Bitcoin Treasury Companies: A New ICO bubble?
Bitcoin treasury companies are gaining traction, reminiscent of the initial coin offerings (ICOs) from 2018. Critics draw parallels, but there are key differences. David Bailey, CEO of Nakamoto, even likens his business too early ICOs. While calling something a bubble before it bursts might be premature, comparing ICOs adn treasuries can shed light on the future of the latter.
MicroStrategy, founded in 1989, pivoted in 2020 to issuing debt for Bitcoin purchases. In 2025, it rebranded as Strategy. The company’s stock surged 500% as early 2024, attracting investors who can’t or don’t want to buy BTC directly.
Following Donald Trump’s 2024 election win and renewed Bitcoin interest, treasury companies emerged rapidly. Their massive Bitcoin purchases reduced price volatility and increased demand. Strategy alone bought more Bitcoin in 2025 than miners produced.
These companies rely on crypto influencers for promotion. ProCap BTC has Anthony Pompliano,metaplanet has Simon Gerovich,and Nakamoto has David Bailey. All were founded or switched to Bitcoin purchasing in 2024 or 2025.
Bitcoin treasuries don’t offer direct crypto interaction. They outsource to centralized exchanges like Coinbase. Critics argue these companies are rooted in traditional finance, buying Bitcoin with borrowed assets.Some see this as a 2017 ICO season redux, predicting a bad outcome.
Experts warn of risks due to centralization and lack of risk management. If a bear market hits, newer companies might sell their Bitcoin, triggering a ripple effect. Proponents argue Bitcoin treasuries are legitimate companies allowing clients to benefit from Bitcoin price movements through shares, unlike dubious ICOs.
Bitcoin Treasuries vs. ICOs: A Trust Issue
Some crypto enthusiasts compare Bitcoin treasury companies to Initial Coin Offerings (ICOs). Both require trust from investors. ICOs raised funds by promising innovative products. Similarly, treasury companies ask investors to trust they won’t sell their Bitcoin holdings.
Transparency is a concern. Many don’t know how much Bitcoin these companies truly own. This lack of clarity makes trust even more critical. Critics argue this trust is a flaw. They believe Bitcoin should be trustless, like its original design.
Stack Hodler,a crypto expert,calls treasury companies “this cycle’s shitcoins.” He thinks they create shares without real value, hoping to outperform Bitcoin. Instead, he suggests businesses that create real products and store profits in Bitcoin.
David Bailey, from Nakamoto, compares treasury companies to early ICOs. He believes they bring people into Bitcoin, using best practices. However, critics like Scott melker warn against trusting these companies. he advises buying Bitcoin directly.
The debate continues. Some see value in treasury companies. Others dismiss them as scams. Regardless, Bitcoin remains a solid investment, even if the treasury trend fades.
Major Crypto Exchange Launches New Trading Features
A leading crypto exchange has unveiled exciting new trading features. these updates aim to enhance user experience and attract more traders.The platform now offers advanced tools for both beginners and seasoned investors.
One key addition is the auto-trading system. This tool helps users automate their trades. It executes trades based on predefined rules. This saves time and reduces human error. Users can set conditions for buying and selling. The system then handles the transactions automatically.
Another highlight is the improved security measures. The exchange has bolstered its security protocols. This ensures safer transactions. Users can now trade with peace of mind. The exchange uses cutting-edge technology to protect user funds. This makes the platform more appealing.
Traders can also enjoy lower fees. The exchange has reduced its transaction costs. This makes it cheaper to trade. Users can keep more of their profits.The exchange hopes these changes will boost its popularity.
These updates come at a crucial time. The crypto market is growing. More people are investing in digital assets. The exchange aims to stay ahead of the competition.It wants to offer the best trading experience.
