Bitcoin (BTC) Under Pressure, Crypto Treasury Firms Shed US$ 62 Billion in Valuation

The ambitious financial experiment born from the crypto boom is now facing a severe test. Public companies specialising in accumulating digital assets on behalf of investors, known as Digital-Asset Treasuries (DAT), are experiencing a dramatic valuation plunge as the crypto market weakens this week. Data from Artemis shows the combined market valuation of Bitcoin treasury company stocks has slumped to US$ 72 billion, down sharply from a peak of US$ 134 billion in early October 2026. This US$ 62 billion loss of value is concrete evidence that a once-hot crypto investment trend is now reversing. The DAT business model initially sounded simple: a company piles up crypto, issues shares, buys more tokens, and repeats the cycle. This strategy worked superbly while crypto prices soared. However, with Bitcoin down roughly 14% over the past week to a four-month low, the model has proven fragile. “With prices continuing to slide, digital-asset treasury companies are now faced with a difficult choice: default on debt or be forced to sell their assets,” said Tokenize Capital Managing Partner Hayden Hughes. According to Hughes, this forced selling demolishes the assumption that these companies would permanently act as buy-and-hold investors. The focus for many firms has now shifted from accumulation to survival. Various measures are being deployed, ranging from carrying out reverse stock splits and issuing preferred securities to restructuring debt. Some companies have even begun selling Bitcoin they had previously pledged to hold forever. For example, Nakamoto executed a 1:40 reverse stock split after its shares fell nearly 100% over the past year. Meanwhile, Japanese firm Metaplanet is facing investor disappointment due to slow progress on a preferred share offering. Maelstrom co-founder Akshat Vaidya noted that these companies collectively control more than 5% of Bitcoin’s supply. Whilst accelerating adoption on Wall Street, this move has come at the cost of high volatility for retail investors chasing these ‘easy’ schemes. Carney Mak, a partner at FXHB Asset Management, believes the phenomenon offers a valuable lesson. “The question is no longer whether Bitcoin is the right choice, but whether this Bitcoin treasury trade has become too crowded,” he said. Many small companies are now trying to imitate the strategy of larger firms without sufficient scale, liquidity, or access to capital. What was once marketed as a simple accumulation strategy has turned into a scramble for capital amid fading share price premiums.