This article appeared originally in Forbes
Two Prime is a U.S.-based SEC-Registered Investment Advisor (RIA) that partners with some of the largest Bitcoin corporate treasuries (BCTs) in the world. Our firm helps these companies unlock yield on their Bitcoin, access BTC-collateralized lending, and implement capital-efficient treasury strategies. This playbook outlines how companies can assess their options, align their Bitcoin strategy with corporate goals, and responsibly manage a digital asset treasury in a volatile and rapidly evolving landscape.
Bitcoin corporate treasuries come in many forms. Some are Bitcoin-native entities—companies that exist primarily to hold or accumulate Bitcoin—while others are traditional operating businesses that have incorporated Bitcoin into their balance sheets. Public companies have the benefit of broader access to capital markets, but they also face higher scrutiny, regulatory hurdles, and pressure from shareholders. Private companies, by contrast, enjoy more flexibility and fewer disclosure requirements, though their access to institutional capital is more limited.
Before building a Bitcoin treasury, a company must define its core objective. Is the goal to grow wealth in USD terms or in BTC terms? A USD-oriented treasury may actively hedge downside risk, lend BTC for income, or sell opportunistically during bull markets. A BTC-oriented treasury, on the other hand, may prioritize long-term accumulation and tolerate higher short-term volatility.
Metrics such as modified Net Asset Value (mNAV) or Bitcoin-per-share (BPS) have become common, especially among public companies. These figures are primarily branding tools designed to capture investor attention, rather than formal financial indicators. While they can help communicate a company's strategy, leadership teams must decide what actually matters most to their shareholders.
Risk tolerance is a key consideration. Bitcoin is inherently volatile. Its price can swing 30% in a matter of days. That kind of movement can affect everything from operational expense coverage to share price volatility. Companies must ask themselves: Can we survive a prolonged downturn? How do we communicate risk to investors? Are we prepared to explain losses in Bitcoin terms when the market turns?
The current financial position of the company also plays a crucial role. Strong cash reserves and reliable revenue streams offer flexibility. Companies without these buffers must proceed more cautiously, potentially using only a portion of their balance sheet for Bitcoin exposure. Additionally, if a firm is already holding substantial BTC, it may be able to unlock value through lending, derivatives strategies, or structured capital raises like convertibles.
Private companies benefit from simplicity. If ownership is concentrated, decisions can be made quickly. However, if the company is planning to go public in the future, it needs to ensure its Bitcoin-related activity is fully documented and auditable. Private firms also face constraints when it comes to borrowing—many won’t have access to scalable debt markets, but options like convertible notes and small lines of credit do exist.
Public companies have more tools at their disposal, but those tools come with risk and responsibility. If the stock trades actively, companies can issue shares through an At-The-Market (ATM) program or raise convertible debt. Companies like MicroStrategy have successfully sold over $2 billion in 0% debt using their Bitcoin strategy as a catalyst. Their success came from the existence of a liquid market for their stock and, critically, a developed derivatives market that allowed institutional investors to hedge positions.
The goal of a well-executed public strategy is to enable structured capital raising that supports BTC accumulation without diluting shareholder value. But timing matters. Selling equity in a weak market or issuing convertible notes without clarity on execution can destroy shareholder trust and create long-term pressure on stock performance.
Creative approaches are emerging. Nakamoto, for example, raised $710 million for a SPAC that is targeting public companies globally to adopt a Bitcoin-first strategy. By cross-listing or structuring in different jurisdictions, Nakamoto is using regulatory arbitrage to expand the reach of BTC treasuries into new markets.
Another approach is the activist playbook. Strive, a digital asset-focused asset manager, has raised $750 million to acquire undervalued public companies, pivot them into Bitcoin-focused entities, and close the gap between share price and book value. In doing so, they aim to unlock immediate upside through revaluation.
Companies like MicroStrategy (“Strategy”) have also expanded their capital stack by issuing various forms of equity and debt that appeal to different investor profiles. Their ability to issue tranches of securities—each with its own risk/reward profile—is a hallmark of a sophisticated treasury operation.
Meanwhile, Marathon Digital has partnered with Two Prime to actively manage its Bitcoin. Their approach includes lending BTC to generate income and using low-risk derivatives strategies to create additional yield. These strategies allow companies to hold Bitcoin while still generating income to support operations or fund further growth.
A successful Bitcoin treasury strategy requires alignment at the highest levels of a company. Boards, CFOs, legal teams, and investors must agree on the goal. Is this a financial engineering play? A long-term bet on Bitcoin as a store of value? Or a pivot away from a declining core business?
It’s also essential to plan for volatility. Will the company ever sell Bitcoin? Under what conditions? Will it buy back shares if the stock trades at a discount to NAV? How will strategy shift in different market conditions—bear, bull, or sideways?
Bitcoin miners offer a useful analogy. Like oil and gas companies, they produce a commodity with a volatile price. Eventually, those industries learned to hedge using derivatives to stabilize income. Expect Bitcoin treasuries to follow a similar path.
Execution matters. Public companies must custody Bitcoin with qualified custodians—typically banks, trust companies, or regulated financial institutions. These partners must be vetted not just for cost, but also for insurance coverage, bankruptcy risk, and asset segregation.
Internal controls are also critical. Multi-signature wallets, transaction policies, and third-party audits are essential to protect a bearer asset like Bitcoin. For larger firms, outsourcing parts of the treasury function to specialized managers can offer better risk-adjusted outcomes.
BTC purchases should be done intelligently, often through OTC desks to avoid slippage. Having multiple counterparties allows for pricing comparisons and execution flexibility. Some desks offer TWAP (time-weighted average price) or VWAP (volume-weighted average price) execution to spread buys over time.
If BTC is being lent or traded, companies must monitor counterparties continuously. This includes quarterly reviews, balance sheet analysis, and clarity on how loans are collateralized and rehypothecated.
For public companies, transparency is a strategic asset. Clear and consistent communication around treasury strategy, counterparties, and risk frameworks can build trust with shareholders. Some firms, like Metaplanet, go so far as to disclose wallet addresses. Others, like Strategy, prefer privacy due to perceived security risks.
Internally, companies must track detailed metrics: cost basis of BTC, unrealized gains or losses, lending returns, and NAV impact. This data not only guides decision-making but also protects against operational risk and regulatory scrutiny.
The era of Bitcoin corporate treasuries is here. As of mid-2025, over 80 public companies hold Bitcoin. MicroStrategy leads the pack with more than 214,000 BTC. Marathon holds approximately 17,000 BTC, and newcomers like Semler Scientific and Metaplanet have also joined the ranks.
Bitcoin is volatile, complex, and still maturing—but it is also one of the most asymmetric opportunities in capital markets today. For companies with clear goals, smart advisors, and solid governance, a BTC treasury can drive long-term value and open new paths to growth.
At Two Prime, we specialize in turning volatility into strategy. We invite you to explore how our solutions can support your treasury objectives—whether you're just starting your journey or ready to scale.