Crypto Treasury Stocks Struggle as Bitcoin Crashes

Companies that embraced Michael Saylor's bitcoin hoarding strategy are now fighting for survival as crypto prices plummet.

Published on Feb. 19, 2026

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A wave of companies embraced Michael Saylor's bitcoin playbook in 2025, transforming themselves into crypto-treasury firms known as 'digital asset treasuries' (DATs). But with Bitcoin now below $70,000, down roughly 50% from its October 2025 highs, these DATs are facing steep paper losses and struggling to survive. Many are trading at deep discounts to the market value of their crypto holdings, making it difficult to raise fresh capital and calling into question their entire business model.

Why it matters

The struggles of these crypto-treasury firms highlight the risks of companies heavily investing in volatile digital assets. As crypto prices plummet, investors are now sorting bargains from balance-sheet traps, and the DAT model pioneered by Michael Saylor is being put to the test. The fallout could lead to further declines in crypto prices if these firms are forced to unwind their positions.

The details

There were more than 200 DATs collectively sitting on roughly $150 billion in crypto at the end of 2025. But even before the latest crypto crash, many were already trading at discounts to the market value of their holdings. Now, data provider Artemis estimates DATs are down more than $20 billion in aggregate, with firms like MicroStrategy (known as 'Strategy') reporting huge operating losses. Smaller DATs have fallen to deep discounts, making it difficult to raise new capital. While lower prices should theoretically allow these firms to buy more crypto at a discount, many loaded up near the market peak and don't have the flexibility to keep buying.

  • In October 2025, Bitcoin reached its all-time high of around $140,000.
  • As of February 2026, Bitcoin is trading below $70,000, down roughly 50% from its October 2025 highs.

The players

Michael Saylor

The CEO of MicroStrategy, which transformed itself from a small software company into the corporate champion of adding Bitcoin to company balance sheets.

Strategy

The $44 billion (market cap) Bitcoin-buying behemoth formerly known as MicroStrategy.

BitMine Immersion Technologies

An Ethereum-treasury analogue based in Las Vegas that is sitting on $8.1 billion in unrealized losses.

ETHZilla

A Palm Beach-based Ether treasury that recently sold a portion of its $139 million ETH holdings to buy aircraft engines.

ProCap Financial

An Anthony Pompliano-led Bitcoin treasury that owns 5,007 Bitcoins but has a market cap of only $214 million, down 75% in the last year.

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What they’re saying

“We've been pretty proactive about both staking the ether and managing our exposure and we've always talked about tokenizing real world assets. Our focus was always to get to a point where you're generating revenue and cash flow using the asset, and that's where we are now.”

— McAndrew Rudisill, CEO, ETHZilla (Forbes)

“I think it's really challenging to do M&As, at least right now. One, everyone thinks they're undervalued. They may or may not be. Theoretically, if I'm trading at, like, 0.8 mNAV and you're trading at 0.9 mNAV, and you acquire me for 0.85 mNAV, that's technically accretive for both sides. So on paper it kind of makes sense. But then you start to run into shareholder and governance issues.”

— Christian Lopez, Managing Director, Cohen & Company Capital Markets (Forbes)

What’s next

Many investors and analysts are watching to see if crypto-treasury firms like ProCap Financial can pivot their business models and find viable plans for capitalizing on their crypto holdings, or if they are merely balance sheet traps that will struggle to survive the crypto downturn.

The takeaway

The struggles of crypto-treasury firms highlight the risks of companies heavily investing in volatile digital assets. As crypto prices plummet, these firms are facing steep paper losses, trading at deep discounts, and fighting for survival - putting the 'bitcoin hoarding' strategy pioneered by Michael Saylor to the test.