Catenaa, Tuesday, July 15, 2025-Fred Thiel, CEO of Marathon Digital, cautioned that the market for companies converting their treasuries into Bitcoin holdings is approaching saturation, signaling a potential slowdown ahead.
In a recent Bloomberg Television interview, Thiel said the business model of Bitcoin treasury companies, firms acquiring marginally profitable businesses and transforming them into Bitcoin accumulators, is facing growing competition for capital.
He explained that while Bitcoin treasury companies historically delivered leveraged returns exceeding Bitcoin’s price gains, this trend is weakening.
Thiel highlighted that if Bitcoin prices plateau or decline, these companies’ stock performance could falter, as evidenced by year-to-date comparisons with Bitcoin miners. He warned the multiple to net asset value (NAV) for such firms could shrink toward zero as competition intensifies and capital seeks higher returns elsewhere.
Several new Bitcoin treasury firms have launched recently, including Anthony Pompliano’s ProCap BTC, Grant Cardone’s Cardone Capital, Gamestop, and Japan’s MetaPlanet.
Despite the surge in entrants, Thiel’s outlook signals caution for investors considering this niche sector.
Marathon Digital, one of the largest Bitcoin miners globally, remains a key player in the industry but faces challenges amid evolving market dynamics.
