Buybacks Surge, but 7 Bitcoin Treasury Stocks Still Face Slump
The third quarter of 2025 has been brutal for companies that followed Michael Saylor’s corporate Bitcoin strategy.
Quick overview
- The third quarter of 2025 has been challenging for companies that adopted Michael Saylor's Bitcoin strategy, with seven digital asset treasuries now valued below their Bitcoin reserves.
- Five of these companies have market caps smaller than their Bitcoin holdings, and many have resorted to stock buybacks, indicating financial distress.
- Despite the downturn, some Bitcoin treasuries are attracting buyers, with Semler Scientific being acquired and creating the third largest corporate Bitcoin treasury.
- Even the originator of the strategy, Strategy (formerly MicroStrategy), is facing pressure as its stock value has fallen and investor confidence declines.
The third quarter of 2025 has been brutal for companies that followed Michael Saylor’s corporate Bitcoin strategy. According to Financial Times, at least seven digital asset treasuries (DATs)—Semler Scientific, ETHZilla, Empery Digital, CEA Industries, Metaplanet, SharpLink Gaming, and Ton Strategy—now have market values below their Bitcoin reserves.
Most of these companies went all in on digital assets just a few months ago and enjoyed big stock rallies. But those gains have since disappeared and they’re scrambling to save face. Several have turned to stock buybacks, a traditional way to boost the stock price, but in this case it’s a sign of deeper financial stress.
- Five of the seven companies have market caps smaller than their Bitcoin holdings.
- Millions in debt was raised to fund buybacks.
- Analysts are saying the “Bitcoin treasury craze” is over.
Kaiko analyst Morgan McCarthy called the buybacks “the death rattle for a few of these companies” and said survival now depends on the next crypto rally.
Mergers Are a Lifeline
Despite the declines, some Bitcoin treasuries are attracting buyers. On September 22, Semler Scientific was acquired by Vivek Ramaswamy’s Strive Asset Management. The deal created the world’s third largest corporate Bitcoin treasury with 10,900 BTC and delivered a 210% premium to Semler’s shareholders.
Market watchers see this as the start of consolidation in the corporate Bitcoin space. Scott Melker, host of The Wolf of All Streets podcast, said this won’t be the last and “almost certainly not the largest”.
This means while some treasuries will collapse, others will survive through mergers.
Strategy Faces Its Own Struggles
Even the originator of this strategy, Strategy (formerly MicroStrategy), is under pressure. By late August, its stock had fallen 15% and erased the premium it once had over its 630,000 BTC holdings. In 2024, the company’s market value was three times its Bitcoin reserves. By August 2025, the two were equal and investor confidence was waning.
To make matters worse, Strategy’s bid to join the S&P 500 was rejected in September and its preferred stock issuance raised concerns about dilution. With Ethereum and other tokens getting attention, Bitcoin-focused treasuries are seeing outflows.But new entrants like Peter Thiel-backed Bullish, which launched in August, are still testing the model. And like others, Bullish’s valuation is now at its Bitcoin reserves.
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