Crypto Treasury Stocks Plunge After BTC & ETH Sell-off
Crypto treasury stocks have tumbled as Bitcoin (BTC) and Ether (ETH) prices fell 15% over the past month amid macroeconomic headwinds, including US tariffs on China, a potential government shutdown and Federal Reserve policy uncertainty. Shares of MicroStrategy (now Strategy) plunged 26%, and the leveraged MSTU ETF lost 50% as institutional unwinds outpaced coin declines.
The rise of crypto ETFs has compressed premiums on crypto treasury stocks and equity proxies. Peter Thiel-backed BitMine Immersion Technologies and ETHZilla saw shares drop 30% and 23%, respectively, accelerating the sell-off in companies holding large token reserves.
Some traders, such as Jimmy Chanos, have closed crypto positions and shorts, while retail investors like Cole Grinde are doubling down and using options to hedge losses. Firms funded with preferred shares, including Strive, may show greater resilience during the correction.
Traders should monitor net asset values, ETF inflows and premium valuations when evaluating crypto treasury stocks in this evolving market landscape.
Bearish
The steep declines in crypto treasury stocks, driven by a 15% drop in BTC and ETH prices and compressed equity premiums from rising ETF alternatives, signal continued market caution. Institutional unwinds have outpaced token declines, exacerbating volatility and prompting investors to shift capital into direct ETF products. Short-term pressure is likely to persist as macroeconomic headwinds and Fed policy uncertainty weigh on sentiment. While long-term bulls may view current lows as entry points, the immediate outlook remains bearish due to increased corporate and balance-sheet risks.