Bitcoin Treasury Companies Unwind Holdings Amid Price Collapse
The digital asset treasury (DAT) model, pioneered by Strategy in 2020, has come under pressure as Bitcoin's price collapse forces several companies to reconsider their accumulation strategies.
Several publicly listed companies have sold or are selling Bitcoin to repay debt, fund operations, finance buybacks or strengthen their cash reserves. These include Satsuma Technology (SATS), which liquidated its entire 668 BTC holding and delisted from the London Stock Exchange; Smarter Web Company (SWC), which sold 178 BTC to repay a convertible instrument; and Sequans Communications (SQNS), which sold 1,025 BTC before disposing of nearly 80% of its remaining holdings.
Nakamoto (NAKA) has also reduced its Bitcoin holdings, selling around 284 BTC to raise $20 million for working capital. The company has roughly 40 BTC pledged against a Kraken loan maturing in December, which could create a potential binary event, according to VanEck's Matthew Sigel.
Crypto miners including Bitdeer and MARA Holdings are selling Bitcoin to repurpose their energy-supply deals and computing resources to power AI data centers. Empery Digital has sold almost half its Bitcoin holdings to finance buybacks and debt repayment.