Only a few bitcoin (BTC)) Cash societies will resist the test test and avoid the vicious “death spiral” which will have an impact on the BTC portfolio companies which are negotiated near the net value of assets (NAV), the total assets of a commercial entity less its passives, according to a report by the venture capital company (VC).
The health of Bitcoin cash companies depends on their ability to order a multiple of their active value (MNAV), the authors wrote.
Breed report Describes the seven phases of the decline in a BTC Treasury Company, which begins with a drop in the price of bitcoin which triggers a drop in MNAV, which brings the course of the action of a business near its navigation navigation.
This, in turn, makes it more difficult for BTC portfolio companies to secure Debt financing and actions essential to the asymmetrical trade in conversion US dollar inflationary in an asset appreciating from the offer.
While access to dry credit and the maturity of the debt is looming, margin calls are triggered, forcing companies to sell BTC on the market, further reducing the price of the BTC, causing consolidation of portfolio companies acquired by stronger companies and potentially trigger a prolonged slowdown. The authors of the report wrote:
“In the end, only a few companies will have a sustainable MNAV bonus. They will gain it thanks to solid leadership, disciplined execution, advisory marketing and distinctive strategies which continue to grow bitcoin by sharing independently of broader fluctuations in the market.”
This death spiral could trigger the next Crypto bear market. However, the authors of the report said that, as most BTC treasure companies are currently funding their purchases with equity rather than debt, implosion can be contained.
The funding based on the actions limits the benefits on the larger market, the authors said. Despite this, the current forecasts could change if the financing of the debt exceeds equity as the most popular option.
In relation: Michael Saylor’s strategy bonus is not “unreasonable”: Adam Back
Bitcoin cash companies become a major trend in 2025
Michael Saylor’s company, the strategy was Buy Bitcoin since 2020 and popularized the BTC Corporate Treasury Conceptwho has won significant vapor in the past two years.
https://www.youtube.com/watch?v=npzqd7tsqmg
More than 250 organizations now have Bitcoin, in particular companies, government entities, stock market negotiated funds (ETF), pension funds and digital asset service providers, according to the Bitcointheries.
Review: Baby-boomers worth $ 79 t finally get on board with Bitcoin