Michaela
Companies that followed Michael Saylor’s Bitcoin-focused strategy have seen their stock prices fall a median 43% year-to-date, underperforming the broader market amid debt-related pressures.
Key Points
- Over 100 companies converted to crypto treasuries in 2025, borrowing billions to fund token purchases.
- Median stock price for digital asset treasury companies has fallen 43% YTD, underperforming Bitcoin and major indices.
- Heavy reliance on debt to finance crypto purchases has created structural risks and liquidity pressures.
According to a report by Bloomberg, over 100 publicly traded companies converted into cryptocurrency-focused treasuries in the first half of 2025, borrowing billions to acquire digital tokens. Their stock prices initially surged beyond the value of the assets they purchased, but the strategy quickly faced a sharp market correction.
Strategy, Inc., led by Saylor, was among the first to convert corporate cash reserves into Bitcoin, effectively turning the software firm into a publicly traded cryptocurrency treasury. The approach performed strongly through mid-2025. Following this trend, SharpLink Gaming shifted from traditional gaming operations, appointed an Ethereum co-founder as chairman, and announced substantial token acquisitions.
SharpLink Gaming’s stock skyrocketed 2,600% in a matter of days before plummeting 86% from its peak, leaving its market capitalization below the value of its Ethereum holdings at just 0.9 times crypto reserves.
Related: Strategy Sells $1.4B in Stock to Cover Bills Amid Bitcoin Slump
Bloomberg tracking of 138 U.S. and Canadian digital asset treasuries shows the median stock price has dropped 43% year-to-date, sharply underperforming Bitcoin’s modest 7% decline. By contrast, the S&P 500 and Nasdaq 100 have risen 6% and 10%, respectively. Strategy shares have fallen 60% from July highs, though they remain up over 1,200% since the company began purchasing Bitcoin in August 2020.
“Investors took a look and understood that there’s not much yield from these holdings rather than just sitting on this pile of money,” Fedor Shabalin, B. Riley Securities analyst, told Bloomberg.
The challenges facing these companies stem largely from how they financed their crypto acquisitions. Strategy and similar firms issued substantial amounts of convertible bonds and preferred shares, collectively raising over $45 billion to buy digital tokens that generate no cash flow.
Related: The History of Altcoins: How Bitcoin’s Rivals Changed the Crypto Game
These debt instruments come with significant interest and dividend obligations, creating a structural imbalance between liabilities that demand regular payments and assets that produce no income.
Analysts warn that without a shift in strategy, more digital asset treasury companies could face liquidity pressures, prompting calls for stricter risk management and regulatory oversight across the sector.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
