BTC-holding public companies struggle to calm investors amid deep share declines and market skepticism
Introduction: Bitcoin Treasuries Under Pressure
A new wave of bitcoin treasury companies (BTCTCs) that went public in 2025 — hoping to mirror MicroStrategy’s bitcoin-driven success — is now confronting its toughest test yet. With BTC prices plunging from $126,000 to near $107,000 in less than two weeks, share values of these firms have collapsed far beyond the coin’s own decline, raising serious questions about the model’s sustainability.
Once marketed as a way to give investors direct exposure to bitcoin through equity, these companies are now watching investor confidence evaporate. Losses over the past three months range from 38% to as much as 94%, according to market data, leaving executives scrambling to reassure markets.
Metaplanet (MTPLF) CEO Simon Gerovich argued that a shift to preferred stock issuance could restore value. “When bitcoin appreciates faster than the cost of capital, that difference compounds into greater bitcoin per share,” he posted on X. Still, Metaplanet shares have fallen 70% in three months despite the company’s continued bitcoin accumulation strategy.
Bitcoin Price Drop Isn’t the Only Problem
While the sudden downturn in bitcoin’s price has certainly intensified the slide, analysts point out that many BTCTC stocks were already falling before the latest BTC correction.
“The issue isn’t just bitcoin’s price — it’s the business model,” said one industry analyst. “Investors are realizing that these companies have limited operational value beyond holding a volatile asset.”
Struggles to Reassure Investors
KindlyMD (NAKA) has suffered the steepest fall, with shares down 94%, now trading below $1 — dangerously close to a Nasdaq delisting. CEO David Bailey even had to deny social media rumors comparing his company to the failed FTX exchange, saying, “We’re a regulated, registered security that buys and holds bitcoin.”‘
At Strive (ASST), CIO Ben Werkman is facing similar pressures as the firm’s stock value plummets, underscoring how fragile investor sentiment has become in the sector.
A Reality Check for BTC Treasury Model
The market’s reaction highlights the underlying risk of building entire corporate models around a single volatile asset. While bitcoin remains a long-term bet for many, the recent plunge exposes the vulnerability of firms whose fortunes rise and fall entirely with BTC’s price movements.
With public faith shaken and share prices collapsing, the “deploying more capital — steady lads” mantra may not be enough to steady these companies this time.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.