Bitcoin Betting Companies Lose Billions of Dollars

24 July 2026 - 15:35 | Last updated 24 July 2026 - 15:35

Bitcoin declined by 50%, pushing companies to paper losses in the tens of billions (traded)

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The wave of optimism that drove dozens of listed companies to convert their balance sheets into a near-total bet on Bitcoin has turned into a harsh test, as the cryptocurrency has lost about half of its value, causing those companies to incur paper losses in the billions of dollars and face increasing pressure from investors and markets.

According to what was reported by "Bloomberg," a number of companies that adopted a model based on raising funds from investors or through borrowing and then buying Bitcoin and holding it have begun to face severe repercussions as the prices of the cryptocurrency continue to decline, at a time when new listing deals that relied on the same model have stumbled.

During the record rise of cryptocurrencies, the model seemed simple and profitable; companies would gather funding and then invest almost all of it in Bitcoin, betting on the continued rise in prices.

Assets linked to this model quickly ballooned to over $120 billion, benefiting from the significant momentum seen in the cryptocurrency market.

However, with the trend reversing and Bitcoin dropping by about 50%, the value of these assets has fallen to around $75 billion, leading to paper losses in the tens of billions and reopening questions about the sustainability of this model.

The wave of optimism that drove dozens of listed companies to convert their balance sheets into a near-total bet on Bitcoin has turned into a harsh test, as the cryptocurrency has lost about half of its value, causing those companies to incur paper losses in the billions of dollars and face increasing pressure from investors and markets.

According to what was reported by "Bloomberg," a number of companies that adopted a model based on raising funds from investors or through borrowing and then buying Bitcoin and holding it have begun to face severe repercussions as the prices of the cryptocurrency continue to decline, at a time when new listing deals that relied on the same model have stumbled.

During the record rise of cryptocurrencies, the model seemed simple and profitable; companies would gather funding and then invest almost all of it in Bitcoin, betting on the continued rise in prices.

Assets linked to this model quickly ballooned to over $120 billion, benefiting from the significant momentum seen in the cryptocurrency market.

However, with the trend reversing and Bitcoin dropping by about 50%, the value of these assets has fallen to around $75 billion, leading to paper losses in the tens of billions and reopening questions about the sustainability of this model.