Digital Asset Treasury Firms Drop Amid Bitcoin and Ethereum Declines
Digital asset treasury firms experienced significant sell-offs as the August crypto rally showed signs of exhaustion.
- Strategy (MSTR) fell 3% on Friday, down 20% since July’s high and 33% from its all-time high in November 2024.
- The MSTR/IBIT ratio dropped to 5.43, the lowest since March, indicating underperformance against BlackRock’s iShares Bitcoin Trust (IBIT).
- Metaplanet (3350) declined 9%, and Nakamoto (NAKA) was down 12% following its merger with KindlyMD.
- KULR Technology (KULR) gained over 5% after reporting a 63% year-over-year revenue growth.
- Ethereum-heavy firms faced larger losses: Bitmine Immersion Technologies fell 7%, SharpLink Gaming dropped 14%.
- Solana-focused companies also declined, with Upexi (UPXI) down over 9% and DeFi Development (DFDV) down 5%.
BTC, ETH, SOL rally cools
- Bitcoin (BTC) slid below $117,000, reversing from a spike to $124,000.
- Ether (ETH) fell back, now holding just above $4,400 after challenging its record high above $4,800.
- Most crypto-related stocks were lower, with Riot Platform and Galaxy (GLXY) down around 8%. Coinbase (COIN) decreased by 1.6%, while Circle (CRCL) rose by 3.5% following a successful secondary share offering.
DATs raise funds through equity and debt sales to accumulate cryptocurrencies, experiencing higher volatility in correlation with market trends.