Bitcoin Treasuries Shed $62 Billion in Deepening Crypto Rout

Yahoo News · Jun 6, 2026

Bitcoin Treasuries Shed $62 Billion in Deepening Crypto Rout

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Bitcoin Treasuries Shed $62 Billion in Deepening Crypto Rout

On balance, the trade allowed early backers and sponsors to capitalize on investor enthusiasm at the peak of the digital-asset treasury cycle, while retail investors absorbed much of the pain when valuations began to unravel.

“Digital-asset treasuries and other corporate BTC holdings collectively exceed 5% of supply, which accelerated adoption among Wall Street in a sense — but at the cost of heightened volatility for retail participants chasing the ‘easy’ wrapper,” said Akshat Vaidya, who has overseen investments in several DATs as co-founder and managing partner of Arthur Hayes’s family office, Maelstrom.

David Bailey-led Bitcoin treasury firm Nakamoto announced a 1-for-40 reverse stock split as its shares slumped almost 100% in the past year. Japan’s Metaplanet, the world’s third-largest Bitcoin treasury, has disappointed some investors with the lack of progress surrounding its much-anticipated preferred share offering. The stock is down more than 80% from a year ago.

Twenty One Capital has also undergone ownership changes, with SoftBank Group Inc. selling its entire 26% stake to Tether. The company’s shares are down 84% in the past year. ProCap Financial this week announced the sale of 52 Bitcoin to fund a share repurchase.

Carney Mak, a partner at FXHB Asset Management, said the firm included Strategy in its portfolio around two years ago “as a leveraged expression of our Bitcoin view.”

FXHB booked profit on a majority of their Strategy holdings during the rally, though a small portion is now at a loss, which the fund will sell at an “appropriate opportunity to rotate the remaining capital into higher-conviction ideas,” Mak said.

The latest downturn has only intensified those pressures. Investors have pulled billions of dollars from spot Bitcoin exchange-traded funds, geopolitical tensions have pushed money toward traditional safe havens and many of the DATs that emerged during the boom have fallen far more than Bitcoin itself.

“In hindsight, the more interesting lesson is not whether Bitcoin was the right call, but whether the Bitcoin treasury trade had become too crowded,” FXHB’s Mak said. “By the time a growing number of companies were attempting to replicate the MSTR playbook, much of the scarcity value had arguably already been captured.”

The strains are most visible among smaller companies that copied Strategy’s model without its scale, liquidity or access to capital, pushing them to experiment with ways to keep the model alive. What was marketed as a simple accumulation strategy has evolved into a scramble for capital as stock-price premiums disappear.

Like many financial manias before it, the DAT boom looked most durable near the top. Months after the excitement faded, the unwind continues.

“The market is not fine, and it took the tide going out to see who was swimming naked,” Tokenize Capital’s Hughes said. “Turns out, it was DATs and their equity holders.”

This article has been published in [Bloomberg] via Yahoo News.