Bitcoin Treasury Companies and the 2026–2027 Cycle
Bitcoin treasury companies explained: why firms hold BTC on their balance sheets, how they fund purchases, what mNAV means and the risks for 2026–2027.
Bitcoin treasury companies are businesses that hold bitcoin as a major balance-sheet asset, and by mid-2025 they had become one of the most watched sources of bitcoin demand. Their buying could support the market in 2026 and 2027, but the same funding methods that let them buy aggressively could turn into pressure if conditions reverse.
This guide explains how these companies work, how they raise money, what mNAV premiums mean and the risks to understand, whether you hold bitcoin, their shares, or both. It makes no price predictions.
How the Model Started
In August 2020, the software company MicroStrategy, led by Michael Saylor, announced that it had bought bitcoin as a primary treasury reserve asset. It kept buying, funding purchases with cash, convertible bonds and share sales. In February 2025, it rebranded as Strategy.
Other companies followed. Tesla bought bitcoin in early 2021. Bitcoin miners naturally hold some of the coins they mine. From 2024 onward, a growing number of smaller public companies around the world, such as Metaplanet in Japan, announced bitcoin treasury strategies, and new companies were created specifically to accumulate bitcoin.
For broader context on institutions, see our article on institutional adoption and the next crypto cycle.
How Treasury Companies Fund Their Purchases
| Method | How it works | Main risk |
|---|---|---|
| Operating cash | Profits from the business buy bitcoin | Limited scale |
| At-the-market share sales | The company sells new shares into the market | Dilutes existing shareholders |
| Convertible bonds | Debt that can convert into shares later | Must be repaid if not converted |
| Preferred stock | Shares with fixed dividends and priority over common stock | Ongoing dividend obligations |
| Bitcoin-backed loans | Borrowing against bitcoin held | Margin calls if bitcoin falls |
The more a company relies on debt and fixed obligations, the more it depends on bitcoin's price and capital markets staying supportive.
mNAV and the Premium Flywheel
mNAV (multiple of net asset value) compares a company's market value with the value of its bitcoin holdings.
- Premium (mNAV above 1): investors pay more for the company than its bitcoin is worth. The company can issue shares, buy bitcoin and increase bitcoin per share for existing holders. This is often described as a flywheel.
- Discount (mNAV below 1): the company is worth less than its bitcoin. Issuing shares to buy bitcoin would reduce bitcoin per share, so the strategy stalls. Shareholders might push for buybacks or even bitcoin sales.
Premiums can exist because shares are easier for some investors to buy than bitcoin, because of expected future accumulation, or simply because of enthusiasm. None of these are guaranteed to last.
Why Treasury Companies Matter for the 2026–2027 Cycle
Bitcoin treasury companies have become one of several large sources of demand, alongside spot ETFs (approved in the US in January 2024). Our article on how bitcoin ETFs could shape the 2026–2027 market covers the ETF side.
Supportive scenario
Premiums persist, capital markets stay open, and companies keep raising money to buy bitcoin. Their steady buying adds to demand, especially when combined with ETF inflows. See also: Bitcoin Layer 2s and BTCfi in the Next Cycle.
Neutral scenario
Premiums compress as more companies copy the model. Buying slows to what operating cash and modest fundraising can support. Treasury companies matter less to price.
Stress scenario
Bitcoin falls sharply, premiums turn to discounts, and some companies struggle with debt or dividend payments. Forced or voluntary selling by weaker companies adds supply, and negative headlines hurt sentiment.
Signals to Watch
- 1mNAV levels for the largest treasury companies.
- 2Funding mix: rising reliance on debt and preferred stock increases fragility.
- 3Debt maturities and conversion terms disclosed in company filings.
- 4New entrants: a surge of copycat companies has historically been a sign of late-cycle enthusiasm in other markets.
- 5Holdings disclosures in official filings, not social media claims.
You can also compare treasury activity with ETF flows on our ETF page.
Risks for Investors
If you hold bitcoin
Treasury companies are a source of demand but also a potential source of concentrated selling. Avoid assuming their buying is permanent. Related reading: Bitcoin vs Ethereum in 2026–2027.
If you hold treasury company shares
- You are buying leverage and premium, not just bitcoin. Shares can fall more than bitcoin when premiums compress.
- Dilution from ongoing share issuance can reduce your stake.
- Company-specific risks include management decisions, debt terms, regulation and accounting.
- Copycat companies may have weaker finances and less transparent strategies.
Compare the trade-offs with spot ETFs vs holding bitcoin directly.
Risk Management Checklist
- Size positions so a large drawdown in bitcoin or in treasury shares would not hurt your finances. See position sizing and risk management basics.
- Avoid leverage on leveraged vehicles; treasury shares already embed leverage.
- Read primary sources such as company filings rather than promotional threads.
- Beware scams using famous executives' names in fake giveaways and deepfake videos, which are common in bull markets.
Bottom line
Bitcoin treasury companies turned corporate balance sheets into a meaningful source of bitcoin demand, and their behavior is likely to matter in 2026 and 2027. But their buying depends on premiums and open capital markets, and their debts could become a source of stress. Watch mNAV, funding methods and filings, and follow live data on the Bitcoin price page rather than assuming corporate buying will continue indefinitely.
Perguntas frequentes
What is a bitcoin treasury company?
A bitcoin treasury company is a publicly traded or private business that holds bitcoin as a major reserve asset on its balance sheet, often buying more over time. Some do it alongside an existing business; others have made accumulating bitcoin their main strategy. Strategy, formerly MicroStrategy, is the best-known example.
How do bitcoin treasury companies pay for their bitcoin?
Common methods include using cash from operations, selling new shares, issuing convertible bonds and issuing preferred stock. Raising money through shares or debt lets them buy more bitcoin than their business earns, but it also creates dilution for shareholders or obligations that must be paid regardless of bitcoin's price.
What does mNAV mean for bitcoin treasury companies?
mNAV compares a company's market value with the value of the bitcoin it holds. If the company is worth more than its bitcoin, it trades at a premium, which lets it sell shares and buy more bitcoin per share. If the premium disappears or turns into a discount, that strategy becomes much harder.
Could bitcoin treasury companies be forced to sell bitcoin?
It is possible in some circumstances, for example if a company cannot meet debt or dividend obligations, faces margin calls on loans backed by bitcoin, or comes under pressure from shareholders when its shares trade below the value of its holdings. Each company's structure differs, so read its filings.