Bitcoin Treasury Companies Face Pressure as Crypto Prices Fall
Public companies that built their businesses around accumulating Bitcoin and other cryptocurrencies are facing growing pressure as falling token prices expose the risks behind the digital asset treasury model.
The issue returned to the spotlight after Strategy—the world’s largest corporate holder of Bitcoin—authorised a Bitcoin monetisation program. The program allows the company to sell Bitcoin from time to time, including to generate up to US$1.25 billion in additional proceeds for its US dollar reserve.
In a July 6 regulatory filing, Strategy disclosed that it sold 3,588 Bitcoin for a combined US$216 million between June 29 and July 5. The proceeds were used to fund distributions on preferred stock and replenish the portion of its cash reserve used for those payments.
Although Strategy’s share price briefly improved after analysts responded positively to the broader capital plan, the sales represent a significant change for a company long associated with aggressive Bitcoin accumulation.
What are digital asset treasury companies?
Digital asset treasury companies, commonly called DATs, are publicly listed businesses that hold substantial amounts of cryptocurrency on their balance sheets.
They allow investors to gain exposure to Bitcoin, Ether and other digital assets by purchasing shares through a regulated stock exchange. Some companies also borrow money or issue new shares to purchase additional cryptocurrency, potentially increasing returns when token prices rise.
This strategy became extremely popular during 2025 as optimism surrounding supportive US cryptocurrency policies helped drive digital asset prices higher. However, the same model can become problematic when the market moves in the opposite direction.
Falling Bitcoin prices expose the risks
Bitcoin has declined sharply during 2026 amid geopolitical uncertainty, higher oil prices and changing expectations for US monetary policy under Federal Reserve Chair Kevin Warsh.
As Bitcoin falls, the value of a treasury company’s cryptocurrency holdings also declines. This can weaken its share price, make fundraising more difficult and reduce its ability to purchase additional tokens.
Companies that use debt, preferred stock or other forms of leverage face even greater pressure because they must continue meeting financial obligations regardless of Bitcoin’s price.
Companies are trading below their crypto value
One important measure used to assess these businesses is market net asset value, or mNAV. It compares a company’s market value with the value of the cryptocurrency it owns.
During the market boom, many digital asset treasury companies traded at a premium because investors expected them to continue raising capital and expanding their holdings.
Since late 2025, the sector’s combined mNAV has fallen below 1. This means many companies are now valued by the stock market at less than the value of the digital assets on their balance sheets. Strategy’s enterprise mNAV also fell below 1 for the first time in late June 2026.
This creates a difficult cycle. When shares trade at a premium, a company can issue new stock and use the proceeds to purchase more cryptocurrency. When shares trade below net asset value, issuing additional stock may dilute existing shareholders and destroy value.
Investor interest has weakened
Trading activity in digital asset treasury shares reached its peak in August 2025 but has been inconsistent since then.
Activity fell sharply in early 2026 as cryptocurrency prices declined and investors reassessed the outlook for financial-system liquidity. Expectations that the Federal Reserve may maintain tighter policy can place additional pressure on speculative assets such as cryptocurrency.
The total market value of digital asset treasury companies has also struggled to recover from the downturn that began late last year.
Strategy remains the largest holder
Despite its recent sales, Strategy continues to hold substantially more cryptocurrency than any other public treasury company. As of July 5, it reported 843,775 Bitcoin and a US dollar reserve of US$2.55 billion.
BitMine Immersion Technologies, which primarily holds Ether, reportedly maintains the second-largest digital asset stockpile.
Other companies have also reduced their holdings. Nakamoto Inc sold approximately 5% of its Bitcoin in March and disposed of roughly another 600 Bitcoin in June.
These sales suggest that some treasury companies are beginning to treat their cryptocurrency holdings as a source of liquidity, rather than assets that must be held indefinitely.
The outlook for crypto treasury companies
The digital asset treasury model has not disappeared, but it is entering a crucial test.
When cryptocurrency prices are rising and shares trade above the value of the underlying holdings, these companies can raise capital and expand quickly. When prices fall, that advantage can reverse, leaving companies with weaker balance sheets, discounted shares and limited access to new funding.
Their long-term survival may depend on disciplined financial management, sensible debt levels and the ability to create value beyond simply holding cryptocurrency.
For investors, the key lesson is that purchasing shares in a Bitcoin treasury company is not the same as owning Bitcoin directly. Investors are also exposed to corporate debt, operating costs, management decisions, dilution and the possibility that the company may sell its digital assets.
Based on reporting by Hannah Lang for Reuters, July 13, 2026, with additional figures from Strategy’s July 6 filing with the US Securities and Exchange Commission. This article is general market commentary and does not constitute financial advice.
Sources: Reuters reporting; Strategy SEC filing; Federal Reserve announcement.
