New analysis from blockchain analytics firm CryptoQuant reveals significant downside exposure for cryptocurrency treasury companies that have engaged in private investment in public equity (PIPE) arrangements. According to the firm’s latest market intelligence report, these entities now confront potential valuation declines of up to 50% due to impending selling pressure from private investors seeking liquidity.
The research highlights how numerous crypto-native companies structured PIPE deals during market peaks to raise capital through private share placements. These arrangements typically include lock-up periods that prevent immediate selling by private investors. However, as these restrictions expire, the market faces substantial sell-side pressure that could dramatically impact token valuations across treasury portfolios.
CryptoQuant’s data indicates that the timing of these liquidity events coincides with broader market vulnerabilities, creating a perfect storm for price depreciation. The firm’s analysts note that treasury managers who anticipated stable holding periods now face recalibrating their risk models to account for this exogenous selling pressure. The report further suggests that companies with concentrated treasury positions in specific assets may experience amplified effects compared to more diversified portfolios.
Market participants are advised to monitor upcoming lock-up expirations and implement defensive strategies to mitigate potential portfolio erosion. The analysis concludes that proactive liquidity management and staggered exit strategies will be crucial for institutional holders navigating this challenging period of potential price discovery to the downside.
