"Bitcoin Reserve Craze" Cools Down: Strategy Followers' Market Capitalization Plummets, Forced to Buy Back Stocks, Analysts Issue "Death Struggle" Warning

Following Michael Saylor's strategy, many digital asset reserve companies treating crypto assets as corporate assets (DATs) are facing a severe third quarter: their total market capitalization has fallen below the value of the crypto assets they hold. To boost stock prices, several companies have had to borrow hundreds of millions for stock buybacks. FT reporter Nikou Asgari believes this may be a sign that the "Bitcoin reserve craze" is about to fade, while analyst Morgan McCarthy refers to it as "the death throes of some companies." Nevertheless, the case of Semler Scientific being acquired by Strive Asset Management suggests that the industry may be on the verge of a wave of consolidation driven by acquisitions.

The Dilemma of the "Sailor Imitators": Stock Prices Fall Below Crypto Assets Value

Many companies that saw their stock prices briefly spike after announcing a "shift in Crypto Assets strategy" are now facing severe challenges.

· Market capitalization shrinkage: FT's report named seven companies including Semler Scientific, ETHZilla, Empery Digital, CEA Industries, Metaplanet, SharpLink Gaming, and Ton Strategy. The market capitalization of five of these companies has fallen below the value of the Bitcoin they hold.

· Forced Buyback: Most companies only turned to Crypto Assets strategies a few months ago, and their stock prices experienced a brief surge after announcing the transformation, followed by a continuous fall. To boost their stock prices, these DATs have recently issued debt or borrowed hundreds of millions to buy back their own shares.

· Strategy Blocked: For these companies, the stock price must remain above its underlying Crypto Assets; otherwise, they will not be able to continue raising funds to acquire more Crypto Assets by issuing stocks like Saylor.

· Bearish view: Kaiko analyst Morgan McCarthy believes that the buybacks of these companies are a "death rattle," trying to buy themselves time in hopes of profiting in the next round of Crypto Assets bull market.

Industry Consolidation and the Troubles of the Front-runners: From Semler to Metaplanet

Although the FT report raised questions about the profitability of digital asset reserve strategies, it also pointed out another possible scenario: industry consolidation.

· Integration of Semler: Semler Scientific was acquired by Strive Asset Management, a firm owned by Vivek Ramaswamy, on September 22. This merger has created the third largest Bitcoin reserve company (holding 10,900 BTC) and provided Semler shareholders with a 210% premium. "Wolf of All Streets" podcast host Scott Melker believes this could mark the beginning of consolidation in the corporate Bitcoin space.

· Metaplanet's buyback expectations: The Japanese company Metaplanet is the largest corporate BTC holder in the region and ranks fifth globally. Its CEO Simon Gerovich stated that if the company's market capitalization falls below the value of its BTC balance sheet, the company may take measures such as buying back shares and issuing preferred stock.

Strategy Challenges Faced by Itself

Even the founder of the Bitcoin reserve strategy - Strategy (, formerly known as MicroStrategy), faces turmoil.

· Premium Disappeared: In 2024, MSTR's total market capitalization was 2.5 to 3 times its Bitcoin holding value. However, by August 2025, these numbers were very close, and the strategy lost its premium on its Bitcoin holdings.

· Investor confidence is undermined: The disappearance of this premium weakens investor interest and limits the company's ability to continue acquiring Bitcoin through stock issuance.

· Regulatory Resistance: Although many believe that the Strategy fully meets the standards of the S&P 500 index, the company was rejected by the S&P 500 committee in September.

"The Summer of Paper Bitcoin" Cools Down: Asset Discrepancies and New Challengers

In the first half of 2025, Bitcoin reserve companies were a hot topic in the market, but as Ethereum and other Crypto Assets stole the spotlight in the second half, BTC reserve stocks began to lose favor.

· Price Divergence: DL News cites former Goldman Sachs analyst Dom Kwok, stating that the divergence between these companies' stock prices and the underlying Crypto Assets prices is causing investors to hesitate.

· The Struggles of New Players: Even a prominent new company like Bullish, backed by Peter Thiel, faced similar issues after its launch in August - its current market capitalization is almost equal to the value of its Bitcoin holdings.

Although this trend does not mean that digital asset reserve companies will disappear anytime soon, the industry is in a consolidation phase characterized by high premium fade and low return rates. Time will tell whether mergers and acquisitions or other forms of consolidation can save these Bitcoin reserve companies.

Disclaimer: This article is for news information and does not constitute any investment advice. The crypto market is highly volatile, and investors should make cautious decisions.