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MicroStrategy and BitMine Could Trigger the Largest Bitcoin Crash in History: DWF Labs Co-founder Issues Warning

Andrei Grachev, co-founder of DWF Labs, warned on X that Strategy (formerly MicroStrategy) and BitMine could trigger the biggest crypto market crash in history, while urging investors to imagine if Bitcoin prices drop to US$10,000–US$20,000.

This warning comes at one of the most vulnerable moments for both companies.

Liquidity Warning Has Been Triggered

The crypto asset treasury crash occurs when large corporate holders are forced to sell in huge quantities, causing prices to continue falling and worsening market decline. Grachev believes MicroStrategy and BitMine could be the main triggers of such an event.

He framed this post as a thinking exercise. The DWF Labs co-founder stated that he hopes this scenario does not happen, but he wants investors to seriously consider their trading strategies if Bitcoin prices fall to around US$10,000–US$20,000.

Timing is critical here. Bitcoin just broke below US$60,000 amid outflows from spot ETFs totaling over US$1.7 billion in a week, the largest weekly figure in over a year, with over US$1 billion in liquidations across the market within 24 hours.

Grachev consistently warns about leverage and structural risks. Previously, he described a cascade event in October 2025 as a “nuclear bomb,” and he has also spoken about a “liquidity war” that repeatedly causes the crypto market to lose billions.

The main point of his argument lies in asset concentration. Two corporate giants now hold massive amounts of crypto assets, and if they are forced to sell due to financial pressure, it could exacerbate the already fragile market weakness and trigger panic among retail and institutional holders.

Why MicroStrategy and BitMine Are the Eye of the Storm

MicroStrategy recently experienced an unrealized Bitcoin loss of about US$13 billion, recorded as their largest paper loss. The company holds more than 843,000 BTC on its corporate balance sheet.

This pressure is felt throughout its capital structure. The variable-rate perpetual preferred shares of Strategy with the code STRC briefly fell below US$95 according to TradingView data. Meanwhile, MSTR shares also took a sharp hit, and the company just sold 32 BTC, their first sale since 2022.

BitMine faces similar issues. This Ethereum-focused treasury holds around 5.28 million ETH and has unrealized losses of over US$10 billion, after purchasing at an average price of nearly US$3,500 per coin.

If either company faces funding pressure, the impact could spread very quickly. Forced or voluntary sales to cover obligations could push Bitcoin and Ethereum prices into large liquidation zones, as Grachev fears in the broader crypto market.

Macroeconomic conditions also reinforce these concerns. Continuous ETF outflows, strong US labor reports reducing hopes for interest rate cuts, and Jim Cramer's recent jab implying that Saylor is “destroying Bitcoin” all add to the increasingly fragile market sentiment.

Grachev does not predict a crash will happen. He only asks investors to prepare mentally if the two crypto giants in Bitcoin and Ethereum push the market toward the lowest levels seen since the deepest bear cycle.