Bitcoin’s Hidden Chaos: PIPE Deals Spark a Crypto Meltdown

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Darling, the stock prices of Digital Asset Treasury outfits that nursed Bitcoin as a strategic asset are nosediving, casting a rather theatrical headwind on Bitcoin’s grand entrance. 😂

A brand-new missive from the on-chain clerks at CryptoQuant suggests that if Bitcoin keeps sulking, we may have a negative feedback loop on our hands-darling, how deliciously ruinous. 💅

What Is a PIPE?

CryptoQuant’s report zooms in on Bitcoin-holding houses that flirted with Private Investment in Public Equity-PIPE for the cognoscenti. Their charts show a rather conspicuous downtrend, darling. 📉

A PIPE is essentially a private offering in which a public company sells freshly minted shares (or convertible securities) to a select circle of accredited or institutional investors. It’s a quick cash-flirt, often at a discount to the market price, with a wink and a nudge. 😉

Loads of Bitcoin DAT houses tapped PIPE this year. The key downside-that it dilutes existing shareholders and puts downward pressure on the stock price-was largely overlooked in the glow of Bitcoin’s bullish waltz. CryptoQuant notes that firms using PIPE have since seen their stock prices take a little holiday, darling, a rather unenthusiastic one. 😬

Vicious Cycle of Decline

Take Kindly MD (NAKA), one such DAT darling. Its shares leaped from $1.88 in late April to a peak of $34.77 within a month-a dazzling 18.5x crescendo! Yet the curtain fell, and the stock has slumped 97% to $1.16, now tiptoeing near its PIPE price of $1.12. A tragedy with a timing that would make a butler groan. 😂

CryptoQuant notes that other Bitcoin trusts, including Strive (ASST), Cantor Equity Partners (CEP), and Empery Digital (EMPD), have suffered stock declines ranging from 42% to 97%. Some trades still hovering above their PIPE issuance prices face potential losses of up to another 50%, darling.

While these DAT companies may hoard a surprising vault of cryptocurrency, their market valuation is plummeting even quicker. The telltale sign is the rapid collapse of their Market Value to Net Asset Value, or mNAV-an unhappy arithmetic that even a pied-à-terre could blush at. 😳

Domino Effect

As Bitcoin’s price remains tepid, the stock prices of DAT companies sag. This prompts selling by PIPE investors, creating a domino effect. If the pattern continues, these outfits may lose their principal means of raising fresh operating capital, left with only the option to hawk their Bitcoin holdings for cash. 💸

That would push Bitcoin’s price down further, tangoing in a vicious circle where Bitcoin and DAT stocks slide in step. CryptoQuant suggests only a sustained Bitcoin rally can rescue these equities from the brink; otherwise, many crypto equities may drift toward or beneath their PIPE prices. In short, a standing ovation to gravity. 📉💡

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2025-09-26 11:46