As the Bitcoin market evolves, a surge in crypto treasury strategies among public companies is raising red flags for industry leaders. The CEO of one of the top Bitcoin mining firms has warned that the rapid rise of Bitcoin-holding corporations may put significant pressure on BTC prices in the near future.
MARA CEO Warns of Crowded Bitcoin Treasury Space
Fred Thiel, CEO of MARA Holdingsāthe largest publicly traded Bitcoin miner by market capāhas raised concerns about the growing number of companies adopting Bitcoin as a treasury reserve asset.
āThey canāt all be successful,ā Thiel emphasized during a recent earnings call, referring to the flood of firms racing to replicate the Bitcoin treasury model.
MARA itself holds one of the largest Bitcoin stockpiles, second only to the market leader Strategy. Yet Thiel suggested that the crowded landscape could dilute potential returns and introduce new price vulnerabilities.
Bitcoin Whales Selling, Pressure May Mount
Thiel pointed to a trend of Bitcoin whales unloading holdings, which could combine with corporate selling to generate downward price pressure if demand slows.
āAny market advantage disappears when too many players chase the same opportunity,ā he warned.
This concern is especially relevant as the cumulative Bitcoin holdings across treasury-focused firms have soared to 774,000 BTC, a value exceeding $90 billion. Over 200 firms are now estimated to hold Bitcoin in corporate reserves, with Strategy alone owning more than 620,000 BTC.
mNAV Under the Microscope
A key valuation metric gaining traction is the Multiple of Net Asset Value (mNAV)ācalculated by dividing a firmās enterprise value by its token holdings. Thiel cautioned that if market conditions shift, companies with inflated mNAVs may be forced to liquidate their Bitcoin holdings.
“If mNAV drops to oneāor worse, goes negativeāthose companies may have no choice but to sell,” he stated.
This echoes previous concerns when certain funds, such as digital trusts, faced valuation gaps that led to fund inflows drying up and asset sales accelerating.
Rising Risk in a Saturated Market
While the Bitcoin treasury model has driven impressive gains for early adopters, industry leaders are beginning to question its sustainability. With over 200 firms now participating, the risk of market saturation is real.
Should prices fall or mNAV ratios shift, forced selling could become a serious headwind for Bitcoinās price stability.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.