Crypto downturn tests balance-sheet heavy treasury strategies

A renewed crypto market slump is pressuring companies that built digital asset treasuries by issuing debt and equity to accumulate tokens. More than 180 public firms now hold crypto, many following the strategy popularized by Michael Saylor’s Strategy. After bitcoin’s sharp October drop, several of these stocks have suffered steep declines as unrealized losses mounted. Investors have sold off both bitcoin and ether-focused treasury firms, suggesting a shakeout phase where only the strongest balance sheets and risk controls may endure.