Venture capital analysis suggests many Bitcoin-focused companies face unsustainable business models. Firms holding BTC as primary treasury assets risk liquidity crises during prolonged bear markets—forced to sell reserves at depressed prices to fund operations. This creates a downward spiral: asset devaluation triggers more selling.
The report notes few companies have diversified revenue streams beyond Bitcoin appreciation. Those relying solely on treasury gains lack operational moats, making them vulnerable to market cycles. Traditional corporate finance principles—like maintaining cash flow—are often neglected in crypto-native firms.
Survival requires pivoting to fee-based services or diversified product offerings. The warning highlights crypto’s maturation phase, where sustainable business models become essential beyond speculative positioning.
