There are now 179 listed companies holding Bitcoin on their balance sheets, all following variations of the same formula: raise capital on traditional markets, buy Bitcoin, and attempt to grow the amount of BTC backing each share faster than they dilute shareholders.
Making the equation work is far easier when Bitcoin's price is rising and investors are willing to fund another round of purchases. The mechanics, however, operate in both directions. When the premium evaporates and investor enthusiasm fades, financing dries up while debt and yield obligations remain. The same structure that magnified gains during the bull market now amplifies losses on the way down. The 50 largest Bitcoin treasury companies have shed $83 billion in combined market value since July 2025.
Metaplanet's recent shareholder backlash highlights the kind of pushback that arises when a treasury company dilutes its ownership base too aggressively. Treasury firms are more likely to need to raise capital in bear markets, creating a structural tension. Issuing shares at a premium to net asset value and deploying the proceeds into Bitcoin increases the BTC backing every existing share. Issuing at a discount destroys value, according to Mark Palmer, managing director and senior equity research analyst at StoneX.
The basic test for potential investors is straightforward: do shareholders end up with more Bitcoin per fully diluted share over time, net of debt and preferred stock claims? Issuing new shares is not inherently problematic; what matters is whether the new capital generates enough additional value to outweigh dilution. When the company sells shares for more than the Bitcoin-backed value they carry and uses the proceeds to buy more Bitcoin, existing shareholders benefit. When it raises below that threshold, they lose.
The dynamic played out favorably for Strategy during the last Bitcoin bull run, when Bitcoin's rapid appreciation made it easier to take on and service new debt. But many firms that followed Strategy's model lacked an exit plan for when conditions reversed. Strategist McCarthy expects the next shakeout to eliminate roughly 95 percent of current players.
A corporate wrapper also introduces risks beyond Bitcoin's price movements. Convertible debt and perpetual preferred stock sit ahead of common shareholders in priority, carrying cash obligations that Bitcoin itself does not generate. For investors seeking simpler exposure, spot Bitcoin ETFs allow trading through conventional brokerages without grappling with management quality, financing structures, or governance concerns.
Supporters point to track records. Matt Cole, chief executive of Strive, said the firm has outperformed Bitcoin both since announcing its strategy in May 2025 and year-to-date in 2026. He added that Strive has not sold a single Bitcoin and increased its holdings approximately fourfold during a Bitcoin bear market. David Bailey, chief executive of Nakamoto, said Metaplanet was "the best performing equity in the world for nearly two years" and is up 1,300 percent from inception.
Yet debt maturity and yield obligations remain looming risks. Nakamoto's own stock fell 99 percent from its 2025 peak, and UK-based Satsuma Technology experienced a similarly steep decline. When asked how he would deploy $100,000 for Bitcoin exposure, McCarthy said he would buy mostly an ETF and allocate a smaller portion to Strategy "for the vol."
Buying Bitcoin is a bet on Bitcoin. Buying a treasury company is a bet on Bitcoin plus a separate bet on the people, financing structure, balance sheet and corporate governance wrapped around it.
