Stocks of the biotech company Windtree Therapeutics crashed by 77% in a single day after Nasdaq kicked it off the exchange, marking the end of an experiment that transformed a medical research firm into a crypto investor. The dramatic collapse serves as a stark warning about the risks of abandoning proven business models for speculative ventures.
Nasdaq delivered the blow on August 19, 2025, when it informed Windtree that it had violated a fundamental listing requirement. Most U.S. stock exchanges require any company to maintain a minimum share price of $1.00 for thirty consecutive business days to remain listed. Windtree’s shares had tumbled far below this threshold, forcing Nasdaq to suspend trading on August 21.
The Crypto Gamble That Backfired
Just weeks before its delisting, Windtree had made an unprecedented shift towards cryptocurrency. On July 16, the company revealed it had signed a $60 million agreement with Build and Build Corp to purchase BNB tokens of cryptocurrency. This decision marked a radical departure from the company’s core mission of developing medical treatments. Furthermore, the company doubled down on its risky strategy by securing a $500 million equity line of credit from an unnamed investor, potentially exposing itself to up to $560 million in cryptocurrency investments.
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The initial announcement on July 16, 2025, briefly boosted the stock by 32.2%, but shares collapsed by over 90% from their July 18 peak, indicating that the market viewed the BNB strategy as insufficient to offset the company’s financial and regulatory challenges. Windtree’s clinical-stage status, with negative net revenue (–$10.64 million in the latest quarter) and ongoing losses, further compounded investor scepticism.
The timing was very unfortunate for Windtree. It also suffered losses after investing in BNB, which stemmed from a poorly timed investment around the token’s all-time high, which was followed by a market-wide price correction and broader crypto volatility in August 2025. This risky treasury strategy, combined with the company’s existing financial and regulatory challenges, turned potential gains into immediate impairments, further undermining investor trust and contributing to its broader financial difficulties.
Windtree’s leadership had also failed to provide investors with crucial information about their crypto adventure. The company never disclosed how much BNB it purchased or whether it planned to continue this speculative strategy. This lack of transparency raised serious questions about management’s competence and commitment to shareholder interests.
The Price of Poor Leadership?
The company now faces an uncertain future trading on over-the-counter markets, where stocks typically experience lower liquidity and reduced investor interest. While Windtree claims its research operations continue unaffected, the delisting severely limits its ability to raise capital for drug development or attract strategic partnerships with larger pharmaceutical companies.
The company’s future remains deeply uncertain. It must now prove it can return to its biotech roots while managing whatever cryptocurrency positions it may still hold. Windtree’s spectacular failure serves as a cautionary tale about the importance of maintaining strategic discipline and regulatory compliance, regardless of market trends or speculative opportunities.
