Bitcoin Fell 50% and MSTR, BMNR, BSTR Are Paying the Price: What's Happening?

Bitcoin (CRYPTO: BTC) treasury companies now sit on tens of billions in unrealized losses after the token dropped 50% from its October peak. • How is Bitcoin doing today? How Bad Are The Losses Across Treasury Companies? Artemis Analytics data cited shows the damage runs deep across the sector.

The biggest unrealized losses belong to the largest players: Company Unrealized Loss Strategy Inc. (NASDAQ: MSTR ) $13.3 billion Bitmine Immersion Technologies (NYSE: BMNR ) $10.3 billion Twenty One Capital $2 billion BSTR Holdings $1.8 billion Metaplanet Inc. (OTC: MTPLF ) $1.5 billion Source: Artemis Analytics, July 22, 2026 The only companies bucking the trend are those focused on Hyperliquid, with Hyperliquid Strategies (NASDAQ: PURR ) sitting on a $1.3 billion unrealized gain.

What Is Happening To SPAC-Based Treasury Companies? BSTR Holdings scrapped its planned merger with a Cantor Fitzgerald-affiliated blank-check company (SPAC) earlier this month, citing the need to revise terms to better reflect current market conditions.

BSTR was co-founded by Adam Back, whose 1997 cryptographic system Hashcash was cited in the original Bitcoin white paper.

The SPAC route has proved particularly brutal, with sponsors scrapping a $1 billion vehicle that had lined up former U.S.

Commerce Secretary Wilbur Ross for its board.

Sponsors also abandoned a $1.5 billion deal involving a company called Ether Machine.

For those that did list recently, the reception has been grim: Avalanche Treasury Corp. (NASDAQ: AVAT ) is down more than 70% since it began trading on June 11.

Why Did This Model Get So Popular So Fast? Strategy’s Michael Saylor pioneered the crypto treasury model, which gained momentum in April 2025 after DeFi Development Corp. (NASDAQ: DFDV ) shares surged ninefold in one session following a $125 million investment led by Pantera Capital’s Cosmo Jiang.

Hundreds of teams copied the model within months. “It got very heated, very quickly,” Jiang told Bloomberg. “We were getting pitched left and right,” he added.

Pantera invested in more than 20 crypto treasury deals and made money overall thanks to standout performers like Bitmine and Hyperliquid Strategies, but even those names trade well off their peaks.

What Is The Core Problem With The Model? Treasury companies are effectively a leveraged bet on whatever token they hold.

Shares tend to amplify both gains and losses relative to the underlying asset, which works brilliantly in a bull market and devastatingly in a bear one.

Strategy alone holds roughly 4% of Bitcoin’s total 21 million supply.

Back framed the model’s logic as an arbitrage on Bitcoin’s long-run growth curve outpacing the cost of capital.

Bitcoin trading at $66,000, still below its price at the time of Donald Trump’s November 2024 presidential election victory, has made that arbitrage considerably harder to close.

Read Also: Oracle Faces Pressure: Data Center Costs and OpenAI Exposure Weigh on Stock Photo via Shutterstock