Most Crypto Treasuries Face Rising Bankruptcy Risk After Market Crash

Details reported by Beincrypto say crypto treasuries are underwater after Bitcoin and Ethereum fell nearly 30%, wiping out an estimated $25 billion in unrealized value across digital asset balance sheets. Data tracking public crypto treasury firms shows none currently hold assets above their average cost basis, pushing most treasury strategies into loss territory and dragging cumulative unrealized P&L sharply negative, which weakens balance sheets and equity valuations.

Market net asset value (mNAV) comparisons show several major treasury firms trading below an mNAV of 1, eliminating the ability to raise capital efficiently through equity issuance without dilution; MicroStrategy is cited as trading below its asset value, limiting its funding flexibility.

Unrealized losses alone do not cause bankruptcy, but the risk rises when falling asset prices collide with leverage, debt maturities, or ongoing cash burn, with mining firms and treasury vehicles that rely on external financing facing highest exposure.