# TreasuryCompanyStress

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#TreasuryCompanyStress

*The Bitcoin Treasury Company Model Under Pressure*

Firms like Strategy popularized holding Bitcoin on the balance sheet and issuing equity/debt to buy more. It worked when BTC rallied and shares traded at a premium to NAV. In 2026 the model faces new headwinds.

3 key pressures:
1. *ETF Competition*: Low-fee spot ETFs offer cheaper BTC exposure
2. *Index Risk*: MSCI is considering rule changes that could trigger $2.8B in passive outflows from crypto-heavy firms
3. *Rate Sensitivity*: Higher interest rates make leveraged balance sheets expensive to maintain
BTC-1.08%
MSCI-3.23%
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