Bitcoin treasury firms are aggressively offloading their digital assets as the cryptocurrency's price has drpoped 48% since its October 2025 peak. This institutional retreat is creating a feedback loop of market weakness, with several companies facing total capitulation to avoid further financial ruin .
The $47 billion erosion of Bitcoin treasury value
The current market downturn has revealed a stark discrepancy between the volume of assets held and their actual market value.. According to the report, Bitcoin treasury companies increased their total holdings from 1.02 million BTC in 2025 to 1.25 million BTC currently. However, this increase of 230,000 BTC has not shielded these firms from volatility.
While the peak value of these holdings reached approximately $128.5 billion in 2025,that figure has since plummeted to $81.5 billion. This represents a $47 billion loss in total value, signaling that the strategy of accumulating more Bitcoin during a downturn has failed to offset the broader price collapse. This trend reflects a broader institutional struggle where the desire to maintain a "digital gold" reserve has collided with the reality of a sustained bear market.
KULR Technology Group's 78% stock collapse
The volatility of the cryptocurrency market is directly bleeding into the equity markets, as seen with KULR Technology Group, Inc. The company's stock price declined 78% from its all-time high of $43, which had been reached following the announcement of its Bitcoin investment. As of the latest data, KULR Technology Group's stock has fallen to approximately $2.7.
The financial pressure has forced KULR Technology Group to aggressively liquidate its position. As reported in the source, the firm transferred 145.8 BTC, valued at $9.45 million, to Coinbase Prime. This move has left KULR Technology Group with only 100 BTC worth $6.47 million, down from a previous holding of 1,021 BTC worth $101 million.. With over $18 million in losses already recorded, the company appears to be on the verge of a total exit from the Bitcoin market.
The $9 billion loss facing Strategy
The risk is not limited to smaller players; larger institutional treasuries are also operating under extreme pressure. The report notes that a firm referred to as Strategy is currently operating with $9 billion in losses. When major investors hold such significant unrealized losses, the risk of a "capitulation event" increases, where firms sell off massive amounts of BTC to stabilize their balance sheets.
This institutional fear is a primary driver of continued market weakness. Because the 2024-2025 rally relied heavily on the capital provided by these treasury companies, their current trend of selling creates a vacuum of support . If more firms follow the path of KULR Technology Group, the market may struggle to find a floor.
The mystery of the 230,000 BTC accumulation
Despite the plummeting values, a critical question remains: why did treasury companies increase their holdings by 230,000 BTC since October 2025 while the market was failing to sustain an uptrend? The source indicates that these firms increased holdings in 2026, yet it does not specify the strategic reasoning or the specific timing of these purchases.
Furthermore, while the report mentions that KULR Technology Group has joined a "long list" of firms aggressively selling, it does not name the other institutions involved in this liquidation trend.. Without knowing which other major treasuries are hitting their breaking point, investors are left to guess how much more selling pressure remains in the pipeline.
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