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Shares in Bitcoin Hoarders Plunge as Market Mania Cools
Shares in Bitcoin-hoarding companies are plunging as the “crypto treasury” craze cools. From Strategy to Metaplanet, firms are now trading below their crypto holdings, raising doubts about the sustainability of this high-risk business model.
The ₿itcoin⚡️ Libertarian 🇦🇷🇸🇻
September 17, 2025
This summer witnessed an unprecedented surge in companies rushing to buy Bitcoin and other cryptocurrencies. Inspired by Michael Saylor’s bold “Strategy” model, firms across industries raised debt and issued new equity to load up on tokens like Bitcoin, Ether, Solana, and XRP.
The logic was simple: convert a listed company into a crypto-hoarding vehicle and ride the wave of rising token prices. Share prices for many of these companies initially soared, sometimes far exceeding the actual value of the tokens they held. It was hailed as a new era of corporate balance sheet innovation — but the cracks are now beginning to show.
Table of Contents
The Sell-Off Hits Hard
Over the past month, shares in many high-profile Bitcoin hoarders have nosedived:
Strategy, the world’s largest corporate Bitcoin holder, fell 18%, reaching its lowest level since April.
Metaplanet, Asia’s biggest Bitcoin treasury play, has tumbled 68% since mid-June.
Smarter Web Company, the UK’s leading buyer, dropped an alarming 70% over the same period.
Other newcomers, like KindlyMD in the US and Capital B in France, also saw their stock values collapse.
The downturn has rattled investors and raised serious doubts about the sustainability of the corporate Bitcoin-hoarding model.
Why the Model Is Cracking
The crypto treasury strategy is heavily dependent on a cycle of optimism: issue shares or debt → buy tokens → rising share price fuels more fundraising. But when valuations fall, raising new capital becomes increasingly difficult.
Analysts warn of the “danger zone,” where companies are valued lower than the actual crypto they hold. Once this imbalance occurs, recovery becomes much harder.
Examples include:
LM Funding America: enterprise value of $23.5M, but its Bitcoin stash is worth $34M.
Semler Scientific: enterprise value of $500M vs. Bitcoin holdings of $557M.
Firms in this danger zone are at risk of being acquired cheaply, as larger players may swoop in to buy discounted tokens through corporate takeovers.
Trump’s Involvement and New Entrants
Despite the market correction, the strategy continues to attract new entrants. Former US President Donald Trump has openly backed the crypto industry, with his family business, Trump Media & Technology Group, raising billions to build its own token treasury.
Meanwhile, new players are still diving in:
Forward Industries raised $1.65B for a Solana-focused treasury.
Eightco Holdings sparked attention by buying Worldcoin tokens, briefly sending its shares higher.
The persistence of new launches shows that while investor appetite has cooled, the concept of corporate crypto treasuries isn’t dead yet.
Market Context: Bitcoin Price Adds Pressure
Adding fuel to the sell-off, Bitcoin itself has slipped 9% from its recent peak above $124,000. With investors pulling back from riskier assets, treasury-heavy companies are facing a double blow: weaker token prices and falling stock valuations.
So far in 2025:
$73B has been raised for Bitcoin purchases.
$38B has been raised for Ether purchases.
This massive influx highlights the scale of the craze, but also why the correction feels so sharp.
What Comes Next for Crypto Treasuries?
Industry experts suggest we may now be entering a phase of consolidation:
Weaker players may collapse or be acquired.
Stronger firms with healthier balance sheets could survive and thrive.
Investors are expected to be more selective, focusing on fundamentals instead of pure hype.
As Tyler Evans of UTXO Management put it: “The hype is dying down. This summer was the peak for both hype and for the number of companies launching.”
Conclusion
The plunge in shares of Bitcoin-hoarding companies is a reality check for the crypto treasury mania that swept markets in recent months. While the model still has its believers, the shakeout will likely determine which firms have staying power — and which were only riding the hype.
For now, the frenzy has cooled, and the market is forcing these companies to prove that their strategy is sustainable in the long run.
FAQs
What is a crypto treasury company?
A crypto treasury company is a publicly listed firm that raises money through debt or equity to buy cryptocurrencies like Bitcoin, Ether, or Solana. The strategy aims to increase share value by stockpiling digital assets.
Shares are dropping because many of these companies are now trading below the value of the crypto they hold. Falling Bitcoin prices and overextended valuations have exposed the risks of relying solely on this business model.
What does “danger zone” mean in this context?
The “danger zone” refers to when a company’s enterprise value (equity + debt – cash) is less than the value of its crypto holdings. Once in this zone, it becomes harder to raise new capital or recover investor confidence.
Which companies have been most affected?
Metaplanet (Japan), Smarter Web Company (UK), and several US and European firms like KindlyMD and Capital B have seen share prices plunge by 26–70% in recent weeks. Even larger players like Strategy have faced declines.
Is the crypto treasury model dead?
Not necessarily. While the hype has cooled, new entrants like Forward Industries and Eightco Holdings continue to launch crypto-focused treasuries. The model may evolve, but weaker firms are expected to collapse or be acquired.
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