(LONDON / NEW YORK, Nov 28 2025) — Firms that hoarded cryptocurrencies — storing large amounts of Bitcoin, Ethereum and other tokens on their balance sheets — are seeing their share prices tumble as investors retreat from risk.
Once touted as a bold bet on crypto’s long-term upside, the “digital asset treasury” model has come under pressure. With broader uncertainty in markets — from fears of a tech/AI bubble to doubts over the timing of U.S. interest-rate cuts — crypto itself has slid, dragging down companies holding it. As of now, around fifteen such firms are trading below the net value of their crypto holdings.
Earlier this year, surging optimism around digital assets and favourable sentiment inspired many publicly traded companies to load up on Bitcoin and other coins. The rally was further boosted by high-profile investors and the perception of crypto as a high-return alternative. But recent losses have exposed a harsh reality: token prices remain volatile, and companies that rely heavily on appreciation face severe valuation risk when markets wobble.
Some firms tried to offset risk by diversifying into Ethereum or altcoins such as Solana — partly because tokens like Ether offer staking opportunities, which can generate yield beyond mere holding. Still, even these strategies have not insulated many of them from the broader meltdown in investor confidence. For smaller players — especially those that ventured into less-liquid, fringe tokens — the volatility has been particularly punishing.
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The shake-out may force consolidation in the crypto-treasury space. Weaker firms could fold or return capital to shareholders, while more disciplined ones may attempt to pivot — possibly increasing token liquidity, reducing leverage, or scaling back risky holdings. Meanwhile, investors seem to be rethinking the assumption that crypto is a “set-and-forget” store of value.
For the broader market, the downturn raises questions about the sustainability of corporate crypto-treasury strategies. What looked like a promising path to easy gains now appears fragile — and deeply tied to market mood swings.
