{"id":5108,"date":"2025-07-05T21:19:03","date_gmt":"2025-07-05T21:19:03","guid":{"rendered":"https:\/\/bitunikey.com\/news\/bitcoin-exposure-or-fiat-disguise-treasury-firms-divide-the-crypto-community\/"},"modified":"2025-07-05T21:19:07","modified_gmt":"2025-07-05T21:19:07","slug":"bitcoin-exposure-or-fiat-disguise-treasury-firms-divide-the-crypto-community","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/bitcoin-exposure-or-fiat-disguise-treasury-firms-divide-the-crypto-community\/","title":{"rendered":"Bitcoin exposure or fiat disguise? Treasury firms divide the crypto community"},"content":{"rendered":"

<\/p>\n

\n

Bitcoin treasury companies \u2014 entities that accumulate the digital asset (usually through borrowed assets) \u2014 offer clients indirect exposure through their stock. Some believe that these companies bring Bitcoin to Wall Street. Others think that these treasury companies are doing the opposite: turning bitcoiners into so-called \u201cfiat bros.\u201d<\/p>\n

From self-custody of private keys to indirect Bitcoin \u2018exposure\u2019<\/h2>\n

In 2021, billionaire and X owner Elon Musk famously replied<\/a> \u201cYour app sucks\u201d to a crypto wallet that didn\u2019t support user access to their private keys. Now, when Bitcoin ETFs and Bitcoin treasury companies get so much attention, it may seem that self-custody has silently left the scene.\u00a0<\/p>\n

Although the big narrative is occupied with the news about treasury companies spending millions of dollars (of borrowed money) to buy as many bitcoins as possible, bitcoiners who (at best) don\u2019t care about \u201cindirect exposure to Bitcoin\u201d didn\u2019t go anywhere. They are just not as visible on social and mass media.\u00a0<\/p>\n

Indirect Bitcoin exposure, or owning paper Bitcoin, is owning certain assets issued by the company that strategically accumulate Bitcoin on its balance sheets. Stocks of Bitcoin treasury companies (for instance, MSTR by Strategy) or exchange-traded funds (ETFs) of asset management companies holding Bitcoin (for example, IBIT by BlackRock) are two of the most popular types of assets that expose users to Bitcoin.\u00a0<\/p>\n

It is assumed that owning these assets allows holders to benefit from the price movements of Bitcoin as they are reflected in the value of these assets. That\u2019s why Bitcoin ETFs, stocks of Bitcoin treasury companies, Bitcoin derivatives, and similar assets are considered to be holding Bitcoin, although it\u2019s essentially paper Bitcoin.<\/p>\n

<\/p>\n

Are treasury companies Trojan-horsing Wall Street?<\/h2>\n

Some view treasury companies as a straightforward means for institutional and corporate investors to enter the crypto market. Indeed, for companies, buying stocks of Strategy is easier than buying Bitcoin in terms of the law. Strategy is holding nearly 600,000 bitcoins, and engaging in such a regular activity as buying MSTR stocks exposes corporate buyers to Bitcoin\u2019s price fluctuations.\u00a0<\/p>\n

As treasury companies continue to accumulate bitcoins relentlessly, they increase buying pressure, which prevents the BTC price from experiencing significant drops. Corporations buying stocks of treasury companies indirectly invest in Bitcoin.\u00a0<\/p>\n

\n
\n
\n

Bitcoin treasury companies short fiat money and buy bitcoin.<\/p>\n

Greatest business model in human history.<\/p>\n

\u2014 Joe Burnett, MSBA (@IIICapital) July 1, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Michael Saylor, the Chairman of Strategy, said<\/a> he wants to bridge the cryptocurrency economy and traditional capital markets. Some view him and other treasury companies as a Trojan horse that takes Bitcoin to Wall Street.<\/p>\n

However, some see the opposite happening \u2013 treasury companies are turning bitcoiners into traditional finance investors. Treasury companies\u2019 critics stress that, despite much talk about Bitcoin, these companies are operating in the conventional finance sector and promoting their stocks to both TradFi (traditional finance) and crypto investors.\u00a0<\/p>\n

\n
\n
\n

Who\u2019s Trojan Horsing Who?@americanhodl8<\/a> deserves an Oscar for this Bitcoin masterpiece \ud83d\udd25<\/p>\n

pic.twitter.com\/mek5h12RMo<\/a><\/p>\n

\u2014 Walker\u26a1\ufe0f (@WalkerAmerica) June 30, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Notably, these companies don\u2019t pay their employees in crypto, nor do they accept Bitcoin as a payment method for their stocks, among other things. Literally, these companies don\u2019t offer any kind of Bitcoin experience to their clients and employees.\u00a0<\/p>\n

For the TradFi sector, treasury companies serve as a way to profit from Bitcoin\u2019s value growth. However, for Bitcoin investors, these companies may appear to be a TradFi agent\u2019s invasion that seduces people to stop buying and holding bitcoins and switch to a traditional instrument like stocks. The Bitcoin standard narrative allegedly only serves as a promotion tool for the audience of Bitcoin enthusiasts.<\/p>\n

\n
\n
\n

https:\/\/t.co\/RASOc9PsWg<\/a><\/p>\n

\u2014 Satoshi\u2019s Journal (@SatoshisJournal) November 10, 2024<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

While there is nothing wrong with competing for investors, it seems that bitcoiners are angered by the fact that treasury companies have infected most of the Bitcoin-related media with promotional posts about them. <\/p>\n

Self-custody advocates argue that Bitcoin podcasters, Crypto X, crypto conferences\u2013all these platforms are \u201cshilling\u201d Strategy and Nakamoto stocks. As a result, it leaves too little space for conversation with those who share similar values, such as independence and a self-custody philosophy.<\/p>\n

\n
\n
\n

“Every podcaster who is not a treasury company executive is a policy failure. We must seize the means of paper bitcoin production”<\/p>\n

Wow!<\/p>\n

(pic unrelated) pic.twitter.com\/6142sYrBFy<\/a><\/p>\n

\u2014 Andrew M. Bailey (@resistancemoney) July 3, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Another concern associated with treasury companies is that their strategies may not be so safe, and at some point, they will have to sell the bitcoins they buy. It may trigger a domino effect that could bury even giants like Strategy. <\/p>\n

According to a recent report from venture capital company Breed, most Bitcoin treasury companies are unlikely to survive a \u201cdeath spiral\u201d that may be triggered by a sudden drop in the BTC price.\u00a0<\/p>\n

The chances of the companies resurrecting after the crash are thinner, especially given their centralized nature. <\/p>\n

<\/p>\n<\/p><\/div>\n