influential people usually frame the news as a catalyst for the appreciation of BTC prices. However, with such ads that now occur almost daily, their real impact is increasingly clear.
The family chorus of “this has no price” has become a cliché, while comments sections often reflect confusion about why the price of Bitcoin continues to fall despite the seemingly bullish developments.
Do Bitcoin Treasury bonds pump the price of BTC?
According to Gemini’s research, the growing adoption among sovereign and regulated financial institutions led to a decrease in volatility in all deadlines after 2018.
The launch of Bitcoin ETF in 2024 made the trend even stronger. Despite the stabilization of Bitcoin’s price, it does not stop gaining value. The main difference is that now the price constantly increases without the frequent high amplitude fluctuations that it had in the past.
According to Unchained, the price of Bitcoin is stuck between $ 100,000 and $ 110,000, and will take a long time to exceed the $ 130,000 mark. People do not pay attention to many things while reading bombastic ads. One is the lack of retail interest, since the public tends to pay attention to Bitcoin when it reaches a historical maximum or in similar periods.
Another reason for the slower price movement is that Bitcoin’s treasure bonds not only buy BTC, but also volly, since they need cash to repurchase actions. In addition, the ads generally show the total amount of the agreement (that is, “Pompliano to raise $ 750 million to invest in the Bitcoin Treasury”), while, in reality, these quantities are slowly collected; You can take several months to complete the agreements.
Therefore, it is produced that purchases made by Bitcoin treasures are not what they can be.
Finally, the implacable accumulation of Bitcoin is to remove the currencies of the circulation, which makes a remarkable part of the latent supply and something without purpose for years. Bitcoin Treasury bonds need this cryptography to attract more investors and customers.
However, Bitcoin moves away from his initial role as an alternative electronic effective, and some in the cryptographic community collect critical voices aimed at Bitcoin’s treasure bonds.
The attitude of ‘not your keys, nor the coins of your coins is alive and well
Many Bitcoin enthusiasts prefer to own their bitcoins and do not outsternize all the trouble to corporations. The maximalists remind us that any entity does not control Bitcoin, and is free, so it is not necessary for a company to buy and maintain Bitcoin in its name.
Some criticize Bitcoin’s treasure bonds for not representing Bitcoin’s spirit, while others emphasize the problematic past of Bitcoin Treasury leaders.
For example, Microstrategy had a questionable episode during the Era of the Com Point Bubble, while the company reformulated its profits, which resulted in losses for investors. The SEC accused the fraud company.
At that time, Saylor talked about Your plans To donate $ 100 million to the Internet University that will provide “free education for all on Earth, forever.”
This type of evangelism may sound familiar for those who follow Saylor’s Modern speecheswhile it is more punished when it comes to Bitcoin.
For some, Pompliano is an ambiguous candidate to handle the new Mighty Bitcoin Treasury. While Pompliano is a well -known and recognizable Bitcoin defender, some remember their participation in the promotion of Fraudster Crypto Exchange FTX and its associated platform, Blockfi.
The collapses of these platforms were painful not only for their users, but also affected the entire cryptographic sector, starring the market and infusing the distrust of cryptocurrencies among the strangers of the community and, what is more important, the regulators.
Some Bitcoin owners observe the performance of the shares or ETFs of the Treasury company and sell their bitcoins to buy these assets, waiting for faster profits.
Adam Back, a blockstream CEO and the only person whose work is referenced in Bitcoin’s technical document urged his followers not to sell their bitcoins to buy ETF or similar assets, since they will not be able to buy them.
So what is good in Bitcoin’s treasure bonds?
The same person who urges us not to sell Bitcoins, Adam Back, explained that Bitcoin’s treasure bonds “are contributing the Bitcoin adoption curve.”
Back pointed out that most people have no money and opportunities to acquire bitcoin. In contrast, public companies have these opportunities to raise capital selling their shares or vice versa.
These companies do not need free money to invest in Bitcoin, since they can buy bitcoin in advance and pay it years later. “They are basically arbitration between the Fiat [monetary system] and the future hyper-bitcoinized. “
A more conventional explanation is that actions and ETFs are easier to deal with institutional investors than Bitcoin.
Therefore, they do not have to worry about the legal status of Bitcoin and the lack of the company around them. On the other hand, they can deal with a public company that offers some guarantees and is negotiated as well as other public companies while exposing customers to the appreciation of Bitcoin’s price.
In general terms, these treasury bonds are helping tradfi merchants and investors to benefit from the appreciation of Bitcoin’s long -term prices without having to deal with Bitcoin.