Crypto stocks split in 2025 as operators rally and balance-sheet plays lag

Core Insights - The company's shares rose approximately 0.75% after hitting a 15-month low, coinciding with a decline in the value of its Bitcoin reserves to a 7-month low [1] - The company sold 15 million shares this month, raising about $2.7 million, which is roughly 6% of its market cap of $44 billion, positioning it as a crypto proxy stock [2] Group 1: Market Performance - Crypto stocks are categorized into three groups this year: miners pivoting to AI infrastructure, exchanges, and digital asset treasuries [3] - Miners like Iris Energy saw significant gains, with a nearly 300% increase year-to-date after a $10 billion cloud deal with Microsoft [3] - Other miners, such as Cipher Mining and HUD 8, also reported substantial increases of over 200% and around 140%, respectively, due to major contracts [3] Group 2: Exchanges and Treasury Performance - Exchanges like Coinbase and E Toro have experienced declines from their 2025 highs, reflecting their dependence on trading volumes and crypto sentiment [4] - Digital asset treasuries have faced significant downturns, with strategies down nearly 50% this year and pure play Bitcoin miners like Marathon down 45% [4] - Other digital asset plays, such as Tomley's Bitmine Immersion and Ethereum Treasury, have seen declines of up to 80% from summer highs [4] Group 3: Market Risks - The decline in performance is attributed to dilution, financing costs, and sentiment swings, which could impact trading strategies heading into January [5] - MSCI is expected to decide on the reclassification of crypto-heavy balance sheets, which may force passive funds to reduce exposure, posing a liquidity risk for treasury names [5]