Bitcoin treasury firms are feeling the heat. As of today, September 5, 2025, these companies confront a stark reality: either outperform Bitcoin itself or face the possibility that investors might simply prefer buying a Bitcoin ETF. This sentiment was echoed at the BTC Asia conference in Hong Kong, where Matt Cole, CEO of Strive Asset Management, laid bare the brutal simplicity of the challenge.
The Quest for Alpha
During his remarks, Cole—who’s gained attention for advocating GameStop’s addition of Bitcoin to its balance sheet—articulated a strategy aimed at finding alpha without succumbing to Bitcoin-specific risks. The approach, he explained, hinges on financing, with a transition from convertibles to perpetual preferred equity as a means to establish leverage. Yet, as Cole elaborated, reaching a scale of $1 billion in capital is the hardest milestone for bitcoin treasury companies. “The hardest thing to do for bitcoin treasury companies is getting to a billion dollars,” he noted, referencing insights from MicroStrategy’s Michael Saylor. This challenge is further highlighted in Metaplanet’s Bitcoin strategy faces fundraising crunch as stock sinks: Report, which details similar hurdles faced by other firms in the sector.
Cole’s perspective is clear: Bitcoin’s fixed supply sets it apart, making it the sole asset capable of supporting a leveraged treasury strategy designed to compound over time. Ethereum, in contrast, he described as too equity-like due to its shifting monetary policies. “Ethereum makes for a horrible asset for a treasury company,” Cole declared. “Bitcoin perpetually goes up versus fiat currencies because they’re being debased.”
A Measured Approach
Andrew Webley, of The Smarter Web Company—a UK-based firm with BTC on its balance sheet—offered a more nuanced view. Webley emphasized the importance of transparency and risk communication for smaller firms raising capital. “The most important thing that you can do as a public company, in my opinion, is to publish our rules first,” Webley advised. By clearly disclosing risks, he argued, firms can help investors understand the trade-offs inherent in a BTC treasury model. “If somebody can understand the risks, then in our opinion these things are the very best value opportunities in the whole world,” he added.
This dichotomy—between aggressive outperformance strategies and steady, transparent growth—underscores the decision investors face. Both Cole and Webley agree, however, that Bitcoin’s prominence as a treasury asset is only expanding in the face of ongoing fiat currency debasement. This sentiment is echoed in Asia Morning Briefing: Hex Trust CEO Sees Both Promise and Peril in Bitcoin Treasury Firms, which explores the potential and pitfalls of these strategies.
Market Movements and Broader Implications
Bitcoin itself is currently trading above $110,500, experiencing a slight dip after a minor pullback. Yet, according to CoinDesk’s market insights, resilient demand near key support levels hints at continued bullish sentiment for Bitcoin’s next breakout. Meanwhile, Ethereum is trading at $4,300, down 0.6%, buoyed by strong institutional interest and ETF inflows that promise long-term upside.
Globally, gold remains near record highs, driven by rate-cut expectations and safe-haven demand, though it has seen slight profit-taking. Japan’s Nikkei 225 is rallying, spurred by strong foreign buying and corporate reforms, while the S&P 500 has climbed 0.83%, hitting a record level amid mixed economic signals.
In the broader crypto landscape, regulatory developments and market innovations continue to captivate attention. The SEC’s recent pro-crypto rulemakings signal a potential shift in the regulatory environment, while platforms like Polymarket are targeting the burgeoning sports betting industry.
Looking Forward
The ongoing debate over Bitcoin’s role as a treasury asset raises questions about the future of corporate finance strategies. As fiat currencies continue to lose value, can Bitcoin maintain its allure as a hedge? And as treasury companies strive to reach the elusive $1 billion mark, will investors lean towards the transparency of smaller firms or the aggressive strategies aimed at outperforming the market? These are the questions hanging in the balance as we navigate the ever-evolving cryptocurrency landscape.
Source
This article is based on: Asia Morning Briefing: ‘Just Buy a Bitcoin ETF’ — BTC Treasury Model Faces Reality Check
Further Reading
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- Spot Bitcoin ETFs surge, Ether funds bleed as investors flee for safety
- CIMG Inc raises $55M for Bitcoin as crypto firms ramp up crypto stockpiles
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
