Cryptocurrency Treasury Firms Face Challenges Amid Market Decline

According to BlockBeats, the Financial Times reports that cryptocurrency treasury firms are selling off their token holdings to support declining stock prices as the cryptocurrency market experiences a downturn. The once-booming 'digital asset treasury' business is rapidly unraveling. Led by Michael Saylor, Strategy Company, the world's largest corporate holder of Bitcoin, has seen its stock price drop by 50% over the past three months, causing a ripple effect among other cryptocurrency treasury firms. With the company's market value now below the value of its Bitcoin holdings, investors are concerned that the business model, which relies on rising cryptocurrency prices and extensive equity and debt issuance, is on the verge of collapse. Adam Morgan McCarthy, a senior research analyst at cryptocurrency data firm Kaiko, stated, "These companies will experience a wave of sell-offs, and the situation will only worsen. It's a vicious cycle; once prices start to fall, it becomes a race to the bottom."