Crypto Treasury companies that have raised private investment in public deals (pipes) can see their shares falling half of the pressure sale, according to the cryptoquant analytics platform.
Crypto treasury companies that have raised capital By pipe deals “suffered major drawdowns, with sharing prices frequently gravitating towards their pipe release levels,” Cryptoquant said in a market Report on Thursday.
It added that shares with some companies “may face further decline of up to 50%” as trade sharing above pipe offering prices, and investors near the end of their lock-up periods are likely to be looking to sell.
Pipe deals allow private investors to buy new shares below the market price, and become popular with crypto treasury companies to quickly raise cash in the middle of a Tight sectors.
Pipe-flush companies faced at risk
Cryptoquant noted that pipe deals allow companies to quickly and easily accessing cash, but such deals said “can create negative effects for a company’s stock performance” because investors are aimed at locking the income.
“The pipe increases the amount of shares in the circulation, dating existing shareholders,” he said. “When pipe investors can sell, the resale of new shares creates an ‘overhang’ that forces stock prices.”
Cryptoquant reviews the stocks of some bitcoin (Btc) Treasury companies that make pipe deals, finding that many “experienced significant drawings, with sharing prices that often have freedom towards their pipe release levels.”
It has been a “actual or expected sale from pipe investors” because the reason for the drawdowns, who noticed shares in the medical firm becoming BTC Treasury who kindly MD (turned) fell more than half a single day once its pipe shares were unlocked.
Cryptoquant said MD’s kindly sharing from around $ 1.80 in late April with an intraday high of nearly $ 35 in late May with its pipe announcement. However, It has been from the fall By 97% up to a low $ 1.16, “usually hold the $ 1.12 price pipe.”
Other wealth of crypto may go down
Cryptoquant noted that other companies supported by the pipe crypto “seem to go in the same direction,” seeing their sharing prices after pipe deals.
Shares to Stive Inc. (ASST) closed the trade on Thursday at $ 2.75, down 78% from 2025 peak $ 13 in late May.
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Cryptoquant said Strive’s pipe was priced at $ 1.35, “which would indicate a 55% price collapse from current levels” because pipe investors will “allow them to sell their shares next month, putting further downhill pressure on the stock.”
It added that Cantor Equity Partners (CEP), a blank-check company combined with Treasury’s firm twenty-one capital, priced its pipe for $ 10. It also dropped nearly 70% from high to under $ 20, “indicating a potential 50% drop of price from its current level.”
Other analysts warned that even the well -established Crypto treasury companies are facing pressure While the value of their crypto holds is creeping towards the company value, which can spark a sales wave.
Cryptoquant said a “long -term bitcoin rally was the only likely catalyst that could prevent further decline in these stocks. Without it, many have prepared to continue trending – or below – their pipe prices.”
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