Bitcoin Treasury Firms Dump $503M as Sector Value Halves
Bitcoin treasury companies approved a sale of 7,500 BTC (~$503M) to repurchase shares while sitting on billions in unrealized losses, with the sector’s holdings falling to $72B, half their peak value after Bitcoin’s 50% drop. Barely two of 193 public treasury firms bought Bitcoin last week.
1. Sector Unwinds After Bitcoin’s 50% Decline
Billions in unrealized losses have eroded the value of Bitcoin treasury companies, whose collective holdings have fallen to $72 billion, roughly half their October peak. Only two of the 193 public firms added Bitcoin last week, signaling waning investor confidence in the model.
2. Major Bitcoin Sale to Support Stock Prices
A leading treasury firm approved the sale of 7,500 Bitcoin (~$503M) to fund a share buyback aimed at shoring up its stock price. The move underscores pressure on treasury companies to improve market-to-net-asset value ratios amid stagnant Bitcoin prices.
3. Shift to Direct Holdings and ETF Alternatives
Investors are increasingly bypassing treasury stocks in favor of direct token purchases or spot Bitcoin ETFs, which now hold around $107 billion. This trend highlights diminished appeal for leveraged equity products and growing competition from lower-cost ETF options.