Bitcoin slides below $63,500 as digital asset treasury firms deal with selling pressure

Risk Warning: The information in this article is provided for general informational and educational purposes only. It does not constitute investment advice, a personal recommendation, an offer, or a solicitation to buy or sell any security, financial instrument, or product. Investing in equities, indices, ETFs, and other financial instruments involves a significant risk of loss and is not suitable for every investor. Past performance is not a reliable indicator of future results. Cryptocurrencies and digital assets are highly volatile, may be unregulated in some jurisdictions, and can lose value rapidly and without warning.

The price of the largest market-cap cryptocurrency has slid below $63,500, prompting a downward slide and mass liquidation among traders. 

Since the start of June, Bitcoin started a price slide from roughly $70,000. The cryptocurrency is now trading below $63,500 and is currently priced at $61,639.08 (Source: Google Finance, as of 11:06 am. 5th June, 2026). 

According to Bloomberg, Strategy has opted to sell BTC for the first time since 2022, a potential sign of weakening for the strategy of the largest digital asset treasury firm. Other firms are responding differently to the dip in price, either considering options such as stock splits or offloading Bitcoin to keep liquidity strong or to repurchase shares. 

The slide in price has been accompanied by mass outflow of funds from cryptocurrency ETFs, an event that usually occurs in periods of high stress when the market registers high levels of risk due to geo-political interference or general uncertainty. 

Liquidations were marked at $1.86 billion between June 2nd and June 3rd 

General trends over the last 12 months has shown that while Bitcoin has shown some resilience in response to market downturns, it still does not have the resilience that some other asset classes have, often dipping by double digit percentage figures in the event of a mass liquidation among traders. 

The downward trend has also created pressure on DATs or digital asset treasury firms, a relatively new business model in the digital assets sector that has many companies allocating capital away from their core focus. 

Companies like Strategy, Metaplanet, Nakamoto Inc, and ProCapFinancial—all of which are firms that deal with mass buying of Bitcoin for investment purposes and offering exposure to investors via common and preferred stock—are now dealing with price pressure. 

In some cases, these investments are often either highly levered or prone to an overflow of equity capital relative to potential price gains for Bitcoin. 

These digital asset treasury firms often come with a host of other issues as well that make it hard to define as a sustainable business or a strong segment of a business. Profitability is usually measured in the form of gains on investment. 

However, gains on investment do not usually translate to a positive free cash flow. For example, Strategy’s status quo since it started gathering Bitcoin on its balance sheet has been to never sell, citing the growth in Bitcoin’s price as an indicator of profitability. 

Instead of selling Bitcoin to realize cash flow, Strategy went the opposite route and decided to monetize its position in Bitcoin further by taking derivative positions in the form of options to further profit from the digital asset.

For understanding how the DAT sector has been faring in terms of share price over a 1 –month period, here’s price data for active digital asset treasury firms. 

• Strategy (Class A shares): -30.78%
• Metaplanet: -34.53%
• ProCap Financial: -6.40%
• American Bitcoin Corp: -25.72%
• Nakamoto Inc: -40.64%
• Strive: -8.16%

(Note: The securities mentioned above are purely for editorial purposes.)

Summary

The sale of Bitcoin by Strategy for the first time since 2022 marks a departure from the usual pattern of mass buying Bitcoin. Other smaller size firms are responding differently to the fallout, but the general attitude adopted by publicly traded firms is primarily one of defense against the dipping price of Bitcoin. 

Research references

• Bitcoin Treasury Firms Lose $62 Billion as Crypto Market Slide Deepens - Bloomberg
• Google Finance data
• Yahoo Finance data

Disclaimer: This article reflects the views and analysis of the author at the time of publication and is based on information believed to be reliable from publicly available sources. Spectra Global makes no representation or warranty, express or implied, as to the accuracy, completeness, or timeliness of the information contained herein, and accepts no liability for any loss arising from reliance on it. Spectra Global is licensed by the UAE Securities and Commodities Authority (SCA) under Category 5 (Promotion). Nothing in this article should be construed as a personal recommendation or as an inducement to enter into any transaction. Past performance is not indicative of future results.