Bitcoin Price Hits $117,000 as Treasury Stocks Like MSTR, NAKA Collapse
John: Hey there, folks! I’m John, a veteran writer for Blockchain Bulletin, where I break down the wild world of crypto in simple terms. Today, we’re diving into the recent surge in Bitcoin’s price to nearly $117,000 while treasury stocks like MicroStrategy (MSTR) and KindlyMD (NAKA) take a nosedive—it’s a tale of real Bitcoin strength versus “paper” plays. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi everyone, I’m Lila, John’s curious assistant who’s always learning about Web3. John, what’s all this buzz about “treasury stocks” collapsing while Bitcoin is soaring—does it mean companies are losing their crypto bets?
What Are Treasury Stocks in Crypto?
John: Great question to start with, Lila. In the crypto space, treasury stocks refer to publicly traded companies that hold large amounts of Bitcoin on their balance sheets as a reserve asset, much like how traditional firms might hold gold or bonds. Think of it as a company treating Bitcoin like digital treasure to hedge against inflation or currency devaluation.
Lila: Okay, that makes sense—like a savings account but with Bitcoin. But why call it “paper Bitcoin” in some articles?
John: “Paper Bitcoin” is a term for indirect exposure to Bitcoin through stocks or derivatives, rather than owning the actual cryptocurrency. It’s like buying shares in a gold mining company instead of the gold itself—handy, but it comes with extra risks like stock dilution. (And hey, if Bitcoin were a superhero, these stocks would be its sidekicks who sometimes trip over their capes.)
The Rise of Bitcoin Treasuries
John: Let’s look back at how this trend started. In the past, companies like MicroStrategy began adopting Bitcoin as a treasury asset around 2020-08-11, when Michael Saylor announced their first major purchase. By 2025-09-07, MicroStrategy reportedly held 638,985 BTC, making it one of the largest corporate holders.
Lila: Wow, that’s a huge stack! So, what drew companies like KindlyMD into this?
John: Exactly—firms saw Bitcoin’s potential for long-term value growth. For instance, KindlyMD (NAKA) shifted toward Bitcoin treasuries in recent months, raising billions to fund buys, as reported in DL News on 2025-09-16. This “Bitcoin treasury narrative” exploded in popularity, especially after MicroStrategy’s Nasdaq 100 inclusion on 2024-12-16, boosting its visibility.
Current Market Landscape
John: As of now, on 2025-09-17, Bitcoin’s price has hit nearly $117,000, showing strong market confidence. However, treasury stocks are struggling: MicroStrategy (MSTR) has faced investor pushback with recent stock slides, and KindlyMD (NAKA) has plummeted over 96% since its May 2025 peak, per DL News.
Lila: That sounds dramatic—what’s causing these collapses while Bitcoin thrives?
John: It’s largely due to share dilution from fundraising efforts. Companies issue more shares or convertible notes to buy Bitcoin, flooding the market and pressuring stock prices. Bitcoin Ethereum News on 2025-09-17 noted this as the end of the “paper Bitcoin” era, where indirect plays can’t keep up with the real asset’s performance.
Why the Collapse?
John: Diving deeper, the collapses stem from market dynamics. For example, KindlyMD’s stock sank 54% after its CEO urged traders to exit amid a Bitcoin treasury transition, as covered by Decrypt on 2025-09-15. Similarly, MicroStrategy bought another 1,955 BTC for $217 million on 2025-09-08, but its stock has weakened relative to Bitcoin’s value.
Lila: Dilution—does that mean the pie gets bigger, so each slice is smaller?
John: Spot on! When companies like NAKA announce massive offerings, such as a $5 billion equity plan three weeks ago per Coinlaw, it dilutes existing shares, scaring off investors. Posts on X reflect this sentiment, with users noting how these treasury plays suppress Bitcoin’s price through indirect exposure. (It’s like inviting too many guests to a party—the snacks run out faster!)
Impacts on Investors
John: For investors, this shakeup highlights key differences. Owning actual Bitcoin has proven resilient, with its price climbing despite stock volatility. But treasury stocks introduce company-specific risks, like management decisions or market dilution, which can lead to sharp declines.
Lila: So, should beginners stick to direct Bitcoin buys?
John: It’s worth considering—here’s a quick list of pros and cons for treasury stocks:
- Pros: Easier access via traditional stock markets; potential for leveraged gains if the company succeeds.
- Cons: Dilution risks; dependency on company performance beyond Bitcoin’s price.
- Examples: MSTR offers high exposure but has seen 40-45% drops during Bitcoin dips, as noted in X posts from late 2024.
Risks and Safeguards
John: Risks include volatility and regulatory changes—remember, these are not direct crypto investments. To safeguard, diversify your portfolio and use trusted exchanges. As of 2025-09-17, sources like Bitcoin Magazine emphasize verifying holdings through official reports.
Lila: Good point—what about liquidation prices?
John: Some companies, like MicroStrategy, have liquidation thresholds around $17,000 per Bitcoin, meaning forced sales if prices drop drastically. But with Bitcoin at $117,000 now, that’s far off—still, it’s a reminder to stay informed via sites like CoinDesk.
Looking Ahead
John: Looking ahead, the Bitcoin treasury trend might evolve with more regulations or new players. If Bitcoin continues its upward trajectory, we could see recoveries, but the focus might shift to direct ownership. Keep an eye on updates from reliable sources like Reuters for future developments.
Lila: Exciting times! Any final tips for readers?
John: Absolutely—research thoroughly and consider long-term holding. This market shift shows Bitcoin’s maturing role as a reserve asset.
John: Whew, that was a rollercoaster look at Bitcoin’s price boom and the treasury stock tumble—proof that in crypto, the real deal often outshines the proxies. Stay curious and informed, folks. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Totally agree—Bitcoin’s strength is shining through, but always do your homework before diving in!
This article was created using the original article below and verified real-time sources:
- Bitcoin Price Hits $117,000 as Treasury Stocks Like MSTR, NAKA Collapse
- Bitcoin treasury narrative gets ‘annihilated’ for firm as stocks collapse over 96% – DL News
- Bitcoin Price Hits $117,000 As Treasury Stocks Like MSTR, NAKA Collapse
- ‘I Encourage You to Exit’: Bitcoin Treasury Nakamoto’s Shares Plunge 50% After CEO Letter – Decrypt
- MSTR News: Strategy Acquires Another 1,955 BTC for $217M After Missing Out on S&P 500 Inclusion – CoinDesk