Strategy chairman Michael Saylor defended Bitcoin treasury companies against criticism during an appearance on the What Bitcoin Did podcast. According to Cointelegraph, Saylor addressed concerns about smaller companies that issue equity or debt to purchase Bitcoin. He argued the decision comes down to capital allocation, stating companies with excess cash are better off allocating it to Bitcoin than holding it in Treasurys or returning it to shareholders.
Saylor pushed back on the idea that unprofitable companies should be singled out for criticism. He argued Bitcoin holdings can help offset weak operating results. A company running at a loss could still improve its overall financial position if the value of its Bitcoin holdings rises faster than its operating losses, he explained. Saylor said companies holding Bitcoin are often held to a different standard than those avoiding the asset altogether.
Strategy began accumulating Bitcoin in 2020 and is the largest corporate holder. The company held 687,410 BTC at the time of the podcast, according to BitcoinTreasuries.NET data.
Treasury Model Faces Mounting Scrutiny
The defense comes as Bitcoin treasury companies face increasing questions about their business model. Charles Schwab notes that publicly traded firms holding Bitcoin reserves use mark-to-market accounting, meaning holdings reflect their market value each reporting period. This creates balance sheet and earnings volatility. If a company has large holdings that fall in value, it could experience a liquidity crisis.
Strategy held 506,137 BTC worth about $42 billion as of March 31, 2025, representing about 59% of its market capitalization. This concentration exposes the company to Bitcoin price fluctuations. When Bitcoin hit all-time highs in 2025, several companies added the cryptocurrency to their corporate treasury holdings. Companies like Strategy, Bit Digital, and Block use debt or stock offerings to raise money to buy and store more Bitcoin.
Recent government policy shifts have expanded Bitcoin's utility in traditional finance. We previously analyzed how national governments are building Bitcoin reserves, a trend that mirrors corporate adoption. The U.S. Federal Housing Finance Agency allowed Bitcoin as collateral in federal mortgage applications in June 2025, according to industry reports.
Corporate Adoption Slows Amid Market Challenges
Corporate adoption of Bitcoin treasury strategies accelerated in 2025, but the pace has slowed. Cointelegraph reported that 117 companies adopted BTC reserves over the year. At the time of writing, publicly listed companies collectively held about 1.1 million BTC, representing about 5.5% of the 19.97 million coins in circulation.
Corporate ownership remains highly concentrated. MARA Holdings held 53,250 BTC on its balance sheet, and Twenty One Capital held 43,514 BTC, second only to Strategy. According to Business Initiative, businesses now hold 6.2% of total Bitcoin supply, a 21x increase since January 2020. The 2025 year-to-date inflows reached $12.5 billion, exceeding all of 2024.
The treasury company model faces challenges. About 40% of the top 100 Bitcoin treasuries are trading below their market value, complicating efforts to secure new capital. Over 60% of these companies acquired Bitcoin at prices higher than its current value. Founders of research firm 10x Research noted many digital asset treasuries saw their net asset values fall in November, constraining capital raising and leaving existing shareholders with mounting paper losses.
The sustainability of the Bitcoin treasury model depends on companies' ability to secure repeat access to finance while managing the risks of holding digital assets. The regulatory landscape surrounding cryptocurrencies remains uncertain. As more companies adopt Bitcoin as a treasury asset, they may face increased scrutiny from regulatory bodies, impacting their operations and financial strategies.