Bitcoin News Today: Bitcoin's Price Stagnation Despite Corporate Buying Frenzy

Bitcoin treasury companies have amassed a significant portion of the cryptocurrency, yet the price of Bitcoin has not seen a corresponding surge. Public companies have increased their holdings of Bitcoin, with the total value of corporate treasuries in the asset now exceeding $112 billion [2]. Despite this, Bitcoin remains 8% below its all-time high and has only risen 19% year-to-date, modestly outperforming the S&P 500 [1]. The disconnect between increased holdings and price movement is attributed to the fact that much of the activity involves shifting Bitcoin from private to public treasuries, rather than fresh inflows [1].

This trend has not only failed to boost Bitcoin’s price but has also impacted the performance of equity shares of leading Bitcoin treasury companies. Shares of firms such as Strategy (NASDAQ:MSTR), Twenty One, Semler, and MetaPlanet have dropped between 25% and 71% from their 2025 highs [1]. The lack of price appreciation is also evident in the fact that corporate treasuries and funds have acquired 371,111 BTC year-to-date, far exceeding the output of miners during the same period [1].

The business model of Bitcoin treasury companies is increasingly under scrutiny. One in three publicly listed crypto treasury firms now trade below a market net asset value (mNAV) of one, indicating that investors value these businesses for less than the value of the Bitcoin they hold [2]. This trend is expected to widen, with analysts warning of a “spiral of doom” if these companies are forced to sell Bitcoin to cover debt used to purchase the asset [2]. Such selling pressure could create a negative feedback loop, dragging down both share and crypto prices and potentially introducing systemic risks [2].

The challenges facing these firms are multifaceted. Many lack the leverage, investor base, and track record of early leaders like Strategy, making it difficult for them to justify premiums or maintain strong valuations [2]. Additionally, newer digital asset firms struggle with weak management, dilution risk, and limited brand recognition, which further erode investor confidence [2]. This has led to a decline in the sector’s average mNAV since May, even amid a bullish market [2].

Despite the risks, there are still voices of optimism. Some analysts argue that the dangers of increasing mNAV discounts are overblown and that most of these discounts are due to Bitcoin’s price action rather than fundamental issues [2]. Moreover, the demand for corporate accumulation of crypto assets remains strong, with many expressing hope that these companies will add more value beyond simply holding digital assets [2]. However, the ability of these firms to do so remains unproven, and the sector continues to attract skepticism from seasoned market observers.

Source: [1] If Bitcoin Treasury Companies Are Buying Billions, Why Is The Price Not Going Up? (https://finance.yahoo.com/news/bitcoin-treasury-companies-buying-billions-203108902.html) [2] Spiral of Doom as One in Three Treasury Companies Lose Premiums (https://www.dlnews.com/articles/markets/spiral-of-doom-as-one-in-three-treasury-companies-lose-premiums/) [3] Who's Getting Rich Off The $100 Billion Crypto Treasury Boom (https://www.forbes.com/sites/juliegoldenberg/2025/08/19/whos-getting-rich-off-the-100-billion-crypto-treasury-boom/)