Crypto News

18:45 28.09.2025

Headline: CryptoQuant: PIPE Deal Pressure Could Lead to Sharp Declines in Treasury Companies Stocks Text: Companies raising capital through private placements are at risk of stock price drops due to potential large sell-offs. Researchers noted that firms issuing new securities via PIPE often experience significant downturns, with prices over time returning to placement levels. In some cases, the drop can reach 50%, as investors exit lock-up agreements and prepare to sell. PIPE deals allow market participants to buy shares below market price and provide companies with quick access to liquidity. However, as highlighted by CryptoQuant, such placements dilute current shareholders stakes and create a supply overhang pressuring the stock prices. An analysis of several Bitcoin-focused companies stocks revealed that declines often occur immediately after the unlocking of PIPE securities. For instance, shares of Kindly MD (NAKA), transformed from a medical firm to a treasury company, plunged more than half a day after selling restrictions were lifted. Previously, the shares surged from $1.8 to nearly $35 amid the deal announcement, but then collapsed by 97% to $1.16—close to the PIPE price of $1.12. Strive Inc.s (ASST) stock has decreased by 78% since May, from $13 to $2.75, with the PIPE round priced at $1.35, leaving room for further declines of about 55% after sales open next month. A similar situation is observed with Cantor Equity Partners (CEP), merging with Twenty One Capital. Its PIPE was at $10, and the stock has lost nearly 70% from its peak, indicating a risk of further declines—possibly by half the current value. CryptoQuant and other analysts note that even large treasury companies are under pressure, with the value of their crypto assets gradually approaching market capitalization. In this situation, only a sustained rise in digital gold can halt stock price declines to PIPE levels or even lower. It’s worth noting that CryptoQuant analysts have already warned of a significant slowdown in the growth of corporate Bitcoin reserves.

Companies that seek to raise capital through private stock placements risk experiencing a drop in stock prices due to potential...

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