Advertisement
Bitcoin treasury stocks have had a rough start to 2025. Many of these companies, which hold large amounts of Bitcoin on their balance sheets, have seen their stock prices tumble, shedding billions of dollars in value. One of the most notable examples is MicroStrategy (MSTR), whose stock has dropped to around $300, down from an all-time high of $543. That’s a loss of about 31% from its peak, and the stock is now at its lowest level since April.
The trend is not limited to MicroStrategy. In Japan, Metaplanet’s stock has fallen over 73% from its highest point this year, erasing billions in market value. Bullish, a company that launched a successful IPO and holds 24,000 Bitcoin, has also seen its stock plunge 45% from its all-time high. Other major Bitcoin treasury companies that have struggled this year include Trump Media, GameStop, KindlyMD, Gemini Space Station, and MicroCloud Hologram.
Interestingly, these stocks have underperformed even as the broader market has soared. Major indices like the S&P 500 and Nasdaq 100 have hit record highs, highlighting that this decline is specific to Bitcoin-focused companies.
Why Bitcoin treasury companies are struggling
The first reason is the performance of Bitcoin itself. The cryptocurrency is currently in a correction, down roughly 12% from its highest point this year. Treasury companies tend to do well when Bitcoin’s price is rising and fall when it drops. But even when Bitcoin hit record highs in August, many of these stocks didn’t see much benefit, suggesting other factors are at play.
A key factor is that many of these companies are no longer trading at the high premiums they once did. MicroStrategy, for example, had an mNAV (market value to Net Asset Value) multiple of 3.4 in November, but that has fallen to just 1.2. Metaplanet’s multiple has dropped from 8 to 1.4. Some companies are even trading below their NAV, such as KindlyMD at 0.686 and MicroCloud Hologram at 0.27.
Investors historically preferred buying these companies when they traded at a premium because it amplified their Bitcoin gains. Companies trading at a high premium also had the advantage of raising capital easily. MicroStrategy, for instance, had a policy of not raising capital when its mNAV was below 2.5, but it has recently changed that approach and continued to use at-the-market share sales, which has created more divergence between stock price and Bitcoin holdings.
Another concern for investors is valuation. Some companies have market caps that don’t match the value of their Bitcoin holdings. MicroStrategy, for example, holds about $69 billion in Bitcoin, but its market cap is around $90 billion. That leaves a gap of roughly $30 billion that investors struggle to justify based on the company’s other operations.
A second reason for the underperformance of Bitcoin treasury stocks is competition from ETFs. Investors increasingly prefer buying Bitcoin through ETFs rather than individual treasury stocks. Data from SoSoValue shows that Bitcoin ETFs have seen over $2.5 billion in inflows this month alone, pushing total ETF assets to $143 billion.
Finally, weak investor sentiment is playing a role. Stocks in a single sector often move together, and when sentiment is negative, almost all Bitcoin treasury stocks tend to decline simultaneously.
In short, Bitcoin treasury companies are struggling this year due to falling Bitcoin prices, lower premiums, valuation concerns, competition from ETFs, and cautious investor sentiment. Even in a market where major indices are rising, these stocks are facing their own unique challenges.