Analyst warns most corporate BTC reserve strategies will fail

Most companies building BTC reserves through debt or share issuance will eventually fail, macro analyst Roberto Rios warned, according to BitcoinTreasuries. Rios said a strategy of buying BTC through new share issuance can be copied by anyone, leaving no competitive edge. He added the approach is not sustainable and said those companies’ market capitalization-to-modified net asset value, or mNAV, will eventually fall to around 1x. A better strategy, Rios said, would be to allocate 30% of corporate profits to BTC purchases and fund those purchases with internal cash flow.