According to the foreign media review, Bitcoin Treasury has expanded rapidly in recent years, but such stocks are not equivalent to the direct possession of bitcoin. Its core is not how much money companies buy, but whether capital markets are willing to allow such companies to finance for a long period of time at a price above net asset value.

Treasury is essentially a currency-held company.

The so-called Bitcoin Treasury is usually a listed company that holds bitcoin or uses the Taifeng as its main task. Investors do not need to open their own wallets or host encrypted assets, but simply buy shares to obtain the relevant exposure.

According to the article, such companies differ from traditional municipal companies. While the latter usually relies on products or services to generate income, the main objective of Treasury is to raise funds through the issuance of shares, bonds or preferential shares, and to use funds to continue to buy encrypted assets.

Many companies, which were not originally encrypted, came from the software, mining and even medical industries, and then turned to currency lines. As companies such as Strategy promote this model, by 2026 more than 200 companies have adopted a similar approach.

The wheel moves when the stock is above net.

According to the article, the key to the establishment of this model is whether the company stock is higher than the net value of its holdings of encrypted assets. As long as there is a premium on the stock price, the company can raise cash and continue to buy bitcoin under higher valuations.

As a result, each share of the corresponding encrypted assets held by the older shareholders could increase. This is also what the market often calls an expansionary wheel: higher currency prices, leading to the appreciation of corporate assets; higher stock prices, with companies financing on more favourable terms and continuing to increase bitcoin.

Finance is limited when mNAV is below 1

The value of net assets, i.e. NAV, is seen as a core indicator of understanding of such companies. The fact that the total market value of the company is higher than the value of the encrypted assets held indicates that the stock is in a premium position; if the value of the asset is lower, it is a discount transaction.

The common indicator of this relationship is mNAV, which is the multiple of the market value relative to the value of net assets. MNAV above 1 means that companies can also obtain cheaper capital through growth; mNAV below 1 means that continued equity will spread the benefits of older shareholders and that the ability to finance will be significantly reduced.

According to the article, the growth engine of such companies slows once stocks fall below net values. As it is difficult for companies to purchase money efficiently through the issuance of new shares, the capital market routes that had underpinned their expansion will be tightened. Between the end of 2025 and 2026, more treasury companies have slipped to the net value, or even collapsed.

The levers will magnify the two-way fluctuations.

In addition to regular shares, some Bitcoin Treasury companies continue to finance using instruments such as reversible debt, bonds and preferential shares. According to the article, these arrangements can magnify the size of the currency at the upswing and also allow the stock to run the bitcoin itself.

In turn, however, leverage and stratification of capital can exacerbate pressures when markets fall. Priority shareholders usually have a fixed and more advanced order of payment, while ordinary shareholders bear higher fluctuations. The vulnerability of such structures can be more exposed if the equity discount continues and the financing window narrows.