The corporate Bitcoin treasury model is facing intense scrutiny and financial strain, as highlighted by prominent critic Charles Edwards of Capriole Investments and evidenced by the recent actions of Bitcoin holding firm Nakamoto.
Edwards, known for his warnings about Bitcoin's quantum vulnerability, has launched a scathing critique against companies like MicroStrategy (MSTR) and Japan's Metaplanet. He argues their strategy of using complex debt and leverage to acquire Bitcoin is "failing in real time," destroying shareholder value. According to his analysis, MicroStrategy is currently down 13% on its BTC position. He contends that Metaplanet is in an even worse state, with an average entry price of $105,000 per Bitcoin, leading to a severe balance sheet deficit at current market levels.
Edwards questions the fundamental logic: "a company may hold 49 billion in BTC, but what is the point if the process of acquiring it destroys $6.4 billion in shareholder equity?" He suggests traditional U.S. Treasury bonds would have been a more effective capital allocation.
This criticism coincides with concrete evidence of strain. Bitcoin treasury firm Nakamoto filed a Form 10-K on March 30, 2026, revealing it sold approximately 284 BTC in March for about $20 million, implying an average sale price of $70,422 per coin. This sale represents a significant loss, as the company had acquired 5,342 BTC in 2025 at a weighted average price of $118,171 per BTC. The company had already recognized a $166.2 million loss on the fair value of its digital assets in 2025.
Nakamoto stated the sale proceeds are for operations, reinvestment, and working capital needs. The firm also divested 5 million shares of Metaplanet stock for $11.1 million. Despite the sale, Nakamoto maintains its Bitcoin holdings are a "long-term strategic treasury asset."
The broader market context shows a divide. While firms like Nakamoto are trimming holdings, MicroStrategy remains the dominant buyer, adding roughly 45,000 BTC in the last 30 days in its most aggressive accumulation since April 2025. Analysts warn that if the criticized treasury strategies continue to show weakness, it could trigger sell-offs from other public companies following the same model, creating potential spillover effects in the market.
