Companies that hoard bitcoin and other cryptocurrencies are seeing their share prices plummet as the crypto frenzy fades. At least 61 publicly listed companies have adopted bitcoin treasury strategies. Shares in notable buyers like Michael Saylor’s MicroStrategy have dropped significantly, impacting stock value and executive fortunes.

The volatility of these companies’ shares is not surprising, as they are heavily leveraged to bitcoin fluctuations. When prices drop, fear-driven selling exacerbates the downturn. Some companies now have market values lower than their crypto holdings. Access to capital markets for funding crypto purchases may also dry up during market downturns.

The trend of companies buying cryptocurrencies extends beyond bitcoin to include ether and other digital currencies. Some firms have seen massive stock gains after announcing crypto-buying strategies, only to face steep declines later. Retail users need to understand that some companies are selling a crypto narrative to pump up their equity value.

Gemini, a crypto exchange backed by the Winklevoss twins, is set to debut on the Nasdaq with a target market valuation of up to $3.08 billion. Other companies like BitMine and GameSquare, backed by Peter Thiel, have seen significant stock slumps after announcing plans to buy ether. Retail users must be wary of the true intentions behind these companies’ crypto investments.

Read more at Yahoo Finance: Investors retreat as shares in bitcoin buyers decline