Bitcoin-Buying Firms Face Steep Losses as Crypto Frenzy Fades

Firms that have built their business models around accumulating and holding bitcoin and other cryptocurrencies are now enduring sharp declines in their share prices, as the investor enthusiasm that drove the sector earlier this year cools dramatically.

These companies have largely financed their cryptocurrency purchases by selling shares or issuing debt, parking the digital assets directly on their balance sheets. For much of the year, investors piled into their stocks, lured by bitcoin’s record-breaking highs and the public support shown for the sector by U.S. President Donald Trump.

But the tide has turned. Shares in Michael Taylor’s Strategy, arguably the most prominent of these bitcoin-buying groups, have dropped from a July high of $457 to just $328 this week.

That marks the lowest level since April and reduces its year-to-date gains to 13 percent.

Japanese bitcoin treasury firm Metaplanet (3350.T) has also struggled. Its stock hit its weakest point since May this week, falling more than 60 percent from its June peak—though it still remains up 105 percent for the year.

The downturn has extended to smaller firms as well, many of which saw their valuations soar earlier in 2025 after announcing abrupt shifts toward crypto accumulation strategies. Those gains are now rapidly eroding.

Kaiko analyst Adam McCarthy described the reversal as inevitable. “The scale of the reversal is entirely unsurprising,” he said. “These are all essentially volatility plays as they are leveraged exposure … so if bitcoin is down 3 per cent, they’re down a multiple of that, sometimes four or five times as much. For retail users it’s a shock a lot of the time, so it probably compounds the downturn when some sell out of fear.”

One of the most dramatic examples is Smarter Web Company (SWC.ASE), a UK-based website development firm that saw its share price skyrocket after pivoting to a bitcoin-buying strategy. Its stock is now down 70 percent since June.

Similarly, shares in Alt5 Sigma (ALTS.O)—which gained attention for purchasing tokens linked to Trump’s World Liberty Financial crypto venture—have collapsed by 63 percent from their June highs.

The strategy of hoarding has not been confined to bitcoin alone. Companies have extended the same approach to other cryptocurrencies, notably ether, as well as lesser-known tokens.

“Until retail users realise that these firms aren’t buying into crypto, rather they’re selling a crypto narrative to pump their equity value, this circle will persist,” McCarthy warned.

Even firms with heavyweight backers have been caught in the downturn. BitMine (BMNR.A), supported by investor Peter Thiel, and gaming-focused media group GameSquare (GAME.O) both saw their shares soar earlier this year after declaring intentions to accumulate ether. Since July, however, both have plunged by around 67 percent. 

By fLEXI tEAM