Crypto treasury firms face dilution backlash

The strain is showing up across the segment. Artemis says publicly listed digital-asset treasury companies focused on Bitcoin and Ethereum now have a combined fully diluted market value of about $90 billion, roughly 40% below their peak, while that figure excludes smaller altcoin treasuries. Retail holders are venting online, while institutions are using shareholder votes, takeover proposals and compensation challenges to force changes.

Sky AI, formerly Sharps Technology, has become a flashpoint. After raising more than $400 million for a Solana treasury, its stock has dropped nearly 90% since August, and Forward Industries is opposing a proposed 7.2% equity award for about 30 employees, worth roughly $4 million at current prices. Investors are also questioning warrants granted to a strategic adviser with an estimated $101.3 million accounting fair value.

Metaplanet has faced similar criticism after its shares fell about 84% from a June peak, prompting pushback over dilution and incentives before the company canceled some warrants reportedly worth around $220 million. The message from shareholders is increasingly blunt: owning crypto on the balance sheet is no longer enough if the structure keeps issuing new claims on that upside.

Not every treasury firm is being treated the same. Michael Saylor’s Strategy has held up better by leaning into liquidity management, recently repurchasing $139 million of STRC preferred stock and lifting its Bitcoin holdings to 845,050 BTC, worth about $65.83 billion, alongside $6.4 billion in USD assets.

For investors, the key question now is whether the sector can shift from speculative treasury accumulation to capital discipline. If management teams keep relying on dilution to finance crypto holdings and executive pay, the discount to net asset value may widen further — and the next catalyst will likely be another shareholder vote, warrant fight or forced restructuring.