Public companies that piled into crypto treasuries are now sitting on heavy paper losses. According to blockchain analytics firm Artemis, more than 20 digital asset treasury firms currently hold crypto at average purchase prices well above today’s market levels, leaving the group with over $19 billion in combined unrealized losses.
The strategy that once looked like a turbocharged balance-sheet play now looks more like a drag.
Ethereum and Bitcoin Treasuries Both Underwater
Ethereum-focused names like BitMine Immersion Technologies $BMNR ( ▼ 9.17% ) and SharpLink Gaming $SBET ( ▼ 7.57% ) are among the hardest hit, with large gaps between their cost bases and current prices. On the bitcoin side, companies such as Strategy $MSTR ( ▼ 3.13% ) and other BTC-centric treasury firms are also sitting on sizable paper losses as crypto prices remain well below prior highs.
Even smaller treasury plays tied to alternative tokens are not immune, though their absolute losses are smaller simply because their positions are.
Investor Appetite for Premiums Is Fading
Analysts say one key issue is valuation. During the crypto bull run, some treasury-focused stocks traded at big premiums to the net value of the crypto they held. Now, with both share prices and token prices down, those premiums have evaporated or flipped to discounts.
Investors who bought at rich multiples are now deeply underwater, making them less likely to fund new equity raises or support future treasury expansion at lofty valuations.
Consolidation May Be the Next Step
With share prices depressed and new crypto purchases slowing sharply, some analysts expect consolidation in the sector. Instead of issuing more stock at low prices to buy more crypto, firms may look to merge with other treasury vehicles that trade at discounts.
In this environment, the viability of the crypto treasury model is being tested. Until underlying crypto prices recover or companies demonstrate a clearer path to generating operating value beyond holding tokens, these balance-sheet bets are likely to remain under pressure.