Crypto Treasury Stocks Slide Sharply As Bitcoin Outperforms

HomeNews* Crypto stocks, especially those holding large Bitcoin reserves, dropped sharply Friday, outpacing bitcoin’s own decline.

• MicroStrategy (MSTR) and Semler Scientific (SMLR) shares each lost around 6%, while Japan’s Metaplanet fell 24%.
• MSTR traded more than 30% below its record high, despite bitcoin reaching new peaks this week.
• Market debates continue over the risks of companies aggressively buying bitcoin using leverage, focusing on the sustainability of their strategies.
• Analysts compared current market behavior to past issues with Grayscale’s GBTC, warning of instability if company valuations fall below their bitcoin holdings. Crypto-linked stocks saw significant losses on Friday, as companies with large bitcoin holdings led declines in the market. Shares of MicroStrategy (MSTR) and Semler Scientific (SMLR) each dropped about 6%, even though the price of bitcoin itself fell just over 2%. Japan-listed Metaplanet sank 24% during the same period.

• Advertisement - As of early Friday afternoon, MSTR was trading at $376—more than 30% under its all-time high from late 2024. This steep drop occurred as bitcoin hit a new record high earlier in the week.

This situation echoes the problems faced by Grayscale’s GBTC in 2020 and 2021, when its stock price fluctuated wildly relative to its underlying bitcoin assets. When the premium turned to a discount, it contributed to problems for funds like Three Arrows Capital and helped trigger a major market crash that pushed bitcoin from $69,000 to $15,000.

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