{"id":89278,"date":"2025-09-26T10:45:52","date_gmt":"2025-09-26T07:45:52","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=89278"},"modified":"2025-09-26T10:50:56","modified_gmt":"2025-09-26T07:50:56","slug":"cryptoquant-pipe-deals-threaten-treasury-stock-prices","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/cryptoquant-pipe-deals-threaten-treasury-stock-prices\/","title":{"rendered":"CryptoQuant: PIPE Deals Threaten Treasury Stock Prices"},"content":{"rendered":"<p>Companies raising capital through private placements risk a decline in stock prices due to potential large-scale sales.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">From $35 to $1: PIPE deals are crushing Bitcoin treasury stocks.<\/p>\n<p>Kindly MD (NAKA) soared 18.5x in weeks, then fell 97%, back to its $1.12 PIPE price.<\/p>\n<p>PIPE price gravity is brutal. <a href=\"https:\/\/t.co\/84KGVQLRHi\">pic.twitter.com\/84KGVQLRHi<\/a><\/p>\n<p>\u2014 CryptoQuant.com (@cryptoquant_com) <a href=\"https:\/\/twitter.com\/cryptoquant_com\/status\/1971247382722641928?ref_src=twsrc%5Etfw\">September 25, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Researchers noted that firms issuing new shares through <span data-descr=\"private investment in public equity\" class=\"old_tooltip\">PIPE<\/span> often experience significant declines: prices eventually revert to placement levels. In some cases, the drop can reach 50% as investors exit the <span data-descr=\"Lock-up \u2014 restriction on selling shares for a specified period after placement\" class=\"old_tooltip\">lock-up<\/span> period and prepare to sell.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<h2 class=\"wp-block-heading\">Examples of Declines<\/h2>\n<p>An analysis of stock prices for several Bitcoin-focused companies revealed that declines often occur right after the unlocking of PIPE shares.<\/p>\n<p>For instance, shares of <a href=\"https:\/\/forklog.com\/en\/news\/david-baileys-firm-secures-710-million-for-bitcoin-treasury-initiative\">Kindly MD<\/a> (NAKA), transformed from a medical to a &#8220;treasury&#8221; 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 <a href=\"https:\/\/forklog.com\/en\/news\/shares-of-david-baileys-bitcoin-company-plummet-by-95\">plummeted by 97%<\/a>, to $1.16 \u2014 almost matching the PIPE price of $1.12.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"476\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-3cb8bf598fbb6b28-5265105840594540-1024x476.png\" alt=\"Kindly MD\" class=\"wp-image-266394\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-3cb8bf598fbb6b28-5265105840594540-1024x476.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-3cb8bf598fbb6b28-5265105840594540-300x140.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-3cb8bf598fbb6b28-5265105840594540-768x357.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-3cb8bf598fbb6b28-5265105840594540.png 1290w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Kindly MD stock price dynamics. Source: <a href=\"https:\/\/www.google.com\/finance\/quote\/NAKA:NASDAQ\">Google Finance<\/a>.<\/figcaption><\/figure>\n<p>Shares of Strive Inc. (<a href=\"https:\/\/www.google.com\/finance\/quote\/ASST:NASDAQ\">ASST<\/a>) have fallen 78% since May \u2014 from $13 to $2.75. The company&#8217;s PIPE round was priced at $1.35, leaving room for an additional 55% drop after sales open next month.<\/p>\n<p>A similar situation is observed with Cantor Equity Partners (<a href=\"https:\/\/www.google.com\/finance\/quote\/CEP:NASDAQ\">CEP<\/a>), 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 \u2014 up to half of the current value.<\/p>\n<p>CryptoQuant and <a href=\"https:\/\/viewemail.nydig.com\/what-dat-premiums-say-about-the-cycle?ecid=ACsprvsXRPjVHK2MlrrHe7A1H2CVIpVZLVke4yq_eAhM3pvgn3GTqiJWUGRjURU5Bv0p_WblRcyf&#038;utm_campaign=Research%20Emails&#038;utm_medium=email&#038;_hsenc=p2ANqtz-9OMO-apm1llBVZTGdTtDs9ut2Hzmc6Bc-CdZisjdwi7IJX24NL0PmMpfXJsZaLmijdNtZFX_eknl82e2FwuJqjhNpMLPg80_jbf7nfn39ESKC2niA&#038;_hsmi=379257698&#038;utm_content=379257698&#038;utm_source=hs_email\">other analysts<\/a> note that even large &#8220;treasury&#8221; 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.<\/p>\n<p>As reported by CryptoQuant, analysts have already <a href=\"https:\/\/forklog.com\/en\/news\/corporate-bitcoin-reserves-growth-slows-significantly\">warned<\/a> of a significant slowdown in the growth of corporate Bitcoin reserves.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Companies raising capital through private placements risk a decline in stock prices due to potential large-scale sales.<\/p>\n","protected":false},"author":1,"featured_media":89279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Companies raising capital through private placements face potential stock price declines.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1641,1205,1221],"class_list":["post-89278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-reserves","tag-cryptoquant","tag-stocks"],"aioseo_notices":[],"amp_enabled":true,"views":"138","promo_type":"1","layout_type":"1","short_excerpt":"Companies raising capital through private placements face potential stock price declines.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=89278"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89278\/revisions"}],"predecessor-version":[{"id":89280,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89278\/revisions\/89280"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/89279"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=89278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=89278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=89278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}