Crypto Treasury Stocks Tumble as Bitcoin and Ethereum Selloff Deepens
Shares of two of the most prominent public crypto treasury firms, Strategy and BitMine Immersion Technologies, slumped nearly 10% on Thursday as renewed pressure on Bitcoin and Ethereum rippled through traditional markets. The drop came amid mounting macro uncertainty and growing concern over a potential U.S. government shutdown, prompting a broader risk-off move across speculative assets.
BitMine Stock Slides to Multi‑Month Low
BitMine Immersion Technologies, a major corporate holder of Ethereum that trades on Nasdaq under the ticker BMNR, saw its stock close the day down close to 10%, finishing at $26.70. Intraday, the share price fell as low as $26.02, effectively revisiting its prior closing low of $26.02 set on November 2, 2025.
The renewed weakness in BMNR stands in stark contrast to the company’s aggressive accumulation strategy this year. Earlier in the week, BitMine, led by CEO Tom Lee, executed its largest Ethereum purchase of 2026, buying $116 million worth of ETH. That deal followed three substantial treasury allocations earlier in the year valued at approximately $108 million, $76 million, and $100 million.
Taken together, those purchases have significantly expanded BitMine’s exposure to Ethereum. The firm now holds around $11.9 billion worth of ETH in its corporate treasury, underscoring how tightly its stock performance is bound to the price of the second‑largest cryptocurrency.
Strategy Shares Drop in Tandem With Bitcoin
Strategy, widely regarded as one of the most influential corporate holders of Bitcoin, also endured a sharp selloff. Its shares retreated by nearly 10% on Thursday as Bitcoin itself slid, erasing recent gains and shaking investor confidence in the durability of the latest crypto rally.
The company’s business model hinges on using its balance sheet as a leveraged play on Bitcoin, converting sizeable portions of corporate cash and, in some cases, raised capital into BTC. As a result, Strategy’s share price typically amplifies moves in the underlying asset: when Bitcoin surges, the stock often outperforms; when Bitcoin weakens, losses in the equity can be swift and pronounced.
With Bitcoin declining and volatility picking up, traders rushed to reduce exposure to such proxy plays, leading to outsized pressure on Strategy’s stock throughout the trading session.
Macro Jitters and Shutdown Fears Hit Risk Assets
The simultaneous declines in Bitcoin, Ethereum, and the stocks of major treasury holders did not occur in isolation. Markets have been grappling with a combination of macro headwinds, including:
– Renewed fears of a U.S. government shutdown
– Ongoing uncertainty over the path of interest rates
– Mixed economic data, fueling debate over the timing and depth of any potential slowdown
In such an environment, investors have tended to shun high‑beta assets, with cryptocurrencies and crypto‑exposed equities high on the list to be sold. Treasury‑focused firms like BitMine and Strategy are particularly vulnerable because their valuations are so closely tethered to sentiment around digital assets.
How Crypto Treasury Firms Became Market Proxies
Over the last several years, publicly traded companies that hold large crypto positions on their balance sheets have become de facto proxies for the underlying assets. For some institutional players still constrained from directly holding Bitcoin or Ethereum, buying shares in firms like Strategy or BitMine has served as a workaround.
That dynamic works both ways. On days of broad enthusiasm, these stocks can act as leveraged vehicles for market participants hoping to ride a momentum wave. Conversely, during periods of stress, they can suffer accelerated declines as investors unwind exposure, sometimes more aggressively than in the spot crypto markets themselves.
The events of Thursday highlight how this feedback loop can intensify market moves: spot prices fall, sentiment worsens, investors sell the proxy stocks, and that selling in equities further reinforces the narrative of risk aversion across the crypto complex.
BitMine’s High‑Conviction Ethereum Bet Under Scrutiny
BitMine’s recent buying spree in ETH signals a strong conviction that Ethereum will appreciate over the medium to long term. The firm has been positioning itself not merely as a miner or infrastructure player, but as a strategic treasury manager that treats Ethereum as a core reserve asset.
However, that strategy exposes the company and its shareholders to concentrated asset risk. With the firm having executed four large ETH purchases this year alone—$116 million being the most recent—any significant downturn in Ethereum’s price can quickly translate into material mark‑to‑market losses on BitMine’s balance sheet, which in turn can weigh on investor sentiment toward the stock.
For now, the company appears committed to its thesis. Yet the market’s reaction on Thursday shows that shareholders may not all share the same risk tolerance as BitMine’s leadership, particularly when macro conditions are deteriorating and liquidity is being pulled out of speculative corners of the market.
Strategy’s Bitcoin‑First Model Faces Familiar Volatility
Strategy’s position is different in one key respect: its bet is almost entirely concentrated in Bitcoin. The firm has built its brand around the narrative that Bitcoin is a superior long‑term store of value compared to cash or bonds, dedicating much of its treasury and additional capital raises to BTC accumulation.
That model has earned the company a devoted base of investors who see the stock as a long‑duration call option on Bitcoin’s future. But Thursday’s selloff underscores the flipside: during sharp drawdowns in Bitcoin, Strategy’s stock becomes one of the first places traders look to reduce risk.
This is not a new pattern. Historically, directional swings in Strategy’s share price have broadly tracked Bitcoin’s cycle, rising dramatically in bull markets and suffering deep pullbacks in bears. The current episode fits squarely within that established volatility profile.
What the Selloff Means for Crypto‑Exposed Equity Investors
For investors in crypto‑linked equities, Thursday’s moves reiterate several key lessons:
1. Correlation Risk
Stocks like BitMine and Strategy are highly correlated with their underlying crypto assets. Portfolio diversification benefits can be limited if exposure to both the coins and the equities is not carefully calibrated.
2. Leverage Through Equity
While these companies may not use excessive financial leverage, their operational models can create *effective* leverage. Share prices often move by a multiple of daily changes in Bitcoin or Ethereum.
3. Macro Still Matters
Even in a fundamentally bullish environment for crypto, broader market concerns—such as a possible government shutdown or changing interest‑rate expectations—can overpower asset‑specific narratives.
4. Time Horizon Is Critical
Investors with a long‑term thesis on Bitcoin or Ethereum may be more tolerant of near‑term volatility in crypto treasury stocks. Short‑term traders, by contrast, face heightened risk around macro headlines and sentiment shifts.
Ethereum vs. Bitcoin: Diverging Corporate Adoption Paths
The contrast between BitMine’s Ethereum‑centric strategy and Strategy’s Bitcoin‑only approach also points to a broader theme in corporate adoption. While Bitcoin remains the dominant treasury asset for most publicly traded firms dabbling in crypto, Ethereum has gradually gained traction among companies that see value in its broader ecosystem, including decentralized finance and tokenization.
BitMine’s heavy ETH exposure puts it at the forefront of this trend, but also makes it a test case. If Ethereum underperforms relative to Bitcoin during periods of stress, investors may question whether an ETH‑focused treasury model is inherently riskier. Conversely, if future upgrades and network growth drive sustained ETH outperformance, BitMine could be positioned as an early winner.
Outlook: Volatility Likely to Persist
Looking ahead, much will depend on how the current macro story unfolds. A resolution to U.S. budget negotiations and reduced fears of a government shutdown could ease some pressure on risk assets, potentially allowing crypto and crypto‑linked stocks to stabilize or rebound.
However, as long as uncertainty remains elevated, volatility in Bitcoin, Ethereum, and the equities tied to them is likely to stay high. For BitMine and Strategy, the path of their flagship assets—ETH and BTC—will continue to be the primary driver of shareholder returns in the near term.
Investors considering exposure to these names will need to weigh carefully whether the potential upside from any renewed crypto rally compensates for the kind of swift drawdowns seen this week. For now, the market has issued a clear reminder: when the largest digital assets wobble, the companies that have bet their treasuries on them can feel the impact even more acutely.