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-TrumpThe 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

Most Crypto Companies Face Rising Bankruptcy Risk as Stocks Plunge 95% from ATH

3 min read

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.

Most Crypto Companies Face Rising Bankruptcy Risk as Stocks Plunge 95% from ATH

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.

TickerCompany% From ATHATH DatE
HOODRobinhood Markets-60%Oct 2025
GLXYGalaxy Digital-65%Oct/Nov 2025
COINCoinbase Global-70%Nov 2025
MARAMarathon Digital-70%Oct 2025
BLSHBullish Exchange-80%Late 2025
MSTRMicroStrategy-80%Dec 2025
DJTTrump Media (crypto tie)-80%Nov 2025
CRCLCircle (USDC)-85%Nov 2025
GEMIGemini-related-85%2025 peak
XXIXXI (crypto infra)-90%Late 2025
BMNRBitMine Immersion-90%Oct 2025
SBETSharpLink 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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