Crypto Treasury Stocks at Risk of 50% Crash After PIPE Deals — CryptoQuant Warns
Crypto treasury firms that raised capital by way of personal funding in public fairness (PIPE) offers face a rising danger of their inventory costs crashing by as a lot as 50%, according to a brand new market report from analytics platform CryptoQuant.
The agency mentioned PIPE-backed firms have already suffered steep declines, with share costs typically gravitating towards their PIPE issuance ranges.
Researchers famous that when lock-up durations expire, traders ceaselessly exit positions to safe income, creating heavy promoting stress.
PIPE Issuances Create Overhang Across Crypto Treasury Sector, Analysts Warn
PIPE offers permit personal traders to purchase new shares under market value, providing firms quick entry to liquidity in a aggressive sector.
While efficient for elevating money, CryptoQuant warned that these preparations dilute current shareholders and go away an overhang of shares that weighs on inventory efficiency.
One of the starkest examples is Kindly MD (NAKA), a medical firm that pivoted into Bitcoin treasury holdings earlier this 12 months.
Its inventory surged from $1.80 in late April to almost $35 by late May after asserting a PIPE elevate. However, as soon as PIPE shares unlocked, the inventory collapsed 97%, falling to $1.16, virtually equivalent to its PIPE providing value of $1.12.
CryptoQuant described the retracement as a case of “PIPE value gravity.”
Other crypto treasury companies could now be following the identical path. Strive Inc. (ASST) peaked at $13 in May however has since dropped 78% to $2.75.
CryptoQuant mentioned its PIPE was priced at $1.35, implying the inventory might face one other 55% decline as traders put together to promote when the lock-up ends subsequent month.
Cantor Equity Partners (CEP), a particular goal acquisition firm merging with Twenty One Capital, additionally carried out a PIPE priced at $10. CEP’s shares have already slipped practically 70% from their highs to under $20.
CryptoQuant urged the inventory might fall one other 50% from present ranges as soon as PIPE traders start to promote.
The report famous that even well-established crypto treasuries are underneath stress as the worth of their digital asset holdings approaches parity with their total firm valuations.
This dynamic might additional speed up sell-offs if traders understand restricted upside in inventory efficiency in comparison with direct crypto publicity.
CryptoQuant concluded that solely a powerful and sustained Bitcoin rally is more likely to counteract the downward stress going through treasury shares tied to PIPE offers.
Without such a rebound, it warned that many firms are more likely to proceed trending towards or under their PIPE issuance ranges.
At current, the development has already left PIPE-funded crypto treasury shares uncovered to sharp losses, with traders carefully watching how upcoming unlocks will influence market sentiment within the weeks forward.
Small-Cap Firms Turn to Borrowing as Crypto Treasury Strategy Falters
On the opposite hand, the crypto treasury technique that surged throughout small-cap companies in 2024 is exhibiting indicators of pressure as firms flip to debt-funded share buybacks to assist collapsing valuations.
According to a CryptoNews report, at least seven companies, together with gaming, biotech, and electrical automobile firms, have launched repurchase applications regardless of buying and selling under the worth of their crypto holdings.
Analysts say the development displays investor skepticism and undermines the premise that digital property alone can increase inventory efficiency.
1 / 4 of all public firms holding Bitcoin now commerce at market values under the price of their BTC holdings.#Bitcoin #BTChttps://t.co/fs2z83ydkp
— Cryptonews.com (@cryptonews) September 17, 2025
One high-profile case is ETHZilla, previously 180 Life Sciences, which rebranded after shopping for ether. Its inventory has fallen 76% since August.
The firm just lately secured $80 million in debt from Cumberland DRW to finance a $250 million buyback.
Critics argue the transfer alerts misery. “They’re borrowing cash to purchase time, not tokens,” mentioned Kaiko analyst Adam Morgan McCarthy.
Similar techniques are rising elsewhere. Empery Digital, as soon as Volcon, expanded its debt facility to $85 million regardless of holding $476 million in Bitcoin, greater than its $378 million market worth.
SharpLink Gaming, Ton Strategy, and CEA Industries are pursuing comparable measures.
Research from K33 shows one in four public Bitcoin treasuries now commerce under their web asset worth, with the typical NAV a number of falling to 2.8 from 3.76 in April.
Smaller companies similar to NAKA and Semler Scientific face mounting stress, whereas bigger gamers like MicroStrategy proceed to command premiums.
The slowdown in BTC accumulation suggests the once-celebrated crypto treasury playbook could also be nearing its limits.
The publish Crypto Treasury Stocks at Risk of 50% Crash After PIPE Deals — CryptoQuant Warns appeared first on Cryptonews.
