Bitcoin Slump Erases $62 Billion From Treasury Firms Following MicroStrategy Sale

Bitcoin’s sharp decline this week is putting heavy pressure on a fast-growing group of public companies that were built to buy and hold the cryptocurrency, wiping out about $62 billion in market value from bitcoin treasury firms as the broader crypto selloff deepens, according to Bloomberg. The slump has also pushed bitcoin to its longest losing streak since August, underscoring how quickly sentiment has deteriorated after one of the market’s biggest corporate buyers made a rare sale of tokens.

The rout gathered pace after Strategy, the dominant corporate bitcoin holder associated with Michael Saylor, sold about $2.5 million worth of bitcoin, a move that challenged its long-standing commitment never to sell, according to reporting cited by the Economic Times and Bloomberg. That sale helped fuel a broader loss of confidence in the trade, with bitcoin falling more than 5% in early Singapore trading on Thursday to below $62,000, its lowest level since February 6, the Economic Times reported.

The selloff is hitting not only bitcoin itself but also the companies that have turned corporate balance sheets into leveraged bets on the token. Bloomberg said these publicly traded “bitcoin treasury” firms were among the most ambitious financial experiments to emerge from the recent crypto boom, but they are now under fresh strain as bitcoin’s price weakens and investors reassess the strategy.

Market pressure has also been amplified by forced unwinding in the derivatives market. About $1.5 billion in bullish crypto bets were wiped out in the last 24 hours, according to CoinGlass data cited by the Economic Times, adding to the downward momentum. At the same time, investors have pulled nearly $4 billion from U.S.-listed bitcoin exchange-traded funds over the past 12 sessions, a record streak of outflows, Bloomberg reported, signaling that institutional demand has also cooled.

The decline comes amid broader macroeconomic unease, including renewed tensions in the Middle East that have rattled risk assets. Bitcoin has been falling even as technology stocks have held up better, highlighting a widening gap between crypto and the rest of the market, according to Bloomberg’s reporting. Ether and other smaller tokens have also come under pressure, showing that the weakness is not limited to bitcoin alone.

For investors, the stakes are high because bitcoin treasury firms often trade as a leveraged reflection of the cryptocurrency itself. When bitcoin rises, those companies can rally sharply; when it falls, their share prices and balance-sheet strategies can come under pressure just as quickly. What happens next will depend on whether bitcoin stabilizes near current levels or continues to slide, and on whether corporate buyers return to the market with fresh purchases rather than more selling.