According to the Financial Times, the "digital asset treasury" business boom is rapidly unraveling as cryptocurrencies plunge and crypto treasury companies are selling their holdings of tokens to support their falling stock prices.
Strategy, led by Michael Saylor, is the world's largest corporate bitcoin holder. Its share price has fallen by 50% in the past three months, driving down the share price of a large number of crypto treasury companies. With Saylor's market capitalization now below the value of its bitcoin holdings, investors are concerned that the business model, which relies on a virtuous cycle of rising cryptocurrency prices and massive equity and debt issuance, is unraveling.
There's going to be a sell-off in these companies and it's only going to get worse, said Adam Morgan McCarthy, senior research analyst at Kaiko, an encrypted data firm. It's a vicious circle, and once prices start to fall, it's a vicious circle of competing prices.
Analysts: Crypto treasury companies may experience a sell-off trend, falling into a vicious circle
2025-11-26 06:05:32
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