Columbia Business School adjunct professor Omid Malekan argues crypto treasury companies have contributed significantly to bitcoin’s price decline. In a Tuesday X post, Malekan stated that digital asset treasuries turned into a mass extraction and exit event, putting downward pressure on prices.

Bitcoin has fluctuated between $99,607 and $113,560 over the past seven days, down from its Oct. 6 all-time high above $126,000. Malekan claimed only a handful of companies attempted to create sustainable value through their treasury strategies.

This story is an excerpt from the Unchained Daily newsletter.

The professor highlighted that launching public entities costs millions in fees for bankers and lawyers, suggesting some operators viewed the model as a quick profit scheme. Digital asset treasuries have sparked concerns about forced asset sales during downturns due to leveraged positions through convertible notes and debt offerings.

Bitwise reported 207 companies now hold over one million bitcoin tokens worth more than $101 billion. Additionally, 70 companies have added ether to their balance sheets, collectively holding 6.14 million tokens valued above $20 billion.