Bitcoin Treasuries: $80 Billion Lost, a Model Under Pressure

The engine is now running in reverse. According to the Financial Times, major publicly traded companies that have accumulated Bitcoin in their treasuries have lost about $80 billion in market capitalization. The combined value of the 50 largest companies has dropped from around $150 billion in July 2025 to $67 billion today. With the decline in stock premiums, many of these companies can no longer easily issue shares to buy BTC. Some are even starting to sell their cryptocurrencies to reduce their debt or buy back their own shares. The end of a model? Not so sure...

Key Points

• Bitcoin treasury companies have seen about $80 billion in market capitalization evaporate according to the Financial Times.
• The majority of them are now trading below the value of their reserves, making any new share issuance value destructive.
• Sequans, ETHZilla, or FG Nexus have sold tokens to repay their debt or buy back their shares, with some returning to their original business.
• Strategy holds about 650,000 BTC but faces the threat of exclusion from MSCI indices, estimated at $2.8 billion in outflows by JPMorgan.

The mechanics of mNAV turn against BTC treasuries

The model of Bitcoin treasury companies primarily relies on mNAV, a ratio comparing their market valuation to that of their Bitcoin reserves. When this multiple exceeds 1, the company can issue shares at a price higher than the value of the corresponding BTC, then use the funds raised to bolster its treasury.

This mechanism was particularly powerful when premiums reached high levels. Strategy traded around twice the value of its reserves, while Metaplanet briefly reached even higher multiples. Each new issuance allowed for the purchase of more Bitcoins and, under certain conditions, increased the amount of BTC per share.

The decline of Bitcoin since its peak in October 2025 and the proliferation of imitators have broken this virtuous circle. Several companies are now trading around or even below the value of their digital assets. Issuing new shares at this level would dilute shareholders without creating additional value.

Spot Bitcoin ETFs have also reduced interest in these vehicles. Institutional investors can now gain direct exposure to BTC through a liquid and low-cost product, without bearing the debt, management fees, or dilution risk of a publicly traded company.

For Adam Morgan McCarthy, head of research at Kaiko quoted by the Financial Times, this frenzy was "doomed from the start". He believes that the wave of new crypto treasury creations is now over.

Buyers Turned Sellers in the Bitcoin Market

Indeed, when the stock trades below the value of the reserves, the arithmetic reverses. A company may have an interest in selling some of its Bitcoins to buy back its undervalued shares. The number of BTC held decreases, but their amount relative to each remaining share can increase.

Several companies have already followed this path. Sequans Communications notably sold 970 BTC to repay part of its debt. Other players, like ETHZilla or FG Nexus, have sold digital assets to finance share buybacks. Metaplanet has also launched a significant buyback program to support its stock.

The use of convertible bonds and preferred shares intensifies the pressure. These instruments impose repayments, interest, or dividends in dollars, while Bitcoin generates no income by itself. Without new capital raises, some companies must therefore sell their reserves, reduce their balance sheets, or return to their original business.

Strategy remains largely dominant with over 840,000 BTC, but it is not entirely immune to this market shift. Its model still depends on its ability to maintain a sufficient valuation to raise funds without destroying value for its shareholders.

The $80 billion that has disappeared does not correspond to an equal amount of Bitcoins sold. They mainly represent the collapse of the premium that markets granted to these publicly traded intermediaries. BTC remains in the system, but the companies that promised to accumulate it without limit are now discovering the classic constraints of debt and dilution.

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