Is a crypto downturn on the horizon? It’s already firmly established for bitcoin treasury companies (BTCTC).
In an attempt to emulate the unprecedented achievements of Michael Saylor’s MicroStrategy (MSTR) and possibly leveraging a U.S. regulatory climate that turns a blind eye to dubious public offerings, a surge of crypto asset treasury firms went public in 2025.
The fallout has been significant, with investors facing substantial losses across the board. Although the drop in bitcoin price over the last 11 days (notably, it peaked above $126,000 on Monday, Oct. 3), BTCTC share prices were already declining well before that.
For a small selection of BTCTCs, losses in the past three months vary dramatically, from a relatively modest 38% in the case of Strategy to a staggering 94% for KindlyMD (NAKA).
‘Steady lads’
As the TerraUSD algorithmic stablecoin started to lose its dollar peg in May 2022, Do Kwon famously tweeted, “Deploying more capital — steady lads.” Within days, TerraUSD, which had previously held a market cap around $50 billion, became worthless.
This social media post has since turned into a meme for the crypto community whenever market conditions appear shaky.
This doesn’t imply any level of comparable instability or illegality, nor does it predict the future of BTCTCs; however, some executive teams at these firms have recently been very active on social media defending their business models.
Simon Gerovich, CEO of Japan’s Metaplanet (MTPLF)—which has seen a decline of 70% in share price over the past three months since implementing the BTCTC strategy in 2024—was attempting on Friday to justify why a shift towards preferred stock issuance will yield strong returns for shareholders.
“When bitcoin appreciates faster than the cost of capital, that difference compounds into greater bitcoin per share, benefiting common shareholders,” he stated in a post on X.
The short version: Metaplanet investors can expect to profit if “number go up.”
David Bailey, CEO of KindlyMD—whose stock has plummeted 94% in the last three months, dropping below $1 and risking delisting from Nasdaq—felt compelled to refute claims from an X poster that his company bore “FTX vibes.”
“In no way do we resemble FTX,” stated Bailey. “We’re a regulated, registered security that buys and holds bitcoin.” When the CEO of a publicly traded firm feels the need to respond to a random troll by insisting “we’re not FTX,” it suggests the situation has become dire.
Then we have Ben Werkman, CIO of Strive (ASST)—whose share price has experienced nearly the same decline as NAKA and is also facing delisting risks—offering explanations for the challenges and a path forward.
“Now that the exuberance has faded, many firms are well-positioned to advance to the next stage of their journey with healthy balance sheets,” remarked Werkman in an extremely lengthy post on X.
“Achieving scale is challenging, but many companies have managed it,” he added. “Valuations are hitting deep value territory (based solely on balance sheets), and it’s at these valuations that long-term investors are willing to take their chances.”
Werkman reminded readers that many speculated Saylor’s Strategy (then MicroStrategy) would collapse during the 2022 crypto winter. Those who dismissed that assumption were rewarded with extraordinary returns. MSTR was priced around $30 when Do Kwon made his “steady lads” remark. Even after their recent downturn, the shares still hover around $290—almost a tenfold increase over the past three and a half years.
Regardless of what the future holds for BTCTCs, one thing remains certain: the current sentiment is far from optimistic. If any of the newcomers hope to replicate the significant successes of early movers like Strategy, they’ll likely need more than just a rising bitcoin price.
This op-ed is part of CoinDesk’s Bitcoin Treasuries Theme Week, sponsored by Genius Group.
