After this lesson you can: explain how a treasury company works and its risks.
In August 2020 MicroStrategy, a software company, bought $250 million of bitcoin for its treasury. By 2026, renamed Strategy, it held over 800,000 BTC, financed by selling shares and convertible debt, and dozens of companies had copied the model.
What a treasury company is
A public company whose main business is accumulating bitcoin. It raises capital in traditional markets (stock, bonds, preferred shares) and buys bitcoin. Investors buy its stock for bitcoin exposure, often paying a premium over the value of the coins, because the company can borrow cheaply and buy more per share over time.
Why they exist
Some investors cannot hold bitcoin or ETFs: mandates, jurisdictions with no ETF (the UK until recently), punitive tax on direct holding (Japan). Others want leverage without a margin account. A treasury stock gives them that through a familiar wrapper.
The risks
- The stock can trade at a premium or a discount to its bitcoin; the premium can vanish.
- Debt must be serviced. In a deep drawdown, forced selling is possible.
- You hold shares, not coins: no self-custody, corporate governance risk, and the usual dilution.
Corporate adoption more broadly
Beyond treasury companies, over a hundred public companies hold some bitcoin, and River's surveys find small businesses allocating a meaningful share of profits. See our summaries of River's business adoption and 22% of profits reports. Treasury companies are a quarter of the holders and most of the coins.
A treasury company holds $10 billion of bitcoin and has a market value of $20 billion. What multiple of its bitcoin is the market paying?