CoinVoice has recently learned that Ledn co-founder and CEO Adam Reeds believes recent market dynamics indicate that digital asset treasury companies that 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 threefold returns may be disappearing. Over the past five years, MicroStrategy has increased by 24 times, while Bitcoin has risen by 10 times, making such excess returns difficult to reproduce.
Adam Reeds believes that signs over the past week show that the crypto treasury craze, primarily modeled after Strategy, is cooling off. The total market capitalization of DAT companies has dropped below $150 billion, while the cumulative market cap of Bitcoin treasuries has declined from $165 billion a month ago to $134 billion (despite Bitcoin's relatively stable price). The share price of Strategy has also fallen from its July high of $455 to $359 this Friday, and the share price of the Japanese listed company Metaplanet has dropped over 30% this month.
Adam Reeds points out: “What is truly fading is the ability to create unique value propositions. Most DAT company CEOs claim their sole goal is to enhance the per-share cryptocurrency holdings, but it remains unknown whether they possess unique management teams and whether they have excellent capital operation capabilities.” [Original link]
