Crypto Holdings Weigh on Company Valuations
For a period, accumulating cryptocurrencies proved a surefire method for relatively unknown companies to significantly boost their share prices. Currently, this strategy has largely transformed into a liability. Over the past year, the largest digital asset treasuries (DATs) have experienced a median decline of 62 per cent, surpassing even the substantial falls observed in Bitcoin. Consequently, a considerable proportion of DATs are trading at a discount relative to the underlying value of their cryptocurrency holdings, suggesting that shareholders might benefit more from company liquidation.
This situation marks a stark contrast to the peak of the DAT phenomenon, when companies holding, for instance, $US100 million in Bitcoin…
