The post Bitcoin Treasury Reserves Face Potential “Death Spiral” by 2025 Amid Market and Financing Challenges, Breed Report Warns appeared on BitcoinEthereumNews.com.

Breed Capital’s latest analysis highlights a growing trend of Bitcoin treasury reserves among corporations, projecting significant market challenges by 2025. The report emphasizes that only a select group of experienced and financially disciplined firms will navigate the anticipated volatility successfully. Companies with stock valuations near their Net Asset Value (NAV) face heightened risk of entering a detrimental “death spiral.” The report delineates a sequence of seven decline phases for Bitcoin treasury firms, initiated by a drop in Bitcoin prices that subsequently reduces the Market NAV (MNAV). This erosion in asset value restricts access to both debt and equity capital, exacerbating liquidity constraints. As debt obligations mature and credit availability contracts, margin calls may compel forced Bitcoin sales, intensifying downward price pressure and potentially accelerating industry consolidation or a prolonged market downturn. Currently, the preference for equity financing over debt among these companies mitigates systemic risk to some extent. However, should debt financing become prevalent, the sector could experience amplified instability, underscoring the importance of prudent capital structure management in sustaining long-term resilience within the Bitcoin treasury ecosystem. ‘, ‘ 🔒 Secure and Fast TransactionsDiversify your investments with a wide range of coins. Join now! ‘, ‘ 💎 The Easiest Way to Invest in CryptoDont wait to get started. Click now and discover the advantages! ‘ ]; var adplace = document.getElementById(“ads-binance”); if (adplace) { var sessperindex = parseInt(sessionStorage.getItem(“adsindexBinance”)); var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBinance.length) : sessperindex; adplace.innerHTML = adscodesBinance[adsindex]; sessperindex = adsindex === adscodesBinance.length – 1 ? 0 : adsindex + 1; sessionStorage.setItem(“adsindexBinance”, sessperindex); } })(); Source: https://en.coinotag.com/breakingnews/bitcoin-treasury-reserves-face-potential-death-spiral-by-2025-amid-market-and-financing-challenges-breed-report-warns/

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Filed under: News - @ June 29, 2025 1:26 am