Why are Bitcoin treasury stocks crashing in 2025?

Bitcoin treasury stocks have plunged this year, shedding billions of dollars in value. The MSTR stock price has plunged to $300, down from the all-time high of $543. This article explores why these stocks have plummeted this year.

Bitcoin treasury stocks have plummeted this year 

MSTR stock has plunged by about 31% from its highest level this year and is hovering at the lowest level since April.

In Japan, the Metaplanet stock price has tumbled by over 73% from the highest point this year, erasing billions of dollars in value.

Bullish, which launched a successful IPO this year and has 24,000 coins, has tumbled by 45% from the all-time high.

Other top Bitcoin treasury stocks that have tumbled this year are companies like Donald Trump’s Trump Media, GameStop, KindlyMD, Gemini Space Station, and MicroCloud Hologram.

These stocks have underperformed the performance of Bitcoin and the broader stock market this year as the top indices like the S&P 500 and Nasdaq 100 indices have soared to their highest levels on record.

Why BTC treasury companies are struggling 

The first reason why many Bitcoin treasury companies have tumbled is that BTC is not doing well and has moved into a correction after falling by 12% from its highest level this year.

In most cases, these Bitcoin treasury companies do well when BTC price is rising and crash when the coin is falling.

However, a closer look at most of these treasury companies shows that their stocks remained on edge even when Bitcoin price rose to a record high in August this year, a sign that there are more reasons why the crash is happening.

One of the main reasons is that these companies are not attracting the premium they used to have a few months ago.

A good example for this is Strategy, whose mNAV multiple has dropped to 1.2, down from the November high of 3.4. 

Metaplanet’s multiple has tumbled from 8 to 1.4 today. Worse, some companies are trading below their NAV multiple. 

KindlyMD, formerly known as Nakamoto Holdings, has an mNAV multiple of 0.686, while MicroCloud Hologram’s market cap has moved to 0.27.

Investors prefer buying Bitcoin treasury companies when they are trading at a high premium because it magnifies their Bitcoin returns.

A company with a higher premium also benefits from the ability to raise capital easily. 

For example, Michael Saylor's Strategy has long had a policy of not raising capital by selling shares when the mNAV is below 2.5. It changed this policy recently and has continued to use its at-the market (ATM) shares to raise capital, leading to more divergence.

Also, investors are getting more careful about valuations and their business models of just buying Bitcoin. For example, MicroStrategy’s Bitcoin holdings are worth about $69 billion and its market capitalization is $90 billion, leaving a big unexplained gap worth about $30 billion.

Focus on Bitcoin ETFs

Another reason why Bitcoin treasury companies are underperforming the market is that investors are opting to buy ETFs instead.

SoSoValue data shows that Bitcoin ETFs have added over $2.5 billion in inflows this month, bringing their total inflows to $56 billion and their assets at $143 billion.

Additionally, the ongoing performance of Bitcoin treasury companies is because of the weak sentiment among investors. It is common for stocks in a single sector to either drop or rise concurrently.