Digital asset treasury companies are running out of steam

Digital asset treasury companies (DATCOs), which hold crypto on their balance sheets and trade on public markets, are losing the premiums that once made them attractive, and the article warns that a forced unwind could be painful. MicroStrategy, now called Strategy, holds more than 650,000 bitcoin worth over $50 billion, yet its stock is down 60% and it has been trading at a narrowing premium. Nakamoto has fallen 98%, and many DATCOs now trade at a discount to their holdings. The author links the risk to debt maturities and forced sales, comparing it to the 1920s investment trust boom, as cited from Galaxy Digital researchers.