Bitcoin-focused companies are retreating from their BTC holdings after severe market downturns inflicted significant losses. Notably, KULR Technology Group offloaded 300 BTC, approximately $24.36 million, marking a clear shift from its aggressive accumulation strategy announced the previous year.
KULR had initially dedicated 90% of its surplus cash to Bitcoin, amassing over 1,000 BTC worth $101 million at an average cost near $99,000 per coin. However, with Bitcoin’s price slumping well below this entry level, KULR now faces an $18.25 million paper loss, accompanied by a 74% decline in its stock value since the peak of its BTC investments.
Other public Bitcoin treasuries are undertaking similar measures amid worsening market conditions. The total value of BTC reserves held by these companies fell sharply from $126 billion to $96 billion, translating to a collective unrealized loss of $30 billion. This decline has compelled many institutions to halt further accumulation or actively sell their digital assets.
Riot Platforms stands out for its intense selloff activity, executing its largest weekly Bitcoin outflow since early 2025. Despite modest signs of market recovery, Riot sold 3,686 BTC this year to mitigate losses, accumulating over $1.2 billion in write-downs since late 2025. Likewise, Marathon Digital Holdings reported net losses exceeding $1 billion in the first quarter, largely driven by the crypto market’s fall in fair value.
The ongoing sell pressure from institutional holders deepens Bitcoin’s price weakness, fueling a cycle where diminished valuations prompt more offloading to support operational needs or balance sheets. This dynamic highlights the vulnerability of companies heavily exposed to Bitcoin during unfavorable economic conditions, restricting their capacity to sustain long-term accumulation strategies.