As Bitcoin treasury corporations have gotten the brand new preliminary coin choices, persons are beginning to keep in mind the way it all resulted in 2018. Whereas ICOs and Bitcoin treasury corporations are undoubtedly not the identical, critics define some similarities. Greater than that, not too long ago, the CEO of the treasury firm Nakamoto, David Bailey, in contrast his enterprise to “the early day ICOs.” Calling one thing a bubble till it bursts might not be appropriate, however it’s potential to level out similarities and variations between ICOs and treasuries to check the potential way forward for the latter.
The rise of Bitcoin treasury corporations
MicroStrategy was based in 1989, and since then, it has examined a number of grounds. Solely in 2020 did MicroStrategy give attention to issuing debt to purchase bitcoin, promising its shareholders oblique publicity to proudly owning BTC held by the corporate. In 2025, the corporate modified its identify to Technique.
Technique attracted consideration. MSTR inventory’s worth has gained 500% since early 2024. Traders who don’t need or can’t (due to the legal guidelines) purchase BTC immediately however need to take pleasure in yield on progress alternatives.
After Donald Trump’s victory within the 2024 election and a brand new spherical of curiosity in Bitcoin, Bitcoin treasury corporations started to emerge with ever-increasing velocity. Multi-million greenback purchases of Bitcoin lower BTC worth volatility, creating elevated demand for it. Technique alone purchased extra Bitcoin in 2025 than miners produced. Such phrases as “supply shock” and “opportunity cost” replicate how reluctant individuals change into to promote any quantity of BTC.
Similar to Technique chair Michael Saylor is advocating for Bitcoin and Technique on-line and offline each day, Technique copycats depend on influencers within the crypto sector to advertise their shares. ProCap BTC is headed by Anthony Pompliano, Metaplanet’s voice is Simon Gerovich, XXI Capital employed a Strike CEO, Jack Mallers, whereas Nakamoto is helmed by Bitcoin Journal CEO David Bailey, and so forth. All of those corporations have been based or absolutely switched to a Bitcoin buying technique in 2024 or 2025.
Curiously sufficient, Bitcoin treasuries don’t provide their shoppers any kind of interplay with cryptocurrencies and don’t maintain crypto themselves. As a substitute, they outsource it to Coinbase and different centralized exchanges.
What do ICOs and Bitcoin treasury corporations have in frequent?
Whereas most crypto influencers are busy highlighting the expansion of Bitcoin treasuries’ BTC holdings and presenting new purchases as “bullish,” many within the crypto neighborhood discover the newest development disturbing. They emphasize that these corporations are rooted in TradFi and current common private and non-private corporations, besides that they don’t produce something and simply purchase Bitcoin utilizing borrowed belongings.
Greater than that, critics are involved about potential dangers as all these corporations are centralized. As lots of them are seemingly pushed by FOMO and don’t have elaborate threat administration methods, they might find yourself not as sustainable as Technique who managed to outlive the 2022 crypto winter. Specialists warn that newer corporations could must promote their bitcoins when the bear market begins. If it occurs, it could set off the ripple impact that will affect giants, together with Technique.
Some examine Bitcoin treasury corporations’ hype with the ICO period hype and remind everybody that it resulted in a catastrophe. In 2018, the crypto market misplaced 85% of its worth. This crash was more durable than the market crash related to the dot-com bubble burst that triggered a 78% drop. By December 2017, lower than a 3rd of corporations that ran ICOs reached the objectives of their campaigns.
Proponents of Bitcoin treasuries discover that evaluating ICOs and treasuries shouldn’t be appropriate. The road between the 2 is that Bitcoin treasuries are official private and non-private corporations that enable their shoppers to profit from Bitcoin worth actions by a normal methodology, similar to shares. On the similar time, ICOs have been doubtful companies that simply promised to create one thing beneficial–”have been promoting vaporware,” as Joe Consorti, working for Theya and Horizon, put it in his tweet.
Nonetheless, many within the crypto neighborhood define varied similarities between ICOs and treasuries. First off, not like the trustless Bitcoin community, ICOs and treasuries contain belief. The businesses within the ICO period managed to lift capital as a result of they have been capable of persuade many retail buyers that they might launch a powerful product and their tokens would skyrocket. The treasury corporations’ buyers belief that these corporations are usually not going to promote their bitcoins (Saylor and Gerovich each state they’re by no means going to promote bitcoins) or dilute their belongings additional.
Lack of transparency on Bitcoin holdings of those corporations will increase the position of belief for his or her buyers. Firms that held ICO campaigns and modern-day treasuries are accused of insider buying and selling, lack of vesting interval, lack of competence (in sure cases), the rug-pull potential, and so forth. For Bitcoin purists, the necessity to “trust” somebody is an inherent flaw of any new stylish novelty available on the market.
A founding father of the corporate Stack Correctly who makes use of the moniker Stack Hodler, defined why he will get the ICO vibes from the Bitcoin treasury corporations’ hype, calling these corporations “this cycle’s shitcoins.” In line with Stack Hodler, “These companies are creating shares out of thin air to sell to people hoping to outperform Bitcoin.” As a wholesome various to treasuries, Stack Hodler sees “businesses that create economic value via products and services, and then store their profits in Bitcoin,” including that it “will bring lasting value to the Bitcoin network.”
Lastly, David Bailey of a Bitcoin treasury firm referred to as Nakamoto discovered no higher comparability of how he feels about making treasury enterprise than saying, “it’s kind of like the early day ICOs.” In all probability, he wasn’t excited about how this period ended when he remarked. Right here’s what he mentioned:
“It’s kind of like early days ICOs, where you have a posse of people you bring into that token. We have a posse of people that we are bringing into the treasury companies. We have the best practices nailed down on how to do it.”
Whereas some critics see Technique as an impressive treasury that deserves belief, others dismiss all of the treasury corporations altogether. Often, critics don’t take note of the truth that some establishments can’t maintain bitcoins immediately; nonetheless, lots of their arguments hit the mark. One other frequent comparability is SPACs, clean corporations promoting shares and guarantees.
The dialogue continues. Nonetheless, the Bitcoin maxis’ voices have been on the rise as of late. Right here’s what Scott Melker, often called the host of the Wolf of All Streets podcast, wrote in his publication after suggesting that many crypto treasury corporations are scams:
“I’m not here to tell any of you to stop trading or speculating if you know what you’re doing. Find your edge. Use it. But if you’re not truly confident, here’s the simple play: buy the assets these companies are speculating on – primarily Bitcoin. Forget the 20x, the 50x, the 100x dreams. Buy Bitcoin. It’s still going to $1 million even if the entire treasury narrative blows up in our faces.”
