Viewpoint: The Crypto Treasury Company Craze is Fading, Excess Returns Hard to Replicate
By: theblockbeats.news|2025/08/23 10:42:16
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BlockBeats News, August 23rd, Ledn co-founder and CEO Adam Reeds believes that recent market dynamics indicate that the fervor for coin hoarding among digital asset treasury companies is facing a turning point.
Adam Reeds said that Bitcoin treasury companies were once a revolutionary innovation in the industry, but the ability to achieve a 3x return may be disappearing. Over the past five years, MicroStrategy has seen a 24x increase, while Bitcoin has seen a 10x increase, making it difficult to replicate such excess returns.
Adam Reeds believes that signs of the past week show that the crypto treasury fever, mainly following the Strategy model, is cooling down. The total market value of DAT companies has fallen below $150 billion, and the cumulative market value of the Bitcoin treasury has dropped from $165 billion a month ago to $134 billion (despite Bitcoin's price being relatively stable). Strategy's stock price has also fallen from a high of $455 in July to $359 this Friday, with Japan-listed company Metaplanet seeing a monthly drop of over 30% in its stock price.
Adam Reeds pointed out: "What is truly waning is the ability to create a unique value proposition. Most DAT company CEOs claim that their sole goal is to increase the cryptocurrency holdings per share, but it is unknown whether they have a unique management team or possess excellent capital operation capabilities."
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