Recent data from blockchain analytics firm Artemis reveals that leading digital asset treasuries are facing substantial losses as the prices of major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), continue to decline sharply. The losses have been particularly severe for companies focused on accumulating crypto assets, with Strategy (MSTR) reporting paper losses of approximately $9.2 billion on its Bitcoin investments, while BitMine Immersion Technologies (BMNR) has seen a staggering $8.4 billion loss tied to its Ethereum holdings.
The downturn has accelerated over the past week, with Bitcoin experiencing a 13% drop in just 24 hours and a total decline of 24% over the last seven days, currently trading around $63,708. Ethereum, meanwhile, has suffered even more, plummeting nearly 34% in the same timeframe, reaching its lowest price since last May at approximately $1,867.
It is important to note that the Artemis analysis does not account for crypto-centric firms that primarily focus on activities outside of asset accumulation, such as the cryptocurrency exchange Coinbase or mining firm Riot Platforms, nor does it include companies like Tesla and GameStop that have invested in digital assets while primarily operating in other sectors.
Despite the drastic price drops, Strategy co-founder and Executive Chairman Michael Saylor remains committed to his bullish stance on Bitcoin. Recently, he reiterated his two guiding principles for Bitcoin investment: “1. Buy Bitcoin. 2. Don”t sell Bitcoin,” a sentiment he shared with his followers on X. However, he has also acknowledged the necessity for his firm to potentially liquidate some of its holdings to support dividend payouts, contradicting his earlier assertions.
Market analysts are speculating that with losses mounting, the likelihood of Strategy selling a portion of its significant Bitcoin reserves may increase. Predictions on Myriad”s market suggest that the probability of Strategy offloading some of its 713,502 BTC holdings has risen to around 32% this year.
Additionally, the fallout from the recent market slump is not confined to the largest treasuries. The Artemis dashboard indicates that total losses across the sector have exceeded $25 billion, with firms like Forward Industries, which holds Solana (SOL), facing around $1 billion in unrealized losses. Other companies that have invested in Hyperliquid (HYPE) and BNB have also recorded losses exceeding $100 million.
The current situation has attracted scrutiny from traditional financial analysts. Joe Weisenthal of Bloomberg expressed skepticism regarding the sustainability of digital asset treasuries, suggesting that the trend of companies exchanging tokens for inflated equity may have represented a peak moment for the industry. Industry insiders have raised concerns as well, with figures like Michael Hubbard, interim CEO of SOL Strategies, previously stating that there is no viable long-term market for digital asset treasuries and predicting that staking ETFs could overshadow them.
