The Evolution of PIPE in Bitcoin Treasury Strategies: Rise and Retreat

The Rise and (Mostly) Fall of PIPE Financing in Bitcoin Treasury Companies

Once hailed as a quick way to expand bitcoin holdings, PIPE financing—Private Investments in Public Equity—is now under scrutiny as several high-profile deals struggle with plunging stock prices.

PIPEs allow institutional investors to buy shares directly from a public company at a fixed price, often below market value. This mechanism lets companies raise capital faster than traditional public offerings, making it popular among bitcoin treasury firms using SPACs or reverse mergers to rapidly accumulate BTC.

NAKA and ASST Highlight PIPE Risks

KindlyMD (NAKA) completed a reverse merger in May 2025, turning bitcoin treasury operator Nakomoto into a wholly owned subsidiary. A PIPE raised $563 million, supplemented by a $200 million convertible note, bringing total financing to $763 million. Funds were deployed to acquire bitcoin, including 21 BTC for $2.3 million in July and 5,743 BTC for $679 million in August.

Despite these purchases, NAKA’s stock has collapsed more than 95%, from $30 to around $0.80. Its market net asset value (mNAV) is now below 1, meaning the market values the company at less than its underlying bitcoin holdings.

Similarly, Strive (ASST), founded by Vivek Ramaswamy, merged via a SPAC in September and raised $750 million in a PIPE at $1.35 per share—a 121% premium over pre-merger prices—to buy 5,885 BTC. Additional initiatives included a $450 million equity shelf, a $500 million share buyback, and a pending acquisition of Semler Scientific, which would increase BTC holdings to 11,700. Yet ASST’s stock has fallen more than 90%, with an mNAV just below 1.

PIPE Financing: Fast but Risky

These examples raise caution for other PIPE-driven bitcoin treasury deals. Twenty One Capital (XXI) merged with Cantor Equity Partners (CEP), initially pushing shares from $10 to $60 before falling back to around $20. Bitcoin Standard Treasury Company (BSTR) plans a SPAC with Cantor’s CEPO to raise $3.5 billion, including $1.5 billion via a PIPE, with shares peaking at $16 and dropping to $10.50.

While PIPEs can speed up BTC accumulation, these cases show they are high-risk strategies. Rapid growth in bitcoin treasuries does not guarantee shareholder returns, and investors should exercise caution when evaluating PIPE-backed companies.