Crypto treasuries risk 50% downside on PIPE selling pressure

**Crypto Treasury Companies Face 50% Downside Risk from PIPE Deal Selling Pressure**

CryptoQuant analysts warn that cryptocurrency treasury companies utilizing PIPE (Private Investment in Public Equity) deals could experience significant downside risks of up to 50% due to mounting selling pressure from private investors. These blockchain-focused companies, which raise capital by selling new shares to institutional investors at discounted rates, may face substantial market volatility as PIPE investors typically seek quick exits once lock-up periods expire.

The cryptocurrency market analysis reveals that companies holding Bitcoin and other digital assets in their corporate treasuries are particularly vulnerable to this selling pressure. As DeFi protocols and blockchain companies increasingly turn to PIPE financing to strengthen their balance sheets, the influx of discounted shares entering the market creates bearish sentiment among retail investors.

This development highlights the interconnected risks between traditional equity markets and cryptocurrency investments. Investors should closely monitor PIPE deal announcements from major crypto treasury companies, as these financing arrangements could trigger significant price corrections across both individual stocks and the broader cryptocurrency ecosystem, potentially impacting Bitcoin prices and altcoin performance.