Crypto Rout Ripples Through Corporate Treasuries: MicroStrategy and BitMine Shares Tumble
A broad-based sell-off in digital assets has sent shockwaves through companies that have bet heavily on crypto for their treasury reserves. Shares of MicroStrategy (MSTR) and BitMine (BMNR) plunged nearly 10% on Thursday, mirroring steep declines in Bitcoin and Ethereum and underscoring the vulnerability of corporate balance sheets tied to volatile crypto markets.
The downturn, triggered by renewed macroeconomic concerns and a flight to safety, saw Bitcoin briefly touch two-month lows. The pain extended beyond individual tokens to publicly traded firms whose fortunes are increasingly linked to their crypto holdings. This correlation highlights a growing risk factor for investors in these companies, which have positioned themselves as proxies for crypto exposure.
Data from Google Finance shows MicroStrategy shares closed at $143.19, down 9.63% and hitting their lowest point since September 2024. The decline comes despite the company's unwavering commitment to its Bitcoin strategy. Just last week, MicroStrategy disclosed its fourth major purchase of the month, adding $264.1 million worth of Bitcoin to bring its total stash to 712,647 BTC. However, analysts note the strategy is showing signs of strain. "With its premium to net asset value evaporating and shareholder dilution a real concern, MicroStrategy's ability to keep buying Bitcoin without hurting equity holders is being tested," said market observer David Chen.
BitMine faced similar headwinds, with its stock falling 9.89% to $26.70. The company recently made its largest Ethereum purchase of the year, acquiring 40,000 ETH to hold a staggering 3.5% of the entire ETH supply. Yet, on-chain analytics firm CryptoQuant estimates BitMine is currently sitting on roughly $3.8 billion in unrealized losses on its Ethereum position, a stark illustration of the risks inherent in concentrated crypto treasury bets.
The sell-off was not confined to these two leaders. Other firms with significant crypto holdings, including Metaplanet and Strive, also recorded losses, suggesting a sector-wide reassessment is underway.
Market Voices
"This is a painful but necessary correction. These companies adopted a high-conviction, high-risk strategy. Volatility is the price of admission. Long-term, their thesis that Bitcoin is a superior treasury asset could still prevail, but days like this test that conviction." — Anya Sharma, Portfolio Manager at Horizon Digital Assets.
"It's sheer recklessness. Using shareholder capital to double down on a speculative asset while the core business languishes is poor governance. MicroStrategy is becoming a leveraged Bitcoin ETF with extra steps and more risk. Today's drop is a reality check for anyone who thought this was a risk-free arbitrage." — Marcus Thorne, Financial Analyst & frequent critic of corporate crypto adoption.
"The correlation between crypto prices and these stocks is now almost 1:1. For investors, it raises a question: are you investing in a software company (or mining operation) or are you just buying a volatile, company-specific wrapper for Bitcoin? The market seems to be choosing the latter interpretation right now." — Rebecca Lin, Senior Strategist at FinTech Insights.