Key Takeaways:
- Crypto treasury stocks that raised funds via PIPE deals are facing steep declines as lock-up periods expire and investor selling accelerates.
- Many shares are trending back to their PIPE issuance levels, with some facing up to 50% more downside, according to CryptoQuant.
- A sustained Bitcoin rally is seen as the only major factor that could offset further drawdowns across these stocks.
Crypto treasury firms that raised capital through private investment in public equity (PIPE) deals are facing steep downside risks, according to a new CryptoQuant report.
PIPE deals allow private investors to buy newly issued shares at below-market prices, providing quick funding but creating long-term risks for public shareholders.
From $35 to $1: PIPE deals are crushing Bitcoin treasury stocks.
— CryptoQuant.com (@cryptoquant_com) September 25, 2025
Kindly MD (NAKA) soared 18.5x in weeks, then fell 97%, back to its $1.12 PIPE price.
PIPE price gravity is brutal. pic.twitter.com/84KGVQLRHi
CryptoQuant noted that many such stocks experience sharp declines as lock-up periods expire and investors sell, often pulling prices toward PIPE issuance levels.
The resulting dilution and resale of discounted shares create sustained selling pressure.
The report highlighted striking examples. Kindly MD (NAKA), which pivoted into a Bitcoin treasury, surged from $1.80 to $35 after announcing a PIPE at $1.12 but has since collapsed 97% back near its PIPE price.
Strive Inc. (ASST) fell 78% from a $13 peak to $2.75, with further downside expected when PIPE shares unlock.
Cantor Equity Partners (CEP) also faces potential 50% losses after raising funds through a $10 PIPE.
CryptoQuant warned that even established treasuries are pressured by declining crypto holdings, with a sustained Bitcoin rally being the only likely catalyst that could prevent further drawdowns across the sector.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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