Plummeting prices are putting pressure on crypto treasury firms. Here’s what to expect this year.
The crypto market cap — the value of all cryptocurrencies — has fallen by over 30% in the past three months. That’s a tough pill to swallow for crypto treasury firms, which gained traction last year when prices were soaring. Many use capital, often raised by issuing equity or convertible debt, to buy cryptocurrency.
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Also known as digital asset treasuries (DATs), the majority of these companies hold Bitcoin (BTC 1.16%), but some have also focused on Ethereum (ETH 3.75%) and Solana (SOL 0.12%).
The challenge is that the value of their crypto holdings has plummeted, and many are underwater. They may need to sell…
