Clear Street Plans $10 Billion IPO as Bitcoin Treasury Strategy Faces Market Pressure
Clear Street, a New York brokerage firm, is preparing for an initial public offering with an expected valuation between $10 billion and $12 billion, according to Cointelegraph. The IPO could launch as early as January 2026, with Goldman Sachs serving as the lead underwriter.
Founded in 2018, Clear Street rose to prominence by underwriting deals for companies adopting Bitcoin treasury strategies. The firm facilitated transactions worth approximately $91 billion this year across equity, debt, and merger deals. Clear Street's major clients include MicroStrategy, which accumulated 650,000 BTC through offerings the brokerage helped underwrite, and Trump Media and Technology Group, which plans to establish its own Bitcoin treasury operation.
The timing of Clear Street's IPO coincides with a broader wave of crypto companies entering public markets. In 2025, approximately 316 companies listed in the United States, raising around $63 billion total. Grayscale Investments filed for a New York Stock Exchange listing in November, while crypto exchange Gemini made its Nasdaq debut in September after submitting Form S-1 paperwork.
Treasury Model Shows Financial Stress
The Bitcoin treasury business model that powered Clear Street's growth now faces pressure from market conditions. Bitcoin declined roughly 30% from its October peak near $126,000 to current levels around $92,000. This drop triggered consequences for companies following the treasury playbook.
Cointelegraph reports that Galaxy Research described treasury companies as entering a "Darwinian phase" where core business mechanics are breaking down. Many firms now trade at discounts to their Bitcoin holdings, eliminating their ability to issue new shares for additional purchases. MicroStrategy's stock dropped 60% over six months. Companies like Metaplanet swung from $600 million in unrealized gains to approximately $530 million in losses.
The October 10 deleveraging event accelerated these problems, wiping out open interest across futures markets and weakening spot liquidity. Digital asset treasury stocks that traded at premiums during summer 2025 now sit at or below their net asset value. We reported that MicroStrategy holds $47 billion in Bitcoin, representing approximately 2.5% of total supply, making the company particularly exposed to price movements.
Galaxy Research outlined three possible outcomes for treasury firms: prolonged compressed premiums where growth stagnates, consolidation through acquisitions or restructuring for overleveraged companies, or recovery if Bitcoin reaches new highs but only for firms that maintained strong liquidity. Strategy responded by building a $1.44 billion cash reserve to cover obligations for at least 12 months.
Crypto Companies Accelerate Public Market Push
Clear Street's IPO reflects increasing appetite for crypto-related public offerings despite market volatility. CoinDesk reported that custody firm BitGo filed confidentially for a U.S. listing in July 2025, joining competitors in pursuing traditional market access. BitGo raised $100 million in 2023 at a $1.75 billion valuation.
The rush to public markets stems from multiple factors. Regulatory clarity improved under the current administration, removing previous barriers. Institutional adoption increased, with 86% of institutional investors holding digital asset exposure or planning allocations by early 2025. The global cryptocurrency market reached approximately $4.2 trillion in value earlier this year, providing favorable conditions for listings.
However, Clear Street faces questions about long-term prospects. The treasury model that generated substantial underwriting revenue may no longer function as effectively. Smaller treasury firms cannot raise capital through stock issuance when trading below net asset value. This reduces potential deal flow for brokerages serving this market segment.
Other crypto infrastructure providers see opportunities. Custody services, exchange platforms, and asset managers benefit from growing institutional participation regardless of treasury company struggles. BitGo, Gemini, and Grayscale represent different business models with revenue sources beyond underwriting Bitcoin purchases.
The contrast between Clear Street's IPO ambitions and treasury company difficulties illustrates diverging paths within crypto finance. Service providers to the industry continue expanding while leveraged accumulation strategies face mounting challenges. Market observers will monitor whether Clear Street can demonstrate resilience beyond its treasury-focused client base or if the firm requires strategy adjustments as market dynamics shift.
