Bloomberg: Strategy Model Stumbles as Cryptocurrency Treasury Fad Turns Skeptical
BlockBeats News, September 10th, according to Bloomberg, among the 100+ companies that have purchased cryptocurrency for their treasuries, most were established this year, with many being small companies that rebranded overnight. Nevertheless, the crypto treasury frenzy has not completely subsided, and some companies are still benefiting from the speculation wave. Eightco Holdings Inc.'s stock price skyrocketed 3000% on Monday after announcing its plan to purchase Worldcoin and appointing Wall Street analyst Dan Ives to its board of directors.
For some companies, the allure is obvious: packaging in the form of a publicly traded company can provide exposure to cryptocurrency and potential leveraged gains while utilizing the familiar stock form for investors. In individual cases, this model can still command a significant premium. However, this approach is becoming overcrowded: too many companies are jumping in, and besides holding tokens, they have little additional value. As prices decline, the confidence supporting these premiums begins to waver. New data suggests that this model may be losing momentum due to its own weight—not only in market sentiment but also in the actual pace of Bitcoin purchases.
Strategy and its Japanese counterpart Metaplanet Inc., the two most prominent Digital Asset Treasury (DAT) companies, have also seen declines recently after a year of soaring stock prices, indicating that even market leaders are not immune to shifts in sentiment. Some industry insiders have begun discussing potential consolidation, especially as weaker companies continue to struggle, and stronger companies begin to see their peers' token holdings as acquisition targets.
Whether this new financing ecosystem can sustain this model or merely delay its decline remains uncertain. Currently, the next phase is unlikely to be a dramatic collapse but rather a gradual decline—stock prices slowly sliding, token purchases stagnating.
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