Analyst: Crypto Treasury Co. May See a Sell-off Wave, Enter a Vicious Cycle

By: theblockbeats.news|2025/11/26 05:45:51
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BlockBeats News, November 26th, according to the Financial Times, as cryptocurrency prices plummet, crypto treasury companies are actively selling their held tokens to support their falling stock prices, and the "digital asset treasury" trend is rapidly unraveling.

Strategy, led by Michael Saylor, is the world's largest corporate Bitcoin holder, with its stock price having fallen 50% in the past three months, leading to a simultaneous drop in the stock prices of many crypto treasury companies. With Saylor's company's market value now below the value of its held Bitcoin, investors are concerned that this business model, which relies on cryptocurrency price appreciation and a substantial amount of equity and debt issuance forming a virtuous cycle, is facing a collapse.

Adam Morgan McCarthy, Senior Research Analyst at crypto data company Kaiko, said: "These companies will experience a wave of sell-offs, and the situation will only get worse. This is a vicious cycle, where once the price starts to drop, it becomes a vicious cycle of competing price pressure."

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