The cryptocurrency treasury sector, which saw over 200 companies invest roughly $100 billion into Bitcoin last year, is undergoing a severe crisis and is likely to consolidate in 2026. According to Wojciech Kaszycki, chief strategy officer of crypto infrastructure and treasury company BTCS, the market downturn is pushing companies with operating businesses to merge with or acquire those trading below their net asset value (NAV).
Kaszycki explained that companies generating cash flow—through services like blockchain validation or offering credit instruments—have a financial edge. This allows them to acquire struggling competitors whose stock prices have fallen below the value of their crypto holdings. "If you consolidate with another player, sometimes two plus two equals six or more, you can win faster, because everybody in this market trading below net asset value is struggling," he told Cointelegraph.
The sector's decline began in 2025, with stock prices dropping below the value of held crypto, preceding the broader crypto market crash in October. Many firms now sit on billions in unrealized losses as Bitcoin's price has sunk nearly 50% from its October 2025 high of $126,000. According to BitcoinTreasuries.net, these companies now hold Bitcoin worth about $72 billion, roughly half of their peak value.
The model's fragility is being exposed as Bitcoin's price stagnation unravels the "infinite money glitch" strategy once championed by MicroStrategy's Michael Saylor. Dom Kwok, former Goldman Sachs analyst and co-founder of EasyA, attributed the unwind to "lacklustre demand from investors for shares in Bitcoin and altcoin treasury companies." Investors now prefer buying Bitcoin directly or through spot Bitcoin ETFs, which hold around $107 billion, rather than through leveraged treasury vehicles.
Shareholder revolts are erupting across the sector. Tice P. Brown, a 9.8% owner of Empery Digital, publicly demanded the resignation of CEO Ryan Lane and the entire board, calling for the sale of the company's 4,081 Bitcoin (worth ~$275 million) and return of proceeds to shareholders. Brown claims management offered to repurchase his stake at a 100% premium to NAV in exchange for ending his agitation—an offer Empery disputes, calling his campaign "self-serving." Empery's stock trades at an mNav of 0.59, a 41% discount to its Bitcoin holdings.
In another significant move, GD Culture approved the sale of some or all of its 7,500 Bitcoin (worth ~$505 million) to fund a $100 million share repurchase program. The AI and livestreaming firm, which acquired the Bitcoin just five months ago, is sitting on a 42% unrealized loss (~$208 million).
MicroStrategy remains the dominant player, accounting for over 99% of all corporate Bitcoin buying recently. André Dragosch, head of European research at Bitwise, noted capital is concentrating on "the biggest, most stable players like MSTR." However, MicroStrategy is also the world's most shorted company, with bearish bets against 14% of its market capitalization. Its stock has plummeted from $473 last year to $133.
Analysts are pessimistic about a sector recovery. Standard Chartered predicts Bitcoin could fall another 30% to $50,000 in the coming months and only reach $100,000 by end-2026, well below its record high.
