Companies that built their stock story around Bitcoin are now watching those gains unravel, and the reversal has been sharp – www.naijnaira.com reports.
Reuters noted that firms raising cash to buy Bitcoin through debt and stock sales saw surging interest earlier this year, especially as Donald Trump voiced support for the sector.
Michael Taylor’s Strategy, once the poster child for Bitcoin accumulation, has dropped from $457 in July to $328 this week, erasing much of its summer rally.
Metaplanet in Japan, another well-known Bitcoin treasury firm, has collapsed over 60% from its June highs, though it still holds a triple-digit gain for the year.
The volatility is staggering, with analyst Adam McCarthy of Kaiko saying, “These are all essentially volatility plays… if Bitcoin is down 3%, they’re down a multiple of that.”
Alt5 Sigma, which tied itself to Trump’s World Liberty Financial crypto project, has lost 63% since June.
Even non-crypto companies that pivoted toward Bitcoin for market attention, like Smarter Web Company, saw a 70% wipeout after their initial spike.
The frenzy also spilled into Ethereum and other tokens, with BitMine and GameSquare soaring after ether-buying announcements, only to plunge 67% since July.
Retail investors, often drawn in by hype, are left absorbing the shock of leveraged exposure unraveling at speed.
McCarthy added that “until retail users realise these firms are selling a crypto narrative to pump equity value, this circle will persist.”
Article updated 3 weeks ago. Content is written and modified by multiple authors.
