Crypto Treasury Firms Blamed for Accelerating Market Downturn, Expert Claims
Omid Malekan, a well-known blockchain author and adjunct professor at Columbia Business School, that discussions about BTC’s declining prices should consider the role of crypto treasury businesses.
These DATs have garnered a significant number of tokens by employing leveraged purchases and innovative strategies to raise capital, such as share sales and convertible notes.
Malekan states that these corporations planned mass extraction and exit events, which means that their actions often result in significant sales of tokens, explaining why they are a common source of market drops.
He is upset that only a few crypto treasury companies are genuinely trying to generate long-term value, while others viewm more interested in making quick money than improving the ecosystem.
Short-Term Leverage and Forced tradeing
The difficulty worsens as these organizations employ aggressive methods to raise funds and expand, such as leveraging debt to acquire even more BTC. Many of these companies raised millions of dollars as new waves of investors became interested.
They often used the money to acquire tokens in bulk. When corporations have to trade to cover their positions because their debts are increasing or their assets are losing value, this has a greater impact on the pricing of other assets.
Somealso offer staking and liquidity services to generate income, but this may tie up even more tokens, making them more vulnerable to sudden market declines.
Malekan said that the “gangrene of crypto” arises from companies receiving excessive funding and issuing too many tokens that are intended to be locked up, only to trade them when there is insufficient money in the market.
Mass Extraction and Token Unlock Dynamics
Malekan’s main is that DATs have enabled tokens that were previously locked and considered inaccessible for circulation to circulate in large numbers. The publication and sale of these tokens can create significant tradeing pressure, which may erode confidence and lead to price drops.
Malekan is astonished that so many people in the market haven’t spoken out against these actions, even though they hurt long-term market cap and investor trust.
He says that these treasury company behaviors, along with broader issues such as trade tensions between the US and , are key to understanding why BTC and the market as a whole remain under pressure. In the past week, the price of has fluctuated between $99,607.01 and $113,560, which is significantly below the October highs of over $126,000.
Rapid Growth in Treasury Use
Even if the market is unstable, the number of crypto treasury companies has skyrocketed in 2025. A recent report from said that 48 new organizations added BTC to their balance sheets in October alone.
This brought the overall number of companies that own BTC to 207, with a total of more than one million BTC worth over $101 billion. is also very popular; 71 companies now have it in reserve.
As the market cycle progresses, analysts anticipate that DATs will undergo a shakeout and consolidation, with larger or more established companies acquiring smaller ones to secure additional investment. This trend will also lead to growth in various Web3 services.
