Bitcoin Treasury Strategy Backfires As Over Half of Public Firms See Share Prices Halve
What was once touted as a bold move into the future of finance is now raising hard questions.
In 2025, 43 publicly listed companies decided to adopt Bitcoin as a treasury asset.
Fast forward a few months, and every single one of them is reporting declines from their yearly highs — with over half seeing their stock prices cut in half.
Majority Of Bitcoin Treasury Stocks Have Lost Over 50 Percent
Data from Bitbo reveals a sobering trend: 23 out of 43 companies that added Bitcoin to their corporate balance sheets in 2025 are now trading more than 50% below their peak valuation this year.
The median drawdown for this group stands at a sharp -52.4%, signalling broad weakness in what was once seen as a bullish corporate move.
The widespread decline reflects the volatile correlation between Bitcoin’s price and the equities of companies holding it.
While many benefited from the cryptocurrency’s rise earlier in the year, the sudden downturn has magnified losses in ways traditional assets rarely do.
Cantor Equity Partners Becomes A Cautionary Tale
A clear example is Cantor Equity Partners.
Its shares spiked to $59.75 on 1 May after it helped form Twenty One, a new entity spearheaded by Bitfinex, Tether, and Jack Mallers.
That enthusiasm didn’t last.
As of now, shares have plummeted to $28.31 — a 52% loss from the highs.
Despite the initial market excitement, the stock could not withstand the crypto drag that followed.
Disconnection Between Bitcoin Holdings And Equity Value Deepens
Across the board, public firms holding Bitcoin are grappling with a serious mismatch between their digital asset valuations and their own market caps.
In several cases, companies are now worth less than the Bitcoin they hold, fuelling debate around the sustainability of this treasury strategy.
This disconnect is partly driven by accounting rules that force firms to disclose unrealised gains and losses each quarter, increasing the exposure of their equities to Bitcoin’s price swings.
While meant to offer transparency, the result has been volatile earnings reports and nervous investors.
MicroStrategy And Miners Defend Bitcoin Play Despite Market Hit
Despite being caught in the downturn, MicroStrategy’s Executive Chairman Michael Saylor remains unwavering.
But even MicroStrategy, a long-time Bitcoin evangelist, is among those now trading below its acquisition cost basis.
Meanwhile, firms like Marathon Digital Holdings and Riot Platforms have leaned on convertible debt to fund Bitcoin acquisitions — a strategy that adds financial complexity in already turbulent times.
Is Corporate Bitcoin Adoption At A Crossroads?
The ongoing correction is pushing a broader rethink of corporate Bitcoin adoption.
On paper, holding BTC as a treasury reserve was meant to future-proof balance sheets.
In practice, it’s exposing companies to extreme volatility, unclear valuation metrics, and shifting regulatory landscapes.
With half of 2025’s adopters now nursing major losses, the narrative is shifting from innovation to survival.
And with 78 global stock exchanges struggling to keep track of all the firms involved — not to mention the countless private companies holding BTC — the true scale of the impact remains murky.
Rethinking Risk In A Digital Asset Era
The numbers don’t lie — Bitcoin isn’t just volatile, it’s contagious.
As corporate balance sheets become more tied to its performance, entire equities are now riding the crypto rollercoaster.
For boards and investors alike, the question is no longer whether Bitcoin belongs in the treasury — it’s how much risk is too much.
When asset values swing harder than the business itself, what exactly is the company worth?