Bitcoin Treasuries Face Capital Shock as Falling Prices Erase Gains

Core Insights - Crypto-focused treasury companies are experiencing significant financial strain due to a recent market downturn that has eroded asset values and equity cushions [1] - Bitcoin-heavy firms are facing the sharpest losses, with Bitcoin prices dropping over 16% this month, briefly falling below $100,000 [2] - The decline in Bitcoin prices has led to a slowdown in purchases by major holders like Strategy, which has reduced its buying from thousands to hundreds of coins [2][3] Company Performance - Strategy, the largest corporate holder of Bitcoin with over 675,000 BTC, has seen its stock price drop approximately 53% from its all-time high to around $241.93 [3] - Metaplanet, holding 30,823 BTC at an average cost of $106,000, is facing over $120 million in unrealized losses, resulting in an 80% drop in its stock price [4] - Evernorth, the largest corporate holder of XRP, has accumulated 388.7 million XRP tokens, now facing an unrealized loss of about $79 million [6] - BitMine, the largest Ethereum treasury with over 3.4 million ETH, is experiencing deeper losses with an unrealized deficit of roughly $2.1 billion due to Ethereum's decline of over 22% in the past month [7] Market Trends - The overall market downturn is causing steep markdowns across altcoin-focused treasury companies, adding strain to the treasury landscape [5] - Analysts highlight a structural risk where companies that build positions during market strength face rapid capital erosion when market sentiment shifts [8]