# Cash flow shapes long-term prospects for Asia’s Bitcoin treasury companies

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/insights/41365
Published: 2026-10-26T21:40:37.000Z
Updated: 2026-10-26T21:40:37.000Z
Section: Insights & Views

> Duke Waldrop of UTXO Management said operating cash flow could give Asian Bitcoin treasury companies greater stability, while a rapid unwind of yen-funded positions could create short-term liquidity pressure.

Asian Bitcoin treasury companies that fund purchases with surplus cash from operating businesses may have greater staying power than those reliant on repeated capital raising, according to Duke Waldrop, head of Asia markets at UTXO Management.

In an October 26 interview with Bitcoin Magazine, Waldrop said the underlying business and its financing structure were central to assessing these companies. An emphasis on operating cash flow could slow expansion, he said, while supporting greater stability over time.

Hong Kong illustrates that distinction. Waldrop said companies there face restrictions on the treasury model of raising capital to buy Bitcoin and using those holdings to support further fundraising. Instead, he said, companies need a cash-generating operating business whose surplus can be invested in Bitcoin.

Those constraints have prompted some companies to change direction, he said. Businesses that acquired shell companies to pursue Bitcoin treasury strategies have had to pivot toward AI or other activities. By contrast, UTXO Management portfolio company Moon Inc developed Bitcoin products that generated revenue, an approach Waldrop said drew a positive response from regulators.

Waldrop highlighted a similar operating model in Thailand, where UTXO Management has invested in Astra. He said the team intended to acquire cash-flow-positive businesses and integrate services vertically to establish a steadier source of cash. Surplus earnings would fund Bitcoin purchases, giving the company an operating foundation beyond accumulating the asset.

He described MetaPlanet’s US expansion as an effort to access another pool of liquidity through NASDAQ, supplementing its access to the Tokyo stock exchange. Waldrop also cited management’s execution and knowledge of the Japanese market as factors in assessing the company.

Bitcoin holdings per share were a central valuation measure for UTXO Management, he said. Traditional equity investors may assess treasury companies without fully accounting for the mechanics of a Bitcoin investment. Waldrop said his firm focused on whether a company was increasing the amount of Bitcoin attributable to each share.

Asia’s use of preferred shares remained behind the US, according to Waldrop. Treasury companies in the region were exploring other financing methods first, and he said some investment bankers he had spoken with lacked familiarity with the products. Larger treasury companies could issue preferred shares, but other fundraising avenues might take priority.

For near-term market risk, Waldrop pointed to the speed at which yen-funded positions could unwind. He said the pace of repricing following a Bank of Japan decision mattered more than the decision alone. A rapid reversal of the yen carry trade, which he said had operated for more than 20 years, could force investors with yen-denominated liabilities to sell assets.

Overleveraged fund managers and portfolio managers carrying yen liabilities could face pressure first, he said. Large positions cannot easily be unwound overnight, leaving forced sellers searching for available liquidity. Bitcoin’s round-the-clock trading could make it a source of that liquidity, although Waldrop said a short-term shock would not alter its long-term investment thesis.

His assessment of Asia’s treasury sector ultimately centered on the earnings power behind Bitcoin purchases. Companies able to keep buying with cash generated by operating businesses, he argued, have a more durable foundation when market conditions turn.