"Crypto Treasury" myth shattered? Stock price and cryptocurrency price both plummet, company forced to sell off crypto assets

Wallstreetcn
2025.11.26 06:51
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Companies that once hoarded cryptocurrencies are now facing a double whammy of plummeting stock prices and cryptocurrency values. These companies have recently seen their total market value shrink by $77 billion, with related companies' stock prices generally plummeting by over 40%. In order to protect themselves, many enterprises are being forced to reverse their strategies, selling off crypto assets to repurchase stocks or repay debts, falling into what analysts call a "vicious cycle." However, MicroStrategy, a pioneer in the "crypto treasury," has chosen to go against the trend and increase its holdings

The corporate "crypto treasury" model, once seen as a cutting-edge strategy, is now rapidly losing its luster amid market chill.

According to a report by the Financial Times on November 26, as the cryptocurrency market faces severe setbacks, companies that once hoarded crypto assets to enrich their corporate treasuries are now facing a dual blow from falling stock prices and cryptocurrency values. To support their plummeting stock prices, they are forced to sell off their held digital tokens.

Data from The Block shows that these treasury companies, which primarily purchased cryptocurrencies through debt and equity financing, have seen their market value evaporate by about $77 billion since peaking at $176 billion in July.

This reversal of trend sharply contrasts with the optimistic sentiment in the market following Trump's promise last year to make the U.S. the "crypto capital." Now, investors are concerned that a business model reliant on rising crypto prices and large-scale equity and debt financing is having its virtuous cycle broken.

MicroStrategy, the world's largest corporate Bitcoin holder led by Michael Saylor, has seen its stock price plummet by 50% over the past three months, dragging down many imitators. Currently, the company's market value is even lower than the value of its held Bitcoin, exacerbating market worries.

Stock Prices Plummet, Market Value Below Bitcoin Value

The failure of the "crypto treasury" strategy is particularly evident in stock prices. Besides MicroStrategy, Japan's largest Bitcoin holder, Metaplanet, has seen its stock price drop by 80% since its peak in June.

Smarter Web, the largest Bitcoin buyer in the UK, has also seen its stock price fall by 44% this year, with a company valuation of £132 million, while the value of its held Bitcoin is approximately $232 million.

Adam Morgan McCarthy, a senior research analyst at crypto data company Kaiko, stated, "These companies will experience liquidation-style sell-offs, and the situation will worsen. This is a vicious cycle. Once prices start to plummet, it will trigger a race to the bottom."

Jake Ostrovskis, head of over-the-counter trading at Wintermute, also believes that the sell-off of digital asset treasury stocks is "inevitable" because "there are too many of these companies."

Strategy Reversal, Selling Crypto Assets for Self-Rescue

Faced with a severe market environment, several companies have begun to reverse their strategies by selling cryptocurrency assets to fund stock buybacks or repay debts.

  • FG Nexus, an Ethereum holder based in North Carolina, recently sold approximately $41.5 million worth of tokens to finance its stock buyback plan. The company's market capitalization is $104 million, below the $116 million in cryptocurrency assets it holds.

  • ETHZilla, a life sciences company in Florida, also sold about $40 million worth of tokens for stock buybacks.

  • French semiconductor company Sequans Communications sold approximately $100 million in Bitcoin this month to repay debts. The company's market capitalization is $87 million, while the value of its Bitcoin holdings is $198 million. Its CEO, Georges Karam, stated that the sale was a "tactical decision aimed at unlocking shareholder value based on current market conditions."

MicroStrategy Chooses to Go Against the Trend

However, not all companies are retreating. As a pioneer of this strategy, MicroStrategy has chosen to go against the trend. Despite Bitcoin's price dropping from $115,000 a month ago to $87,000, the company continues to increase its Bitcoin purchases.

Its founder, Michael Saylor, is unfazed by market concerns, stating this week, "Volatility is a gift from Satoshi to the believers."

Nevertheless, analysts remain cautious about the future of the market. Adam Morgan McCarthy warned that while sellers of Bitcoin and Ethereum can still find buyers, companies holding more niche tokens will face greater difficulties in raising funds.

He predicted, "When a medical device company buys a niche asset in the cryptocurrency market, the outcome will not be good," adding that 95% of digital asset portfolios "will go to zero."

Meanwhile, MicroStrategy also faces the risk of being removed from some major stock indices, which could put greater selling pressure on its stock price

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