David Bailey, CEO of BTC Inc and a key cryptocurrency advisor to former US President Donald Trump, has issued a strong critique of corporate treasury strategies that include altcoins. In a statement posted on his X account, Bailey condemned what he termed "toxic financing" and the rebranding of failed projects, arguing that the inclusion of underperforming altcoins in corporate balance sheets "completely blurred the narrative" of legitimate crypto treasury adoption.
Bailey emphasized that the path forward is simple and singular: Bitcoin. He framed Bitcoin treasury companies as natural extensions of the traditional fiat system, essentially building "Bitcoin banks" or Bitcoin-focused financial institutions. He warned that the industry is entering a critical testing phase where only firms that effectively build and monetize their balance sheets with Bitcoin will survive, while others will be traded at a discount or absorbed.
This commentary comes amid accelerating corporate cryptocurrency adoption in 2025, with Bitcoin and Ethereum leading as preferred treasury assets. Publicly traded companies currently hold approximately $117.91 billion in Bitcoin, according to BitcoinTreasuries.NET. Ethereum is also gaining traction, with about 3.14% of its total supply held in publicly listed treasury companies, partly due to its staking yield capabilities.
However, this diversification into multiple assets, including altcoins, has raised questions about its impact on Bitcoin's price trajectory. Galaxy Digital CEO Mike Novogratz recently suggested that treasury firms diversifying into Ethereum and other cryptocurrencies might partly explain Bitcoin's recent sideways trading, as capital is no longer flowing exclusively into BTC.
Market data reflects this shift: the CMC Altcoin Index has climbed to 68, signaling the potential onset of an altcoin season, while Bitcoin's dominance has dipped to 57.66%, indicating a movement of liquidity into altcoins.