Corporate Bitcoin (BTC) treasuries collectively shed more than $4 billion in value after US President Donald Trump’s tariffs triggered a global market sell-off, data shows. 

As of April 7, corporate Bitcoin holdings are worth approximately $54.5 billion in the aggregate, down from roughly $59 billion before April 2, according to data from BitcoinTreasuries.net.

The cryptocurrency’s volatility has also weighed on publicly traded Bitcoin holders’ share prices.

The Bitwise Bitcoin Standard Corporations ETF (OWNB) — an exchange-traded fund (ETF) tracking a diverse basket of corporate Bitcoin holders — has lost more than 13% since Trump announced sweeping US import tariffs on April 2, according to Yahoo Finance.

Even shares of Strategy — the de facto Bitcoin hedge fund founded by Michael Saylor that pioneered corporate Bitcoin buying — are down, clocking losses of more than 13% since April 2, Google Finance data showed. 

The losses highlight ongoing concerns about Bitcoin’s increasing popularity as a corporate treasury asset. Historically, corporate treasuries hold extremely low-risk assets like US Treasury Bills.

“Cryptocurrencies’ high volatility and uncertain regulatory landscape are misaligned with the fundamental goals of treasury management [such as] stability, liquidity, and capital preservation,” David Krause, a finance professor at Marquette University, said in a January research publication. 

Entities holding Bitcoin. Source: BitcoinTreasuries.NET

Related: Bitcoin, showing ‘signs of resilience’, beats stocks, gold as equities fold — Binance

Is Bitcoin right for corporate treasuries?

In 2024, surging Bitcoin prices pushed Strategy’s shares up more than 350%, according to data from FinanceCharts. 

Strategy’s success has inspired dozens of copycats, but investors are becoming skeptical.

In March, GameStop lost nearly $3 billion in market capitalization as shareholders second-guessed the videogame retailer’s plans to stockpile Bitcoin. 

“There are question marks with GameStop’s model. If bitcoin is going to be the pivot, where does that leave everything else?” Bret Kenwell, US investment analyst at eToro, told Reuters on March 27. 

The case for Bitcoin as a corporate treasury asset. Source: Fidelity Digital Assets

Still, adding Bitcoin to corporate treasuries can “potentially be a valuable hedge against growing fiscal deficits, currency debasement, and geopolitical risks,” asset manager Fidelity Digital Assets said in a 2024 report.

That thesis may already be playing out as Trump’s tariffs rattle markets, Binance said in an April 7 research report.  

“[I]n the wake of recent tariff announcements, BTC has shown some signs of resilience, holding steady or rebounding on days when traditional risk assets faltered,” Binance said.

Investors “will be watching closely to see if BTC is able to retain its appeal as a non-sovereign, permissionless asset in a protectionist global economy,” according to the report.

Magazine: Bitcoin heading to $70K soon? Crypto baller funds SpaceX flight: Hodler’s Digest, March 30 – April 5

A team of former Kraken executives has taken control of Janover, with Joseph Onorati, former chief strategy officer at Kraken, stepping in as chairman and CEO, following the group’s purchase of over 700,000 common shares and all Series A preferred stock.

Parker White, former director of engineering at Kraken, was appointed as the new chief investment officer and chief operating officer. The group bought 728,632 shares of Janover common stock and all 10,000 shares of Series A preferred stock. Marco Santori, former chief legal officer at Kraken, will join the board.

Janover is a real estate financing company that connects lenders and buyers of commercial properties. The company stock price saw an 840% rise on April 7 as part of the deal.

According to a statement, the company’s new leadership has plans to create a Solana (SOL) reserve treasury. The plans include acquiring Solana validators, staking SOL and additional purchases of the token.

Janover stock price on April 7. Source: Google Finance

In tandem with the announcement, Janover revealed that it had raised $42 million in an offering of convertible notes. Convertible notes are a type of debt instrument that can later be converted to equity at a certain price. Participants in the funding round include Pantera Capital, Kraken, Arrington Capital, Protagonist, Third Party Ventures, and others.

Janover announced in December 2024 that it had begun accepting payments for its real estate services in Bitcoin (BTC), Ether (ETH), and SOL.

Crypto treasury companies: Bold or risky?

In August 2020, Strategy became one of the first publicly traded companies to hold Bitcoin on its balance sheet. Since then, several companies have followed suit, including Japan’s Metaplanet, Semler Scientific, and Tesla.

In many cases, these companies have seen rises in their share prices as investors sought exposure to digital assets through traditional financial products.

Some outsiders have criticized this approach due to the cryptocurrencies’ volatility and some companies’ financing methods, such as convertible note offerings used by Strategy.

SOL has seen significant volatility in the past 365 days, according to MarketVector. The coin has risen as to high as $274.50 and fallen to a low of $107.68.

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Bitcoin’s (BTC) 26.62% decline from its $109,500 all-time high is en route to becoming the deepest drawdown of the current bull market cycle, according to CryptoQuant head of research, Julio Moreno.

Bitcoin price drawdown analysis. Source: X

Bitcoin has experienced significant drawdowns in past cycles, with a notable 83% drop from its peak in 2018 and a 73% correction from all-time highs (ATH) in 2022. In comparison, the current decline of 26.62%, while substantial, remains less severe than previous bear markets.

This suggests that even though the current downturn is impactful, it has not yet reached the intensity of previous cycles. However, crypto and macro resource ‘ecoinometrics’ said that Bitcoin might struggle to stage an immediate turnaround. The analysts explained,

“Historically, when the NASDAQ 100 falls below its long-term year-on-year average return, Bitcoin tends to grow more slowly. It also faces a higher risk of entering a severe correction.”

Bitcoin and Nasdaq correlation. Source: X / Ecoinometrics

With the Nasdaq 100 currently flat year-on-year, Bitcoin’s price recovery might be difficult, even if the correction halts.

The recent Bitcoin (BTC) price drop also put Michael Saylor’s Strategy on the defensive, with the firm opting not to purchase any BTC for its treasury between March 31 and April 6.

Additionally, data from Strategytracker highlighted that the corporation spent $35.65 billion on its Bitcoin holdings, currently reflecting a mere 17% return on a five-year holding period.

Related: Michael Saylor’s Strategy halts Bitcoin buys despite dip below $87K

Can Bitcoin hold a position above $70K?

On the weekly chart, Bitcoin tested the 50-weekly exponential moving average (blue indicator) for the first time since September 2024. A weekly close below the 50-W EMA has signaled the beginning of a bear market in previous market cycles.

Bitcoin weekly chart. Source: Cointelegraph/TradingView

The immediate point of interest below the current price remains at $74,000, which was the early 2024 all-time high. However, the daily demand zone between $65,000 and $69,000 could be a bigger liquidity level based on its significance. The $69,000 level is also the 2021 all-time high price.

Additionally, Bitcoin’s weekly relative strength index, RSI, reached its lowest value of 43 since January 2023 at the end of Q1. In August 2023 and September 2024, the RSI recovered from a similar value to trigger a price recovery for Bitcoin. In 2022, when RSI dropped below 40, bears took total control of the market.

Anonymous crypto trader Rekt Capital also predicted based on daily RSI value and said,

“Historical daily RSI trends in this cycle suggest anything from current prices to ~$70,000 is likely to be the bottom on this correction.”

Related: Bitcoin, stocks crumble after ‘90 day tariff pause’ deemed fake news — BTC whales keep accumulating

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.