Corporate bitcoin Strategies Face Challenges
The third quarter has been tough for companies mimicking Michael saylor’s Strategy. Their stock prices are falling, with total share values dipping below their crypto holdings.
Several digital asset treasuries (DATs) are buying back their stocks. This could signal an impending collapse, according to FT reporter Nikou Asgari. The trend mirrors the overall turbulence in the digital asset treasury sector.
An FT report highlights seven small companies whose corporate Bitcoin journey has been rough. These include Semler Scientific, ETHZilla, and Empery Digital. Five of these now have market caps below their Bitcoin holdings. Most made a crypto pivot recently, followed by a short-term stock price surge and subsequent decline. They’re borrowing up to $250 million to repurchase shares, hoping to boost prices.
These companies need their stock prices to exceed their crypto assets to continue Saylor’s strategy. They’ve raised millions in debt for buybacks. Asgari calls this the “death rattle” for some. Analyst Morgan McCarthy from kaiko agrees. He believes these companies are buying time for a future crypto rally.
Share buybacks aren’t unique to crypto treasuries. it’s a common strategy to increase stock prices. However, Asgari notes that struggling bitcoin treasury companies may become acquisition targets. As an example, Semler Scientific was bought by Strive Asset Management, creating the third-largest Bitcoin treasury.
Scott Melker, host of The Wolf of All Streets, suggests this deal may mark the beginning of corporate bitcoin space consolidation. He believes it’s “almost certainly not the largest.”
DL News cites former Goldman Sachs analyst Dom Kwok, saying stock prices diverging from crypto prices are turning investors away. metaplanet, the fifth-largest corporate Bitcoin treasury, is also considering buybacks if its market cap falls below its BTC balance sheet.
Strategy, the originator of the BTC treasury buisness, is also facing turbulence. In August, it lost around 15% of its value.In 2024, MSTR’s total value was 2.5 to 3 times larger than Strategy’s Bitcoin holdings’ value. However, in August 2025, these figures came remarkably close. It undermined investors’ interest and limited the company’s opportunities for continuation of its strategy. In September, Strategy rejected by the S&P 500 committee, even though many believed the company fits the index perfectly.
While digital asset treasuries may not disappear soon,aspiring projects like Bullish,backed by Peter Thiel,are emerging. However, they face similar challenges. Time will tell if consolidation will save Bitcoin treasuries.
