Catenaa, Tuesday, December 09, 2025-More than 100 publicly traded companies that adopted Bitcoin treasury strategy are seeing steep losses, with median stock prices down 43% year-to-date, even as broader markets rise, reports say.
Firms borrowed billions to purchase digital assets in the first half of 2025, hoping to boost shareholder value.
Stocks initially surged past the value of underlying tokens, but market corrections and high debt obligations have triggered sharp declines.
SharpLink Gaming illustrates the fallout. The company shifted from traditional gaming, appointed an Ethereum co-founder as chairman, and acquired major token holdings. Its shares jumped 2,600% before falling 86%, leaving market capitalization below its crypto reserves at 0.9 times. Strategy Inc., Saylor’s own firm, has dropped 60% from July highs, despite a 1,200% gain since Bitcoin purchases began in August 2020.
Data from Bloomberg tracking 138 US and Canadian digital asset treasuries shows these companies’ median share prices have lagged behind Bitcoin’s 7% decline.
By contrast, the S&P 500 gained 6% and Nasdaq 100 rose 10% over the same period. Analysts highlight that these firms issued large amounts of convertible bonds and preferred shares to fund token acquisitions, creating structural mismatches between debt obligations and zero-yield assets.
Strategy Inc. faces annual fixed payments of roughly $750 million to $800 million linked to preferred shares, intensifying pressure on cash flow.
The rapid adoption of cryptocurrency treasury models has exposed vulnerabilities in corporate finance, leaving investors reassessing the risks of holding digital assets without income-generating operations.
