A growing number of public companies are positioning themselves as bitcoin-centric investment vehicles—some even going so far as to make that their only value proposition. These are the so-called “bitcoin treasury companies”: firms whose primary mission is to raise capital from investors and deploy it into bitcoin. In some cases, there’s no operating business, no product or service—just an equity shell, a stock ticker, and the promise to accumulate BTC.

At a glance, this might appear to be a bullish sign for bitcoin adoption. And in a certain sense, it is. We believe that over the coming decade, nearly every company—whether a tech firm, manufacturer, or family-owned business—will eventually hold bitcoin as a reserve asset. As digital sound money becomes increasingly recognized for its superior properties relative to fragile fiat alternatives, this transition will feel less like a fringe bet and more like a basic fiduciary duty.

But it’s important to separate two very different ideas:

• That bitcoin belongs on corporate balance sheets.
• That buying stock in a company simply because it holds bitcoin is a wise investment.

The former is a rational and long-term strategic choice. The latter often amounts to a speculative trade. This distinction is particularly relevant now, as a wave of new companies—many launched via SPACs or low-float equity vehicles—rush to mimic the MicroStrategy playbook.

When Michael Saylor began acquiring bitcoin in 2020, it was a bold, controversial decision. But he didn’t do it as a marketing gimmick. He did it with $500M+ in cash on the balance sheet, a profitable core business, and full control of his board. He moved first, raised debt at favorable terms, and was able to issue equity against a rising asset base. Today, MSTR enjoys liquidity, scale, and brand recognition that cannot be easily replicated.

For newer entrants, those advantages are harder to come by. Instead, they’ll need to find other ways to attract capital and attention—through social engagement, marketing, or more concerningly, through undue leverage and financial engineering. That’s not inherently bad. But it does mean investors should proceed with caution.

Some of these companies may succeed, particularly in jurisdictions with regulatory arbitrage opportunities or favorable tax treatment, like Japan’s Metaplanet. But latecomers will face increasing difficulty in differentiating their strategy without taking on meaningful additional risk. And the longer this trade persists, the more saturated it becomes—potentially leading to volatility, deleveraging events, and compression in relative valuations.

That’s why this trend bears resemblance to previous market cycles, where investors sell BTC to buy something “bitcoin-adjacent” in hopes of outperforming and rotating back in. Sometimes that works. Often, it doesn’t. And this time around, because the narrative feels closer to home—“they’re buying bitcoin, so it must be good”—many investors are overlooking the risks.

So let’s be clear about what those risks are:

Counterparty Risk
When you invest in a bitcoin treasury company, you’re not gaining access to bitcoin—you’re gaining exposure to a management team. You hold equity, not direct title to BTC. If the company fails—due to insolvency, fraud, or poor governance—your equity could be rendered worthless, regardless of the bitcoin it holds.

Execution Risk
Capital allocation matters. These companies must time BTC purchases, manage liquidity, and navigate treasury strategy in real time. Poor execution—whether buying at local tops, mismanaging reserves, or failing to hedge operational costs—can lead to underperformance or capital loss, even in a rising BTC market.

Leverage & Financing Risk
Many of these entities will be forced to rely on aggressive financing strategies to accumulate BTC. While this can accelerate growth in a bull market, it introduces fragility. In a downturn, leverage unwinds can trigger forced selling, liquidation events, or long-term balance sheet damage.

Liquidity Risk
Thinly traded equities, combined with volatile BTC prices, create compounding liquidity challenges. If share prices fall—or BTC corrects sharply—companies may be forced to sell bitcoin to meet obligations, amplifying downside volatility.

Dilution Risk
To fund ongoing bitcoin purchases or operations, these companies often issue additional equity. Each raise dilutes existing shareholders, especially if done at lower valuations. This dilution risk compounds over time and can erode per-share exposure to bitcoin.

Lack of Bitcoin Ownership
Owning shares in a bitcoin treasury company is not the same as owning bitcoin. Unlike ETFs (which at least offer structured exposure), or direct custody (which offers full control), these shares confer no rights to redeem or withdraw BTC. You’re exposed to price movements without access to the underlying asset—removing many of the qualities that make bitcoin a superior savings technology.

None of this is to say you can’t "make money" trading these tickers. Some investors will. But understand the game being played. These are trades, not savings. If your goal is to accumulate more bitcoin over time, you’re taking a path that requires near-perfect timing, sharp analysis of corporate structure and capital markets, and an exit strategy. Most people won’t stick the landing.

In contrast, bitcoin itself is not a trade. It’s savings technology. Held natively—preferably through trust-minimized models like self-custody or Multi-Institution Custody (MIC)—it offers something these equities simply cannot: mitigation of counterparty risk, transparency of ownership, and the ability to hold for the long term without dilution or leverage-induced blowups.

That’s what makes it special. That’s what makes it resilient. And that’s why, even as these bitcoin-themed equities proliferate, investors would be wise to remember: exposure is not ownership. If you want the asset, buy the asset, and secure it properly.

Chart of the Week

"A quarter century of CBO deficit forecasts: projected vs actual."

— zerohedge on X

Quote of the Week

"The bitcoin kidnapping is WAY WORSE than is being reported. 99% of them don’t make the news. People in gated communities are getting hit. Sometimes this stuff gets reported but not even close to the scope of the issue."

— Cernovich on X

Podcasts of the Week

Multipolar Investing: Geopolitics, Risk, and the End of the 60/40 Portfolio

In this episode of Scarce Assets, hosts Jackson Mikalic and Michael Tanguma are joined by Rob Larity & Jacob Shapiro of Bespoke Group to discuss the rise of multipolarity, why the 60/40 portfolio is obsolete, the death of the “risk-free” asset, how geopolitics is reshaping capital allocation, and more.

Flash Forward: From Monetary Asset to Everyday Money

In this episode of Final Settlement, hosts Michael Tanguma, Liam Nelson, & Brian Cubellis are joined by Pierre Corbin, CEO and Co-founder of Flash, to discuss key takeaways from #Bitcoin2025 in Vegas, the future of bitcoin payments, the emergent role of stablecoins, leveraging Lightning, Nostr, eCash & more.

Bitcoin 2025: A New Era of Strategic Moves by Nations, Corporations, and Institutions

In this episode of The Last Trade, hosts Jackson Mikalic, Michael Tanguma, Brian Cubellis, & Tim Kotzman are joined by Liam Nelson, Partner at Early Riders, to discuss key takeaways from the Bitcoin 2025 conference in Vegas. Nations, corporations, and institutions are no longer on the sidelines—from BlackRock to the Trump family to Pakistan—key players are making strategic moves for the new bitcoin era.

Closing Note

Onramp provides bitcoin financial services built on multi-institution custody. To learn more about our products for individuals and institutions, schedule a consultation to chat with us about your situation and needs.

Until next week,

Brian Cubellis