The first half of 2025 alone has seen the emergence of 51 corporate entities that have added Bitcoin to their treasuries. Furthermore, 21 publicly traded companies have announced that they will be adopting Bitcoin as a treasury asset, and from what the trends say, more may come.
While this rising interest is seen as a godsend by the cryptocurrency community, some experts have issued warnings that this boom is unsustainable.
“Nobody wants the 50th treasury company,” writes James Check, a leading Glassnode analyst, on X, before expressing his apprehension about companies going in on Bitcoin too soon and too fast, to the point that it could become unsustainable.
Bitcoin Treasury Has Far Shorter Lifespan than Most Aspects – James Check
One of the biggest criticisms that Bitcoin treasury companies have drawn from experts is the fact that most companies are using BTC not as a way to save their profits against inflation, but as a financial engineering strategy.
“We’re already in the ‘show me’ phase, where it will be increasingly difficult for random company X to sustain a premium and get off the ground without a serious niche,” James Check wrote.
Nobody wants the 50th Treasury company.
I think we're already close to the 'show me' phase, where it will be increasingly difficult for random company x to sustain a premium and get off the ground without a serious niche.
Retail speculators buy startup TCos, and they don't have…
— _Checkmate
(@_Checkmatey_) July 4, 2025
His primary concern is that most startups are entering the Bitcoin treasury space just to make short-term gains.
That said, the analyst is bullish on BTC, but he also admits that if the Bitcoin treasury bubble bursts, the market will have a rude awakening.
And it is not just James Check who is saying that. Matthew Sigel of VanEck tweeted about this issue a month ago, warning that no BTC treasury company has traded below its Bitcoin NAV for a sustained period.
A risk is emerging as most of these companies raise capital through large at-the-market programs to buy BTC. That’s not capital formation — it is erosion.
No public BTC treasury company has traded below its Bitcoin NAV for a sustained period.
But at least one is now approaching parity.
As some of these companies raise capital through large at-the-market (ATM) programs to buy BTC, a risk is emerging: If the stock trades at or near…
— matthew sigel, recovering CFA (@matthew_sigel) June 16, 2025
Bitcoin Magazine reporter Emil Sandstedt shares a similar view, going as far as to say that many of the new treasury companies are “operating like Ponzi schemes.”
Is a Bitcoin Treasury Model Unsustainable?
The emergence of rapid institutional interest has put this question forward, and it has to be answered. In most experts’ view, the current model isn’t sustainable because of the following reasons:
There is a Lack of Revenue Generating Models
New Bitcoin treasury firms have no core business outside of holding BTC. Since they don’t have a revenue stream, their source of sustenance is speculative BTC growth, which leaves them to the whims of the market. It means if there is an extended bear market, these companies could disappear.
Overconcentration of Risk
Allocating the majority of the treasury assets to only Bitcoin exposes such companies to extreme volatility. In case the crypto underperforms, these companies won’t have anything to fall back on.
Regulations and Liquidity Risks
As governments start to formulate more laws around crypto, there may be liquidity freezes, reporting burdens, and forced divestments. Furthermore, there is still a lack of regulatory clarity around Bitcoin treasuries, which makes large-scale adoption harder to maintain.
What is happening right now is that most companies are adopting the MicroStrategy playbook, but without the same deep conviction and capital reserves. This focus on hype could be the undoing of such companies, which could trickle into the BTC market cap.
Best Crypto to Buy Now – Top 3 Picks to Hedge Current Market Risks
Since fears are high that the Bitcoin treasury bubble is about to burst, here are three options that could help investors make gains without subjecting themselves to the market’s volatility.
Token6900
Since speculation is the foundation most Bitcoin treasury firms are standing on, it makes sense that investors pick something that is more deliberate about it. Token6900 is such a project.
With its simplified take on meme coins that combines outlandishness with real-life comedy, Token6900 is purely a speculative asset with a fixed cap and fixed presale stages.
It doesn’t promise any long-term gains, but only hopes to create a degen community where juvenile comedy is appreciated and memes—however mediocre and filled with AI slop—have a chance to grow.
Its Windows 95-style official website shows the “low-effort nonsense” that it is going with, and this theme has been instrumental in getting the project a lot of attention to date. It makes fun of everything within the cryptocurrency space, and users won’t be surprised if Bitcoin treasury memes start popping off soon. This alone makes it a good meme coin to invest in.
Experts have even called it one of the hottest presales to buy now, especially since it has raised close to $200K despite its admission that it is nothing more than a speculative asset.
Snorter
The drop in Bitcoin treasuries, if it arrives, could cause a chain reaction that will make people wary of diving into high-cap tokens. For such investors, Solana meme coins have always been perfect alternatives. Snorter believes that and powers an automated trading system that allows investors to find and invest in newly emerging Solana-based meme coins.
Active on Telegram, Snorter is an automated crypto sniper featuring fast swaps, robust protection, and other tools that could help investors navigate the market better.
Highlighting this utility is a symbolic animal: the aardvark. Developers have mirrored an aardvark’s ability to hunt prey through its snout with the act of hunting the best investment opportunities using Snorter. Although very simple in terms of imagery, the project still has potential.
Experts like 2Bit Crypto have already talked about this project. In fact, he has stated that in the current market, this project could have a 100x potential.
SUBBD
SUBBD is a utility-centric project that could be considered a long-term hedge since it does not solely rely on speculation.
Powering a content creation platform similar to OnlyFans, SUBBD is a project trying to break into an $85 billion industry that gets away with paying content creators 70 percent less than what they deserve. The project features some of the biggest content creators in the industry, with over 250 million followers across multiple social media platforms.
By giving these creators a place on the blockchain, SUBBD ensures that their content becomes more versatile and fan engagement becomes more financially rewarding.
Creators will be able to leverage AI tools on the platform to manage their content and can even dive into AI influencer creation tools to provide fans with something completely new. Fans, on the other hand, will get access to exclusive perks, as well as gamified systems to enjoy.
Conclusion
The rise of Bitcoin treasury companies is giving people pause now. As fears mount that the bubble is about to burst, crypto ICOs could be considered relatively safe investments. These low-cap, cheap cryptos have been generating buzz on social media, and some of their use cases are unique. Although most are focusing on short-term, meme-driven gains, their communities could maintain the momentum for the long term.
This article has been provided by one of our commercial partners and does not reflect Cryptonomist’s opinion. Please be aware our commercial partners may use affiliate programs to generate revenues through the links on this article.
