Some Bitcoin treasury companies, like Strategy (formerly MicroStrategy), have seen their stock prices underperform relative to Bitcoin’s price, which hit all-time highs above $120,000 in 2025.
For instance, Strategy’s share price has not kept pace with Bitcoin’s rally, partly due to share dilution from issuing new equity to fund Bitcoin purchases. This has led to a reduced net asset value (NAV) premium, with investors paying less of a premium compared to earlier years when Strategy was a first-mover.
Market Concerns and Risks: Analysts have raised concerns about the sustainability of the Bitcoin treasury model, particularly for newer entrants. A July 2025 report from Cointelegraph warned that only a few companies with strong leadership and disciplined strategies are likely to survive a potential Bitcoin bear market.
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The report outlined a “death spiral” scenario where a drop in Bitcoin’s price could erode share prices close to NAV, triggering financial distress. Additionally, a Financial Times article from August 2025 cautioned that a crypto winter could lead to painful consequences for investors, especially for companies relying on debt to fund Bitcoin purchases.
Critics, including a former Wall Street regulator, have suggested that debt-fueled treasury strategies could precipitate a broader crypto crash. Some companies have faced challenges due to Bitcoin’s price volatility.
A CryptoBreaking report from August 29, 2025, noted that several major corporations, including those in tech and finance, encountered setbacks as Bitcoin’s value fluctuated, impacting their treasury holdings.
While specific company names weren’t always detailed, the report highlighted the complexities and risks of holding large Bitcoin reserves. For example, Strategy’s stock was down 16% in August 2025, and CEA Industries, a Canadian vape company, saw a 28% drop after a brief surge.
Counterpoints and Growth: Despite these concerns, the sector isn’t uniformly in decline. Corporate Bitcoin adoption has surged, with 152 publicly traded companies holding over 950,000 BTC worth $110 billion as of August 2025. Strategy remains the largest holder, with over 630,000 BTC, and its market cap hit new highs in July 2025, reflecting Bitcoin’s price rise.
New entrants like Trump Media & Technology Group, which raised $2.5 billion for a Bitcoin treasury, and Treasury B.V., backed by the Winklevoss brothers, indicate ongoing investor enthusiasm. Posts on X also reflect bullish sentiment, with claims that “eventually all companies will be Bitcoin treasury companies”.
Systemic Risks: Critics warn of systemic risks if Bitcoin’s price crashes, as companies with significant debt or over-leveraged positions could become forced sellers, exacerbating market downturns. This concern is amplified by the rapid rise of new treasury companies, with 51 debuting in the first half of 2025 alone.
However, some analysts note that equity-based financing (common among these firms) may limit broader market fallout compared to debt-heavy strategies. While some Bitcoin treasury companies are experiencing stock price declines and facing volatility-related challenges, the sector as a whole isn’t crashing.
The trend of corporate Bitcoin adoption continues to grow, driven by regulatory clarity and macroeconomic factors, but risks like price volatility, debt financing, and dilution are real. Investors should approach these companies cautiously, as their performance is closely tied to Bitcoin’s price and their ability to manage financial engineering effectively.