Bitcoin slump hits treasury firms with billions in unrealized losses
Bitcoin treasury companies are facing tens of billions in unrealized losses after the token dropped 50% from its October peak. Strategy Inc. and Bitmine Immersion Technologies lead the losses with $13.3 billion and $10.3 billion respectively, while Hyperliquid Strategies holds a $1.3 billion gain. The downturn has forced BSTR Holdings to cancel a SPAC merger, and Avalanche Treasury Corp. has dropped over 70% since listing.
*this image is generated using AI for illustrative purposes only.
Bitcoin treasury companies now sit on tens of billions in unrealized losses after the token dropped 50% from its October peak. The decline has severely impacted firms that stockpiled the cryptocurrency, with the largest players reporting the deepest deficits. The only companies bucking the trend are those focused on Hyperliquid, which have managed to secure gains despite the broader market downturn.
Unrealized losses across major firms
Data from Artemis Analytics cited by Bloomberg shows the damage runs deep across the sector. The following table details the unrealized losses for the most affected companies as of July 22, 2026.
| Company | Unrealized Loss |
|---|---|
| Strategy Inc. (NASDAQ: MSTR) | $13.3 billion |
| Bitmine Immersion Technologies (NYSE: BMNR) | $10.3 billion |
| Twenty One Capital | $2 billion |
| BSTR Holdings | $1.8 billion |
| Metaplanet Inc. (OTC: MTPLF) | $1.5 billion |
Hyperliquid Strategies (NASDAQ: PURR) is the notable exception, sitting on a $1.3 billion unrealized gain.
SPAC mergers face headwinds
The market downturn has disrupted plans for special purpose acquisition company (SPAC) mergers. BSTR Holdings scrapped its planned merger with a Cantor Fitzgerald-affiliated blank-check company earlier this month, citing the need to revise terms to better reflect current market conditions. BSTR was co-founded by Adam Back, whose 1997 cryptographic system Hashcash was cited in the original Bitcoin white paper.
Sponsors have also abandoned a $1 billion vehicle that had lined up former U.S. Commerce Secretary Wilbur Ross for its board, as well as a $1.5 billion deal involving Ether Machine. For firms that did list recently, the reception has been grim. Avalanche Treasury Corp. (NASDAQ: AVAT) is down more than 70% since it began trading on June 11.
Rise and risks of the crypto treasury model
Strategy’s Michael Saylor pioneered the crypto treasury model, which gained momentum in April 2025 after DeFi Development Corp. (NASDAQ: DFDV) shares surged ninefold in one session. The surge followed a $125 million investment led by Pantera Capital’s Cosmo Jiang. Hundreds of teams copied the model within months.
Treasury companies are effectively a leveraged bet on whatever token they hold. Shares tend to amplify both gains and losses relative to the underlying asset. Strategy alone holds roughly 4% of Bitcoin’s total 21 million supply. Back framed the model’s logic as an arbitrage on Bitcoin’s long-run growth curve outpacing the cost of capital. However, Bitcoin trading at $66,000, still below its price at the time of Donald Trump’s November 2024 presidential election victory, has made that arbitrage considerably harder to close.
At what Bitcoin price point will the largest treasury companies face margin calls or liquidity crises?
Will the success of Hyperliquid Strategies trigger a shift in treasury allocations away from Bitcoin?
How will the collapse of SPAC mergers impact the ability of new crypto treasury firms to go public?
16
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
