On September 18, shareholders in publicly traded digital-asset treasury companies were facing cumulative losses of about $50 billion as investors increased scrutiny of executive pay, equity incentives and related transactions across the sector, according to Artemis data and company statements cited in the disclosures.

Artemis data showed the fully diluted market capitalization of publicly traded treasury companies investing in Bitcoin and Ethereum at about $90 billion, down roughly 40% from its peak. The current selloff has shifted investor attention away from simple balance-sheet exposure to digital assets and toward how these companies are governed, especially where compensation, dilution and insider-linked transactions are involved.

Among the companies cited, SkyAI, described as a treasury company for Solana, has seen its stock fall nearly 90% since completing its transformation financing in August 2025. Forward Industries is urging shareholders to oppose an equity incentive plan that would allocate 7.2% of the company’s shares to 30 employees, with a stated value of about $4 million at current prices. Forward has also questioned SkyAI’s consulting payments to a company controlled by a relative of its chief investment officer, as well as the issuance of warrants.

SkyAI said the arrangements in question were reviewed by its board and publicly disclosed. That response addresses process, but the episode shows how quickly investor focus can move from treasury strategy to governance safeguards when losses deepen and dilution becomes more visible.

Metaplanet, another company using a Bitcoin treasury strategy, has fallen 84% from its June 2025 peak. After criticism over executive incentives and equity dilution, the company said it would cancel some warrant arrangements and hire independent external experts to redesign its compensation plan. Nakamoto, led by David Bailey, has fallen 99% from last year’s peak, while its acquisition of two other companies led by Bailey has drawn conflict-of-interest concerns from some market participants.

Why It Matters

The story matters because crypto treasury companies have emerged as a visible bridge between public equity markets and digital-asset exposure. When that model comes under stress, investor concerns extend beyond token holdings to the corporate structures used to finance, manage and expand those positions.

It also highlights a broader market-structure issue for crypto-linked equities: governance quality may become as important as treasury strategy itself. If boards cannot convince investors that compensation, dilution and related-party dealings are being handled with enough independence and transparency, confidence in the sector’s fundraising model could weaken further.