Newsletter: Crypto’s latest “infinite money machine” is the digital asset treasury company — a publicly traded firm that exists primarily to accumulate crypto. For a while, these stocks traded at hefty premiums to the underlying assets. But now, the trade is unraveling.
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Digital asset treasury companies are running out of steam
Convincing traders to pay $2 for $1 of bitcoin worked — for a while. As premiums evaporate, an unwind could be painful.Molly White (Citation Needed)
Molly White
Unknown parent • • •This is a scary trend. If crypto prices don’t rebound, DATCOs could be forced to sell their crypto, dragging the market down even further. Galaxy Digital researchers have compared the model, and its potential unwind, to the 1920s investment trust boom and bust.
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Molly White
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