MicroStrategy, BitMine, Forward: Crypto Treasury Firms Face the Downturn

The recent bearish downturn is set to test the resilience of crypto treasury firms. While holding digital assets a few months ago was hailed as a strategic advantage, as of the last few weeks, some of the biggest crypto firms are under pressure as their positions swing between profit and loss.

More than one trillion dollars vanished from crypto markets in six weeks, marking one of the fastest downturns in the history of crypto. Bitcoin hit as low as $81K yesterday, down by over 26% since its October high. 

Several other digital assets lost momentum as well. Ether, one of the best-performing mainstream altcoins in Q3, has now lost nearly half of its value since its August high of $4,966 -- currently trading at $2,670.

And the same momentum can be seen in other markets like Dogecoin, XRP, and Solana. For the firms that built their balance sheets around these tokens, the downturn is now cutting directly into corporate strategies.

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Treasury Firms Reaching Negative PnL

The downturn is now showing up directly in corporate balance sheets. Several treasury desks that built strategies around holding Bitcoin and Ether are reporting negative profit‑and‑loss positions, as reported by blockchain analysis page LookOnChain. 

MicroStrategy

MicroStrategy, the leading BTC treasury firm, is one of the few firms still afloat in profit. With over five years since the firm transitioned from a core software business to a Bitcoin-heavy strategy -- the company's  BTC stash is still worth around $74K per bitcoin. This means that Michael Saylor's company is still holding Bitcoin at a 12.72% profit, despite the recent 26% wipeout in the Bitcoin market. 

That said, MicroStrategy's position is still not as comfortable as it seems, despite the positive PnL. 

Much of MicroStrategy’s Bitcoin buying spree was funded through debt offerings and convertible notes. This means underlying obligations regardless of market conditions. The company's common stock (MSTR) is falling even harder than BTC, having lost over 40% in value over the last month. 

But despite that, Michael Saylor has affirmed that the company is ready to withstand a 90% drop in Bitcoin, which would mean a BTC price of nearly $10,000 per coin. 

BitWise

As a novice firm in the crypto treasury game, BitMine's ETH stockpile worth over $9.75 billion has already crawled into negative PnL territory. BitMine's cost-per-ether is at $4,010 -- and given that ETH is trading at $2,670 means that the firm is holding the altcoin at a loss of nearly 32%. 

Chairman Tom Lee remains optimistic about Ethereum's future, however. Just this week, the entrepreneur talked about how he sees the asset entering a "100x supercycle" soon, and about the importance of remaining resilient during bear markets. 

Forward Industries

Forward Industries, the largest corporate holder of Solana, is deep in the red. With SOL back near $120, far below its $232.08 average cost, the firm’s $1.5 billion position is down about 44%.

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A recent report by on-chain analysts revealed that the company moved a total of $200 million to Coinbase this week. However, Forward Industries has neither confirmed nor denied that the funds were sold. 

Volatility to Watch

Institutional adoption has become so prevalent in today's market that the performance of treasury firms can significantly impact investors' sentiment across the board. 

And while it's unlikely that these firms will decide to sell their crypto bags overnight, publicly traded companies are subject to shareholders' decisions -- which means shifts in strategy can't be ruled out. 

Yet, the growing presence of corporate treasuries in crypto also signals a deeper level of commitment to the asset class. Even in the face of sharp drawdowns, many firms continue to frame their holdings as long‑term bets, and many of them are continuing to buy.