Why crypto-treasury stocks fall faster than the assets they hold — TradingView News
Is the “crypto treasury” strategy a double-edged sword for investors?
Not long ago, companies marketed crypto-treasury stocks as a straightforward investment. They purchased shares to gain exposure to Bitcoin (
BTCUSD) or other digital assets while benefiting from the liquidity and regulatory oversight of public markets.
In rising markets, this approach was effective. Shares of companies with substantial crypto holdings frequently outperformed the underlying assets, attracting investors who wanted crypto exposure without directly owning tokens.
However, during market declines, this relationship breaks down sharply. Crypto-treasury stocks tend to experience more abrupt downturns than the cryptocurrencies they hold. For example, during…
