Why Bitcoin Treasury Firms Could Destroy Fiat Faster Than You Think

Published by

Vignesh S G and Sohrab Khawas

June 27, 2025

Hyperbitcoinization Begins? Why Corporations Are Racing to Drain Bitcoin Supply

Crypto strategist Adam Livingston claims that firms like MicroStrategy and Metaplanet are leading a speculative attack against fiat currencies by raising capital in dollars and converting it directly into Bitcoin (BTC).

This practice, he argues, is draining liquidity from the traditional financial system and shifting value into Bitcoin, effectively exiting fiat while still operating within it.

Companies Leading the BTC Treasury Shift

Public companies now hold 833,214 BTC, worth over $89.21 billion
Private firms hold 421,641 BTC, valued at $45.14 billion

Top Public Holders:

MicroStrategy: 592,345 BTC ($63.42B)
Marathon Digital, Twenty One Capital, Riot Platforms, CleanSpark, Metaplanet

Top Private Holders:

Block: 140,000 BTC ($14.99B)
Tether: 100,521 BTC
Xapo Bank: 38,931 BTC
BitMEX, Mt. Gox follow

What Are These Firms Doing?

Livingston explains these companies aren’t just storing wealth, they’re systematically converting fiat into Bitcoin:

“They raise money in fiat, buy BTC, and repeat it’s like draining the fiat system,” he said on X.

This strategy removes liquidity from traditional monetary channels and shifts it into a decentralized asset.

What This Means for Fiat Currency

Livingston warns that if this trend accelerates:

Fiat currencies like the U.S. Dollar could lose dominance
Bitcoin could become a pricing benchmark for assets globally
Firms may soon be valued by BTC per share, not earnings

Also Read :
Crypto Price Today: BTC, ETH, XRP, PI Price Fall Amid $202M Liquidation
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Surging Stock Prices: A Sign of New Value Metrics?

MicroStrategy shares:
+153.46% YoY | +28.87% in 2025
Metaplanet shares:
+1,346.60% YoY | +316.78% in 2025

Investors are rewarding Bitcoin-heavy balance sheets, potentially flipping traditional valuation metrics on their head.

Global Monetary Leak: The Bitcoin Demand Spiral

Livingston coins the effect a “Bitcoin demand spiral”:

Companies issue shares
Use proceeds to buy BTC
BTC price rises
Share prices rise
Investors buy more → cycle repeats

He calls it a monetary leak from fiat into Bitcoin, and it’s accelerating.

Final Take

Livingston concludes that Bitcoin treasury companies are the early nodes of a Bitcoin-based financial system.

Are they just storing value, or engineering the next global monetary standard?

FAQs

How do companies like MicroStrategy and Metaplanet finance their Bitcoin purchases?

These companies primarily finance Bitcoin purchases through equity-linked funding tools, such as issuing convertible notes, secured bonds, and common stock (including dynamic exercise price warrants), often leveraging low interest rates and strong investor demand for Bitcoin exposure.

What are the risks and rewards of a Bitcoin-heavy corporate treasury strategy?

Potential for significant long-term appreciation, hedge against inflation, increased stock valuation, and attracting new investors seeking Bitcoin exposure. Risks: High price volatility, regulatory uncertainty, complex accounting, liquidity challenges, and potential capital erosion if Bitcoin prices fall sharply.

How does corporate Bitcoin accumulation affect the broader crypto market?

Corporate Bitcoin accumulation drives demand, potentially leading to price increases due to reduced circulating supply. This institutional interest can also boost overall market sentiment, attract more investors, and contribute to Bitcoin’s growing legitimacy as a global asset.

Vignesh S G and Sohrab Khawas

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

Published by

Vignesh S G and Sohrab Khawas

Tags: Bitcoin