Pipe Dream: Bitcoin Finance Company Risks Another 55% Stock Prices

Bitcoin (BTC) financing companies that have raised capital via pipes (private investments in public equity) are facing pressure to regain pressure as their stock prices are drawn to discounted issuance levels and generate potential losses of up to 55% for current investors.

According to Repnort on September 25 by Cryptoquant, the pattern appears to be consistent across multiple companies using pipes to fund Bitcoin purchases.

Kindly MD has experienced the most dramatic example, surged 18.5 times to an intraday high of $1.88 to $34.77, following its May announcement at $1.12 per share.

However, the stock collapsed 97% to $1.16, essentially matching the pipe price, with more than half of the decline in one day after pipe stocks were unlocked for trading.

Other Bitcoin Treasury stocks show similar trajectories. The Strive (ASST) trade was $3.00, down 78% from 2025, with pipe price of $1.35. This gap suggests a potential 55% decline when the stock returns to its issuance level.

Pressure could intensify next month as ASST pipe investors become eligible to sell their shares.

Cantor Equity Partners face comparable risks, trading at $19.74 compared to a common equity pipe price of $10.00. The potential reduction of 50% reflects the significant discounts built into these privately owned arrangements.

Some companies are already trading below pipe level. Empery Digital trades for $7.94 and represents a 21% discount on the $10.00 pipe price. The stock peaked at $11.37 on August 13th, then fell as low as $6.50, a 42% drawdown.

The company’s market capitalization is below the value of Bitcoin Holdings.

Bitcoin finance companies rely on pipes as they need to quickly access large capital blocks to implement their strategies.

These transactions offer speed and flexibility, but once resale restrictions are lifted, there will be significant dilution and potential sales pressures.

The report noted that the pipe structure has several drawbacks to existing shareholders. Beyond immediate dilution, discount pricing creates a “overhang” effect, allowing investors to sell publicly.

Pipe investors usually receive registration rights. This will allow you to settle your position after submitting a resale statement.

Additionally, the report identifies five Bitcoin financing companies that have raised over $2.5 billion through pipe transactions, with Bitcoin holdings ranging from 3,205 to 43,514 BTC.

The data suggest that only sustained Bitcoin rallies can prevent further declines in these stocks.

With no renewed momentum in the Crypto market, many companies are positioned as continuing to tilt towards pipe prices as institutional investors who purchase at large discounts are trying to realize public market benefits.

This dynamic creates a feedback loop where when Bitcoin prices put pressure on the Treasury company’s stocks, it could force additional sales that would weigh both Bitcoin and the company more.

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