The cryptocurrency treasury model, once hailed as the future of corporate investment, is experiencing turbulence as stock premiums vanish and Bitcoin’s value faces downward pressure. Recent data reveals that more than 25% of publicly traded companies utilizing a Bitcoin treasury strategy now find their market valuations dip below the value of their actual crypto holdings, according to recent research from K33.
The most notable player in this space is Strategy, formerly known as MicroStrategy, which boasts an impressive trove of over 640,000 Bitcoin worth roughly $71 billion. Yet, despite this substantial asset base, the company’s stock has plummeted by 25% since December 2025.
Investment into cryptocurrencies by public companies has skyrocketed, surpassing $100 billion, with Strategy owning more than 3% of the total Bitcoin supply in existence. Such companies have attracted attention by converting traditional business stock into crypto holdings, aiming to leverage market excitement and investor demand.
However, the initial thrill surrounding the Bitcoin treasury model appears to be giving way to skepticism. Many firms have engaged in aggressive financial maneuvers, utilizing debt and outside investment capital rather than relying on operational cash flow for crypto acquisitions, which inherently brings forth risks of leverage.
Recent market events have put these strategies to the ultimate test. Bitcoin has seen a steep descent from over $124,000 to around $110,400, weighing heavily on the treasury model’s resilience amidst changing market conditions.
The rise of crypto treasury companies was particularly notable in 2025 when firms began adopting the strategy en masse, attracted by stories of skyrocketing stock prices. For instance, after its rebrand to ETHZilla, 180 Life Sciences saw its stock price quintuple, while Eightco skyrocketed 3,000% in a single day following plans to accumulate Worldcoin.
This rising tide of valuations created a cyclic premium scenario where companies could leverage their rising stock prices to buy more Bitcoin. However, a troubling facet has emerged: as premiums disappear, investors show little interest in purchasing stocks that trade below their intrinsic value, opting instead for direct Bitcoin purchases.
Reflecting this shift, Strategy’s enterprise value to Bitcoin ratio has considerably decreased from above 2.0 to roughly 1.4. While the firm’s average acquisition cost of Bitcoin was $74,000—offering some buffer against current price fluctuations—sustained market downturns could compel it to adjust operations significantly.
The impact of macroeconomic news, such as President Donald Trump’s tariff announcements on imports from China, further complicates the landscape for treasury companies, prompting analysts to scrutinize the long-term viability of the treasury model. Investment manager Kerrisdale Capital has publicly disclosed short positions against these crypto treasury stocks, arguing that inflated valuations cannot sustain themselves in an increasingly competitive environment.
Amid this turmoil, notable treasury firms have faced dire circumstances. For example, Japan’s Metaplanet—one of the top Bitcoin holders—has witnessed its valuation shrink by 65% over three months, while CleanCore Solutions has plummeted more than 80% after investing heavily in Dogecoin.
Even prominent figures within the crypto industry are expressing doubts about this model’s longevity, with BitMine CEO Tom Lee labeling it a “bubble that has burst” and advising caution. As capital flows to these firms often originate from external investors rather than business-generated revenue, the risk of amplified volatility remains a pressing concern.
New entrants into the space are also emerging, such as the Trump Media & Technology Group, which entered the market with 15,000 Bitcoin, demonstrating the trend across sectors—from healthcare to entertainment—as companies seek to adopt crypto treasury strategies.
Nevertheless, amid skepticism, some analysts maintain an optimistic outlook. Standard Chartered has predicted that Bitcoin could reach as high as $500,000 by 2028, drawing parallels to gold’s historical price trajectory. Yet, for many treasury companies, navigating the current market pressures will be pivotal for their survival in these uncertain times.
