TechFlow news, on August 8, according to Jinshi Data, the frenzy of listed companies transforming into cryptocurrency-buying machines has reached a fever pitch, with even executives supporting such transactions warning that it could impact digital asset prices.
Data from consulting firm Architect Partners shows that so far, so-called Digital Asset Treasuries (DATs) have announced plans to raise $79 billion by 2025 for Bitcoin purchases. However, the trend of buying sprees extending to smaller tokens, along with the sheer volume of such initiatives, is making market participants uneasy. There are concerns that a sharp price reversal might prompt some entities to sell off their altcoin holdings, thereby exacerbating the sell-off.
Executives say one potential trigger for such a sell-off could be a significant drop in DAT stock prices, causing their market capitalization to fall substantially below net asset value. Akshat, head of family office Maelstrom, said: “I believe the collapse of major DATs would trigger a domino effect, bringing an end to this bull cycle.”
