Bitcoin Treasury Slump: 40% Now Trade Below Their Bitcoin Value and Investors Are Fed Up

The cracks in the Bitcoin treasury trade aren’t small anymore. They’re right out in the open. Almost 40% of public companies that staked their reputation on holding Bitcoin now trade at a discount to the actual value of their BTC. These stocks were supposed to be a clever, supercharged way to invest in Bitcoin. Now, investors are looking at them and asking what’s the point? Some critics aren’t mincing words, calling the whole thing an “abomination.”

Here’s what went wrong. Bitcoin treasury companies promised a premium. They’d use financial tricks, access to capital markets, and bold accumulation strategies to give shareholders the upside. Instead, falling Bitcoin prices, endless share dilution, and mounting debt costs have flipped the idea on its head. Now, you can buy these stocks cheaper than the Bitcoin they hold. The obvious question: why not just buy Bitcoin directly?

Share dilution sits at the heart of the mess. To keep stockpiling Bitcoin during downturns, companies kept issuing new shares or convertible debt quietly chipping away at shareholder value. As the market cooled, that approach started looking less like a confident bet and more like a last-ditch effort. Throw in higher interest rates and a tighter cash environment, and suddenly these companies don’t look nearly as safe.

There’s also a big trust problem. Investors are pricing in the risk these firms might mess up, face balance-sheet pressure, or get forced to sell Bitcoin if things get uglier. That fear alone drags down valuations.

It’s almost comical. These stocks were designed to give people more exposure to Bitcoin, but now they’re lagging behind the asset they’re supposed to amplify. Unless these companies get more transparent and fix their incentives, the Bitcoin treasury trade stays broken cheap, unloved, and, honestly, kind of a mess.