Bitcoin Treasury Firms Suffer $83 Billion Loss as Market Conditions Turn

The allure of Bitcoin treasuries has been irresistible to some corporate investors. By raising cash through stock sales, buying BTC, and hoping their share price tracks the asset's growth, companies can seemingly generate outsized returns.

However, this strategy works only in a rising market. The past year has shown that when capital markets turn against them, companies with large Bitcoin holdings suffer heavily. In fact, 50 of the largest such firms have shed an astonishing $83 billion in value since July 2025.

Mark Palmer, managing director and senior equity research analyst at StoneX, warns that investors need to look beyond raw BTC totals and focus on a more precise metric: Bitcoin per fully diluted share. He emphasizes that claims ahead of common equity, such as convertible debt and perpetual preferred stock, can significantly alter what shareholders effectively own.

Palmer notes that issuing shares at a premium to net asset value increases the Bitcoin backing every existing share, while doing so at a discount destroys value. This distinction matters most when financing conditions tighten, allowing companies to issue at favorable terms during bull markets but forcing them to raise money at unfavorable times in downturns.

Metaplanet's recent shareholder backlash illustrates this dynamic. Investors may tolerate frequent stock sales as long as Bitcoin is climbing, but patience wears thin when dilution expands and the expected catch-up fails to materialize.