Kindly MD experienced the most dramatic example, surging 18.5 times from $1.88 to an intraday high of $34.77 following its May PIPE announcement at $1.12 per share.
Other Bitcoin treasury stocks show similar trajectories. Strive (ASST) trades at $3.00, down 78% from its 2025 high, while its PIPE price sits at $1.35. This gap suggests a potential 55% decline if shares revert to the issuance level.
The pressure may intensify next month when ASST’s PIPE investors become eligible to sell their holdings.
Some companies already trade below their PIPE levels. Empery Digital trades at $7.94, representing a 21% discount to its $10.00 PIPE price. The stock peaked at $11.37 on Aug. 13 before falling as low as $6.50, marking a 42% drawdown.
The company’s market capitalization has dropped below the value of its Bitcoin holdings.
Bitcoin treasury companies rely on PIPEs because they need to quickly access large capital blocks to execute their strategies, often lacking access to traditional financing or sufficient operating revenue.
These deals offer speed and flexibility, but they create significant dilution and potential selling pressure once the resale restrictions are lifted.
The report noted that the PIPE structure has several drawbacks for existing shareholders. Beyond immediate dilution, the discounted pricing creates an “overhang” effect, allowing investors to sell publicly.
PIPE investors typically receive registration rights, which allow them to liquidate their positions after filing resale statements.
Additionally, the report identified five Bitcoin treasury companies that collectively raised over $2.5 billion through PIPE transactions, with Bitcoin holdings ranging from 3,205 to 43,514 BTC.
The data suggested only a sustained Bitcoin rally could prevent further declines in these stocks.
Without renewed momentum in the crypto market, many companies appear positioned to continue trending toward or below their PIPE prices, as institutional investors who purchased at significant discounts seek to realize profits in public markets.
This dynamic creates a feedback loop where weakening Bitcoin prices pressure treasury company stocks, potentially forcing additional selling that further weighs on both Bitcoin and the companies themselves.
