According to data provided by André Dragosch, European head of research at Bitwise, the shares of Bitcoin (BTC) treasury companies have now collapsed by a whopping 75% from their peak in late June.
The analyst does not rule out that this could be the top, but he also does not rule out that this could end up being a buying opportunity.
Bitcoin treasury stocks tumble
The shares of Metaplanet (MTPLF) have now collapsed by roughy 62% from its all-time high of 1,930 Japanese yen that was achieved in June. It is currently the sixth-largest Bitcoin treasury company by total holdings.
Strategy, the 900-pound gorilla of Bitcoin treasury investment, has also suffered a sharp stock decline of 28% from its local July top of $458 by a modest 10%.
The same applies to smaller players of the likes of Blockchain Group SA (ALCPB).
Key reasons behind dramatic decline
The massive plunge in the shares of Bitcoin treasury companies has been mostly driven by substantially reduced institutional buying activity as well as persistent concerns about inflated premiums to net asset value (NAV).
It remains to be seen whether Bitcoin treasury companies will be able to revive their mojo.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team