Bitcoin treasury firms are entering a “Darwinian phase” as equity premiums collapse, leverage turns into downside and DAT stocks flip to discounts, Galaxy warns. Bitcoin treasury companies are entering a “Darwinian phase” as the core mechanics of their once-booming business model break down, according to a new analysis from Galaxy Research. The report said that the digital asset treasury (DAT) trade has reached its natural limit as equity prices fell below Bitcoin (BTC) net asset value (NAV), causing the issuance-driven growth loop to reverse and turning leverage into a liability. That breaking point arrived as Bitcoin dropped from its October peak near $126,000 to lows around $80,000, triggering a sharp contraction in risk appetite and draining liquidity across the market. The October 10 deleveraging event accelerated the shift, wiping out open interest across futures markets and weakening spot depth. Read more
The physical Bitcoin collectibles were minted when Bitcoin was trading for just $3.88 and $11.69 each, marking a massive potential return. Two long-dormant Casascius coins — each backed by 1,000 Bitcoin — have just been activated as of Friday, unlocking more than $179 million stashed away for more than 13 years. Onchain data indicates that one of the Casascius coins was minted in October 2012, when Bitcoin was trading for $11.69. The other was minted earlier in December 2011, when Bitcoin was valued at only $3.88, giving that Casascius coin a theoretical return of about 2.3 million percent, not including the cost of minting. Read more
Strive CEO Matt Cole has urged the MSCI to “let the market decide” whether they want to include Bitcoin-holding companies in their passive investments. Nasdaq-listed Strive, the 14th-largest publicly-listed Bitcoin treasury firm, has urged MSCI to reconsider its proposed exclusion of major Bitcoin holding companies from its indexes. In a letter to MSCI’s chairman and CEO, Henry Fernandez, Strive argued that excluding companies whose digital asset holdings comprise more than 50% of total assets would reduce passive investors’ exposure to growth sectors and would fail to capture companies it intends to. Losing a spot in MSCI indexes could be a significant blow to digital asset treasury firms. JPMorgan analysts had earlier warned that Strategy, a Bitcoin treasury firm listed in the MSCI World Index, could lose $2.8 billion if MSCI moves ahead with the proposal. Read more
Strategy CEO Phong Le said his firm raised 21 months of dividend runway in just eight days to head off investor unease. Strategy CEO Phong Le said part of the reason for establishing a $1.44 billion USD reserve was to alleviate investor concerns over the company’s health amid a Bitcoin slump. “We’re very much are a part of the crypto ecosystem and Bitcoin ecosystem. Which is why we decided a couple of weeks ago to start raising capital and putting US dollars on our balance sheet to get rid of this FUD,” said Le during CNBC’s Power Lunch on Friday. On Monday, Strategy announced the $1.44 billion US dollar reserve, funded through a stock sale. The reserve is intended to maintain an amount sufficient to cover at least 12 months of dividends, and will eventually expand to cover a runway of 24 months, the firm said. Read more