Bitcoin Is Surging, But Investors Are Still Worried About Bitcoin Treasury Companies. Here's Why They're Right.
Bitcoin's recent rebound has provided some relief, but Bitcoin treasury companies still have serious red flags.
Overview
Bitcoin (CRYPTO: BTC) has had its best month since 2025, driven by a short squeeze and U.S. Treasury buybacks of long-term securities. It's up 24% this month as of Aug. 28. This recent surge is welcome news for Bitcoin treasury companies, which carry significant amounts of Bitcoin on their balance sheets.
However, there's still skepticism surrounding these companies. Case in point: Strategy (NASDAQ: MSTR), the company that holds the most Bitcoin, has an mNAV (market valuation relative to the Bitcoin it holds) of 1.06, down from 3.89 in late 2024. It used to trade at a hefty premium to its Bitcoin holdings. Now, you only pay $1.06 for every $1 of Bitcoin it owns.
Details
The low premium reflects less trust in the Bitcoin treasury model, and investors are right to be skeptical.
Source
Originally published at www.fool.com.