Crypto’s Big-Money Backers Hit Hard as Stock Premiums Plunge

Core Insights - The cryptocurrency market is experiencing significant downturns, with Bitcoin falling below $100,000 for the first time since June, impacting digital-asset treasury firms (DATs) and leading to substantial losses for retail investors [2][3] - An oversupply of DATs, reduced retail and institutional demand, and intense competition for trading capital are disrupting the previously positive cycle of the crypto rally [3] - Charismatic executives in the crypto space have relied on confidence-driven models to attract investment, but as market conditions deteriorate, this confidence is rapidly eroding [4] Company and Industry Analysis - The average value of tokens held by DATs is now nearly equal to their combined market capitalization and debt, a significant decline from earlier in the year when these holdings provided a stronger buffer [2] - Companies like Nakamoto Holdings Inc. have seen their stock prices plummet from highs of $35 to under a dollar, reflecting the broader market challenges [4] - Firms such as Metaplanet Inc. and Sequans Communications S.A. are taking drastic measures, including share buybacks and selling Bitcoin to manage debt, indicating a shift in strategy amid market pressures [5][6]