Bitcoin Treasuries An ‘Explosion Waiting To Happen,’ Capriole Founder Warns
The Capriole Investments founder has defined how the unwinding of Bitcoin treasuries may make LUNA and FTX crashes seem like ‘youngster’s play.’
Bitcoin Treasury Company Count Has Climbed To 200
In a brand new post on X, Capriole Investments founder Charles Edwards has talked concerning the state of affairs of the Bitcoin Digital Asset Treasury (DAT) companies, corporations which have added BTC to their steadiness sheet. The DAT mannequin was popularized by Michael Saylor’s Strategy (previously MicroStrategy), who has been a relentless purchaser of Bitcoin lately.
2025 notably noticed DAT methods acquire traction, with corporations not solely Bitcoin as a treasury asset, but additionally different cash like Ethereum and Solana. Following this growth, BTC treasury corporations now quantity within the a whole lot.
Edwards has given a warning about these companies, nonetheless, saying, “The DAT mannequin is a leverage explosion ready to occur.” The analyst has in contrast the expansion in DATs to the trajectory adopted by funding trusts within the Twenties, noting that the one distinction between the 2 is that trusts purchased shares, whereas DATs are shopping for Bitcoin.
“There is not any sustainable enterprise mannequin for producing yield on a set provide asset, which incentivizes leverage when mNAVs collapse,” defined Edwards. The inventory shopping for growth in Twenties from the funding trusts helped gasoline a market bubble that in the end burst towards the top of that decade. Below is a chart shared by the analyst that compares the trajectories adopted by funding trusts and Bitcoin DATs.
From the graph, it’s seen that funding trusts initially adopted gradual development, however then within the Twenties, their development gained acceleration. Something comparable has occurred with DATs, simply on a a lot smaller timeframe.
At the top of 1929, there have been round 600 funding trusts, whereas in the present day, Bitcoin DATs quantity at about 200. Thus, BTC DATs are nonetheless behind in depend. “How large can the DAT bubble develop? That’s the million greenback query,” mentioned the Capriole founder, noting that the belief bubble went on for almost a decade.
The cryptocurrency market has been going through a downturn not too long ago, and, because the treasury growth occurred in 2025 and firms purchased at bull run costs, DATs have come beneath stress. Even Strategy with its historical past of shopping for at diverse costs has seen its huge 713,502 BTC holdings dip into the purple.
“Today Bitcoin treasuries maintain 12% of all Bitcoin, the unwind will make Luna & FTX seem like youngster’s play,” mentioned Edwards. Both the occasions referenced by the analyst have been main crashes from the 2022 bear market. The former was triggered by the depegging of the stablecoin TerraUSD (UST), whereas the latter occurred as cryptocurrency exchange FTX collapsed.
BTC Price
At the time of writing, Bitcoin is floating round $74,500, down 16% within the final seven days.
