Bitcoin treasury companies are millions in the red but the strategy doesn’t change even at $78k

Companies that adopt Bitcoin as a corporate treasury asset must accept significant mark-to-market losses during drawdowns, as this volatility is inherent to the strategy. The core risk is not the paper loss itself, but whether the company can maintain its funding mechanisms to service obligations and continue accumulating without being forced to sell. Companies like Metaplanet and Trump Media are currently deep in the red due to high average purchase costs, while early adopters like Tesla and Coinbase remain comfortably in profit. The continuation of buying, even when underwater, signals confidence in the long-term strategy, whereas slowing purchases might indicate a focus on liquidity preservation. Ultimately, the success of a Bitcoin treasury strategy is tested by the company's ability to endure volatility through financing, not by the quarterly scoreboard of unrealized losses.

(Source：CryptoSlate)