The market capitalization of the 50 listed companies holding the most Bitcoin has halved in just over a year, exposing the limitations of the asset-acquisition model.
The combined market capitalization of major listed companies that have acquired Bitcoin as a core asset has fallen by more than $80 billion since reaching a peak around the middle of last year. The revenue model of so-called Bitcoin treasury companies, which sought to boost corporate value and share prices through crypto-asset acquisition strategies, is facing serious limitations, analysts say.
According to the tally, the total market capitalization of the 50 companies holding the most Bitcoin stood at approximately $150 billion last July, but has recently declined to around $67 billion. That means as much as $83 billion in corporate value disappeared in just over a year. In particular, 43 of the 50 companies surveyed now have share prices lower than before they officially announced their Bitcoin acquisition strategies. Of these, 35 have seen their share prices plunge by more than half from their peaks.
These companies have raised funds by issuing stocks or bonds and used the proceeds to buy Bitcoin, seeking to drive their share prices higher. However, as Bitcoin prices corrected, their share prices fell in tandem, while difficulties in raising additional funds increased their financial burden. Analysts say the existing financing cycle has effectively stopped functioning as shares have increasingly been valued below the net asset value of the Bitcoin they hold.
As management pressures grow, some companies are selling portions of their holdings and returning to their original businesses. The top 50 companies became net sellers of Bitcoin in July and have sold approximately 2,500 more Bitcoin than they purchased. The strategy of making Bitcoin accumulation a key driver of corporate growth is facing strong headwinds as share prices decline.