FT warns of collapse risk for firms with crypto treasury strategies

Concerns are growing about the potential collapse of companies with digital asset treasury (DAT) strategies as the cryptocurrency market undergoes a correction, the Financial Times (FT) reported. According to the report, these firms have recently been selling large amounts of their token holdings to prevent their stock prices from falling. Strategy, the world's largest corporate BTC holder, has seen its stock price drop 50% over the past three months, leading a broader decline among such companies. The FT explained that this raises concerns about the viability of the DAT business model, which relies on rising crypto prices and large-scale stock and bond issuance. In connection with this, Adam Morgan McCarthy, a senior researcher at Kaiko, noted that these companies will face even greater selling pressure ahead and that the situation could worsen. He warned that if prices begin to fall, it could trigger competitive selling as firms race to sell off their holdings first.