Here's How Digital Asset Treasuries are Holding Up as Prices Trend South

Major crypto treasuries are facing significant pressure as unrealized losses mount amid a sustained market downturn. Companies such as BitMine, Metaplanet, and SharpLink reportedly hold combined unrealized losses of $5.8 billion on their crypto assets. This decline coincides with a broader drop in the crypto market, prompting fears of forced selling that could apply downward pressure on asset prices. As Bitcoin dipped below $82,000, nearly $1 billion was liquidated in a single hour. Despite the sharp decrease in their market capitalizations, many digital asset treasuries retain enough cash to sustain operations in the short term. However, as their market-cap-to-net-asset-value ratios fall below one, raising capital becomes increasingly challenging. Over the past month, entities like BitMine have reported catastrophic losses on their Ethereum holdings, while Galaxy Digital and others face equally severe funding pressures. Experts warn that if several companies are compelled to liquidate their holdings, this could further destabilize the already volatile crypto market, creating a “steady source of downward pressure” rather than a sudden shock. The long-term recovery for these treasuries hinges on broader market stabilization and improved investor sentiment.

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