Report: Only a few companies can survive with the strategy of hoarding BTC.

PANews, June 29 - According to a report by Cointelegraph, only a few Bitcoin fund management companies have been able to withstand the test of time and avoid falling into a vicious "death spiral." This spiral will affect those companies holding BTC whose trading prices are close to their net asset value (NAV, which is the total assets of an entity minus its liabilities). The report stated that the health of Bitcoin fund management companies depends on their ability to control the multiple of their net asset value (MNAV). The report from Breed outlines the seven stages of the decline of BTC fund management companies, starting with the drop in Bitcoin prices, which triggered a decline in MNAV, bringing company stock prices close to their actual net asset value. This, in turn, made it more difficult for BTC-holding companies to obtain debt and equity financing, which is crucial for converting inflationary dollars into asymmetrical trades in appreciating assets with limited supply. As credit channels dried up, debt deadlines loomed, and margin calls were triggered, forcing these companies to sell Bitcoin into the market, further depressing Bitcoin prices, leading to holdco acquisitions by stronger firms, and potentially triggering a prolonged market slump. "Ultimately, only a handful of companies can maintain a lasting premium over their price-to-book ratio. They will earn this premium through strong leadership, rigorous execution, savvy marketing strategies, and unique approaches that can consistently drive the price of Bitcoin per share up regardless of market fluctuations." This death spiral may trigger the next round of the cryptocurrency bear market. However, the report states that because most Bitcoin fund management companies are currently financing their purchases through equity rather than debt, this implosion may be contained.