Most Crypto Companies Face Rising Bankruptcy Risk as Stocks Plunge 95% from ATH
The crypto market's reset has gutted related equities, with 12 major stocks shedding 60-95% from all-time highs in just months. What began as euphoric post-Trump election gains - BTC ripping to $126K, MSTR soaring on treasury announcements, COIN/HOOD exploding on volumes, imploded as Bitcoin crashed 50% to $64K by Feb 2026.
Leveraged betas turned 20% BTC drops into 40%+ equity routs, amplified by Nasdaq's $1.2T tech sell-off on AI fears and Fed hawkishness.
Exchanges like COIN (-70%) and HOOD (-60%, to $90.75 Feb 2) suffered as trading volumes halved; miners MARA/BMNR cratered amid hashprice record lows ($0.03/TH/s) and $87K production costs. Strategy (MSTR, -80%, down 20% in 5 days to ~$121) faces $6.2B unrealized BTC loss, with analysts slashing targets 60% yet eyeing NAV discount upside. Smaller bets like SBET (-95%) evaporated on thin liquidity.
| Ticker | Company | % From ATH | ATH DatE |
|---|---|---|---|
| HOOD | Robinhood Markets | -60% | Oct 2025 |
| GLXY | Galaxy Digital | -65% | Oct/Nov 2025 |
| COIN | Coinbase Global | -70% | Nov 2025 |
| MARA | Marathon Digital | -70% | Oct 2025 |
| BLSH | Bullish Exchange | -80% | Late 2025 |
| MSTR | MicroStrategy | -80% | Dec 2025 |
| DJT | Trump Media (crypto tie) | -80% | Nov 2025 |
| CRCL | Circle (USDC) | -85% | Nov 2025 |
| GEMI | Gemini-related | -85% | 2025 peak |
| XXI | XXI (crypto infra) | -90% | Late 2025 |
| BMNR | BitMine Immersion | -90% | Oct 2025 |
| SBET | SharpLink Gaming (bets) | -95% | Hype peak |
The Hype-to-Horror Timeline
Oct-Nov 2025 Peak: Trump win sparks BTC to $126K; MSTR adds BTC aggressively, stock 10x's; COIN hits records on $10B daily volumes; miners expand amid hash wars.
Jan 2026 Rotation: Fed signals delay cuts; BTC < $90K; ETF inflows flip to $1.45B outflows; HOOD -8.9%, GLXY -4.6% in days.
Feb Capitulation: BTC flash-crash to $60K; hash rate -35%, difficulty -16-18% adjustment due Feb 8-10 for miner relief. MSTR tumbles 12% erasing $5B value; Michael Burry warns ”death spiral” under $70K. Public miners close down 10-20% daily on margin fears.
Macro crushed: USD strength, AI bust in software ($1.2T Nasdaq loss) rotated capital away. Crypto stocks' sky-high multiples (HOOD 44x fwd) offered no cushion.
What's Next: Dead or Rebound Setup?
Bulls: Oversold RSI (22), miner difficulty reset boosts hashprice; Strategy earnings Feb this week could reaffirm buys. ARK scoops HOOD dips; BTC $100K rebound = 2-3x for MSTR/COIN historically.
Bears: Miner shutdowns accelerate if $50K tests; dilution waves (MSTR raising via shares); regulation post-Trump pause. 95% drops signal ”dead money” for illiquids like SBET.
This rout echoes 2022 but faster — corporate resilience (MSTR's $2.25B cash buffer) vs pure spec plays. Capitulation complete? Or just starting?
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