Bitcoin Crash Hits Corporates: $28 Billion Wiped Out of Corporate Treasuries
At Strategy, the firm with the largest Bitcoin holdings, CEO Phong Le said the company is prepared to withstand even steeper declines.
Quick overview
- The recent price collapse of Bitcoin has resulted in major companies facing combined losses of approximately $28 billion.
- None of the 22 publicly traded companies with significant Bitcoin holdings are currently showing gains on their investments.
- The downturn has reignited discussions about the risks associated with using cryptocurrencies as treasury reserve assets.
- Despite the losses, companies have not reported serious financial distress, with some expressing confidence in their ability to weather further declines.
The price collapse has pushed major companies that adopted Bitcoin as a strategic asset into the red, reopening the debate over the risks of cryptocurrencies.
Bitcoin’s sharp decline is hitting companies that embraced the cryptocurrency as a treasury reserve asset. With prices falling toward $60,000 and far below its all-time high, leading corporate treasuries are now facing combined losses of around $28 billion—putting to the test financial strategies that treated the digital asset as a store of value.
Companies With Bitcoin on Their Balance Sheets Face Massive Losses
The price slump has erased a large share of the gains accumulated during the 2023–2025 bull cycle and pushed major Bitcoin-holding companies into negative territory.
At present, none of the 22 publicly traded companies with the largest crypto holdings is showing gains on its Bitcoin positions.
Among the hardest hit are:
- Strategy: losses of $8.9 billion
- Bitmine: losses of $8.6 billion
- Twenty One Capital: losses of $1.9 billion
Together, losses total $28 billion, highlighting the severe impact of crypto-market volatility on corporate balance sheets.
This reflects the sharp price retracement, with Bitcoin losing nearly $20,000 in just a few weeks and now trading roughly 50% below its 2025 all-time high.
A Corporate Strategy That Grew During the Crypto Boom
The use of Bitcoin as a treasury asset gained momentum from 2024 onward, as many companies began incorporating cryptocurrencies into their financial strategies.
The goals were to diversify reserves, hedge against inflation, and capture Bitcoin’s upside potential.
However, the recent downturn has once again exposed the risks of this approach—particularly in an environment of tighter global financial conditions and reduced liquidity.
Bitcoin’s extreme volatility means corporate valuations can shift dramatically over short periods of time.
Companies Downplay Solvency Risks—for Now
Despite the losses, no company has reported serious financial distress or announced restructurings.
At Strategy, the firm with the largest Bitcoin holdings, CEO Phong Le said the company is prepared to withstand even steeper declines.
According to his comments, only an extreme scenario—such as Bitcoin falling to around $8,000—would pose structural balance-sheet risks for the company.
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