Crypto PIPE Deals May Trigger 50% Stock Drops, Says CryptoQuant

**Crypto Treasury Companies Face Massive Stock Selloffs as PIPE Investment Lock-ups Expire**

CryptoQuant analysts are sounding alarm bells for cryptocurrency treasury companies that secured funding through Private Investment in Public Equity (PIPE) deals, warning of potential 50% stock price crashes as investor lock-up periods reach expiration. These PIPE financing arrangements, popular among blockchain companies during the crypto bull market, are creating significant market pressure as early investors gain the ability to liquidate their positions.

The cryptocurrency market analysis firm highlights how digital asset companies that relied on PIPE funding to strengthen their Bitcoin and cryptocurrency holdings may experience severe volatility. As lock-up restrictions lift, institutional investors who participated in these private deals can now sell their shares on public markets, potentially triggering substantial price corrections.

This development carries broader implications for the DeFi ecosystem and blockchain sector, as many crypto treasury firms used PIPE proceeds to acquire Bitcoin reserves and expand their digital asset portfolios. Investors should monitor these companies closely as unlock events could create buying opportunities amid the anticipated selloff pressure across cryptocurrency-related stocks.