Companies Adopting Bitcoin Financial Strategies See Weak Stock Performance… Over 100 Firms Down 43% Since Start of Year

Companies that have incorporated Bitcoin (BTC) as a core asset have seen their stock prices plunge this year. Analysts say many companies that followed the Michael Saylor-led Strategy (formerly MicroStrategy) style strategy are facing structural risks amid debt burdens and market adjustments.

On the 8th, according to crypto asset (cryptocurrency) specialized media The Sive Daily, more than 100 publicly traded companies in the U.S. and Canada shifted to crypto-centric financial structures during the first half of this year and reportedly borrowed tens of billions of dollars to buy tokens. However, according to Bloomberg's tally, these companies' stock prices fell 43% on a median basis compared to the start of the year. Over the same period Bitcoin fell 7%, while the S&P500 and Nasdaq100 rose 6% and 10% respectively.

In particular, Strategy is cited as the first case of converting corporate cash into Bitcoin. That approach was strong through midyear, and thereafter many companies followed suit to buy tokens. One company saw its stock surge 2600% in a short period after announcing a business model shift and a large Ethereum purchase, but it then plunged 86% from its peak and fell to about 0.9 times, with its market capitalization lower than the value of its held assets.

Additionally, many companies including Strategy reportedly raised more than 45 billion dollars in total by issuing convertible bonds and preferred shares to fund digital asset purchases. However, critics point out that digital assets such as Bitcoin do not generate cash flow, so obligations to pay interest and dividends and imbalances in asset structure are accumulating.

The media said, "If the current structure persists, some companies may face liquidity pressure," and added, "Stricter risk management and regulatory oversight will be needed."