Corporate Bitcoin treasury holders prepare for fire sale
After months of aggressive accumulation, market conditions are pushing Bitcoin treasury firms to sell.
- Crypto treasury firms are preparing for a fire sale of their crypto assets
- Stocks of major treasury firms are trading below their digital asset holdings
- Sales of these assets could create a vicious cycle for the crypto market
Digital asset treasury firms, including those holding Bitcoin, are starting to sell their assets. Falling valuations, risk-off sentiment in the market, and volatile crypto prices are changing their underlying economics. According to a Wednesday, November 26 report by the Financial Times , this could cause a vicious cycle for crypto assets.
So far, treasury firms like Strategy, the largest corporate Bitcoin (BTC) holder, have relied on a simple loop. Firms would buy up digital assets, and their shares would go up by a larger margin. They would then use their shares to buy more crypto. Now, this cycle threatens to invert.
Shares of Strategy, Metaplanet , and other major treasury firms are trading below the net asset value of their digital asset holdings. For instance, Strategy holds $56 billion in Bitcoin, while its market cap is just $49 billion.
Bitcoin treasury firms are ready for a fire sale
This development, caused by risk-off sentiment and their leveraged positions, is incentivizing them to sell their crypto treasury and buy their own shares. However, the impact on the crypto markets could be severe, triggering a vicious cycle of falling stock prices that, in turn, depresses crypto asset prices.
“There’s going to be a fire sale at these companies; it’s going to get worse,” said Adam Morgan McCarthy, senior research analyst at crypto data firm Kaiko. “It’s a vicious cycle. As soon as the prices start tanking, it’s a race to the bottom.”
Still, it is essential to note that not all treasury firms will opt to sell their assets. Strategy, notably, has permanently shrunk its Bitcoin holdings and has only ever briefly sold for tax purposes. Still, if current conditions persist, the market may be forced to act.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum News Update: Ethereum Surges Past $3,000, Bulls Eye $3,400 Target
- Ethereum (ETH) surged past $3,000 in early November 2025, with technical and on-chain data indicating potential for further gains toward $3,400 if the level holds. - Institutional inflows, including $88M into BlackRock's ETHA ETF, contrast with broader crypto outflows, while valuation models suggest a 57-90% undervaluation. - Mixed on-chain signals show recovering active addresses and a low MVRV Z-Score (0.29), historically preceding accumulation phases, but stagnant new address growth limits upside pote
Blockchain Connects K-pop's Worldwide Fans and Investors, Transforming the Concept of Entertainment Ownership
- WITCH blockchain partners with SBI, DIOD , and Kyobo Life to tokenize K-pop real-world assets like concert revenue and merchandise rights. - The initiative aims to democratize entertainment investments via blockchain, enabling fractional ownership and global accessibility for fans and crypto investors. - Challenges include regulatory compliance across jurisdictions and educating traditional fans about blockchain's value proposition. - Initial products will launch in months, starting with small-scale offe
The Growing Convergence of Legal Studies and Social Impact Investment
- Berkeley Law's PISP offers full-tuition scholarships to JD students pursuing public interest careers, reducing debt barriers for social justice work. - Graduates earn median $72,000 salaries but maintain debt-free careers in criminal justice reform, reproductive rights, and corporate accountability. - The program creates long-term societal impact through sustained public service, aligning with social impact investing principles prioritizing systemic change over short-term profits. - By embedding scholars
PENGU USDT Selling Alert and Stablecoin Price Fluctuations: An Important Reminder for Investors
- PENGU USDT's 28.5% plunge in late 2025 exposed systemic risks in stablecoin ecosystems, highlighting vulnerabilities in USDT-backed tokens amid regulatory scrutiny. - USDe's October 2025 depegging to $0.65 triggered $20B losses in DeFi, revealing algorithmic stablecoins' fragility during market stress and leverage-driven feedback loops. - EU's MiCA ban on algorithmic stablecoins and U.S. GENIUS Act reforms aim to mitigate risks, but large stablecoins like USDT remain exposed to liquidity crises and cross
Trending news
MoreCrypto prices
More
