It’s been a wild time since I last posted on Monday, but that’s what draws crowds of us into the world of Crypto Stocks – volatility is key, and it’s where fortunes are made and lost. In just 24 hours we have seen Capital raises, BTC purchases and on the most part, share prices getting driven down further. Is this a sign that the mask is beginning to slip on the BTC Treasury model? Or is this just part and parcel of investing in the years hot sector?
Raise and raise again! That seems to be the mantra among the loyalist supporters of the plethora of Treasury companies launched in the past two months or so. So far this week, we have seen capital raised by Vaultz Capital PLC (#V3TC), I’m sure more will follow shortly. Once again, it was down to good old retail investors to stump up the dough. Once an uncommon sight, these days barely a morning passes without and RNS dropping with the headline “WRAP Retail Offer”. Whats even more surprising is how they seem to be consistently over subscribed. It would appear that retail have plenty of dry powder sat on the sidelines, ready for latest investment case to drop. The latest funding round, which was expected to raise circa £500k for Vaultz Capital PLC, concluded having raised £1m at 15.5p. Those that took the plunge will be pleased to know that the stock is trading at 13.75p/share this morning, not quite the result they would have anticipated one would imagine.
Now, you could be forgiven for thinking that I’m bearish on the prospects of Bitcoin Treasury companies, but that could not be further from the truth. As a long-term Bitcoin bull, I think the future is bright for any company holding BTC on its balance sheet. I do not, however, see the investment case for new money entering the treasury stocks at present.
Take the Smarter Web Company (#SWC) for example – their most recent raise, dated June 26, 2025, totalled £45.2m – a considerable sum of money by any account. Now the proceeds from the raise are going to be used to purchase BTC, and at today’s price $107,000 (some casual rounding up going on). At todays exchange rate, each Bitcoin would cost £78,060 – therefore £45.2m would buy roughly 579 BTC. Now prior to the placing, The Smarter Web Company held 543.52 Bitcoin (they have since purchased more with funds from the raise), so with the 579 from the recent raise, total BTC would stand at 1,122. So the total value of the Bitcoin holding post raise, and assuming all funds are deployed, is a mere £87,623,911. Now the last time I checked the market cap was sat around £400m. So given the above figures, the company is now valued at 4.5x its BTC stack. So the above fundraise essentially took place valuing Bitcoin at a staggering $481,500! Now it does not take a genius to work out something is not quite right here. Make it make sense.
Now, the Treasury bulls will argue their thesis on days to cover, but given the lofty valuation currently assigned to these companies, why not simply buy the underlying asset? As a long-term bull, I would be extremely happy to see Bitcoin hit $481,500 during this bull run, but why would I pay that price today, when I could buy the asset for $107,000? Any early investors who got in when the stock was valued at pennies, will laugh all the way to the bank, but for the newer blood, the upside is not so obvious.
Having been a veteran in two crypto bear markets, I can tell you one thing: they are ruthless, they crush you, destroy your wealth and leave you wondering whether it was all worth it. At some point when common sense prevails this new breed of treasury company will find parity with their Bitcoin holdings and then, and only then, will they make a compelling investment case. Take KR1 for example – here is a treasury company that is currently trading far below its NAV, and due to its staking activities is bringing in circa $500k a month income. Sat unloved, with low liquidity, seemingly waiting for an ALT cycle that threatens not to come, this will be the fate met by todays hot stocks come the bear cycle.
Disclaimer – All figures are rounded and taken at a snapshot in time, both BTC and SWC shares are highly volatile, so figures will unlikely be correct at the time of posting. This is not investment advice; crypto stocks are highly volatile and can move fast in both directions. Always do your own research. I am currently invested in KR1.
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