Crypto hoarders dump tokens as shares tumble
Recorded: Nov. 27, 2025, 1:02 a.m.
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Crypto hoarders dump tokens as shares tumble - Ars Technica Skip to content Ars Technica home Sections Forum Subscribe Search AI Biz & IT Cars Culture Gaming Health Policy Science Security Space Tech Feature Reviews AI Biz & IT Cars Culture Gaming Health Policy Science Security Space Tech Forum Subscribe Story text Size Small Width Standard Links Standard * Subscribers only Pin to story Theme HyperLight Day & Night Dark System Sign In a tactical decision Crypto hoarders dump tokens as shares tumble Several companies are selling crypto stockpiles in effort to fund share buybacks, shore up stock prices. Nikou Asgari in London and Jill R Shah in New York Nov 26, 2025 10:37 am 120 Credit:
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Text Story text Size Small Width Standard Links Standard * Subscribers only Minimize to nav Crypto-hoarding companies are ditching their holdings in a bid to prop up their sinking share prices, as the craze for “digital asset treasury” businesses unravels in the face of a $1 trillion cryptocurrency rout. Credit:
Saylor’s software business inspired a raft of copycats in industries including film production, vaping, and electric vehicles, after its pivot to a “bitcoin treasury” strategy drove a huge increase in its share price. Purchases by such companies have been a big driver of bitcoin hitting a record high last month. “It was inevitable,” said Jake Ostrovskis, head of OTC trading at Wintermute, referring to the sell-off in digital asset treasury stocks. “It got to the point where there’s too many of them.” Credit:
Georges Karam, chief executive of Sequans, said the sale was a “tactical decision aimed at unlocking shareholder value given current market conditions.” Financial Times Financial Times 120 Comments Comments Forum view Loading comments... Prev story Next story Most Read 1. 2. 3. 4. 5. Customize Ars Technica has been separating the signal from More Contact Manage Preferences |
The recent turmoil in the cryptocurrency market, characterized by a $1 trillion rout, has triggered a significant shift in strategy among companies previously embracing a "digital asset treasury" model. This shift, detailed by Nikou Asgari and Jill R. Shah, reflects a desperate attempt to stabilize declining share prices and highlights the inherent risks of this increasingly unpopular strategy. Several companies, including Michael Saylor’s Strategy, Japan’s Metaplanet, the UK’s Smarter Web Company, and North Carolina-based FG Nexus, are now actively selling their cryptocurrency holdings – primarily Bitcoin and Ether – to fund share buybacks and address mounting debt. The catalyst for this dramatic shift is the realization that the initial surge in value experienced by these companies, driven by a speculative fervor around cryptocurrencies, has evaporated. The price of Bitcoin, previously peaking at $115,000, has fallen to $87,000, and Ether’s value has experienced a parallel decline. This downturn has exposed the fragility of businesses that had built their valuations on the assumption of continued crypto asset appreciation. Adam Morgan McCarthy, a senior research analyst at crypto data firm Kaiko, predicts a “vicious cycle,” noting that as prices tank, companies are compelled to sell assets at the bottom, exacerbating the downward pressure. McCarthy estimates that 95% of these digital asset treasuries will ultimately “go to zero,” indicating a severe loss of value for these holdings. Companies are finding the market for niche cryptocurrencies, like those held by medical device companies, increasingly challenging. Sales are proving difficult, and the prospect of being excluded from major stock indices, a potential consequence for firms like Strategy, further intensifies the pressure. Michael Saylor, CEO of Strategy, attempts to downplay these concerns, referencing the “Satoshi’s gift to the faithful,” a nod to the pseudonymous creator of Bitcoin. However, this sentiment does little to alter the financial reality for his company. Several strategic moves are emerging. While large-scale crypto sellers such as Strategy are doubling down on purchases at lower prices, others, like Sequans Communications, are making tactical decisions to address debt obligations. Georges Karam, CEO of Sequans, framed the sale as a “tactical decision aimed at unlocking shareholder value given current market conditions,” a common justification in a period of financial distress. The complexity lies in the fact that these companies were pursuing a model predicated on sustained growth in crypto asset values. The market’s response has demonstrated that this model’s underlying assumptions have been seriously flawed, leading to a fire sale of digital assets and a reassessment of the entire strategy. The situation underscores the risks associated with investing in nascent and volatile asset classes, particularly when used as a cornerstone of a company’s financial strategy. |