I've noticed something that's causing a lot of buzz right now in the Bitcoin treasury sector. Almost 40% of companies accumulating Bitcoin are now trading below the true value of their crypto holdings – it's become a real structural problem. And Mike Novogratz, the head of Galaxy Digital, just clarified why this model no longer works.

The thing is, for a long time, treasuries could raise capital just by promising to buy Bitcoin and calling it a business strategy. But investors are no longer fooled. With Bitcoin and Ethereum ETFs offering direct exposure and being much simpler, why pay a premium for a treasury wrapper? It makes sense.

Mike Novogratz clearly stated in a podcast: “You won't deliver value to shareholders just by holding the underlying asset.” He's right. Strategy managed to exploit this model – the stock has multiplied tenfold since 2020 – but how many others have truly succeeded? Three out of fifty, according to Novogratz. The others are stuck.

Over 60% of Bitcoin treasuries bought at the peak, and they are carrying their losses. Even Strategy has plummeted more than 50% in the past six months. The consensus is starting to emerge: either these companies transform into real businesses with actual products and services, or they will slowly erode as undervalued vehicles.

Mike Novogratz proposes an interesting approach: use the accumulated capital to create something new. A neobank, for example, or a service leveraging the Bitcoin and Ethereum assets they hold. Turn the capital into a driver of real growth rather than just hoping the Bitcoin price goes up.

It's a strong signal that even the big names in the sector recognize that the era of the “hype operation” is over. Treasuries need to evolve or disappear. It's that simple.