Why Your Company Needs a Bitcoin Balance Sheet to Survive

The role of corporate treasuries is undergoing a significant transformation, driven by the need to protect assets from monetary debasement. This shift is exemplified by companies like Strategy, which now holds over 3% of the total Bitcoin supply. As of October 2025, corporate treasuries collectively hold over one million BTC, valued at over $120 billion. The rationale behind this strategy is similar to that of individual investors: in an era of monetary instability, it's essential to hold assets that can outperform the negative effects of inflation. Bitcoin, with its finite supply and decade-long track record of appreciating value, offers a compelling solution. By incorporating Bitcoin into their treasuries, companies can leverage capital markets to grow their Bitcoin holdings per share over time. This approach allows companies to issue equity at premiums to Net Asset Value (NAV), raise convertible debt with low or zero coupons, and strategically time market access and Bitcoin purchases. The network effect is self-reinforcing, as successful Bitcoin treasury companies demonstrate viability, skepticism declines, and financial infrastructure matures. A key advantage of this strategy is the NAV value-creation paradox: trading at a premium enables companies to issue shares, buy more Bitcoin, and increase BTC per share for existing shareholders. For instance, Strategy delivered a 74.3% BTC Yield in 2024, allowing long-term holders to see their underlying Bitcoin stake increase by that amount through corporate actions alone. This innovation in treasury management is structural and beneficial for shareholders. Rational investors are willing to pay premiums for companies with a strong Bitcoin treasury strategy, as it provides a high-alpha return on investment. In the UK, for example, £1.4 trillion in capital is trapped in personal pensions and tax-efficient savings vehicles, and exposure to Bitcoin through Treasury companies is often the easiest way to generate high returns. However, the success of a corporate Bitcoin treasury hinges on building investor trust through transparent reporting and consistent conviction in Bitcoin. Companies must maintain a profitable operating business to initiate accretive share buybacks if the modified Net Asset Value (mNAV) falls below one. This allows them to purchase Bitcoin at a discount without diluting shareholders. Many companies have entered the space with small, minimally profitable operating businesses, which can be vulnerable to market volatility. To build a truly profitable operating business, companies must maintain consistent revenue and growth while strategically adding a Bitcoin treasury. By combining a robust core business with a growing Bitcoin reserve, companies can position themselves for resilient long-term value regardless of market volatility. The key risks associated with this strategy include mNAV compression, which can accelerate dramatically, and death spiral mechanics, which can become lethal if companies trade below NAV. To mitigate these risks, companies must focus on building a strong operating business and maintaining a stable mNAV. In conclusion, a Bitcoin treasury is no longer optional for companies; it's a necessary component of a sustainable business strategy in an increasingly unsustainable system.