Bitcoin treasury companies sell up, repay debt, pivot to AI as share prices collapse

Bitcoin’s recent price decline, which saw its value fall by about 50% from its peak in October 2025, has significantly impacted digital asset treasury companies that had accumulated large bitcoin holdings. Several publicly traded firms including Strategy, Satsuma Technology, Smarter Web Company, Sequans Communications, Nakamoto, and Empery Digital have sold portions of their bitcoin reserves to repay debts, support operations, finance stock buybacks, or bolster their cash reserves. For example, Satsuma Technology shareholders voted to liquidate all 668 BTC holdings and delist from the London Stock Exchange, while Smarter Web Company sold 178 BTC to repay convertible instruments.

Sequans Communications sold over 1,000 BTC to reduce debt and has stated that it will not buy more bitcoin, instead planning to monetize its remaining holdings. Nakamoto, whose share price has dropped 99% since its SPAC deal, sold approximately 284 BTC to raise $20 million after acquiring BTC Inc. and UTXO Management, but remains heavily leveraged with nearly 70% of its remaining bitcoin pledged as loan collateral. Empery Digital reportedly sold almost half of its bitcoin to fund buybacks and debt repayment, and Strategy sold about 3,620 BTC while still holding the largest publicly listed treasury with over 840,000 BTC.

The downturn has also prompted some companies, including bitcoin miners MARA and Bitdeer, to sell holdings to pivot away from cryptocurrency toward financing AI infrastructure and data centers. Moreover, leadership changes and failed corporate mergers underscore the broader instability in the digital asset treasury sector. Notably, Jack Mallers resigned as CEO of Twenty One Capital, and Bitcoin Standard Treasury Company’s proposed merger was abandoned due to unfavorable market conditions.

This shift illustrates a significant reassessment among bitcoin treasury companies, many of which are rebalancing portfolios or exiting the treasury model entirely in response to challenging price environments and market dynamics. While firms like Strategy maintain a long-term bullish stance on bitcoin, recent actions highlight a move toward liquidity preservation and strategic realignment within the crypto asset management space.