Digital asset treasury (DAT) firms, seen as high-beta plays on crypto prices, sold off sharply on Friday as the August crypto rally showed signs of exhaustion.

Strategy (MSTR) fell another 3% on Friday, extending its decline to 20% since July’s high and 33% from the November 2024 all-time high. The MSTR/IBIT ratio dropped to 5.43, its lowest since March, signaling continued underperformance against BlackRock’s iShares Bitcoin Trust (IBIT) and a return to levels last seen at the start of the year.

Other bitcoin treasury stocks also declined, with Metaplanet (3350) down 9% and Nakamoto (NAKA) off 12% following the completion of its merger with KindlyMD to form a new bitcoin treasury entity.

Breaking from the…