Bitcoin [BTC] is currently in a mixed phase, and the same uncertainty is reflected in the related stocks.
As Bitcoin struggles to hold around $67,536.61, many crypto-related stocks are falling, reflecting growing caution among investors.
Strategy, one of the largest corporate holders of Bitcoin, fell 4.49% to $133.53. Crypto mining companies faced even bigger losses, with Riot Platforms down 9.20% and Marathon Digital (MARA) down 8.67%.
The trend is not limited to the US: Japan’s Metaplanet also fell 6.32%.
The Growing Concerns Around Bitcoin DATs
Investor Charles Edwards says the same thing said,
“77% of Bitcoin Treasury companies are underwater on their Bitcoin purchases. The last time this happened was May 2022.”
Source: Charles Edwards/X
For those who don’t know, the May 2022 collapse was caused by the crisis in the Terra-Luna ecosystem.
When the algorithmic stablecoin UST lost its $1 peg, the system entered a death spiral. In an attempt to restore the link, the Luna Foundation Guard sold more than 80,000 Bitcoin, but the attempt failed.
The heavy selling saw Bitcoin drop from around $40,000 to almost $25,000, wiping out more than $40 billion from the crypto market in a week.
Many companies that held Bitcoin in their treasuries suffered major losses along with crypto miners.
The crash also highlighted how interconnected the crypto industry had become. Hedge fund Three Arrows Capital (3AC), which reportedly lost around $500 million in the collapse, quickly became bankrupt.
This caused a chain reaction, with major consequences for lenders such as Celsius and Voyager Digital.
As users rushed to withdraw funds, both platforms were forced to freeze withdrawals, turning a market downturn into a broader institutional crisis that marked the start of the crypto winter.
And now the same fear surfaces again.
Bitcoin ETF and Bitcoin Treasuries holdings
If we zoom out, Bitcoin also spots ETFs included about $348.9 million in net outflows, which at first glance suggested investors were pulling money out of the market.
However, a closer look at companies’ Bitcoin holdings tells a slightly different story.
Public companies continue own a large amount of Bitcoin. At the beginning of March, companies collectively owned approximately 1.138 million BTC. Strategy has the largest share with approximately 720,737 BTC.
Source: BitcoinTreasuriesNet
It is followed by MARA Holdings with 53,822 BTC, Metaplanet with 35,102 BTC and Riot Platforms with 18,005 BTC.
Despite the current turbulence, Strategy CEO Phong Le and Nakamoto Chairman David Bailey recently dissected the path forward for Digital Asset Treasuries (DATs), noting:
“If we really want progress to continue, we need more people to own Bitcoin every year. And that is inevitable… And Bitcoin will be successful with or without the government.”
Final summary
- The fact that most Bitcoin treasury holdings are underwater is a reminder of the warning signs we saw before the last crypto winter.
- Bitcoin’s trajectory increasingly depends on institutional adoption rather than short-term market cycles.