Crypto Hoarders Unload Tokens Amid Stumbling Share Prices
In a bid to shore up their sinking share prices, several companies are selling off their cryptocurrency holdings. This comes as the digital asset treasury market continues to unravel, with prices of cryptocurrencies plummeting by billions of dollars.
Michael Saylor's Strategy, the world's largest corporate bitcoin holder, has seen its shares tumble 50% over the past three months, dragging down other copycat companies that also invest heavily in cryptocurrency. The company now worth less than the bitcoin it holds, investors are worried about a business model that relies on rising crypto prices and massive share and debt issuance being unsustainable.
"These companies will go to zero," said Adam Morgan McCarthy, senior research analyst at Kaiko. "It's a vicious cycle. As soon as the prices start tanking, it's a race to the bottom."
To combat this, several firms are offloading their cryptocurrency holdings in an effort to fund share buybacks and prop up their stock prices. FG Nexus, a North Carolina-based ether holder, recently sold $41.5 million of its tokens to do so, while Florida-based life sciences company ETHZilla sold about $40 million worth of its tokens for the same purpose.
Sequans Communications, a French semiconductor company, also sold $100 million of its bitcoin this month in order to service its debt, highlighting how some companies are struggling to fund their cryptocurrency purchases.
This trend is attributed to the recent sell-off in speculative assets and cryptocurrencies. The rise in digital asset treasuries has been fueled by President Donald Trump's pledge last year to turn the US into a "bitcoin superpower," but this momentum has turned sour as investors become more cautious.
Strategy, meanwhile, has doubled down on its bitcoin purchases despite concerns about its business model being unsustainable. The firm's CEO, Michael Saylor, remains optimistic about the prospects of bitcoin and has expressed his confidence in the cryptocurrency's long-term potential.
"Volatility is Satoshi's gift to the faithful," Saylor said this week, referring to the pseudonymous creator of bitcoin.
As the market continues to navigate this shift, investors are left wondering how much further prices will fall. With 95% of digital asset treasuries expected to go to zero, it remains to be seen whether companies like Strategy can buck the trend and restore investor confidence in the cryptocurrency sector.
In a bid to shore up their sinking share prices, several companies are selling off their cryptocurrency holdings. This comes as the digital asset treasury market continues to unravel, with prices of cryptocurrencies plummeting by billions of dollars.
Michael Saylor's Strategy, the world's largest corporate bitcoin holder, has seen its shares tumble 50% over the past three months, dragging down other copycat companies that also invest heavily in cryptocurrency. The company now worth less than the bitcoin it holds, investors are worried about a business model that relies on rising crypto prices and massive share and debt issuance being unsustainable.
"These companies will go to zero," said Adam Morgan McCarthy, senior research analyst at Kaiko. "It's a vicious cycle. As soon as the prices start tanking, it's a race to the bottom."
To combat this, several firms are offloading their cryptocurrency holdings in an effort to fund share buybacks and prop up their stock prices. FG Nexus, a North Carolina-based ether holder, recently sold $41.5 million of its tokens to do so, while Florida-based life sciences company ETHZilla sold about $40 million worth of its tokens for the same purpose.
Sequans Communications, a French semiconductor company, also sold $100 million of its bitcoin this month in order to service its debt, highlighting how some companies are struggling to fund their cryptocurrency purchases.
This trend is attributed to the recent sell-off in speculative assets and cryptocurrencies. The rise in digital asset treasuries has been fueled by President Donald Trump's pledge last year to turn the US into a "bitcoin superpower," but this momentum has turned sour as investors become more cautious.
Strategy, meanwhile, has doubled down on its bitcoin purchases despite concerns about its business model being unsustainable. The firm's CEO, Michael Saylor, remains optimistic about the prospects of bitcoin and has expressed his confidence in the cryptocurrency's long-term potential.
"Volatility is Satoshi's gift to the faithful," Saylor said this week, referring to the pseudonymous creator of bitcoin.
As the market continues to navigate this shift, investors are left wondering how much further prices will fall. With 95% of digital asset treasuries expected to go to zero, it remains to be seen whether companies like Strategy can buck the trend and restore investor confidence in the cryptocurrency sector.
like, anyone thinking that buying & holding can make u rich is literally playing with fire. these companies are just delaying the inevitable. it's all about timing... or lack thereof. and michael saylor thinks volatility is a good thing? 
please. this dude needs to wake up. i mean, 50% decline in 3 months is crazy. how much more can it fall before ppl lose all faith? 95% of treasuries going to zero? that's not a prediction, that's a reality check 
... it's like they're trying to escape a sinking ship but still holding onto too much debt 
. some ppl think it's gonna be a complete wipeout with 95% of digital asset treasuries going to zero 
... only time'll tell if he's right or not 
i think he needs to reevaluate his strategy (no pun intended 
) and prioritize making sustainable business decisions over trying to keep up with the hype. anyway, this trend might be a good lesson for us all - let's not invest our hard-earned cash in something that could potentially disappear overnight 
. Like, come on guys, we all knew this was a wild ride 
. Companies are trying to offload their holdings now because investors have lost faith 
. But seriously, 95% of digital asset treasuries going to zero? That's a pretty big number 
. I'm keeping an eye on this to see how it all plays out... but for now, it looks like crypto prices are going to have to take a seat 
michael saaylor's strategy is literally the only one that seems to be holding on but idk for how long tbh 
I mean, Strategy doubling down on bitcoin purchases is not helping either... like, have you seen their shares tumble 50% in the past three months? 
It's a tough time for crypto investors, but it's also making me think that maybe we should be cautious when investing in these things. 
The numbers don't lie, folks... 95% of digital asset treasuries going to zero is a pretty sobering thought 
. Can these companies really buck the trend and restore confidence in the sector? 
.
. If they can buy back more shares and prop up their stock prices, maybe they'll be able to weather this crypto storm 
. The thing is though, what happens when there's no one left buying into crypto? 
. Can companies like Strategy really buck the trend and restore investor confidence? Only time will tell 
his statement about volatility being satoshi's gift to believers is quite something though 
anywayz back to these companies just cashing out their crypto holdings left and right... its like they're all just playing a game of musical chairs but instead of chairs its bitcoin 
. Meanwhile, Strategy's doubling down on bitcoin - good luck with that!