The stock price of the US crypto treasury company collapsed, and the crypto circle suffered collateral damage.
The myth of soaring prices: stocks are crazier than cryptocurrency prices
From early to mid-2025, an unprecedented financial spectacle swept through the US stock market: hundreds of listed companies transformed into 'Digital Asset Treasuries' (DAT), significantly increasing their stock prices through large-scale purchases of Bitcoin, Ethereum, and other cryptocurrencies, far exceeding the appreciation of their holdings.
- Strategy (Original MicroStrategy): The largest corporate holder of Bitcoin, its stock price has risen about 1300% since its transformation in 2020, while Bitcoin itself has only risen about 700% during the same period, perfectly illustrating the phenomenon of 'stocks being more valuable than Bitcoin'.
- Sharplink Gaming: After announcing the abandonment of its gambling business to shift to Ethereum, its stock price soared 2600% in just a few days, far exceeding the increase in Ethereum during the same period
- BitMine and other Ethereum treasury companies: Stock prices generally increased by 300-500%, becoming the focus of the market
This strategy was pioneered by Michael Saylor, quickly prompting over 160 companies to follow suit, raising over $91 billion to buy coins, leading to the so-called "crypto treasury stock" craze. Investors viewed these stocks as **"leveraged cryptocurrency"**, potentially amplifying market volatility returns, leading to a rush of celebrities like Peter Thiel and the Trump family getting involved [[_LINK ICON]](http://m.toutiao.com/group/7580881245840704026/?f_link_type=f_linkinlinenote&flow_extra=eyJpbmxpbmVfZGlzcGxheV9wb3NpdGlvbiI6MCwiZG9jX3Bvc2l0aW9uIjo1LCJkb2NfaWQiOiIifQ%3D%3D&inline_doc_id=null).
Moment of Collapse: The withdrawal frenzy led to a double whammy
However, starting from mid-October, this feast suddenly came to an end.
Trigger point:
- Deteriorating trade relations between China and the US
- The US government experiences a record shutdown
- Uncertainty in the Federal Reserve's monetary policy
- Market concerns about the valuation bubble of crypto assets concentrated and erupted
Collapse Process:
1. Institutional investors were the first to withdraw, turning to directly hold cryptocurrencies or ETF products, believing that "spending $2 to buy a $1 asset is meaningless"
2. Starting from October 10, the price of Bitcoin began to decline from a high of $105,000, dropping over 15% within a month
3. The stock prices of crypto treasury companies fell even more sharply:
- Strategy: dropped 36% in November alone, down over 60% from the high in July, with its market value shrinking from $128 billion to about $70 billion
- Sharplink Gaming: Dropped 86% from its peak, with a market value below the Ethereum it holds
- Greenlane Holdings: Holds $48 million worth of BERA tokens, with stock prices plummeting over 99%, nearly reaching zero
4. On November 13, a historic moment: Strategy's stock price rarely fell below its holding value, showing a "negative premium," with a market value of about $65.3 billion, lower than its total Bitcoin value of $66.6 billion from 642,000 coins, marking a complete breakdown of market confidence
5. Chain reaction:
- Cryptocurrency liquidation exceeded $1 billion across the network, with 227,000 accounts forced to liquidate
- The price of Bitcoin once dropped to $86,390, hitting a new low since April 2025
- The total market value of the cryptocurrency sector evaporated by over $1.2 trillion, nearly halving
All analysis of collapse reasons
1. Leverage backlash:
These companies raised funds to buy coins through continuous issuance of stocks and convertible bonds, forming a "recursive leveraged long position on BTC." When the coin price drops, the stock price decline is magnified, creating a vicious cycle
2. Valuation bubble burst:
- Investors realized that holding stocks of these companies involved higher risks than directly holding coins, yet with lower returns
- "mNAV" (ratio of enterprise value to holdings) fell from a high of below 1.1, with premiums disappearing
- More direct investment channels like Bitcoin ETFs diverted funds
3. Liquidity crisis:
Many companies had a higher cost of financing for buying than the current market price, Strive and other companies' average coin purchase costs were over 10% higher than the current price, making it impossible to continue buying coins through new stock issuance, further exacerbating the decline
Market Reflection: From Myth to Reality
Analyst comments:
- "After reviewing, investors found that the returns from holding these assets were far less than holding cash, thus many began to reduce their holdings"
- "Digital asset treasury companies are essentially leveraged crypto assets; when cryptocurrencies decline, their drops will be even greater"
Current situation:
As of early December, at least 15 Bitcoin treasury companies' stock prices were below their net asset value, with the median stock price in the industry falling 43% this year, while Bitcoin only dropped about 6% during the same period, perfectly illustrating the market law of "leveraged success, leveraged failure"
Note: The above data is as of December 7, 2025, and the market remains highly volatile.
Conclusion: US stock related to cryptocurrencies (with physical support) experienced a significant drop due to withdrawal sell-offs, leading investors to panic and hastily sell cryptocurrencies with no actual value, ultimately triggering a collapse in both stock and coin prices.
It raises a rhetorical question: in such a poor environment, how can one continue to make money in the cryptocurrency sector? This has become a headache for most people, yet the cryptocurrency world seems almost addictive and hard to let go, with many still willing to gamble even after losing everything, while real life has turned into a living hell...
