DAT Series | When Corporate Treasuries Stop Trusting Cash
Inside Bitcoin Treasury Companies. How balance sheets are being rebuilt around scarcity, not stories
Series: When Treasuries Stop Trusting Cash
This two-part Kingdom Bitcoin series explores the rise of Digital Asset Treasury companies.
Part 1 explains what Digital Asset Treasuries are, why they emerged, and how corporate balance sheets became a battleground for sound money.
Part 2 goes inside the companies themselves, examining how bitcoin treasury strategies actually work, which firms are leading, and where discernment matters most.Who is actually doing this well. Who is simply along for the ride. When you look at the data, one fact dominates everything else.
Public companies now hold over 1.13 million bitcoin, representing more than 5 percent of total bitcoin supply. That alone would be remarkable.
But the concentration tells the real story. One company holds nearly two thirds of that amount. That company is Strategy.
Strategy currently holds over 700,000 bitcoin, roughly 3.4 percent of all bitcoin that will ever exist. Put differently, Strategy controls more bitcoin than most countries, most ETFs, and every corporation combined except itself.
This is not accidental accumulation.
This is engineered conviction.
Michael Saylor did not stumble into this position. He designed it.
Strategy’s balance sheet is not built around earnings. It is built around bitcoin per share. That is the key metric most people miss.
Strategy measures success by whether each shareholder owns more bitcoin over time, even after dilution. That requires precision. It requires capital discipline. And it requires instruments most CFOs never touch.
Strategy uses four primary tools to acquire bitcoin.
First, at-the-market equity issuance. When Strategy’s stock trades above the value of its bitcoin holdings, it sells shares slowly and deliberately. Premium equity becomes bitcoin. Dilution only happens if bitcoin per share increases.
Second, zero-coupon convertible notes. Strategy has issued billions in convertibles with no interest cost and high conversion premiums. These notes do not accrete. They do not demand cash flow. They give Strategy long-dated optionality without immediate pressure.
Third, preferred stock, structured for different investors. Strategy has built an entire yield curve of preferred instruments offering 8 to 10 percent dividends, some convertible, some not. These instruments attract income investors who are not buying bitcoin directly, but who indirectly fund its accumulation.
Fourth, operational cash flow, which is now secondary but still additive.
This stack matters because it reveals intent.
Strategy is not trading bitcoin. It is harvesting capital market inefficiencies to convert fiat into scarcity. The flywheel only works if one condition holds. The company must trade above its net asset value. That condition is tightening.
Strategy’s market NAV has compressed toward parity. That means issuing new equity is no longer obviously accretive. The market is signaling maturity. This is what sophistication looks like.
Even the leader is now constrained by math.
This is where discernment separates builders from imitators.
Beyond Strategy, the landscape fractures quickly.
The top ten public companies that have bitcoin on its balance sheet hold over 84 percent of all corporate bitcoin. Strategy alone holds nearly 63 percent. The rest of the market is a long tail.
Companies like Twenty One Capital and Metaplanet follow the Strategy playbook with regional adaptations. Metaplanet trades at a premium in Japan, signaling investor appetite for scarcity in a high-debt environment.
Others tell cautionary tales.
Some companies hold billions in bitcoin but trade at massive discounts to their holdings. That is not hidden value. That is market skepticism.
Deep discounts signal fear of dilution, governance failure, or forced liquidation. The market is not stupid. It prices survival risk quickly.
Then there are miners, a separate category entirely.
Mining companies like MARA, Riot, CleanSpark, and Hut 8 hold large bitcoin positions, but their valuations reflect production capability, energy strategy, and operational execution. That is why miners trade at dramatically higher market NAV multiples. Investors are paying for future bitcoin creation, not just stored bitcoin.
Next come crypto-native operators like Coinbase, Block, and Galaxy. These firms hold bitcoin, but their valuations are driven by businesses, not treasuries. Their bitcoin is strategic alignment, not existential capital.
Finally, traditional corporations. Tesla. GameStop. Media companies. Financial firms. Here bitcoin is ballast, not bedrock.
Understanding these categories is essential. Lumping them together leads to bad conclusions. Now zoom out. The numbers reveal something sobering.
This market is extremely concentrated. A handful of entities control the majority of corporate bitcoin. That introduces systemic risk. Forced liquidation at scale would move markets. Regulators know this. So do allocators.
At the same time, the supply math is tightening relentlessly.
Over 94 percent of bitcoin is already mined. ETFs, governments, companies, and private holders now control the overwhelming majority of circulating supply. What remains liquid is thin.
That is why treasury adoption matters more than price.
Treasuries do not trade emotionally.
They accumulate structurally.
From a Kingdom perspective, this moment demands wisdom.
Scripture is clear that storing resources is not sin. Hoarding without purpose is. Joseph stored grain to preserve life. Not to dominate markets.
Bitcoin treasury companies expose our motives. They show whether we are stewarding for endurance or leveraging for applause.
This is not a moral endorsement of every balance sheet strategy. It is a call to discernment.
The data shows us three truths.
First, conviction concentrates.
Second, leverage magnifies both wisdom and folly.
Third, the market is growing less forgiving.
The era of blind premium is ending.
The era of disciplined stewardship is beginning.
Bitcoin is no longer asking whether it belongs on the balance sheet.
The question now is who can be trusted to hold it.
Prayer 🙏📊🏛️
Father God, You are the owner of all resources and the giver of wisdom.
Grant discernment to leaders entrusted with capital, employees, and futures. Guard them from pride disguised as innovation and fear disguised as caution. Teach them to count the cost, to respect risk, and to steward scarcity with humility.
Expose structures built on leverage without wisdom.
Strengthen those built on patience and truth.
May what is stored today preserve life tomorrow.
We submit our strategies to You.
In Jesus’ name, Amen. 🙏✝️🔥