Last Friday was a tough day for crypto investors. Bitcoin, Ether, and Solana all saw their prices drop. This slide didn’t just hit the coins themselves. It also dragged down the stock prices of companies that hold large amounts of these digital assets.
These businesses, often called Digital Asset Treasury (DAT) firms, build their balance sheets with cryptocurrencies. They raise money by selling shares and issuing debt. Then, they use that cash to buy digital currencies. Think of them as a magnifying glass for the crypto market. When crypto prices soar, their stocks fly even higher. But when crypto takes a hit, these companies feel the pain much more acutely, as recent market reports confirm. These companies, with their crypto treasuries, are much more sensitive to market shifts.
Companies Caught in the Crypto Downpour
Michael Saylor’s company, Strategy (MSTR), is a prime example. Its stock fell 3% on Friday alone. This brings its total drop to 20% since its July peak. From its all-time high in November 2024, the stock is down a full 33%. Strategy’s performance against BlackRock’s iShares Bitcoin Trust (IBIT) also suffered. The MSTR/IBIT ratio hit 5.43, its lowest point since March. This shows Strategy’s stock performing worse than the popular Bitcoin fund, going back to early-year levels.
Other firms also took a beating. Metaplanet (3350) saw its stock dip 9%. Nakamoto (NAKA) fared worse, dropping 12%. This happened right after Nakamoto completed its merger with KindlyMD, forming a new company focused on holding Bitcoin.
Companies with heavy exposure to Ethereum faced even steeper losses. Bitmine Immersion Technologies stock went down 7%. SharpLink Gaming (SBET) plunged 14% in the first hours of trading.
Firms focused on Solana weren’t spared either. Upexi (UPXI) gave up over 9% of its value. DeFi Development (DFDV) saw a 5% loss.
This widespread sell-off in company stocks matched the crypto market’s decline. Bitcoin (BTC) slipped below $117,000. This continued its drop from a brief high of $124,000 reached just the day before. Ether (ETH) also fell from its record above $4,800, settling just above $4,400.
One Company Swims Upstream
Despite the tough market, one company stood out with positive news. KULR Technology (KULR) went against the trend, rising more than 5%. The company reported a 63% jump in revenue for its second quarter compared to last year. This marks their biggest revenue increase ever. KULR credits this success to its “Bitcoin-first” balance sheet strategy. This approach prioritizes holding Bitcoin as a main asset.
The DAT Firm Model: A High-Wire Act
It’s worth understanding how these Digital Asset Treasury (DAT) companies work. They aim to attract money from investors by selling shares and bonds. Then, they use these funds to buy cryptocurrencies. Michael Saylor popularized this strategy. It makes these firms highly sensitive investment vehicles. They can greatly boost returns when the market is up. But they also see much sharper falls when crypto prices correct. It’s a high-stakes game that offers amplified gains and amplified risks.
Looking at the broader market, most crypto-related stocks also closed lower. Riot Platform, a Bitcoin mining company, dropped about 8%. Galaxy Digital (GLXY), a large digital asset firm, also gave up around 8%. Coinbase (COIN), a major crypto exchange, fell 1.6%. However, Circle (CRCL) was an exception, rising 3.5% after successfully completing a secondary stock offering.