Crypto treasury companies are feeling the heat as the bear market erodes asset values. Falling token prices are narrowing financial buffers, weakening company valuations. Bitcoin-heavy firms like Strategy are seeing sharp losses, with MSTR stock dropping 53%. Metaplanet is in a similar position, facing over $120 million in unrealized losses.

Altcoin-focused treasuries are also struggling, with Evernorth facing a $79 million loss on XRP holdings. BitMine, the largest Ethereum treasury, is dealing with a $2.1 billion deficit due to Ethereum’s decline. Analysts warn of structural risks, as companies that build positions during strength face rapid erosion of capital in market downturns.

Read more at Yahoo Finance: Bitcoin Treasuries Face Capital Shock as Falling Prices Erase Gains