According to Deep Tide TechFlow news, on August 23, Ledn co-founder and CEO Adam Reeds believes that recent market dynamics indicate that digital asset treasury companies, which are keen on hoarding coins, are facing a turning point.
Adam Reeds stated that Bitcoin treasury companies were once a revolutionary innovation in the industry, but the ability to achieve 3x returns may be fading. Over the past five years, MicroStrategy has increased by 24 times, while Bitcoin has increased by 10 times, making such excess returns difficult to replicate.
Adam Reeds believes that continued signs over the past week show that the craze for crypto treasury companies, primarily following the Strategy model, is cooling down. The total market capitalization of DAT companies has dropped below $150 billion, and the cumulative market capitalization of Bitcoin treasuries has fallen from $165 billion a month ago to $134 billion (despite Bitcoin's price being relatively stable). The stock price of Strategy has also fallen from a peak of $455 in July to $359 this Friday, and the stock price of the Japanese listed company Metaplanet has dropped over 30% in the past month.
Adam Reeds pointed out: "What is truly fading is the ability to create unique value propositions. Most CEOs of DAT companies claim that their only goal is to increase the per-share cryptocurrency holdings, but it is unknown whether they have unique management teams and whether they possess exceptional capital operation capabilities."
