📅 October 25 | New York, United States

The golden dream of Bitcoin Treasuries is crumbling. According to CoinDesk, almost all companies that accumulated BTC as a strategic reserve are now trading below the true value of their holdings, following the collapse of the so-called Bitcoin Treasury bubble. What was once synonymous with innovation and confidence—having Bitcoin on corporate balance sheets—has become a burden for institutional investors, who now face multi-million-dollar losses as the market readjusts to a new reality.

📖 Over the past two years, more than 40 public and private companies have adopted Bitcoin as part of their treasury reserves, inspired by cases like MicroStrategy and Tesla.

The narrative was simple: hold BTC as a hedge against inflation and as a long-term bet on the digitization of value. However, CoinDesk reports that most of these “Bitcoin Treasury firms” are now trading below the net value of the BTC they hold, indicating a loss of market confidence in their investment model.

Companies like Marathon Digital, Hut 8, CleanSpark, and Bitfarms, which collectively hold more than 160,000 BTC, have seen their stocks fall as much as 70% from their 2024 highs.

Even MicroStrategy, the poster child for corporate Bitcoin strategy, is facing sustained selling pressure: its stock has lost more than 35% so far this quarter, despite the Bitcoin price remaining above $110,000.

  • “The market is differentiating between owning Bitcoin and knowing how to manage it,” warned a TD Cowen analyst.

  • “Mere exposure is no longer perceived as a competitive advantage.”

This phenomenon is partly due to the fact that the valuations of these companies were artificially inflated during the 2024 euphoria, when ETFs and institutional adoption drove the price of BTC skyrocketing. But with rising operating costs, stricter regulations, and declining retail enthusiasm, many firms find themselves overleveraged and without sufficient cash flow to sustain their structure.

The “Bitcoin Treasury bubble,” as analysts call it, represents a painful but necessary correction: it separates companies that truly innovate from those that simply used Bitcoin as a marketing or speculation tool.

Topic Opinion:

I think this fall was inevitable. Holding Bitcoin is not the same as being a sustainable crypto company. A “buy and hold” strategy without innovation can only be sustained while the market rises. This crisis may, paradoxically, strengthen the sector: it will force corporations to use Bitcoin productively, integrating it into payments, custody, or blockchain infrastructure, rather than passively accumulating it as a financial trophy.

💬 Do you think “Bitcoin Treasuries” will re-emerge when the market recovers?

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