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Companies that loaded up on Bitcoin for their corporate treasuries are seeing their stock prices collapse even as the cryptocurrency remains near record highs, according to Galaxy Digital research warning of a “Darwinian phase” for the sector.
Firms that once traded at substantial premiums to their Bitcoin holdings have flipped to discounts, with leveraged players facing severe losses as their high purchase prices amplify downside risk.
Companies like Metaplanet and Nakamoto, which reported hundreds of millions in unrealized gains earlier this year, are now deeply in the red.
This is a classic case of leverage turning against the investor, Galaxy noted. For Bitcoin treasury firms, what was once a premium advantage is now a potential death trap.
One standout example is NAKA, whose stock has plunged over 98% from its peak, a level of loss reminiscent of memecoin market wipeouts.
Analysts warn that the volatility seen in these firms may foreshadow broader corrections for highly leveraged players holding large BTC reserves.
The collapse in premiums highlights the inherent risk embedded in the capital structures of Bitcoin treasury firms.
According to Galaxy, many firms leveraged their BTC holdings to amplify returns during bullish runs, but this strategy is now magnifying losses as equity values fall.
Leverage is a double-edged sword, said Lisa Huang, a crypto market analyst at BlockEdge Capital. For Bitcoin treasury firms, the difference between strategic growth and catastrophic loss is razor-thin right now.
The downturn has prompted investors to scrutinize the financial health of firms holding significant Bitcoin on their balance sheets.
Analysts are noting that companies with disciplined treasury management and hedging strategies may weather the storm, while overleveraged firms could face existential threats.
Some of these firms may not survive this phase, Galaxy wrote in its report. We’re seeing a market Darwinism where only those with robust risk management practices and realistic purchase price exposure will remain viable.
Several industry veterans have commented on the evolving environment for Bitcoin treasury firms. Michael Novogratz, CEO of Galaxy Digital, highlighted the structural shift: The market is separating the strong from the weak.
This is the moment where strategic treasury management isn’t just a competitive edge—it’s survival.
Meanwhile, companies like MicroStrategy and Tesla, known for their measured BTC holdings, are often cited as models for long-term treasury stability.
Discipline and transparency in BTC acquisitions matter more than ever, added Novogratz.
Despite the challenges, some analysts view the current phase as an opportunity for consolidation and strategic repositioning.
Firms that can navigate the premium collapse and leverage pitfalls may emerge stronger, while weaker players could be forced to restructure or exit the market entirely.
For investors and market watchers, the Darwinian phase of Bitcoin treasury firms represents both risk and opportunity.
The coming months will test the resilience of balance sheets, treasury strategies, and market confidence in these pioneering crypto companies.
