Bitcoin-Hoarding Companies Face Stock Crashes as Crypto Mania Fades
Publicly listed companies that hoard bitcoin and other cryptocurrencies are seeing their share prices tumble as the year’s crypto mania cools. Firms like Michael Saylor’s Strategy, Metaplanet, and smaller players such as Smarter Web Company and Alt5 Sigma—which pivoted to bitcoin-buying—have lost 60–70% of their value since mid-year highs, despite earlier surges. Analysts note these “digital asset treasury companies” are essentially leveraged bets on crypto, often falling multiple times harder than bitcoin itself. Many lack strong fundamentals and rely on market access to fund purchases, leaving them vulnerable when sentiment fades. Some firms are expanding into ether and other tokens, but the downturn highlights the risks of tying corporate value to crypto holdings. Meanwhile, Gemini is preparing to debut on Nasdaq at a potential $3.08B valuation, underscoring the sector’s ongoing volatility and investor appetite.