Bitcoin's Market Value vs. Holdings of Companies with BTC in their Treasury: Equ intriguing 1:4 proportion surfaces

In the world of cryptocurrencies, one digital asset has held up remarkably well compared to companies that have adopted it as part of their treasury strategy. Bitcoin, the leading cryptocurrency, has shown resilience in the face of volatility, while Bitcoin Treasury Companies (BTCTCs) have experienced significant fluctuations.

Over the past 18 months, Bitcoin's price action has been primarily bullish, creating new price highs. However, this hasn't been the case for BTCTCs. The shortest correction for Bitcoin was a brutal one-day slide of 22.2% in April 2024, while the longest and deepest crash lasted 119 days from July to November 2024, wiping out 78.6%. In contrast, the stocks of BTCTCs have seen more pronounced declines.

At the time of writing, Bitcoin is in a correction phase and is struggling to hold above the $110,000 support level. On the other hand, stocks of BTCTCs have fallen sharply over the past 10 weeks, shedding between 50% and 80% of their value. Companies like The Smarter Web Company PLC (-83.6%) and The Blockchain Group (-70.7%) are at greater losses.

Data from crypto commentator Mark Moss shows that the stock prices of companies with a Bitcoin strategy have diverged from Bitcoin. Moss noted that this divergence shows an unusual 1:4 cycle ratio where corporate Bitcoin holders undergo four mini-cycles for every one Bitcoin market cycle.

The Japanese firm MetaPlanet's stock ($MTPLF) has experienced 12 distinct drawdowns over the last 18 months. The average downturn for MetaPlanet's stock erased 32.4% of value and lasted about 20 days. Despite this, only 41.7% of MetaPlanet's drawdowns have directly lined up with Bitcoin's corrections. The two most severe drawdowns for MetaPlanet's stock coincided with periods when Bitcoin itself was undergoing corrections. MetaPlanet's stock is currently down 58.6%.

Other BTCTC stocks, like Strategy, a popular BTCTC stock, are also down significantly, with a 37.1% decline from its 52-week high. However, no specific companies with up to 80% loss in value were directly identified in the past 10 weeks. Puma experienced a significant decline of over 56% since the beginning of the year and a 60% drop in two years, but this does not reach 80% in 10 weeks.

This unusual pattern between Bitcoin and BTCTCs underscores the inherent risks associated with investing in cryptocurrencies and companies that hold them as part of their treasury strategy. As always, it's crucial for investors to do their due diligence and understand the risks involved before making any investment decisions.