Analyst: Cryptocurrency treasury companies may face a wave of dumping, falling into a vicious cycle.

On November 26, according to the Financial Times, as Crypto Assets experience a big dump, crypto treasury companies are scrambling to sell their holdings tokens to support their falling stock prices, and the “digital asset treasury” business boom is rapidly collapsing. Strategy, led by Michael Saylor, is the world's largest corporate Bitcoin holder, and its stock price has fallen by 50% over the past three months, dragging down the stock prices of many crypto treasury companies in unison. As Saylor's company's market capitalization has fallen below the value of its held Bitcoin, investors are concerned that this business model, which relies on the rise of Crypto Assets prices and a virtuous cycle of significant equity and debt issuance, is facing collapse. Adam Morgan McCarthy, a senior research analyst at crypto data company Kaiko, stated: “These companies will experience a wave of dumping, and the situation will only get worse. This is a vicious cycle; once prices start to fall, it becomes a race to cut prices.”