Boom in Crypto Treasury Stocks Faces Inevitable Bust
What happens to a company whose main business proposition relies on crypto values continuing to go up when prices start to falter? If you guessed that it can’t be good, you win one of those weird novelty banana thingies that count as carnival prizes.
A plethora of digital asset treasury companies, also known as DATCOs, have gone public worldwide in the past year, vying to duplicate the stunning stock market success of Strategy, the company founded by outspoken bitcoin proponent Michael Saylor and formerly known as MicroStrategy. Starting in August 2020, the firm acquired massive amounts of the cryptocurrency by issuing additional shares and taking on debt, essentially becoming a bitcoin holding company.
