Failed Altcoins Confuse Treasury Strategy, Says David Bailey

Jakarta, Pintu News – Companies that add underperforming altcoins to their balance sheets have been cited by Nakamoto CEO David Bailey as the cause of major confusion in the Bitcoin (BTC) based treasury narrative.

At a time when many publicly traded companies are starting to look beyond BTC and incorporate alternative crypto assets into their treasuries, Bailey warns that the practice could undermine investor confidence.

According to him, “toxic financial structures,” failed altcoins rebranded as DATs (Digital Asset Treasuries), and many companies without a clear vision have muddied the narrative around digital treasuries. Bailey thinks the digital asset treasury sector is being tested – and the outcome will determine who survives.

BTC vs Altcoin Treasury Sector: Tensions Rising

David Bailey asserts that the core of a treasury company’s strategy is to build and monetize their balance sheet. If the company does this well, its assets will grow over time; conversely, if managed poorly, the company will be sold at a discount and could be outbid by more competent parties.

He mentioned that many companies are adding “failed” altcoins to their balance sheets, even renaming them Digital Asset Treasuries (DATs). Bailey said that this includes “toxic financing” and companies that don’t have a clear plan or vision. All of these practices, he says, have “totally muddled the narrative” around what digital asset treasuries really mean.

Also read: Bitcoin (BTC) price approaches $115,000, what does this level mean?

Why Bailey Calls Its Own “Treasury Company Moniker” Already Confusing

Bailey also revealed that the term “treasury company” in the context of digital assets has become a source of confusion. This is because companies that should be limited to conservative strategies in storing digital assets are now speculating with very risky altcoins. The term, for Bailey, no longer reflects the reality.

Furthermore, Bailey proposes that such companies should be considered Bitcoin-based financial institutions – “Bitcoin Banks” or Bitcoin financial institutions – if they follow the correct approach. He suggests that the public and the crypto community should call them so if the term conventional treasury is not considered accurate enough.

Also read: Crypto Market Rally Faces FOMC Test: Will Momentum Continue This Week?

Practical Impacts and Visible Challenges

Some public companies have indeed started to diversify their treasuries into altcoins other than BTC, such as Ether (ETH), Solana (SOL), XRP, and BNB. However, diversifying into unproven crypto assets can increase the risk of poor capitalization and liquidity. Both in terms of investors and the companies themselves.

Analysts and market participants observe that companies with weak or immature treasury strategies will trade at prices lower than their net asset value (NAV). Such companies may be outcompeted by entities that manage more professionally and sustainably.

Conclusion

Critic David Bailey highlighted that the too-quick movement of treasury firms to add unproven altcoins to their balance sheets has created a blur in the digital finance narrative.

While Bitcoin remains the foundation, poor and visionless use of altcoins can be detrimental to credibility and long-term viability. For investors and companies, it’s time to reassess treasury strategies: whether to simply follow the trend or build a balance sheet that is robust, transparent and resilient to market pressures.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cointelegraph. ‘Failed altcoins’ are confusing treasury narrative: David Bailey. Accessed September 16, 2025.