The Great Institutional Retreat: Public Firms Grapple with Bitcoin Losses

The institutional fervor that fueled the Bitcoin market throughout 2024 and 2025 has faced a harsh reality check in 2026. As market conditions turn unfavorable, major public companies that once aggressively accumulated digital assets are now forced to liquidate their holdings to stabilize operations and mitigate deepening financial damage.

KULR Technology Group Leads the Sell-Off

KULR Technology Group, once a vocal proponent of Bitcoin treasuries, has recently initiated a significant divestment. The company transferred 300 BTC, valued at approximately $24.36 million, to Coinbase Prime in an apparent move to cut losses. Despite an initial stock price surge following their 2024 announcement to allocate 90% of surplus cash to Bitcoin, the company’s portfolio has suffered an $18.25 million deficit. With its stock price plummeting 74% year-on-year, KULR serves as a primary example of the volatility risks inherent in corporate crypto reserves.

A Growing Trend of Institutional Liquidations

The struggle is not localized to a single firm; rather, it represents a broader trend among Bitcoin treasury companies. Total holdings across public firms have plummeted from $126 billion to $96 billion, leaving these entities with $30 billion in unrealized losses. Industry giants like Riot Platforms and MARA have also reported staggering figures, with Riot executing its largest weekly outflow since early 2025 and MARA reporting Q1 losses exceeding $1 billion. This sustained selling pressure from institutional players creates a precarious cycle, leaving Bitcoin’s price in a weakened state as the market’s largest holders prioritize capital preservation over long-term accumulation.