AuguryCrypto Treasuries on the Ropes: Why Listed U.S. and Canadian Firms Have Been Cut Nearly in Half
This article was written by the Augury Times
A sharp hit to firms that bet their balance sheets on crypto
Bloomberg reported that the median share price for U.S. and Canadian companies holding digital assets on their balance sheets plunged about 43% in 2025. The slide was immediate and broad: stocks that once looked like a one-way ticket to outsized returns suddenly became some of the worst performers in small- and mid-cap land. Traders reacted quickly — volume spiked, sell orders outnumbered buyers, and even firms with long-standing crypto programs saw their market values collapse.
The real-world effect is simple. These companies were paid for being bold — holding Bitcoin or other tokens as a strategic reserve — and now the market is pricing in much worse outcomes. For investors and analysts, the question has shifted from how much upside these treasuries could deliver to how big the downside can be if crypto prices and funding conditions remain shaky.
How big was the move and where it landed in the market
This was not a single-day wobble. The 43% median decline Bloomberg notes covers a stretch of the year in which selling pressure kept coming. Across the group, some names fell far more than the median; a few were less damaged but still well below highs they reached earlier in the cycle.
Compared with broad market gauges, the slump in crypto-treasury stocks was severe. While major indexes drifted or staged modest gains during parts of the year, the crypto-linked cohort moved like a sector in distress. Trading volumes often doubled and sometimes tripled on the worst days, a sign that liquidity was being tested as investors rushed for the exits. The group also tracked crypto prices — when Bitcoin and ether softened, the stocks fell harder — but the correlation was loose: stock moves were amplified by leverage, concentrated ownership, and headline risk.
Within the cohort, there were clear winners and losers. Firms with diversified businesses or steady cash flows — exchanges or miners with healthy operations — held up better than companies whose entire story depended on a rising crypto treasury. Small-cap names with thin trading and sizable token holdings were the worst hit, suffering the steepest intraday swings and the slowest recoveries.
Why prices plunged: treasury losses, market jitter and policy risk
Multiple forces came together. The most obvious was the fall in crypto prices, which directly reduced the market value of tokens on corporate balance sheets. That translated into headline losses and, for some companies, accounting write-downs that crunched reported equity.
Funding conditions tightened at the same time. Lenders that had been willing to provide margin against token holdings became more cautious. Some firms found lines tightened or collateral calls increased, forcing asset sales into a weak market. That fire sale dynamic pushed prices lower and fed on itself.
Regulatory pressure was another important factor. Murmurs of tougher oversight, tax scrutiny on corporate treasuries, and questions about whether certain holdings qualify as cash equivalents made investors nervous. When regulators or lawmakers suggest new rules, market participants price in the risk of higher compliance costs or even restrictions on how firms can hold or disclose crypto assets.
Finally, company-specific issues amplified the pain. A handful of firms reported surprise impairments, missed guidance, or management changes. For firms that relied on continuous equity capital raises or convertible debt, the sell-off turned funding into a front-burner problem.
Company snapshots: who fell hardest and how they answered
MicroStrategy (MSTR) — Once the poster child for a Bitcoin treasury strategy, MicroStrategy saw its shares fall sharply as the value of its large Bitcoin stash ebbed. Management has repeatedly defended the strategy, arguing the long-term store-of-value case for Bitcoin, but the near-term equity reaction made the company’s leverage to crypto painfully visible. The firm has used convertible debt and share-based financing that leaves its market value exposed to swings.
Marathon Digital (MARA) — Marathon is primarily a miner, but it also keeps a portion of mined coins on its balance sheet. Its share price slid amid lower crypto prices and growing questions about miner margins as energy and capital costs rose. Marathon’s operational updates stressed production targets, but investors focused on the balance-sheet exposure and the company’s capital intensity.
Bitfarms (BITF) — A Canada-headquartered miner listed in the U.S., Bitfarms faced the double hit of weaker crypto prices and doubts over future access to capital. Management emphasized cost cuts and efficiency gains, but those moves only partly calmed the market; the stock moved with the broader sell-off in crypto-related equities.
Galaxy Digital (GLXY) — Galaxy, which operates trading, investment and asset-management businesses, showed that diversification helps but doesn’t solve a sector-wide rout. Trading and investment losses weighed on earnings, and the stock’s decline reflected both asset markdowns and a valuation reset for firms with direct crypto exposure.
What investors should watch now: liquidity, valuation and contagion signals
For people who own or watch these stocks, the most important risks are liquidity and valuation. A company can look cheap on simple metrics after a 40%-plus sell-off, but cheapness means little if the firm can’t access funding, is forced to sell assets, or faces major write-downs. Watch balance-sheet items: how many tokens are held, whether those holdings are pledged as collateral, and how much short-term debt the company carries.
Contagion is the second concern. Weakness in treasury firms can spill into mining firms, exchanges, and market-making desks. If margin providers tighten across the board, even healthy operations can be squeezed. Investors should monitor trading volumes, spreads, and disclosed margin calls or covenant waivers — those are the real-time signals that trouble is broadening.
Bloomberg’s data and the limits of the 43% headline
Bloomberg’s figure is a useful snapshot but has limits. It measures median stock moves for a curated group of listed companies that hold digital assets, so the exact sample matters. Some companies in the sample are miners or exchanges with different business models; others are pure treasury plays. The timeframe and endpoints also affect the headline decline. Finally, share-price moves don’t tell the whole story: they mix market sentiment, operational news, and broader equity-market moves.
Put another way: the 43% median decline captures a clear, painful re-rating of crypto-treasury risk, but it’s a starting point for investors — not the final word. The next phase will be decided by crypto prices, funding availability, and whether regulators or courts change the rules of the game.
Photo: Engin Akyurt / Pexels
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