A combination of falling equity valuations, debt repayment pressures, and weaker market conditions is forcing Bitcoin treasury companies to rethink their strategies, with many reducing holdings, selling BTC reserves, or shifting toward new business models.
Strategy (MSTR) pioneered the digital asset treasury (DAT) approach in 2020, inspiring a wave of publicly traded companies to accumulate Bitcoin using corporate cash and borrowed funds. The strategy gained popularity as Bitcoin surged toward a record price of around $126,000 in October 2025.
Since then, Bitcoin has dropped by roughly 50%, causing treasury-company stocks to decline sharply and putting pressure on firms that relied on continued price appreciation. Matthew Sigel said some companies have completely abandoned the model, while others are significantly cutting their Bitcoin exposure.
Satsuma Technology (SATS) recently approved plans to liquidate its entire 668 BTC portfolio, return capital to shareholders, and exit the London Stock Exchange. Another UK-listed firm, Smarter Web Company (SWC), sold 178 BTC to settle a convertible financing agreement.
Smarter Web CEO Andrew Webley said that while the company still sees value in both traditional and Bitcoin-based convertible financing, it no longer believes those options provide the right capital structure for its future plans.
Several other Bitcoin treasury companies have followed a similar path. Sequans Communications (SQNS) sold more than 1,000 BTC and later reduced most of its remaining holdings to repay convertible debt. The company has stopped making new Bitcoin purchases and plans to monetize its remaining 658 BTC.
Nakamoto (NAKA) has also faced significant challenges, with its shares collapsing 99% since its May 2025 SPAC deal. The company sold approximately 284 BTC to raise $20 million in operating capital after acquiring BTC Inc. and UTXO Management. It also sold around 40 BTC from its derivatives program. According to Sigel, nearly 70% of Nakamoto’s remaining 5,342 BTC holdings are pledged as collateral for a Kraken loan due in December, creating a major financial risk.
The pressure has also spread to Bitcoin miners. Companies such as Bitdeer Technologies and MARA Holdings have sold Bitcoin to manage debt obligations while redirecting energy resources and computing infrastructure toward artificial intelligence data centers.
Other sellers include Empery Digital, which has reportedly sold nearly half of its Bitcoin holdings to fund stock buybacks and repay debt. Strategy has also sold about 3,620 BTC in recent weeks and approved further sales to strengthen its U.S. dollar reserves.
Despite the broader shift, Strategy remains the largest publicly traded Bitcoin holder, with more than 840,000 BTC in its treasury. Executive chairman Michael Saylor continues to maintain a bullish outlook on Bitcoin.
Saylor said the company could sell some BTC to support dividend payments, but stressed that such sales would be part of financial management rather than a broader exit from its Bitcoin strategy.
Beyond asset sales, the sector is also experiencing leadership changes and failed corporate transactions. Jack Mallers stepped down as CEO of Twenty One Capital, while Bitcoin Standard Treasury Company (BSTR), linked to Adam Back, was unable to complete its planned merger due to unfavorable market conditions.
