Digital asset treasury companies are experiencing significant regulatory and market challenges as their share prices approach Private Investment in Public Equity (PIPE) levels. The SEC and FINRA are investigating potential breaches of selective disclosure rules related to crypto acquisition announcements. A CryptoQuant report highlights share price declines between 42% and 97% for firms that utilized PIPE funding, with Kindly MD (NAKA) notably collapsing 97% after an initial surge. The sector is facing a potential 'death spiral' due to falling Bitcoin prices, margin calls, and forced liquidations, which could lead to cascading failures. Standard Chartered has pointed out market saturation and anticipates consolidation through acquisitions. NYDIG has warned of risks from pending share unlocks, with over 95% of new shares linked to incomplete transactions. Without a significant Bitcoin price recovery, many companies may continue to see their share prices trend toward or below PIPE levels.