Bitcoin Treasury Companies Experience 50% to 80% Stock Value Decline

Bitcoin has shown resilience compared to companies adopting it for treasury strategies, with a widening gap in performance. Over the past 10 weeks, stocks of Bitcoin Treasury Companies (BTCTCs) have declined significantly, losing between 50% and 80% of their value, indicating a "1:4 ratio" in cycle behavior.

Mini-Bear Markets Overview

Bitcoin's price action has primarily followed a bullish trend over the last 18 months, achieving new highs.
Many companies are incorporating Bitcoin into their balance sheets as BTCTCs.
Data shows that BTCTC stock prices diverged from Bitcoin, experiencing substantial drops of 50% to 80%.
MetaPlanet is highlighted as a case study; its stock has undergone 12 drawdowns averaging a loss of 32.4% over approximately 20 days.
Notable drawdowns include a one-day drop of 22.2% and a lengthy decline of 78.6% lasting 119 days.

Correlation with Bitcoin

Only 41.7% of MetaPlanet’s drawdowns aligned with Bitcoin corrections; most were influenced by company-specific factors.
The two largest declines coincided with Bitcoin volatility, suggesting some correlation during downturns.
BTCTCs experience more frequent cycles compared to Bitcoin's four-year cycles, reflecting a faster market response.

Currently, Bitcoin is in a correction phase, struggling to maintain support above $110,000. Popular BTCTC stocks are similarly declining:

Strategy’s stock is down 37.1% from its 52-week high.
MetaPlanet has lost 58.6%.
The Smarter Web Company PLC and The Blockchain Group face losses of 83.6% and 70.7%, respectively.