Bitcoin Treasury Model Faces Reset as Firms Cut Debt, Sell BTC, and Embrace AI

Bitcoin treasury firms are facing growing pressure as weaker share prices, debt commitments, and difficult market conditions force them to reduce Bitcoin exposure, repay obligations, and reconsider their long-term strategies.

Strategy (MSTR) launched the digital asset treasury (DAT) trend in 2020, inspiring a number of public companies to follow its strategy of using corporate funds and borrowed capital to accumulate Bitcoin. The model gained popularity as Bitcoin rallied toward an all-time high of nearly $126,000 in October 2025.

The strategy has since faced major challenges. Bitcoin’s decline of roughly 50% from its peak has dragged down treasury-company stock valuations, limited access to financing, and pushed several firms to rethink aggressive accumulation plans. Matthew Sigel said some companies have completely moved away from the approach, while others are sharply reducing their BTC holdings.

Satsuma Technology (SATS) recently approved the liquidation of its full 668 BTC reserve, plans to return capital to shareholders, and intends to delist from the London Stock Exchange. Another UK-listed company, Smarter Web Company (SWC), sold 178 BTC to repay a convertible debt instrument.

Smarter Web CEO Andrew Webley said the company continues to see value in both traditional and Bitcoin-denominated financing tools but no longer considers them the right solution for its current capital needs.

Other treasury-focused companies have taken similar steps. Sequans Communications (SQNS) sold 1,025 BTC and later reduced nearly 80% of its remaining holdings to pay down convertible debt. The company has stopped pursuing additional Bitcoin purchases and plans to sell its remaining 658 BTC.

Nakamoto (NAKA) has also been hit hard, with its shares falling 99% since its May 2025 SPAC transaction. The company sold approximately 284 BTC to raise $20 million in working capital after acquiring BTC Inc. and UTXO Management. It also sold about 40 BTC from its derivatives activities. Sigel noted that around 70% of Nakamoto’s remaining 5,342 BTC holdings are pledged against a Kraken loan due in December, creating a potential pressure point for the company.

The shift away from Bitcoin accumulation is also visible among mining companies. Firms such as Bitdeer Technologies and MARA Holdings have sold portions of their Bitcoin reserves to manage debt while redirecting energy resources and computing infrastructure toward AI data-center operations.

Other companies are also trimming their crypto positions. Empery Digital has reportedly sold nearly half of its Bitcoin holdings to finance share repurchases and debt reduction. Strategy has also sold around 3,620 BTC recently and approved additional sales to strengthen its U.S. dollar reserves.

Despite the broader retreat, Strategy remains the largest publicly traded Bitcoin holder, with more than 840,000 BTC in its treasury. Executive chairman Michael Saylor continues to defend the company’s long-term Bitcoin-focused strategy.

Saylor said Strategy could sell some Bitcoin to fund dividend payments, but emphasized that such transactions would represent treasury management rather than a broader shift away from its Bitcoin investment thesis.

The Bitcoin treasury sector is also seeing leadership changes and disrupted deals. Jack Mallers stepped down as CEO of Twenty One Capital, while Bitcoin Standard Treasury Company (BSTR), linked to Adam Back, was unable to complete its planned merger amid unfavorable market conditions.