MicroStrategy and Bitcoin Treasuries Face $28B Drawdown After 50% Price Slump
MicroStrategy and peer treasury companies saw Bitcoin holdings drop from $100B to $72B after Bitcoin fell nearly 50% from its October 2025 peak. One treasury sold 7,500 BTC (about $503 million) to repurchase shares while most issuers paused new Bitcoin buys.
1. MicroStrategy’s Bitcoin Holdings Plunge
MicroStrategy holds one of the largest corporate Bitcoin treasuries, with its Bitcoin asset value falling by nearly 50% from October 2025 highs, contributing to a sector-wide decline from $100 billion to about $72 billion.
2. Treasury Firms Sell to Buyback
One treasury approved a sale of 7,500 BTC (approx. $503 million) to fund share repurchases, while MicroStrategy and most peers halted new Bitcoin purchases, with only two of 193 treasuries adding coins in the past week.
3. Investor Demand Shifts to ETFs
Investor appetite for direct token ownership and spot Bitcoin exchange-traded funds—now holding roughly $107 billion—has undercut demand for leveraged exposure via corporate treasury stocks.
4. Future Risks and mNAV Metric
The market-to-net-asset value (mNAV) metric is expected to govern investor decisions moving forward, as weaker treasuries face pressure to clear unrealized losses and justify equity valuations.