Cryptocurrency-focused treasury firms are facing new burdens as recent market downturns erode asset values and evaporate equity cushions that once seemed durable.
In a November 7 post on X, cryptocurrency analysis platform CryptoQuant reported that falling token prices have narrowed financial buffers across the sector. The retrenchment has depressed corporate valuations and prompted some Treasury departments to take defensive measures to protect their balance sheets to reassure shareholders.
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Bitcoin government bonds on alert as losses increase
Companies that use Bitcoin heavily are absorbing the steepest losses, according to the report. BTC has fallen more than 16% this month, dropping below the $100,000 mark at one point, and the pressure is directly spilling over into corporate portfolios.
For context, Strategy, the largest corporate holder of Bitcoin with over 675,000 BTC, has seen a sharp slowdown in purchases in recent months. The company went from purchasing thousands of coins to purchasing just a few hundred coins.
Market analysts say the slowing pace of purchases reflects the combined weight of Bitcoin’s decline and Strategies’ poor stock performance.
As a result, this change coincided with a reversal in MSTR stock price, with the stock down approximately 53% from its all-time high to approximately $241.93.
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At the same time, Metaplanet, which is listed on the Tokyo Stock Exchange, is in a similar position.
The company holds 30,823 BTC at an average cost of $106,000, meaning it has unrealized losses of more than $120 million at current prices.
As a result, the company’s stock price has fallen more than 80% from its peak, its market net asset value has been compressed, and a share buyback program aimed at restoring confidence has been launched.
Altcoin government bonds absorb significant price declines
Altcoin-focused treasury firms are also feeling the pressure, with the broader market downturn driving deep discounts across their portfolios.
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Its position has weakened as the sector as a whole has declined, adding further strain to its already stressed financial position.
Evernorth, the largest corporate holder of XRP, began accumulating the token in mid-October. However, those 388.7 million XRP tokens are currently in an unrealized loss of approximately $79 million.
Meanwhile, BitMine, the largest Ethereum vault holding over 3.4 million ETH, is facing even deeper losses.
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Ethereum has fallen more than 22% in the last month, leaving the company with about $2.1 billion in unrealized losses.
Analysts say the scale of the drawdowns underscores the recurring structural risk that companies that built positions during good times are often the most rapidly depleted of capital when market conditions reverse.
This is consistent with previous warnings that accumulating digital assets comes with risks that not all companies can absorb.
Given this, businesses are now facing tougher resilience tests to absorb short-term financial pressures while maintaining long-term confidence in their digital assets. This tension is likely to influence the Treasury Department’s decisions next year and beyond.
