Companies raising capital through private placements risk a decline in stock prices due to potential large-scale sales.
From $35 to $1: PIPE deals are crushing Bitcoin treasury stocks.
Kindly MD (NAKA) soared 18.5x in weeks, then fell 97%, back to its $1.12 PIPE price.
PIPE price gravity is brutal. pic.twitter.com/84KGVQLRHi
— CryptoQuant.com (@cryptoquant_com) September 25, 2025
Researchers noted that firms issuing new shares through PIPE often experience significant declines: prices eventually revert to placement levels. In some cases, the drop can reach 50% as investors exit the lock-up period and prepare to sell.
PIPE deals allow market participants to purchase shares below market price, providing companies with quick access to liquidity. In the crypto industry, this tool has gained popularity as a means to attract capital in a highly competitive environment.
However, as CryptoQuant highlights, such placements dilute the stake of current shareholders. Moreover, they create an overhang of supply, exerting downward pressure on stock prices.
Examples of Declines
An analysis of stock prices for several Bitcoin-focused companies revealed that declines often occur right after the unlocking of PIPE shares.
For instance, shares of Kindly MD (NAKA), transformed from a medical to a “treasury” company, more than halved in a day following the lifting of sales restrictions. Previously, the stock had surged from $1.8 to nearly $35 amid the deal announcement, but then plummeted by 97%, to $1.16 — almost matching the PIPE price of $1.12.
Shares of Strive Inc. (ASST) have fallen 78% since May — from $13 to $2.75. The company’s PIPE round was priced at $1.35, leaving room for an additional 55% drop after sales open next month.
A similar situation is observed with Cantor Equity Partners (CEP), which is merging with Twenty One Capital. Its PIPE was priced at $10, and shares have lost nearly 70% from their peak. This indicates a risk of further decline — up to half of the current value.
CryptoQuant and other analysts note that even large “treasury” companies are under pressure: the value of their crypto assets is gradually approaching market capitalization. In such a scenario, only sustained growth of digital gold can halt the decline in stock prices to PIPE levels or even lower.
As reported by CryptoQuant, analysts have already warned of a significant slowdown in the growth of corporate Bitcoin reserves.