Convertible Bonds Threaten Corporate Bitcoin Treasuries, Exec Warns

An analyst has warned that the true danger to Bitcoin Treasury Companies (BTCTCs) isn’t the worth volatility at the moment being skilled available in the market, however moderately how their acquisitions are funded.

According to H100 Group’s Bitcoin lead, Brian Brookshire, convertible bonds, whereas typically enticing, signify a major and underappreciated menace to company Bitcoin methods.

Capital Structure Takes Center Stage as BTCTCs Expand BTC Bets

In a latest put up on X, Brookshire laid out the menu of financing instruments out there to Bitcoin treasury companies and highlighted why they are often harmful if misused.

Convertible bonds sit on the heart of that anxiousness. They enable corporations to boost funds at a premium to identify share costs, as seen with UK-listed The Smarter Web Company’s “Smarter Convert” instrument, totally subscribed for $21 million and structured as a Bitcoin-denominated convertible.

“Convertible bonds can have fairly favorable phrases when issued underneath the suitable market circumstances,” Brookshire wrote, “however have refinancing danger, are sometimes accompanied by massive upfront short-selling, and might take as much as 5 years to be discharged.”

For these making an attempt to repeat Strategy’s treasury playbook, that’s a direct warning: the very devices that helped speed up BTC accumulation can quietly field corporations right into a nook when markets flip.

Paris-based Sequans exemplified this by turning into the primary main treasury to liquidate a portion of its holdings, promoting 970 BTC for $93 million.

“It is completely essential for BTCTC administration to be properly versed within the tradeoffs, assume with a long-term view about how the utilization of any specific instrument will impression the well being of the enterprise, and solely challenge debt or deploy a specific technique when phrases are favorable to the long-term pursuits of shareholders,” added the market observer.

His feedback come within the wake of rising scrutiny on company Bitcoin leverage, with a report by Keyrock from earlier within the yr projecting a $12.8 billion debt maturity wall for BTC-focused corporations, a lot of it in convertible notes clustered in 2027–2028.

If fairness costs fall beneath conversion ranges, issuers could also be pressured to promote their Bitcoin or settle for harsh refinancing phrases, doubtlessly dragging each share costs and the cryptocurrency decrease in a suggestions loop.

Market Tests Leverage and mNAV Premiums

Recent exercise reveals how entrenched the BTC company playbook has develop into. Despite Strategy’s mNAV a number of slipping from 1.52x to about 1.11x, Executive Chairman Michael Saylor has told Fox Business that his firm is engineered to resist an 80–90% drawdown within the worth of Bitcoin.

On November 17, the agency disclosed its largest buy since July, value over $830 million, refuting rumors that it had been promoting off its stash.

In Asia, Tokyo-listed Metaplanet has elevated its holdings to 30,823 BTC as of November 19, 2025, following a collection of acquisitions. Meanwhile, WiseLink’s announcement in August of a three-year convertible word to Nasdaq-listed Top Win International marked the primary Bitcoin treasury technique by a Taiwan-listed agency, once more leaning on convertibles to finance BTC publicity.

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