What are crypto-treasury companies?

Crypto-treasury companies raise funds through stock sales or debt to acquire cryptocurrencies like Bitcoin and Ether, acting as leveraged vehicles for crypto exposure.

Why are Bitcoin treasury companies under pressure in 2025?

Bitcoin treasury companies are under pressure due to a broader crypto market selloff, leading to significant declines in their share prices and scrutiny of their business model.

How has MicroStrategy's strategy been impacted by the market downturn?

MicroStrategy's market capitalization significantly dropped from $128 billion to $70 billion in 2025, with shares declining 26% over the past month, mirroring a 15% drop in Bitcoin prices.

What factors are contributing to the Bitcoin price drop in late 2025?

Factors include President Trump's October 10 tariff announcement on China, a prolonged government shutdown, and uncertainty in Federal Reserve monetary policy.

How do direct crypto ETFs affect the viability of crypto-treasury companies?

The proliferation of direct crypto ETFs diminishes the need for crypto-treasury companies, as they now offer institutional investors direct access to crypto, making leveraged vehicles less necessary.

What is Michael Saylor's current view on Bitcoin's price?

Michael Saylor, founder of MicroStrategy (now Strategy), has publicly stated that Bitcoin is currently 'on sale' despite its recent price drop.

Why do critics compare crypto-treasury companies to 'paying $2 for a one-dollar bill'?

Critics like Brent Donnelly use this analogy because direct crypto access is now widely available via ETFs, questioning the value proposition of paying a premium for a stock holding crypto.

Bitcoin Treasury Companies Under Pressure 2025

TL;DR – Crypto-treasury companies that raised funds to buy Bitcoin and Ether are experiencing significant losses as the crypto market sells off, with some stocks down 20-50% despite still trading at premiums to their underlying holdings. The model faces scrutiny as direct crypto ETFs make these leveraged vehicles less necessary for institutional access.

The Bitcoin Treasury Trade Under Pressure

The Wall Street Journal article "The Year's Hottest Crypto Trade Is Crumbling," published on November 9, 2025, by Gregory Zuckerman and Vicky Ge Huang, examines the recent downturn in crypto-treasury companies. These entities raise funds through stock sales or debt to acquire cryptocurrencies such as Bitcoin and Ether, effectively serving as leveraged vehicles for crypto exposure. The article highlights how a broader crypto market selloff has led to significant declines in their share prices.

MicroStrategy's Strategy Leads the Decline

Michael Saylor's company, formerly MicroStrategy and now known as Strategy (MSTR), originated this approach in 2020 by converting a software firm into a major Bitcoin holder. Its market capitalization reached $128 billion in July 2025 but has since fallen to approximately $70 billion, with shares declining 26% over the past month.

This mirrors a 15% drop in Bitcoin prices, influenced by factors including:

President Trump's October 10 tariff announcement on China
A prolonged government shutdown
Uncertainty in Federal Reserve monetary policy

Saylor has publicly stated on social media that Bitcoin is currently "on sale," while critics anticipate further premium compression in these stocks.

Broader Market Impact Across Treasury Companies

Similar declines affect other companies across the sector:

BitMine Immersion Technologies (BMNR), supported by Peter Thiel and managed by Tom Lee, has decreased more than 30% in the past month
ETHZilla (ETHZ), which shifted from biotechnology to an Ether treasury and also receives Thiel's backing, is down 23%
Strive (ASST), a Bitcoin-focused treasury, has fallen 28%, though its CEO, Matt Cole, notes the use of preferred shares for fundraising provides some stability despite purchasing Bitcoin at prices over 10% above current levels
Leveraged products, such as Matthew Tuttle's MSTU ETF, which targets twice the return of Strategy, have dropped 50%

Contrasting Investor Perspectives

The article presents divergent views from market participants:

Bears on the Model: Jim Chanos, known for short-selling, had positioned against Strategy while holding Bitcoin directly, citing overvaluation. He recently unwound this trade as premiums have moderated. Brent Donnelly of Spectra Markets questions the model, comparing it to "paying $2 for a one-dollar bill," given the availability of direct crypto access via ETFs.

Retail Investors Staying the Course: Cole Grinde from Seattle reports losses on BitMine holdings but continues to invest, citing Ethereum's blockchain development and Lee's expertise.

The Future of Crypto Treasuries

Overall, the piece suggests that while some companies hold cash reserves to purchase assets during dips, ongoing losses may complicate further capital raising, potentially impacting crypto prices. The viability of crypto-treasuries is under scrutiny, as their initial role in providing institutional access has diminished with ETF proliferation.

Tuttle observes that these firms act as amplified crypto investments, magnifying both gains and losses.

Additional Resources

For reviews and comparisons of Bitcoin treasury companies, including favorites and industry leaders tracking over 157 public firms' holdings, stock performance, and strategies, visit Bitcoin Treasury Companies.

Additional resources include articles on: