Bitcoin Treasury Companies Unwind Holdings as Share Prices Collapse and AI Calls

The companies that borrowed billions to buy Bitcoin are now selling it. At least seven publicly listed digital asset treasury firms have unloaded their Bitcoin holdings in recent weeks — some to repay debt, some to fund operations, and some to pivot entirely into artificial intelligence. The model that was supposed to revolutionize corporate finance is unraveling in real time.

By David Chen | July 24, 2026

The Hook: The DAT Model Breaks Down

It started as one of the boldest experiments in corporate finance. Strategy — formerly MicroStrategy — pioneered the digital asset treasury model in 2020, using its own cash reserves and borrowed funds to accumulate Bitcoin. The idea was simple: if you believe Bitcoin will appreciate faster than your debt costs, then borrow cheaply, buy Bitcoin, and let the spread work in your favor.

It worked spectacularly — for a while. A wave of imitators followed, including Satsuma Technology, Smarter Web Company, Sequans Communications, Nakamoto, and Empery Digital. These firms splurged cash and borrowed heavily to buy Bitcoin as the price climbed toward its record of roughly 126,000 dollars in October 2025.

Then Bitcoin fell about 50 percent from that peak. Share prices collapsed. And now, according to Matthew Sigel, Head of Digital Assets Research at VanEck, several of these companies have exited crypto entirely or are substantially reducing their holdings.

On-Chain Evidence: Who Is Selling and Why

The list of sellers reads like a who’s who of the treasury boom. Satsuma Technology shareholders just approved the liquidation of all 668 BTC, a return of capital, and a delisting from the London Stock Exchange. Another LSE-listed firm, Smarter Web Company, sold 178 BTC to repay a convertible instrument.

Smarter Web CEO Andrew Webley was candid about the reversal: while the company still recognizes the potential benefits of Bitcoin-denominated instruments, they no longer believe convertibles represent the right capital solution at this time.

• Satsuma Technology (SATS) — liquidating all 668 BTC, delisting from LSE
• Smarter Web Company (SWC) — sold 178 BTC to repay convertible debt
• Sequans Communications (SQNS) — sold 1,025 BTC, then disposed of nearly 80 percent of remaining holdings; 658 BTC left
• Nakamoto (NAKI) — sold roughly 284 BTC for working capital; shares down 99 percent from SPAC deal
• Strategy (MSTR) — sold approximately 3,620 BTC recently, authorized further sales for cash reserves
• Empery Digital — sold almost half its Bitcoin for buybacks and debt repayment

The Core Conflict: Miner Pivots and Management Shakeup

It is not just treasury companies unwinding. Bitcoin miners are also selling — but for a different reason. MARA Holdings and Bitdeer, two of the largest publicly traded mining firms, have been unloading Bitcoin to repay debt and repurpose their energy infrastructure for AI data centers.

The logic is brutal but clear. Mining Bitcoin at current prices — around 65,000 dollars, down from 126,000 dollars — may no longer cover operating costs at many facilities. Meanwhile, AI companies are desperate for computing power and willing to pay premium rates for access to energy-hungry data centers. For miners sitting on expensive infrastructure and cheap power contracts, pivoting to AI is the rational economic play.

The disruption goes beyond asset sales. Jack Mallers stepped down as CEO of Twenty One Capital, the Bitcoin treasury firm backed by Tether — a sign that even well-capitalized ventures are hitting turbulence. Meanwhile, Adam Back’s Bitcoin Standard Treasury Company (BSTR) failed to complete its proposed merger, scrapping the original SPAC terms due to unfavorable conditions.

Market Implications: Strategy’s New Math

Through all of this, Strategy remains the giant in the room. The company still holds more than 843,000 BTC — by far the largest publicly listed position. But even Strategy is adapting. The company just introduced a completely new metrics framework to give common shareholders a clearer picture of their actual exposure.

Under the old reporting, Strategy touted its gross Bitcoin holdings. The new framework introduces what the company calls Net Reserve: take the total Bitcoin and cash reserves of 58.8 billion dollars, subtract 6.8 billion dollars in out-of-the-money convertible debt and 15.5 billion dollars in preferred stock obligations, and you get a Net Reserve of 36.6 billion dollars.

That is a big haircut. It means roughly 22.3 billion dollars in senior claims rank ahead of common shareholders in any liquidation. The new BTC Breakeven ARR metric sits at 3.22 percent — meaning Bitcoin only needs to appreciate faster than that annual rate for Strategy to cover all its interest and dividend obligations indefinitely. At current prices, that bar seems achievable. But it is a striking shift from the unbridled optimism of 2024 and 2025.

The Verdict: Consolidation, Not Collapse

The digital asset treasury model is not dying — it is consolidating. The firms that borrowed aggressively at the top are being forced to face the music, and the weaker hands are folding. But Strategy, with its enormous stash and increasingly transparent reporting, is positioning itself as the survivor. CEO Michael Saylor even told investors the company may sell some Bitcoin to fund a dividend, saying it would inoculate the market against broader fears.

For investors watching from the sidelines, the lesson is straightforward. The treasury model works when Bitcoin goes up. When it goes down — especially when leverage is involved — the unwind can be painful and fast. Companies that over-leveraged at the top are learning this the hard way. Companies that managed risk and kept debt manageable will come out stronger.

The bigger story may be the miner-to-AI pivot. When the companies that physically secure the Bitcoin network start pointing their hardware at AI workloads instead, it tells you where the real money is flowing right now. Bitcoin mining is not going away — but the economics that defined the last cycle are shifting under everyone’s feet.

The cryptocurrency market remains highly volatile. This article is for informational purposes only and does not constitute financial advice.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry risk; always do your own research.