Bitcoin’s slide below $70,000 has begun to expose balance-sheet vulnerabilities among publicly traded companies that adopted aggressive crypto treasury strategies during the market’s ascent. Firms that accumulated large positions in bitcoin and ether now face mounting unrealized losses, while their own shares are declining even faster than the assets they hold.
The pressure on these companies carries broader implications for market liquidity. Corporate treasuries constitute a visible source of supply, and their financing constraints may influence whether firms hold through volatility or are forced to restructure their positions.
Corporate Crypto Treasuries Absorb Steep Unrealized Losses
Since its peak in late 2025, bitcoin has fallen roughly 50%, triggering sharp valuation declines across corporate crypto holdings. More than 200 public companies collectively held an estimated $150 billion in digital assets at the end of last year. As prices retreated, unrealized losses across these portfolios surpassed $20 billion, according to Artemis data.
Some of the largest treasury holders have reported significant financial strain. Strategy, one of the most prominent corporate bitcoin investors, disclosed a $17.4 billion operating loss in the fourth quarter of 2025. Its stock has declined about 70% over the past six months, reflecting investor concerns about earnings volatility tied to crypto exposure.
The Ethereum-focused treasury firm BitMine Immersion Technologies has also experienced steep declines. The company holds billions in ether but is currently sitting on more than $8 billion in unrealized losses, while its share price has dropped roughly two-thirds over the same period.
Funding Constraints and Discounts Complicate Recovery
The downturn has revealed structural weaknesses in treasury models that assumed rising crypto prices. Many firms accumulated assets near market highs, leaving them with limited liquidity to withstand prolonged drawdowns. As a result, some companies now trade at steep discounts to the value of their crypto holdings, as measured by the multiple-to-net-asset-value (mNAV) metric.
These discounts make raising capital more difficult. Investors have shown limited appetite for new financing unless offered stronger downside protection. Convertible debt structures tied to mNAV recovery have been discussed, but adoption remains slow as investors weigh dilution risks against uncertain price trajectories.
In response, some firms are seeking alternative revenue streams. ETHZilla, for example, sold a portion of its ether holdings to acquire aircraft engines, which it is leasing to generate operating income. Other treasury holders are exploring asset-backed financing or tokenized revenue models to diversify cash flow.
The trajectory of bitcoin and ether prices will remain the decisive factor. A sustained recovery could stabilize treasury balance sheets and narrow valuation discounts. Continued weakness, however, may force more companies to restructure holdings, raise capital on unfavorable terms, or pivot away from crypto-centric treasury strategies.
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