Since bitcoin’s peak last October, the market value of publicly traded digital asset treasury companies has fallen more steeply than bitcoin’s own price, with some firms losing over 80% of their market capitalization. These companies, which hold substantial bitcoin reserves on their balance sheets, have seen their combined market value drop from roughly $134 billion to $72 billion, amounting to a $62 billion loss, according to data from Artemis cited by Bloomberg.
Among the hardest hit are Nakamoto, Twenty One Capital, and Metaplanet. Nakamoto’s shares have nearly collapsed, falling close to 100%, while Twenty One Capital and Metaplanet posted declines exceeding 80%. Despite these downturns, Nakamoto’s leadership recently demonstrated confidence in their strategy when CEO David Bailey purchased nearly 200,000 shares on the open market, asserting strong conviction in the company’s future prospects. Metaplanet also reinforced its bitcoin holdings by acquiring an additional 5,075 bitcoins earlier this year, bringing its total to over 40,000.
The current slump in bitcoin’s price, including a recent 15% drop in one week, has been partially attributed to Strategy’s announcement that it sold bitcoin for the first time since 2022. The firm disclosed via an SEC filing that it sold 32 bitcoins at an average price of around $77,135 each, totaling $2.5 million. These proceeds are intended to support distributions on preferred stock. However, Strategy still retains a vast holding of approximately 843,700 bitcoin, underscoring its ongoing commitment to the cryptocurrency market. The company’s founder, Michael Saylor, was a pioneer of the cryptocurrency treasury model by converting his software company into a bitcoin-centric business in 2020.