Bitcoin’s Soggy Treasury: 77% of Firms Are All Wet!

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Oh, what a splendid pickle we find ourselves in! The mighty Bitcoin, that digital darling of the financial world, has decided to take a dip-and not the kind you’d enjoy on a sunny afternoon. No, this dip has left a whopping 77% of Bitcoin treasury firms sitting underwater, spluttering like a fish out of, well, Bitcoin. And by “underwater,” we don’t mean they’re exploring the Mariana Trench-they’re simply drowning in losses, with 65% of them bobbing more than 20% below their cost basis. Jolly good show, isn’t it?

Three Cheers for the Sinking Ship of Bitcoin Treasuries!

As the ever-observant Charles Edwards, founder of Capriole Investments, pointed out in a recent squawk on X (formerly known as Twitter, where birds once sang), a staggering number of Bitcoin treasury companies are now wearing their losses like a soggy overcoat. These firms, you see, are the ones who thought it wise to stash BTC on their balance sheets as a reserve asset. Publicly traded ones, in their infinite wisdom, did this to give their investors a roundabout ticket to the Bitcoin rollercoaster. Brilliant, really.

This ingenious strategy was made famous by Michael Saylor’s MicroStrategy (now just “Strategy,” because why not?), which has hoarded a mountain of Bitcoin over the years. But alas, the past few months have been rather bearish for BTC, and these firms are feeling the chill. Below is the chart Edwards shared, a delightful graph showing just how many of these companies are now treading water-or rather, sinking.

Behold the graph! A glorious 77.4% of Bitcoin treasury firms are now underwater, their holdings languishing below their cost basis. Even Strategy, with its average acquisition price of $75,985, is floundering more than 12% above the current spot price. And let’s not forget the 65.6% of firms that are in even deeper trouble, with losses exceeding 20%. It’s a regular Titanic out there, minus the iceberg-unless you count the plummeting Bitcoin price as the iceberg.

This sorry state of affairs reminds one of May 2022, when the bear market was in full swing and the percentage of underwater firms reached even more spectacular heights. Ah, the good old days!

But fear not, for there’s always another way to get your feet wet in the Bitcoin pool. Enter the spot exchange-traded funds (ETFs), those clever contraptions that buy and hold Bitcoin on your behalf, sparing you the hassle of dealing with blockchain nonsense. Alas, even these have faced net outflows during the bearish turn, though recent weeks have seen a trickle of inflows, suggesting that demand might be tiptoeing back.

BTC Price: A Tale of Woe and Wiggle Room

Bitcoin, that fickle friend, has retraced its steps in recent days, settling back at the $67,600 mark. Will it bounce back? Will it sink further? Only time-and perhaps a bit of magic-will tell.

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2026-03-10 04:43