With the exception of Strategy, all Digital Assets Treasuries (DATs) are now in the red. Even for the leader, unrealized gains are now negligible. A look back at this bloodbath.
Digital Assets Treasuries are almost all in the red
Last year, crypto treasuries experienced considerable growth, in the wake of Strategy’s apparent success and the hype surrounding a hypothetical Bitcoin (BTC) reserve promised by Donald Trump in the United States.
While over the months we warned about the hype surrounding the announcements, the debt taken on by these companies, and the diversity of altcoins promoted, reality eventually took over from the euphoria, and many of these companies ultimately saw their share prices fall on the stock market as quickly as they had risen.
What’s more, all of the major Digital Assets Treasuries are now showing unrealized losses on their investments, with the exception of Strategy, whose bitcoin holdings show an unrealized gain of $52.5 million:
As the chart above shows, Bitmine is currently the company in the most trouble, with $6.8 billion in unrealized losses on its more than 4.28 million ETH in stock, although its CEO Tom Lee continues to put on a brave face.
While the major DATs have not yet closed their positions, this possibility still raises questions, as investors could hold companies that have adopted this model accountable or, at the very least, stop financing their debt. This could lead to sales if these companies are no longer able to settle their current operations.
At present, it should be noted that Strategy holds 3.4% of the BTC supply, while Bitmine owns 3.55% of the ETH in circulation.
Since its all-time high (ATH) on October 6, BTC has seen its price fall by 39.5%. At the same time, Strategy’s MSTR stock has plummeted by more than 63%. Meanwhile, while ETH has lost 53.9% since its ATH in August, Bitmine’s BMNR stock has fallen by 57.5%.
