Crypto Treasury Stocks at Risk of 50% Crash After PIPE Deals — CryptoQuant Warns

Crypto treasury companies that raised capital through private investment in public equity (PIPE) deals face a growing risk of their stock prices crashing by as much as 50%, according to a new market report from analytics platform ￰1￱ firm said PIPE-backed companies have already suffered steep declines, with share prices often gravitating toward their PIPE issuance ￰2￱ $35 to $1: PIPE deals are crushing Bitcoin treasury ￰3￱ MD (NAKA) soared 18.5x in weeks, then fell 97%, back to its $1.12 PIPE ￰4￱ price gravity is ￰5￱ — ￰6￱ (@cryptoquant_com) September 25, 2025 Researchers noted that when lock-up periods expire, investors frequently exit positions to secure profits, creating heavy selling ￰7￱ Issuances Create Overhang Across Crypto Treasury Sector, Analysts Warn PIPE deals allow private investors to buy new shares below market price, offering companies fast access to liquidity in a competitive ￰8￱ effective for raising cash, CryptoQuant warned that these arrangements dilute existing shareholders and leave an overhang of shares that weighs on stock ￰9￱ of the starkest examples is Kindly MD (NAKA), a medical company that pivoted into Bitcoin treasury holdings earlier this ￰10￱ stock surged from $1.80 in late April to nearly $35 by late May after announcing a PIPE raise.

However, once PIPE shares unlocked, the stock collapsed 97%, falling to $1.16, almost identical to its PIPE offering price of $1.12. CryptoQuant described the retracement as a case of “PIPE price gravity.”) peaked at $13 in May but has since dropped 78% to $2.75. CryptoQuant said its PIPE was priced at $1.35, implying the stock could face another 55% decline as investors prepare to sell when the lock-up ends next ￰11￱ Equity Partners (CEP), a special purpose acquisition company merging with Twenty One Capital, also conducted a PIPE priced at $10. CEP’s shares have already slipped nearly 70% from their highs to below $20.

CryptoQuant suggested the stock could fall another 50% from current levels once PIPE investors begin to ￰12￱ report noted that even well-established crypto treasuries are under pressure as the value of their digital asset holdings approaches parity with their overall company ￰13￱ dynamic could further accelerate sell-offs if investors perceive limited upside in stock performance compared to direct crypto ￰14￱ concluded that only a strong and sustained Bitcoin rally is likely to counteract the downward pressure facing treasury stocks tied to PIPE ￰15￱ such a rebound, it warned that many companies are likely to continue trending toward or below their PIPE issuance ￰16￱ present, the trend has already left PIPE-funded crypto treasury stocks exposed to sharp losses, with investors closely watching how upcoming unlocks will impact market sentiment in the weeks ahead.

Small-Cap Firms Turn to Borrowing as Crypto Treasury Strategy Falters On the other hand, the crypto treasury strategy that surged across small-cap firms in 2024 is showing signs of strain as companies turn to debt-funded share buybacks to support collapsing ￰17￱ to a CryptoNews report , at least seven firms, including gaming, biotech, and electric vehicle companies, have launched repurchase programs despite trading below the value of their crypto ￰18￱ say the trend reflects investor skepticism and undermines the premise that digital assets alone can boost stock performance. A quarter of all public companies holding Bitcoin now trade at market values below the worth of their BTC holdings. #Bitcoin #BTC ￰0￱ — ￰19￱ (@cryptonews) September 17, 2025 One high-profile case is ETHZilla, formerly 180 Life Sciences, which rebranded after buying ￰20￱ stock has fallen 76% since ￰21￱ company recently secured $80 million in debt from Cumberland DRW to finance a $250 million ￰22￱ argue the move signals distress.

“They’re borrowing money to buy time, not tokens,” said Kaiko analyst Adam Morgan ￰23￱ tactics are emerging ￰24￱ Digital, once Volcon, expanded its debt facility to $85 million despite holding $476 million in Bitcoin, more than its $378 million market ￰25￱ Gaming, Ton Strategy, and CEA Industries are pursuing comparable ￰26￱ from K33 shows one in four public Bitcoin treasuries now trade below their net asset value, with the average NAV multiple falling to 2.8 from 3.76 in ￰27￱ firms such as NAKA and Semler Scientific face mounting pressure, while larger players like MicroStrategy continue to command ￰28￱ slowdown in BTC accumulation suggests the once-celebrated crypto treasury playbook may be nearing its limits.