Bitcoin treasury companies are trading at significant premiums to their net asset values (NAVs) due to their access to leverage and capital markets, allowing them to accumulate more BTC. This premium reflects investor confidence in their growth potential and ability to amplify BTC exposure, but can become a liability in a bearish market if the premium collapses. The article highlights the importance of financial discipline and transparency for these companies to maintain their valuations.

Bitcoin treasury companies are struggling significantly as their stock values plummet, with losses ranging from 38% to 94% over the past three months amid a broader downturn in the cryptocurrency market. Executives are actively defending their business models on social media, but investor confidence remains low, raising concerns about the industry's future. The situation echoes past crypto market failures, suggesting that a recovery may require more than just a rising bitcoin price.