The Breakdown Crypto Treasuries Face Their First Real Test
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Jul 31, 2025 Crypto treasury companies are feeling the heat as investor enthusiasm dwindles. Bitmine's share buyback struggled to sway markets, casting doubts on the sector's narrative. Meanwhile, Backed faced a disastrous public offering, tanking its stock price. The podcast also delves into Tether's Bitcoin investments and eToro's push for tokenized stocks, highlighting the balance of challenges and opportunities in this evolving landscape. Can crypto treasuries weather the storm?
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Bitmine's Narrative Struggles
- Bitmine's ETH treasury strategy created an initial 35x stock price surge but quickly crashed 75% then declined further.
- The stock's NAV premium dropping to 1.5x signals narrative fatigue and parallels MicroStrategy's past struggles.
Buyback Fails to Halt Decline
- Bitmine's $1 billion share buyback did not stop stock decline, indicating market doubts and narrative saturation.
- A falling NAV multiple under 1.5x triggers a negative feedback loop making new share issuance unattractive.
Retail Enthusiasm Wanes
- Waning retail enthusiasm threatens the viability of crypto treasury companies.
- Bitmine's inability to rally on bullish calls could foreshadow broader market challenges in this sector.