Bitcoin Treasury Companies Face Reckoning as Cryptocurrency Declines

The business model of companies that hold Bitcoin as their primary treasury asset has been severely tested by the cryptocurrency's decline. Since its peak in October 2025, Bitcoin has fallen more than 50%, causing many of these companies to trade below the value of their reserves.

Strategy, founded by Michael Saylor, was one of the pioneers of this strategy, but it has also been one of the hardest hit. With an estimated reserve of $53 billion, Strategy's shares have fallen by over 60% since October, and its ability to issue new shares is now limited.

The model relies on the company being able to raise capital by issuing new shares, which can then be used to buy more Bitcoin. However, with the share price below the value of the Bitcoin reserves, this mechanism has stopped turning for many companies.

In contrast, Méliuz, a cashback company that also holds Bitcoin as its main treasury asset, has been less affected by the decline in Bitcoin's value. This is because it generates significant revenue from its operational business and uses this surplus to strengthen its position in the cryptocurrency.