Data shows the Bitcoin price decline has left the majority of treasury companies in a state of loss, with 65% sitting more than 20% below cost basis.
Over 77% Of Bitcoin Treasury Firms Are Underwater On Their BuysAs is visible in the graph, the total percentage of Bitcoin treasury firms in loss has gone up recently, with its value today sitting at 77.4%. Thus, it would appear that a strong majority of the companies have their holdings below their cost basis. This includes Strategy, which has an average acquisition level of $75,985, more than 12% above the current spot price.
A large percentage of the firms are in even worse losses than Strategy. In the same chart, data for the treasuries with holdings sitting more than 20% below their cost basis is also displayed. It would appear that this metric has a value of 65.6%, implying that less than 12% of the underwater companies are in losses smaller than 20%.
Like how public treasury companies provide for an indirect route into Bitcoin, there is also another such indirect means in the market available today: the spot exchange-traded funds (ETFs). These funds buy and hold the asset on behalf of their users, allowing them to get exposure to BTC’s price movements without having to deal with blockchain elements.
Bitcoin has retraced its recovery during the past few days as its price is back at the $67,600 mark.
