According to ChainCatcher, 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 threefold returns may be fading. Over the past five years, MicroStrategy has risen 24 times, while Bitcoin has increased tenfold, making it difficult to replicate such excess returns.
Adam Reeds believes that the signs of a week-long trend indicate that the crypto treasury craze, primarily imitating the Strategy model, is cooling down. The total market value of DAT companies has fallen below $150 billion, and the cumulative market value of Bitcoin treasuries has dropped from $165 billion a month ago to $134 billion (despite Bitcoin's price remaining relatively stable). The stock price of Strategy has also decreased from a high of $455 in July to $359 this Friday, and the stock price of the Japanese listed company Metaplanet has fallen more than 30% this month.
Adam Reeds points out: "What is truly receding is the ability to create unique value propositions. Most CEOs of DAT companies claim that their only goal is to increase the amount of cryptocurrency per share, but it is unknown whether they have unique management teams and whether they possess excellent capital operation capabilities."
