Are Bitcoin treasury companies a new bubble akin to the ICO boom? Critics and industry leaders see similarities

As Bitcoin treasury firms have gotten the brand new preliminary coin choices, individuals are beginning to bear in mind the way it all resulted in 2018. Whereas ICOs and Bitcoin treasury firms are undoubtedly not the identical, critics define some similarities. Greater than that, just lately, 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 will not be right, however it’s doable to level out similarities and variations between ICOs and treasuries to check the potential way forward for the latter.

The rise of Bitcoin treasury firms

MicroStrategy was based in 1989, and since then, it has examined a number of grounds. Solely in 2020 did MicroStrategy deal with issuing debt to purchase bitcoin, promising its shareholders oblique publicity to proudly owning BTC held by the corporate. In 2025, the corporate modified its title to Technique.

Technique attracted consideration. MSTR inventory’s worth has gained 500% since early 2024. Buyers who don’t need or can’t (due to the legal guidelines) purchase BTC immediately however wish 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 firms 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 “provide shock” and “alternative value” mirror how reluctant individuals develop 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 firms have been based or absolutely switched to a Bitcoin buying technique in 2024 or 2025.

Learn extra: Impressed by Saylor’s Technique, TopWin shifts to digital belongings by rebranding to ‘AsiaStrategy’

Curiously sufficient, Bitcoin treasuries don’t supply their shoppers any kind of interplay with cryptocurrencies and don’t maintain crypto themselves. As an alternative, they outsource it to Coinbase and different centralized exchanges.

What do ICOs and Bitcoin treasury firms 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 most recent pattern disturbing. They emphasize that these firms are rooted in TradFi and current common private and non-private firms, besides that they don’t produce something and simply purchase Bitcoin utilizing borrowed belongings.

Greater than that, critics are involved about doable dangers as all these firms are centralized. As lots of them are seemingly pushed by FOMO and don’t have elaborate threat administration methods, they could find yourself not as sustainable as Technique who managed to outlive the 2022 crypto winter. Specialists warn that newer firms could must promote their bitcoins when the bear market begins. If it occurs, it could set off the ripple impact that may affect giants, together with Technique.

Some evaluate Bitcoin treasury firms’ 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 firms that ran ICOs reached the targets of their campaigns.

Proponents of Bitcoin treasuries discover that evaluating ICOs and treasuries isn’t right. The road between the 2 is that Bitcoin treasuries are official private and non-private firms that enable their shoppers to profit from Bitcoin worth actions by an ordinary methodology, equivalent to shares. On the similar time, ICOs have been doubtful companies that simply promised to create one thing helpful–”have been promoting vaporware,” as Joe Consorti, working for Theya and Horizon, put it in his tweet.

Nevertheless, many within the crypto neighborhood define numerous 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 boost capital as a result of they have been in a position to persuade many retail traders that they’d launch a robust product and their tokens would skyrocket. The treasury firms’ traders belief that these firms will not be 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 firms will increase the position of belief for his or her traders. 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 “belief” somebody is an inherent flaw of any new fashionable novelty available on the market.

A founding father of the corporate Stack Properly who makes use of the moniker Stack Hodler, defined why he will get the ICO vibes from the Bitcoin treasury firms’ hype, calling these firms “this cycle’s shitcoins.” In accordance with Stack Hodler, “These firms are creating shares out of skinny air to promote to individuals hoping to outperform Bitcoin.” As a wholesome different to treasuries, Stack Hodler sees “companies that create financial worth by way of services, after which retailer their income in Bitcoin,” including that it “will convey lasting worth to the Bitcoin community.”

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 sort of just like the early day ICOs.” Most likely, he wasn’t fascinated with how this period ended when he remarked. Right here’s what he mentioned:

“It’s sort of like early days ICOs, the place you’ve a posse of individuals you convey into that token. We’ve a posse of people who we’re bringing into the treasury firms. We’ve the most effective practices nailed down on how one can do it.”

Whereas some critics see Technique as an excellent treasury that deserves belief, others dismiss all of the treasury firms altogether. Normally, 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 firms promoting shares and guarantees.

The dialogue continues. Nevertheless, 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 firms are scams:

“I’m not right here to inform any of you to cease buying and selling or speculating if you understand what you’re doing. Discover your edge. Use it. However when you’re not really assured, right here’s the easy play: purchase the belongings these firms are speculating on – primarily Bitcoin. Overlook the 20x, the 50x, the 100x desires. Purchase Bitcoin. It’s nonetheless going to $1 million even when your entire treasury narrative blows up in our faces.”

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