Bloomberg: Strategy model frustrated, crypto craze turns to question

BlockBeats News, September 10, Bloomberg reported that most of the more than 100 companies that purchased cryptocurrencies for their treasury were established this year, many of which were small companies that recently changed their name overnight. Still, the crypto craze has not yet completely subsided, and some companies are still benefiting from the wave of speculation. Eightco Holdings Inc. shares soared 3,000% on Monday after it unveiled plans to buy Worldcoin and appointed Wall Street analyst Dan Ives to the board. For some companies, the appeal is obvious: the publicly-owned company packaging can provide cryptocurrency exposure and potential leverage returns while using stock formats that investors are familiar with. In some cases, this model can still achieve a higher premium. But this trading method is becoming crowded: too many companies are flocking in, with little value except tokens held, and as prices fall, confidence in supporting these premiums begins to shake. New data suggest that this model may be losing momentum due to its own load—not only in market sentiment, but also in the actual speed of Bitcoin purchases. Strategy and its Japanese counterpart Metaplanet Inc., the two most well-known digital asset treasury (DAT) companies, have also seen recent declines after their share prices surged in the past year, suggesting that even market leaders are not immune to the impact of emotional changes. Some insiders have begun to discuss potential integration, especially as weak companies continue to struggle and strong companies begin to regard their peers' token holdings as acquisition targets. Whether this new financing ecosystem can maintain this model or just delay its decline is unclear. At present, the next stage may not be a dramatic collapse, but a gradual recession - the stock price slowly declines and token purchases stagnate.