Crypto stockpile holders are selling tokens to prop up sagging share prices, a move that underscores how the so‑called digital asset treasury strategy is coming under pressure as the crypto sell‑off accelerates. The trend has spread beyond a single company, with a wave of firms trying to convert crypto reserves into cash to buy back stock.
Strategy, the surname of Michael Saylor’s bitcoin‑heavy empire, remains the largest corporate holder of bitcoin, but its shares have slid markedly—roughly half their value over the last three months—dragging a number of imitator firms lower as well. Industry data show billions of dollars in market value wiped out since the July peak as crypto prices wobbled and debt issuance slowed.
Analysts warn that the model, built on a cycle of rising crypto prices fueling debt and equity issuance, may be breaking down. “There’s going to be a fire sale at these companies; it’s going to get worse,” cautioned a senior research analyst, who described the dynamic as a vicious race to the bottom once prices start to tumble.
In Japan, Metaplanet—the country’s largest bitcoin holder—has seen its stock fall dramatically, plunging about 80% from its June peak after a broad market pullback. The company recently secured a loan backed by its bitcoin to fund a stock buyback, illustrating how crypto assets are being used as collateral in distressed markets.
Across the UK, Smarter Web Company, the nation’s largest bitcoin buyer, has suffered a sharp decline this year. Its market value sits at roughly £132 million, while the bitcoin it holds is valued far higher by private assessments, underscoring a disconnect between crypto holdings and equity value when markets sour.
The broader implication is that investors are re‑evaluating business models that tie a company’s fortunes to crypto prices, with some suggesting that the tailwinds behind the “digital asset treasury” wave have faded as pockets of the sector retrench.
