Shares of companies that buy and hold bitcoin and other cryptocurrencies on their balance sheets have slumped sharply, reflecting the cooling of the crypto frenzy that has dominated markets through much of 2025.
These “digital asset treasury companies” — firms that raise cash through stock sales or debt to purchase crypto — had soared earlier this year as bitcoin hit record highs and U.S. President Donald Trump threw political support behind the sector. Now, with sentiment fading, many are facing steep reversals.
Key Declines
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MicroStrategy (Michael Saylor’s firm): Shares slid from $457 in July to $328, their lowest since April, cutting 2025 gains to just 13%.
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Metaplanet (Japan): Down 60% from June peak, though still up 105% year-to-date.
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Smarter Web Company (UK): Shares fell 70% since June after pivoting to a bitcoin-buying strategy.
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Alt5 Sigma: Down 61% from June high, even after announcing a $1.5B deal with Trump’s World Liberty Financial crypto venture.
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BitMine (Peter Thiel-backed) and GameSquare: Both plunged about 67% since July after ether-buying announcements.
Analysts’ Take
The pullback highlights the speculative nature of these stocks.
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“These are essentially volatility plays … if bitcoin is down 3%, they’re down four or five times as much,” said Kaiko’s Adam McCarthy.
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“Beyond their bitcoin exposure, most have only modest fundamentals, so their valuations don’t have much of a cushion,” added Lale Akoner of eToro.
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McCarthy warned that some firms are “selling a crypto narrative to pump their equity value” rather than building sustainable businesses.
Bigger Picture
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At least 61 public companies worldwide (outside the crypto sector) have adopted bitcoin treasury strategies, Reuters reported earlier this year.
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When share prices tank, some firms’ market value dips below their crypto holdings, raising questions about sustainability.
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Companies also risk losing access to capital markets to fund further crypto purchases when sentiment turns negative.
What’s Next
While treasury-driven crypto hype is faltering, the broader sector remains active. Gemini, the exchange founded by Cameron and Tyler Winklevoss, is set to debut on Nasdaq Friday, targeting a valuation of up to $3.08 billion after raising its IPO price range.