Marathon Digital CEO Fred Thiel Warns Bitcoin Treasury Companies Becoming ‘Saturated’ – Here’s His Forecast

The CEO of one of the biggest Bitcoin mining companies in the world says that the market for turning companies into BTC treasuries is probably getting saturated.

In a new interview with Bloomberg Television, Marathon Digital CEO Fred Thiel says that a slowdown is approaching for the Bitcoin treasury business model as the market becomes too crowded and competitive.

“The problem is what happens if the Bitcoin price stays flat or starts to go down? You said his stock was up over a five-year basis by a huge amount, which is true, but if you look at year-to-date at its performance compared to Bitcoin miners, you’re starting to see that that performance is running into headwinds.

In theory, a Bitcoin treasury company’s price should increase by upwards of two times whatever the Bitcoin price is increasing on a daily basis because of the leverage that they’re driving. And that’s not the case anymore.

I think what we’re starting to see is a saturation of the Bitcoin treasury business market because to your point, they’re not in any other business, they’re taking over a company with a marginally profitable business and they’re turning it into an accumulator for Bitcoin. At the end of the day, you have a bunch of people competing for capital, and that capital is going to the highest return, which means the lowest multiple to NAV (net asset value), and over time, that multiple to NAV is eventually going to go to zero…”

Some of the recently launched BTC treasuries include Anthony Pompliano’s ProCap BTC, Grant Cardone’s Cardone Capital, Gamestop and Japanese hotel company MetaPlanet.

Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post Marathon Digital CEO Fred Thiel Warns Bitcoin Treasury Companies Becoming ‘Saturated’ – Here’s His Forecast appeared first on The Daily Hodl.

Innehållet på den här sidan tillhandahålls av tredje part. Om inte annat anges är OKX inte författare till den eller de artiklar som citeras och hämtar inte någon upphovsrätt till materialet. Innehållet tillhandahålls endast i informationssyfte och representerar inte OKX:s åsikter. Det är inte avsett att vara ett godkännande av något slag och bör inte betraktas som investeringsrådgivning eller en uppmaning att köpa eller sälja digitala tillgångar. I den mån generativ AI används för att tillhandahålla sammanfattningar eller annan information kan sådant AI-genererat innehåll vara felaktigt eller inkonsekvent. Läs den länkade artikeln för mer detaljer och information. OKX ansvarar inte för innehåll som finns på tredje parts webbplatser. Innehav av digitala tillgångar, inklusive stabila kryptovalutor och NFT:er, innebär en hög grad av risk och kan fluktuera kraftigt. Du bör noga överväga om handel med eller innehav av digitala tillgångar är lämpligt för dig mot bakgrund av din ekonomiska situation.