Crypto treasuries risk 50% downside on PIPE selling pressure

CryptoQuant said crypto treasury companies that cut deals to sell new shares to private investors face downside risks due to incoming selling pressure.

Crypto treasury companies that have raised capital in private investment in public equity (PIPE) deals could see their shares fall by half with selling pressure, according to analytics platform CryptoQuant.

Crypto treasury companies that have raised capital through PIPE deals “have suffered major drawdowns, with share prices often gravitating toward their PIPE issuance levels,” CryptoQuant said in a market report on Thursday.

It added that shares in some companies “may face further declines of up to 50%” as shares trade above PIPE offering prices, and investors nearing the end of their lock-up periods are likely looking to sell.

Read more