Crypto treasury model weakened as stock premiums decline

VERA Brief

AI-generated. Grounded in the article and its cited sources.

A prominent crypto treasury model is less effective because stock premiums have declined. Consequently, most Digital Asset Treasuries now trade below the value of their underlying crypto assets.

Key facts

• A crypto treasury model is experiencing reduced effectiveness.
• This is due to a decline in stock premiums.
• Most Digital Asset Treasuries now trade below the value of their underlying crypto assets.
• This financing mechanism has supported balance sheet expansion for crypto companies.
• The weakening of this mechanism could impact company growth strategies.