The latest downturn in Bitcoin (BTC) has begun to weigh heavily on publicly listed companies that built their balance sheets around the market’s leading cryptocurrency.
On Thursday, Bitcoin hovered near the $65,000 level, continuing the sharp decline that began last October. This has impacted equity markets, causing the shares of crypto-exposed firms to decline significantly.
Bitcoin Slide Pressures Digital Asset Treasury Firms
According to a Reuters report, the renewed volatility in digital assets is dragging down the stock prices of companies that hold Bitcoin and other tokens, raising concerns that the stress could spread more broadly across the sector.
The number of publicly traded firms investing in cryptocurrencies surged last year, as many executives bet that digital assets would continue to appreciate over the long-term.
However, the backdrop has shifted. Investor anxiety over stretched valuations in artificial intelligence (AI) stocks, combined with uncertainty surrounding the future path of Federal Reserve (Fed) interest rate cuts, has weighed on risk assets more broadly.
As a result, Bitcoin has slid to its lowest level since October 2024, putting pressure on companies whose business models rely on holding digital assets. Many of these digital asset treasury firms saw their shares wobble sharply on Thursday.
Seven Major Companies Suffer
Strategy (previously MicroStrategy), the largest corporate BTC holder with over 700,000 coins, has been among the hardest hit. Its shares have fallen from around $457 in July to as low as $106 on Thursday.
In December, the company cut its 2025 earnings outlook, pointing to weakness in Bitcoin prices, and announced plans to establish a reserve to help support dividend payments.
The firm led by Michael Saylor said it now expects its full‑year results to range anywhere from a $6.3 billion profit to a $5.5 billion loss, a sharp downgrade from its earlier forecast of a $24 billion net profit.
Other Bitcoin‑focused firms also felt the impact. Shares of the UK‑based Smarter Web Company fell nearly 18% on Thursday. Rival Bitcoin buyers Nakamoto Inc and Japan’s Metaplanet were also under pressure, dropping almost 9% and more than 7%, respectively.
However, the sell-off pressure has not been limited to companies holding only BTC. On Thursday, crypto-related firms that stockpiled other digital tokens also traded lower amid the correction affecting broader digital asset prices.
Alt5 Sigma, which announced last year that it would accumulate the Trump family’s World Liberty Financial (WLFI) token, saw its shares drop 8.4%. Similarly, SharpLink Gaming, which holds Ethereum (ETH), declined about 8%, while Forward Industries, a holder of Solana (SOL), slid nearly 6%.
Featured image from OpenArt, chart from TradingView.com
